Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 102

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 102
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 our common stock, the liquidity for the common
stock could be significantly impacted thus causing you to realize a loss on your investment.

We
may issue shares of preferred stock in the future that may adversely impact your rights as holders of our common stock.

Because
our directors, Ms. Bentley and Mr. Starkman, own a majority of our outstanding common stock, they could authorize our Board of Directors
to determine the relative rights and preferences of preferred shares without further stockholder approval. As a result, our Board of
Directors could then authorize the issuance of a series of preferred stock that would grant to holders preferred rights to our assets
upon liquidation, the right to receive dividends before dividends are declared to holders of our common stock, and the right to the redemption
of such preferred shares, together with a premium, prior to the redemption of the common stock. To the extent that we do issue shares
of preferred stock, your rights as holders of common stock could be impaired thereby, including, without limitation, dilution of your
ownership interests in us. In addition, shares of preferred stock could be issued with terms calculated to delay or prevent a change
in control or make removal of management more difficult, which may not be in your interest as a holder of common stock.

We
may seek to raise additional funds, finance acquisitions or develop strategic relationships by issuing capital stock.

We
may finance our operations and develop strategic relationships by issuing equity or debt securities, which could significantly reduce
the percentage ownership of our existing stockholders. Furthermore, any newly issued securities could have rights, preferences and privileges
senior to those of our existing stock. Moreover, any issuances by us of equity securities may be at or below the prevailing market price
of our stock and in any event may have a dilutive impact on your ownership interest, which could cause the market price of our stock
to decline.

We
have used an arbitrary offering price.

The
private placement price of $0.10 per share of common stock was arbitrarily determined by the Company and is unrelated to specific investment
criteria, such as the assets or past results of the Company’s operations. In determining the offering price, the Company considered
such factors as the prospects, if any, of similar companies, the previous experience of management, the Company’s anticipated results
of operations, and the likelihood of acceptance of this offering.

28

There
may be deficiencies with our internal controls that require improvements, and if we are unable to adequately evaluate internal controls,
we may be