Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 174

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1B
Chunk 174
---
 the issuance of such securities
may result in dilution to existing stockholders. If additional funds are raised through the issuance of debt securities, these securities
may have rights, preferences and privileges senior to holders of common stock and the terms of such debt could impose restrictions on
our operations. Regardless of whether our cash assets prove to be inadequate to meet our operational needs, we may seek to compensate
providers of services by issuance of stock in lieu of cash, which may also result in dilution to existing shareholders. Even if we are
able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts
owed to us, or experience unexpected cash requirements that would force us to seek alternative financing.

40

No
assurance can be given that sources of financing will be available to us and/or that demand for our equity/debt instruments will be sufficient
to meet our capital needs, or that financing will be available on terms favorable to us. If funding is insufficient at any time in the
future, we may not be able to take advantage of business opportunities or respond to competitive pressures or may be required to reduce
the scope of our planned marketing efforts and development of various swimwear styles, any of which could have a negative impact on our
business and operating results. In addition, insufficient funding may have a material adverse effect on our financial condition, which
could require us to: 1) Limit the production of a select swimwear designs, 2) Seek strategic partnerships that may force us to relinquish
control of the Company, or 3) Explore potential mergers or sales of significant assets of our Company.

On
January 13, 2025, the Company announced it is actively pursuing a capital raise of a minimum $5 million USD to accredited investors through
a series of tranches subject to satisfaction of closing conditions. The Company expects to enter into an Equity Financing Agreement in
the coming weeks with more disclosure regarding pricing and conditions.

The
Company intends to use the net proceeds from the private placement primarily for costs directly related to sales and marketing, for research
and development, working capital and general corporate purposes, including the costs of operating as a public company. The intent of
the capital raise is to begin to position the Company to meet the uplist requirements to Nasdaq.

The
Company believes there are many advantages to uplisting from the OTCQB to Nasdaq. Key benefits may include increased visibility and credibility,
access to capital, increased trading volume