Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 33

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 33
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may incur significant debt to finance our operations.

There
is no assurance that the Company will not incur debt in the future, that it will have sufficient funds to repay its indebtedness, or
that the Company will not default on its debt, jeopardizing its business viability. Furthermore, the Company may not be able to borrow
or raise additional capital in the future to meet the Company’s needs or to otherwise provide the capital necessary to conduct
its business.

The
Company has not established consistent methods for determining the consideration paid to management.

The
consideration being paid by the Company to its CEO, Ms. Bentley, has not been determined based on arm’s length negotiation. While
management believes that Ms. Bentley’s current compensation arrangement is fair for the work being performed, there is no assurance
that the consideration to management reflects the true market value of her services. Additionally, in the future, the Company may grant
net profits interests to its executive officers in addition to stock options, which may further dilute shareholders’ ownership
of the Company.

In
the course of business, the Company may incur expenses beyond what was anticipated.

Unanticipated
costs may force the Company to obtain additional capital or financing from other sources or may cause the Company to lose its entire
investment in the Company if it is unable to obtain the additional funds necessary to implement its business plan. There is no assurance
that the Company will be able to obtain sufficient capital to implement its business plan successfully. If a greater investment is required
in the business because of cost overruns, the probability of earning a profit or a return of shareholder investment in the Company is
diminished.

The
Company will rely on management to execute the business plan and manage the Company’s affairs.

Under
applicable state corporate law and the By-Laws of the Company, the officers and directors of the Company have the power and authority
to manage all aspects of the Company’s business. Shareholders must be willing to entrust all aspects of the Company’s business
to its directors and executive officers.

26

There
is no assurance the Company will always have adequate capital to conduct its business.

The
Company will have limited capital available to it. If the Company’s entire original capital is fully expended and additional costs
cannot be funded from borrowings or capital from other sources, then the Company’s financial condition, results of operations and
business performance would be materially adversely affected.

We
may encounter difficulties managing any growth, and if we are unable to do so, our