Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 32

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 32
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 of our common stock, which likely would make it difficult
for our shareholders to sell their securities.

25

Penny
stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities
exchanges or quoted on the NASDAQ system). Penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise
exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks
in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value
of each penny stock held in the customer’s account. The broker-dealer must also make a special written determination that the penny
stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These requirements
may have the effect of reducing the level of trading activity, if any, in the secondary market for a security that becomes subject to
the penny stock rules. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting
transactions in our securities, which could severely limit their market price and liquidity of our securities. These requirements may
restrict the ability of broker-dealers to sell our common stock and may affect your ability to resell our common stock.

We
Have No Plans to Pay Dividends.

To
date, we have paid no cash dividends on our common shares. For the foreseeable future, earnings generated from our operations will be
retained for use in our business and not to pay dividends.

We
may be unable to effectively implement our business model and expand.

Our
business model and growth and marketing strategy is predicated on its ability to introduce our products and services to the market. We
cannot assure that we will be able to execute our business plan, introducing our products and services into new markets, that customers
will embrace our products compared to competing products and services already well established in those markets, that any of the target
markets will adopt our products and services, or that prospective customers will agree to pay the prices for our products and services
in those new markets we plan to charge. In the event prospective customers resist our products and services and paying the prices we
will charge, the Company’s business, financial condition, and results of operations will be materially and adversely affected.

We