LSEB Creative Sales Soar 411%, But Going Concern Looms Amid Cash Crunch

Ticker: LSEB · Form: 10-Q · Filed: Nov 19, 2025 · CIK: 1888740

Sentiment: mixed

Topics: Luxury Swimwear, Going Concern, High Growth, Liquidity Risk, Startup Finance, E-commerce, Fashion Retail

Related Tickers: LSEB

TL;DR

**LSEB's sales are exploding, but they're burning cash faster than they're making it – this is a high-risk, high-reward bet on a turnaround.**

AI Summary

LSEB Creative Corp. reported a significant increase in sales for the quarter ended September 30, 2025, reaching $13,168, up from $2,574 in the same period of 2024, representing a 411% increase. Despite this revenue growth, the company continues to face substantial financial challenges, reporting a net loss of $11,513 for the quarter, an improvement from the $49,560 net loss in Q3 2024. For the six months ended September 30, 2025, the net loss was $22,815, a considerable reduction from $87,336 in the prior year. The company's total operating expenses decreased significantly to $21,047 for the quarter, down from $52,773 in Q3 2024, primarily due to a sharp drop in consulting expenses from $21,713 to $91 and legal & professional fees from $15,915 to $6,228. LSEB Creative Corp. maintains a 'going concern' warning due to accumulated losses and dependence on external financing, with cash balances at a critically low $640 as of September 30, 2025. Management is actively seeking additional financing through private placements, convertible debentures, or shareholder loans to support operations and growth initiatives.

Why It Matters

LSEB Creative's impressive 411% sales growth signals potential market traction for its luxury swimwear, which could attract new investors looking for high-growth, niche fashion plays. However, the persistent 'going concern' warning and critically low cash balance of $640 present a significant red flag, indicating a high risk of insolvency without immediate capital injection. Competitors in the luxury swimwear market might view LSEB's sales increase as a sign of emerging competition, while employees and suppliers face uncertainty regarding the company's long-term viability. Investors must weigh the strong revenue performance against the severe liquidity issues and the company's reliance on future financing, which could dilute existing shareholder value.

Risk Assessment

Risk Level: high — The company explicitly states a 'going concern' warning due to accumulated losses and dependence on external financing, with a cash balance of only $640 as of September 30, 2025. This extremely low cash position, coupled with a total stockholders' deficiency of $16,680, indicates a severe liquidity crisis and substantial doubt about its ability to continue operations without immediate capital infusion.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Before investing, demand clear evidence of successful financing rounds that significantly bolster the cash position and address the 'going concern' risk. Monitor closely for announcements regarding new capital raises or strategic partnerships, as the current financial state is unsustainable.

Financial Highlights

debt To Equity
N/A
revenue
$13,168
operating Margin
-80.7%
total Assets
$183,119
total Debt
$166,439
net Income
($11,513)
eps
($0.0007)
gross Margin
79.1%
cash Position
$640
revenue Growth
+411%

Revenue Breakdown

SegmentRevenueGrowth
Total Sales$13,168+411%

Key Numbers

Key Players & Entities

FAQ

What were LSEB Creative Corp.'s sales for the quarter ended September 30, 2025?

LSEB Creative Corp. reported sales of $13,168 for the quarter ended September 30, 2025. This represents a significant increase from $2,574 in the same quarter of the previous year.

What is LSEB Creative Corp.'s current cash position?

As of September 30, 2025, LSEB Creative Corp. had a cash balance of $640. This is a decrease from $858 at March 31, 2025, highlighting severe liquidity constraints.

Why does LSEB Creative Corp. have a 'going concern' warning?

LSEB Creative Corp. has a 'going concern' warning due to accumulated losses and its dependence on raising additional financing to meet its liabilities and continue operations. The company's ability to survive is contingent on securing new funding.

How did LSEB Creative Corp.'s net loss change year-over-year for the quarter?

For the quarter ended September 30, 2025, LSEB Creative Corp.'s net loss was $11,513, a substantial improvement from the $49,560 net loss reported in the quarter ended September 30, 2024.

What are LSEB Creative Corp.'s plans to address its financing needs?

LSEB Creative Corp. management is actively targeting sources of additional financing, including private placements, convertible debentures, or loans from shareholders, to fund its operations and growth initiatives.

What is LSEB Creative Corp.'s primary business focus?

LSEB Creative Corp. is a specialty retailer focused on elevated swimwear designs for men and women, emphasizing coordinating items, noteworthy fabrics, and 'ready-to-wear' inspired designs, operating through lsebcreative.com and laurenbentleyswim.com.

Did LSEB Creative Corp. issue new shares during the quarter?

No, LSEB Creative Corp. did not issue new common shares during the quarter ended September 30, 2025. The number of common shares outstanding remained at 16,376,300.

How did operating expenses change for LSEB Creative Corp.?

Total operating expenses for LSEB Creative Corp. decreased significantly to $21,047 for the quarter ended September 30, 2025, down from $52,773 in the same period of 2024, largely due to reduced consulting and legal fees.

What is the significance of the 'Advances from a related party' on LSEB Creative Corp.'s balance sheet?

The 'Advances from a related party' balance increased to $122,557 as of September 30, 2025, from $116,596 at March 31, 2025. This indicates the company's ongoing reliance on related party financing to support its operations.

What is LSEB Creative Corp.'s accumulated deficit?

As of September 30, 2025, LSEB Creative Corp.'s accumulated deficit was $737,360, an increase from $714,545 at March 31, 2025, reflecting continued losses.

Risk Factors

Industry Context

LSEB Creative Corp. operates in the specialty retail sector, focusing on luxury swimwear. The fashion industry is highly competitive, driven by trends, brand perception, and consumer spending on discretionary items. The e-commerce segment of fashion retail has seen significant growth, but also intense competition and pressure on margins.

Regulatory Implications

As a publicly traded company, LSEB Creative Corp. is subject to SEC regulations and US GAAP reporting standards. The 'going concern' disclosure is a critical regulatory requirement, alerting investors to significant financial uncertainties. Compliance with tax regulations, particularly for international operations (e.g., GST/HST in Canada), is also relevant.

What Investors Should Do

  1. Monitor financing efforts closely.
  2. Analyze the sustainability of revenue growth.
  3. Evaluate cost management strategies.
  4. Assess the impact of the low cash balance.

Key Dates

Glossary

Going Concern
An accounting assumption that a company will continue to operate for the foreseeable future, without the intention or need for liquidation or to otherwise cease trading. (The company's ability to continue as a going concern is in doubt due to accumulated losses and dependence on external financing.)
Stockholders' Deficiency
A situation where a company's total liabilities exceed its total assets, resulting in negative equity. (LSEB Creative Corp. has a stockholders' deficiency of $16,680, indicating its liabilities outweigh its assets.)
Accumulated Deficit
The cumulative net losses of a company since its inception that have not been offset by net income. (The company has an accumulated deficit of $737,360 as of September 30, 2025, reflecting its history of net losses.)
Private Placement
The sale of securities directly to a small group of institutional or sophisticated investors, rather than through a public offering. (Management is actively seeking additional financing through private placements to support operations.)
Convertible Debenture
A type of bond that can be converted into shares of common stock in the issuing company at a specified price. (Management is exploring convertible debentures as a source of additional financing.)
Net Realizable Value
The estimated selling price of an inventory item in the ordinary course of business, less all estimated costs of completion and costs to sell. (Inventory is valued at the lower of cost and net realizable value; LSEB has no obsolescence or damage provisions as of September 30, 2025.)
Weighted Average Number of Common Shares Outstanding
The number of common shares outstanding during a period, adjusted for the time they were outstanding, used in EPS calculations. (This figure is used to calculate basic and diluted loss per share, showing an increase from the prior year period.)
Related Party Transaction
A transaction between entities that are related by common ownership or control, or by common management. (The company relies on advances from a related party, which increased in the current period.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, LSEB Creative Corp. has demonstrated a remarkable 411% increase in sales, from $2,574 to $13,168. This revenue surge has led to a significant reduction in net loss, from $49,560 to $11,513 for the quarter. Operating expenses have also been drastically cut, particularly consulting and legal fees. However, the company's financial precariousness persists, with a critically low cash balance of $640 and a substantial stockholders' deficiency of $16,680, underscoring the ongoing 'going concern' risk.

Filing Stats: 4,487 words · 18 min read · ~15 pages · Grade level 14.2 · Accepted 2025-11-19 11:28:44

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements LSEB Creative Corp. Unaudited Consolidated Financial Statements For the Quarters ending September 30, 2025 and 2024 Table of contents Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Stockholders' Deficiency 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7-16 2 LSEB Creative Corp. CONSOLIDATED BALANCE SHEETS (Expressed in US dollars) September 30, March 31, 2025 2025 (Unaudited) (Audited) $ $ ASSETS Current assets Cash 640 858 Advances to suppliers – – Accounts Receivable – 8,067 Inventory 180,448 184,461 Prepayments and Other Receivables [Note 6] – – Total current assets 181,088 193,386 Non-current assets Equipment, net [Note 7] 2,031 2,374 Total assets 183,119 195,760 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities Accounts payable 31,669 20,835 Accrued liabilities 2,213 8,834 Loan from Shareholder 10,000 10,000 Advances from a related party [Note 8] 122,557 116,596 Total current liabilities 166,439 156,265 Stockholders' deficiency Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized, Nil preferred shares outstanding at September 30, 2025 (March 31, 2025: Nil ), – – Common stock, $ 0.0001 par value, 500,000,000 shares authorized, 16,376,300 common shares outstanding as at September 30, 2025 (March 31, 2025: 16,376,300 ) [Note 10] 1,638 1,638 Additional paid-in capital [Note 10] 752,402 752,402 Accumulated deficit ( 737,360 ) ( 714,545 ) Total stockholders' deficiency 16,680 39,495 Total liabilities and stockholders' deficiency 183,119 195,760 See accompanying notes Going concern (Note 3) Related party transactions (Note 9) Contingencies and Commitments (Note 11) Subsequent events (Note 12) 3 LSEB Creative Corp. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in US dollars) For the For the For the For the Quarter ended Quarter ended Six months ended Six months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Sales 13,168 2,574 14,531 8,856 Cost of Goods Sold 2,749 1,061 2,987 3,701 Gross Profit 10,

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 1. NATURE OF OPERATIONS LSEB Creative Corp. was incorporated as "Profit Corporation" on April 3rd, 2019 under Wyoming State regulations with registered office at 1920 Thomes Ave Ste 610, Cheyenne, WY. On August 3, 2023, the Company incorporated its wholly-owned subsidiary 1000615000 Ontario Corp, an Ontario corporation, and on September 12, 2023 filed articles of amendment to changed its name to LSEB Creative Corp (Ontario). The purpose of the subsidiary is for GST/HST tax credits on importing goods into Canada. LSEB Creative Corp. is a specialty retailer that offers men and women elevated swimwear designs, constructed with the highest quality materials and techniques. Our product concept focuses on coordinating items within the men's and women's sub-categories, which allows customers the ability to coordinate with their partner. It's this concept, along with our noteworthy fabrics, construction techniques, and "ready-to-wear" inspired designs that will allow LSEB to capture a new space within the market. Its aim is to become a leading retailer in the global luxury fashion industry. The corporation is currently involved in concept, design, manufacturing, and distribution of its products with emphasis on its swimwear category. The Company operates under the web-site address lsebcreative.com and its e-commerce platform laurenbentleyswim.com which is complete, and the Company launched the brand in October 2023. 2. BASIS OF PRESENTATION, MEASUREMENT The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and are expressed in United States dollars ("USD"). The consolidated financial statements include the accounts of LSEB Creative Corp and its wholly-owned subsidiary. All intercompany balances and transactions have been eliminated.

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 4. INTERIM FINANCIAL STATEMENTS The accompanying consolidated financial statements of the Company should be read in conjunction with the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company's financial position and the results of its operations and its cash flows for the periods shown. The preparation of these financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year. 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash As of September 30, 2025, the Company had a cash balance of $ 640 (March 31, 2025: $ 858 ). Cash includes cash on hand and balances with banks. Reclassification Certain prior year amounts have been reclassified for comparative purposes to conform to the current year financial statement presentation. These reclassifications had no effect on previous reported results of operations. Leases At the lease commencement date, right-of-use ("ROU") assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term, which includes all fixed obligations arising from the lease contract. If an interest rate is not explicit in a lease, the Company utilizes its incremental borrowing rate for a period that closely matches the lease term. The Company has elected n

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued.) Loss Per Share The Company has adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") Topic 260-10 which provides for calculation of "basic" and "diluted" earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Diluted earnings per share exclude all potentially dilutive shares if their effect is anti-dilutive. There were no potentially dilutive shares outstanding as at each period end. Inventory Inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. The net realizable value is the estimated selling price in the ordinary course of business, less the cost of completion and selling expenses. As of September 30, 2025 the Company has $ 180,448 in inventory valued at cost. Inventory is finished goods excluding freight costs. The Company periodically reviews its inventories and makes a provision as necessary to appropriately value goods that are obsolete, have quality issues, or are damaged. The amount of the provision is equal to the difference between the cost of the inventory and its net realizable value based upon assumptions about product quality, damages, future demand, selling prices, and market conditions. If changes in market conditions result in reductions in the estimated net realizable value of its inventory below its previous estimate, the Company would increase its reserve in the period in which it made such a determination. In addition, the Company provides for inventory shrinkage based on

financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations

financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. 9 LSEB Creative Corp.

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued.) Fair Value of Financial Instruments ASC 820 defines fair value, establishes a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities. Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets. Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management's best estimate of what market participants would use as fair value. Fair Value of Financial Instruments In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair value estimates discussed herein are based upon certain market assumptions and

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued.) Income Taxes The Company accounts for income taxes in accordance with ASC 740. The Company provides for federal and provincial income taxes payable, as well as for those deferred because of the timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The effect of a change in tax rates is recognized as income or expense in the period of the change. A valuation allowance is established, when necessary, to reduce deferred income tax assets to the amount that is more likely than not to be realized. Revenue Recognition The Company recognizes revenue in accordance with ASC-606 by, identifying the contract(s) with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when the performance obligation is satisfied. Accordingly, the Company recognizes revenue when performance obligations under the terms of the contracts are satisfied. Our performance obligations primarily consist of delivering products to our customers. Control is transferred upon providing the products to customers upon shipment of our products to the consumers from our ecommerce sites. Once control is transferred to the customer, we have completed our performance obligation.

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued.) Recently Issued Accounting Pronouncements In June 2016, the FASB issued "ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The standard's main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. Update No. 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the potential impact of this ASU on its financial statements. In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022 and can be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The Company has not identified loans and other financial instruments that are directly or indirectly influenced by LIBOR and does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial In April 2021, the FASB issued ASU 2021-04 to codify the final consensus reached by the Emerging Issues Task Force (E

financial statements

financial statements. 12 LSEB Creative Corp.

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 6. PREPAYMENTS AND OTHER RECEIVABLES The prepayment represents the amount paid pursuant of a lease agreement executed with one of the directors for the commercial unit used as office space by the company. The current term of lease is approx. USD $ 800 (CAD $ 1,000 ) per month for 8 months starting from January 2022 with an option to extend it with mutual consent. The Company executed a Lease Extension Agreement for an additional 12 month period starting September 1, 2022 and ending August 31, 2023 for USD $800 (CAD $1,000) per month. On September 1, 2023 the Company executed a further 12 month extension ending August 31, 2024 for USD $800 (CAD $1,000) per month. On September 1, 2024 the Company executed a further 12 month extension ending August 31, 2025 for USD $800 (CAD $1,000) per month. 7. EQUIPMENT Schedule of equipment September 30, 2025 March 31, 2025 $ $ Cost Opening 5,692 5,692 Addition – – Disposal – – Closing 5,692 5,692 Accumulated Depreciation Opening 3,318 2,450 Depreciation 343 868 Closing 3,661 3,318 Net Book Value 2,031 2,374 13 LSEB Creative Corp.

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) For the Quarters Ending September 30, 2025 and 2024 8. ADVANCES FROM A RELATED PARTY & RELATED PARTY TRANSACTIONS These advances are from a shareholder of the Company. The amount is non-interest bearing, unsecured and due on demand. The carrying value of the

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