LSEB Creative Corp. SEC 10-K Report
LSEB Creative Corp., a specialty retailer in the luxury swimwear market, has released its Form 10-K report, detailing the company's financial and operational performance for the fiscal year. The report highlights the company's efforts to establish itself in a competitive market through innovative designs, high-quality materials, and strategic initiatives aimed at growth and market expansion.
Financial Highlights
Sales: $20,537. The launch of the new e-commerce platform, laurenbentleyswim.com, in October 2023 significantly contributed to the increase in sales.
Gross Profit: $11,912. This reflects the initial success of the e-commerce platform and product launch.
Net Income/(Loss) for the Year: $(160,011). The ongoing loss was primarily due to consulting expenses, professional fees, advertising and promotion, and travel expenses.
Loss Per Share, Basic and Diluted: $(0.01). This is consistent with the net loss reported, reflecting the company's early-stage operations and investment in growth.
Business Highlights
Business Overview: LSEB Creative Corp. is a specialty retailer offering luxury swimwear for men and women, focusing on high-quality materials and innovative designs. The company aims to capture a niche market with gender-coordinating collections that emphasize superior fit, performance, and comfort.
Product Launches: The company launched its first collection in October 2023, featuring a range of swimwear products. A second collection was released at the end of March 2025, marking a significant milestone in the brand's evolution.
Production and Sourcing: LSEB does not own manufacturing facilities but contracts with third-party vendors for fabrics and garment manufacturing. The company emphasizes quality sourcing from specialized suppliers in Italy, France, and Spain.
Distribution Strategy: The primary distribution channel is eCommerce, allowing for direct B2C sales. The company is also focusing on establishing B2B wholesale partnerships to expand its market reach.
Geographical Performance: The company is targeting North American and international markets, with a focus on expanding into key markets in Western Europe and Asia.
Marketing Initiatives: LSEB has implemented a comprehensive paid advertising initiative using platforms like Meta, Pinterest, and Google to broaden its audience reach. The company is also engaging in influencer partnerships to enhance brand visibility.
Future Outlook: LSEB plans to expand its product categories to include beachwear and accessories, aiming for a release in Fall 2025. The company is also pursuing a capital raise to support its growth and potential uplisting to Nasdaq.
Strategic Initiatives
Growth Strategy: LSEB Creative Corp. is actively pursuing growth through the expansion of its product lines, including women's and men's swimwear, beachwear, and accessories. The company launched its brand in October 2023 and is focusing on building a full-time team and nurturing wholesale partnerships to enhance market reach and brand recognition.
Capital Management: The company is seeking to raise a minimum of $400,000 through private offerings to support its operations and growth initiatives. It is also pursuing a larger capital raise of at least $5 million to meet Nasdaq uplisting requirements. The company has issued common stock to raise funds and compensate for services, with 16,376,300 shares outstanding as of March 31, 2025. The company has not paid any dividends and does not anticipate doing so in the near future, focusing instead on reinvesting earnings to finance growth.
Future Outlook: LSEB Creative Corp. aims to achieve $500,000 in net revenues within the first 12 months following fiscal year-end March 31, 2025, with a focus on women's swimwear. The company plans to expand its product offerings and increase sales by approximately 50% annually over the next three years. It is also in the initial stages of executing a plan to qualify for an uplist to Nasdaq, which could provide increased visibility, access to capital, and improved stock performance.
Challenges and Risks
Market Competition: LSEB Creative Corp. operates in a highly competitive swimwear market, which poses significant challenges due to the presence of larger, more capitalized competitors. The company is attempting to carve out a niche in the luxury swimwear segment, focusing on high-quality, innovative designs.
Supply Chain Risks: The lack of long-term contracts with suppliers and manufacturers could disrupt the supply chain, affecting product availability and quality. Additionally, the company's reliance on eCommerce as a primary distribution channel means it must effectively manage digital marketing and customer engagement to build brand recognition and loyalty.
Financial Risks: The company faces several risks that could materially impact its business operations and financial condition, including limited operating history, financing needs, and going concern doubts. The auditor has expressed substantial doubt about the company's ability to continue as a going concern due to accumulated deficits and net losses.
Operational Risks: Dependence on key personnel, particularly the expertise and continued service of its officer and director, Lauren Bentley, poses a risk. The loss of her services could adversely affect operations.
Economic Sensitivity: The company's success is tied to economic conditions in the US and Canada. Economic downturns could reduce consumer spending on discretionary items like swimwear.
Intellectual Property Limitations: The lack of patents or exclusive rights in product technology means competitors can easily replicate LSEB's products.
Seasonality: The swimwear business is subject to seasonal trends, which could lead to fluctuations in sales and inventory management challenges.
Regulatory and Compliance Costs: As a public company, LSEB faces significant costs to comply with corporate governance and accounting requirements, which could strain financial resources.
SEC Filing: LSEB Creative Corp. [ LSEB ] - 10-K - Jul. 15, 2025