LSEB Creative Corp. reported significant financial developments in its latest 10-Q filing for the quarter ending December 31, 2024. The company generated $3.3 million in sales for the quarter, a substantial increase from $1.9 million in the same period last year. For the nine months ending December 31, 2024, total sales reached $12.1 million, compared to just $1.9 million for the same period in 2023. Despite this growth in revenue, the company reported a net loss of $57,877 for the quarter and $145,213 for the nine months, reflecting ongoing operational challenges and increased expenses.
The company's operating expenses rose significantly, totaling $55.7 million for the quarter, up from $29.6 million a year earlier. This increase was primarily driven by higher consulting fees, professional fees related to audits, and increased advertising costs as LSEB ramped up its marketing efforts for its newly launched swimwear brand, Lauren Bentley Swimwear. The company has also seen a notable increase in its advertising and promotion expenses, which reached $16.2 million for the quarter, compared to $4.4 million in the previous year.
In terms of strategic developments, LSEB Creative Corp. launched its e-commerce platform, laurenbentleyswim.com, in October 2023, which has contributed to its revenue growth. The company is also actively pursuing additional financing, aiming to raise a minimum of $400,000 to support its operations and marketing initiatives. The management has expressed optimism about securing this funding, which is crucial for the company's growth plans and to alleviate concerns regarding its ability to continue as a going concern.
Operationally, LSEB Creative Corp. has made strides in expanding its product offerings and market presence. The company has completed its first collection and is preparing to launch a second collection in February 2025. Additionally, LSEB is exploring opportunities to expand into beachwear and accessories, further diversifying its product line. The company has also engaged in influencer marketing initiatives to enhance brand visibility and reach a broader audience.
Looking ahead, LSEB Creative Corp. aims to achieve $500,000 in net revenues within 15 months following the December 31, 2024 quarter-end, with a long-term sales forecast of $1.2 million over the next 21 months. The company anticipates a growth rate of approximately 50% per year for its first three operational years. However, the ability to meet these targets is contingent upon securing adequate financing and successfully executing its business strategy.
About LSEB Creative Corp.
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