Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 95

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 in cash provided by financing activities is primarily attributable to an increase in proceeds from short term loans and
cash proceeds from the exercise of warrants.

We
qualify as a “smaller reporting company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions
from certain disclosure requirements.

For
example, smaller reporting companies are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation
S-K or the auditor attestation of internal controls over financial reporting.

Future
Financings

We
will continue to rely on equity sales of the Company’s common shares in order to continue to fund business operations. Issuances
of additional shares will result in dilution to existing shareholders. There is no assurance that the Company will achieve any additional
sales of equity securities or arrange for debt or other financing to fund planned operations.

Liquidity
and Capital Resources and Cash Requirements

As
of the date of this report, the current funds available to the Company will not be sufficient to continue maintaining a reporting status.
At July 31, 2025, the Company had a working capital deficit of $1,486,603. The Company is in immediate need of further working capital
and is seeking options, with respect to financing, in the form of debt, equity or a combination thereof. Based on its historical rate
of expenditures, the Company expects to expend its available cash in less than one month from the issuance date of these financial statements.

The
Company may not be able to continue as a going concern. The report of our independent auditors for the years ended April 30, 2025 and
2024 raises substantial doubt as to our ability to continue as a going concern. If the Company is not able to continue as a going concern,
it is highly likely that all capital invested in the Company will be lost.

Management
believes that current trends toward lower capital investment in start-up companies pose the most significant challenge to the Company’s
success over the next year and in future years. Additionally, the Company will have to meet all the financial disclosure and reporting
requirements associated with being a publicly reporting company. The Company’s management will have to spend additional time on
policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley
Act of 2002. This additional corporate governance time required of management could limit the amount of time management has to implement