Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 122

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 4
Chunk 122
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 statements and other information presented herewith are
materially correct.

The
management including its Principal Executive Officer/Principal Financial Officer, does not expect that its disclosure controls and procedures,
or its internal controls over financial reporting will prevent all error and all fraud. A control system no matter how well conceived
and operated, can provide only reasonable not absolute assurance that the objectives of the control system are met. Further, the design
of the control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative
to their costs.

Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the Company have been detected.

The
Company has limited resources and as a result, a material weakness in financial reporting currently exists, because of our limited resources
and personnel, including those described below.

    *
    The
    Company has an insufficient quantity of dedicated resources and experienced personnel involved in reviewing and designing internal
    controls. As a result, a material misstatement of the interim and annual financial statements could occur and not be prevented or
    detected on a timely basis.

    *
    We
    have not achieved the optimal level of segregation of duties relative to key financial reporting functions.

    *
    We
    do not have an audit committee or an independent audit committee financial expert. While not being legally obligated to have an audit
    committee or independent audit committee financial expert, it is managements view that to have an audit committee, comprised of independent
    board members, and an independent audit committee financial expert is an important entity-level control over the Company’s
    financial statements.

A
material weakness is a deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) auditing standard 5) or
combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management
has determined that a material weakness exists due to a lack of segregation of duties, resulting from the Company’s limited resources
and personnel.

26

Remediation
Efforts to Address Deficiencies in Internal Control Over Financial Reporting

As
a result of these findings, management, upon obtaining sufficient capital and operations, intends to take practical, cost-effective steps
in implementing internal controls, including the possible remedial measures set forth below. As of July