Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 12

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 12
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able and Convertible Notes Payable, for further information regarding the Company’s convertible notes payable
and notes that are currently in default.

NOTE
3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

This
summary of significant accounting policies of NAPC Defense, Inc. is presented to assist in understanding the Company’s consolidated
financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible
for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States
of America (“ GAAP”) and have been consistently applied in the preparation of the consolidated financial statements. The Company’s
year-end is April 30.

Principles
of Consolidation

The
consolidated financial statements include the consolidated accounts of NAPC Defense, Inc. and its wholly-owned subsidiaries, NAPC Defense
Media Group, Inc. and TSR Holdings, Inc. NAPC Defense Media Group, Inc. and TSR Holdings, Inc. do not have any operations. Intercompany
transactions and balances have been eliminated.

Use
of Estimates

The process of preparing consolidated financial statements
in conformity with GAAP requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.
Significant estimates for the years ended April 30, 2025 and 2024 include valuation of property, plant and equipment, valuation of intangible
assets, valuation allowances against deferred tax assets, and the fair value of non cash equity transactions.

Reclassifications

Certain prior year amounts have been reclassified
to conform with the current year presentation. These related to (i) reclassifications from fixed assets, net of depreciation to assets
of discontinued operations, non-current, (ii) reclassification between short term loans and related party short term loans, (iii) reclassification
between short-term loans and related party convertible loans, (iv) reclassification of operating expenses to loss from operations of
discontinued operations, and (v) reclassification from unearned compensation to prepaid consulting fees. For the year ended April 30,
2024, fixed assets, net of depreciation changed from $143,732 per filed to $0 per revised. The amount of $143,732 was reclassified to
assets of discontinued operations, non-current. For the year ended April 30, 2024, short terms loans of $63,791 were reclassified to
related party convertible loans. For the year