Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 73

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 date of July 3, 2025, and bears interest at the rate of 10% per year that is convertible into shares of common
stock at $0.028. In the event of default as defined in the note, the outstanding balance of the note will increase to 140% of the balance
immediately prior to the occurrence of the event of default. There are additional terms and conditions contained in the note that could
result in the Company being required to issue a significant amount of shares and/or warrants to the lender. The common stock and the warrants
were recorded at their relative fair values of $1,642 and $35,040 respectively. The resulting debt discount on this note was $44,182.
The Company recorded a loan financing fee as additional principal of $30,000 during the three month period ended July 31, 2025. The principal
balance of the note at July 31, 2025 and April 30, 2025 is $105,000 and $75,000 respectively.

On August 12, 2024 the Company entered into a convertible
promissory note with a face value of $30,000, an annual rate of interest of 6% that is convertible into shares of common stock at $0.02,
and that is due on February 12, 2025. The Company also issued stock warrants to the note holder to purchase 1,500,000 shares of the Company’s
common stock at $0.02. The common stock was recorded at its relative fair value of $13,090 as debt discount. This note is currently in
default due to non payment of principal and accrued interest. The principal balance of the note at July 31, 2025 and April 30, 2025 was
$30,000.

On October 17, 2024, the Company entered into a convertible
promissory note with respect to the sale and issuance of: (i) an initial financing fee in the amount of 750,000 shares of the Company’s
restricted common stock, (ii) a promissory note in the aggregate principal amount of $75,000, and (iii) common stock warrants to purchase
3,750,000 shares of the Company’s common stock at $0.02. The company received proceeds of $67,500 resulting in an original issue
discount of $7,500. The convertible promissory note has a due date of October 17,