Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 28

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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625,864.

As of October 31, 2024 we had
a net working deficit of $990,136.

Cash
flows from operating activities

For
the six months ended October 31, 2024 net cash flows used in operating activities was $346,369.

For
the six months ended October 31, 2023 net cash flows used in operating activities was $306,722.

Cash
flows from financing activities

For
the six months ended October 31, 2024 we have generated $359,288 in cash flows from financing activities.

For
the six months ended October 31, 2023 we have generated $100,000 in cash flows from financing activities.

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 October 31, 2024, the Company had a working capital deficit of $990,136. 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 February 26, 2025.

The
Company may not be able to continue as a going concern. The report of our independent auditors for the years ended April 30, 2024 and
2023 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