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

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 loss of all capital that has been invested in or borrowed by the Company.

The
convertible notes that have been issued by the Company are convertible at the lender’s option. These convertible notes represent
significant potential dilution to the Company’s current shareholders. As such when these notes are converted into equity there
is typically a highly dilutive effect on current shareholders and very high probability that such dilution may significantly negatively
affect the trading price of the Company’s common stock.

See
Note 6 – Notes Payable and Convertible Notes Payable, for further information regarding the Company’s convertible notes payable
and notes that are currently in default.

8

NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying condensed consolidated financial statements and related disclosures have been prepared in accordance with generally accepted
accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC and reflect
all adjustments, consisting of normal, recurring adjustments, which management believes are necessary to fairly present the financial
position, results of operations and cash flows of the Company for the three months ended July 31, 2025 and 2024. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted
pursuant to such rules and regulations. They should be read in conjunction with the annual financial statements reported in the latest
Form 10-K filed for the year ended April 30, 2025. The results of operations are not necessarily indicative of the results for the full
year.

Principals
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 three month periods ended July 31, 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 period amounts