Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 9

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 which was shown on
the accompanying consolidated balance sheet as prepaid asset as of April 30, 2024. The shares were issued for the purchase of the product
rights, expertise and knowledge necessary to commercialize the product rights, and were subject to issuance under control of the Company’s
prior President until sign off and final determination of certain contingent terms and conditions. The shares were valued based on the
closing price of the Company’s stock on the date of the agreement. Upon completion of due diligence and a verification of certain
terms and conditions, the deal closed and the shares issued to NAPC, LLC were reclassified from a prepaid asset to intellectual property.
NAPC Defense, Inc. has determined that the intellectual property has an indefinite useful life and should not be amortized and the Company
will periodically review the intellectual property to determine whether the life is still indefinite. The intellectual property is shown
on the accompanying consolidated balance sheet as of October 31, 2024.

NOTE
6 - NOTES PAYABLE

Related
Party Convertible Loans

An
officer of the Company previously provided a loan to NAPC Defense, Inc., under a convertible promissory note. This convertible promissory
note is unsecured, non-interest bearing, and is convertible into common shares of the Company stock at $2.75 per share and due on demand.
The balance due to the officer was $60,890 as of October 31, 2024 and April 30, 2024.

On
August 1, 2023, the Company entered into a convertible note payable with an individual who was formerly a member of the Company’s
Board of Directors until March 27, 2024. The note payable, with a face value of $50,000, bears interest at 10.0% per annum and was due
on August 1, 2024. The convertible note payable is convertible upon default, at the note holder’s option, into the Company’s
common shares at a fixed conversion rate of $0.01. The conversion of the note into shares of the Company’s common stock is potentially
highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting
the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s
shares. The principal balance of the convertible promissory note payable was $50,000 at