Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 12

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 and liabilities, such as cash, accounts payable, short term loans, and the Company’s related
party convertible loan from a shareholder approximate their fair values because of the short maturity of these instruments.

Fixed
Assets

Fixed
assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective
assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance
and repair expenditures are charged to expense as incurred.

Impairment
of Long-Lived and Intangible Assets

Long-lived
assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable.
The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment
indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related
asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. Identified intangible assets
are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. During the nine month period ended January 31, 2025 the Company’s Management determined that three of its vessels
were impaired and the Company wrote down the value of the vessels to $0.

Stock
Based Compensation to Employees and Service Providers

The
Company recognizes all share-based payments to employees and service providers, including grants of employee stock options, as compensation
expense in the consolidated financial statements based on their fair values. That expense will be recognized over the period during which
an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period)
or immediately if the share-based payments vest immediately.

Convertible
Debentures

The
Company adheres to the guidance in Accounting Standards Updated (“ASU”) 2020-06, Accounting for Convertible
Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments
and its application of the derivatives scope exception for contracts in its own equity. Additionally, ASU 2020-06 removes the requirements
for accounting for beneficial conversion features.

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Customer
Deposits

Customer
deposits are an amount paid by a customer prior to the Company providing it with goods or services. The