Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 29

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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363,987 and $227,983. In assessing the realizability of deferred tax
assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be
realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities,
projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management
has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application
of a full valuation allowance as of January 31, 2025 and 2024. All tax years since inception remains open for examination only by taxing
authorities.

Reconciliation
between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2025 and 2024:

Schedule of Effective Income Tax Rate Reconciliation 

    For the Three Months Ended January 31, 2025  
    For the Three Months Ended January 31, 2024 
  
    Income tax at federal statutory rate 
     21% 
     21%
  
    Valuation allowance 
     (21.00%) 
     (21.00%)
  
    Income tax expense 
     -  
     - 

The
Company has a net operating loss carryforward for tax purposes totaling $6,516,565 at January 31, 2025, expiring through 2035. There
is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than
a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as follows:

Schedule of Deferred Tax Assets and Liabilities

    As of January 31, 2025  
    As of January 31, 2024 
  
    Non-current deferred tax assets: 

    Net operating loss carryforward 
    $6,516,565  
    $4,783,297 
  
    Tax rate 
     21% 
     21%
  
    Deferred tax asset 
     1,368,479  
     1,004,492 
  
    Valuation allowance 
     (1,368,479) 
     (1,004