Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 33

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 33
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7    
  Exercise price                             0.02 – 0.028     
 ──────────────────────────────────────────────────────────────
  Expected life (in years)                   1 - 5 Years      
  Equivalent volatility                      219.18 – 397.40  
  Interest rates                             3.60 - 4.50      

NOTE
7 - COMMITMENTS AND CONTINGENCIES

Litigation

During the normal course of business, the Company
may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance
with FASB ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies
and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably
estimated, it establishes the necessary accruals. As of April 30, 2025, the Company is not aware of any contingent liabilities that should
be reflected in the consolidated financial statements.

In May of 2023, NAPC Defense, Inc. was sued in county
court over a contract by the firm of Delmar which contends that the Company did not follow through on a contract for their services related
to its regulation A offering in 2022. The Company has defended and is defending such on the basis that Del Mar never performed on its
obligations and therefore was discharged on the contract. Such matter is pending motions by NAPC Defense, Inc. in the county court. Such
lawsuit is seeking $20,000 by Delmar. As of April 30, 2025, the suit was pending dismissal and awaiting court dates.

F-19

Media
Use and License Agreement

On February 5, 2023, the Company entered into a Media
Use and License Agreement with a corporation. Under the terms of the Media Use and License Agreement, the Company granted the user entity
(the “ Licensee”) an exclusive license to use photographic and video rights of NAPC Defense, Inc.’s then treasure recovery
activities for use to publicize non-fungible token sales as well as appearances by persons for such publication and sales. The authority
to use the works includes the right to visit and photograph or video activities of NAPC Defense, Inc. treasure recovery operations. The
Licensee agreed to pay to NAPC Defense, Inc. an initial net rights fee of $85,000. N