Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 55

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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aid the loan and the balance due to the shareholder was $0 as of January,
31, 2025.

Short
Term Loans

As
of January 31, 2025 and April 30, 2024, the Company had short term loans totaling $22,925. This consists of two loans totaling $2,700
and $20,225. All loans are unsecured, non-interest bearing and due on demand.

New
Convertible Notes Payable

On
June 14, 2024, the Company entered into a convertible promissory note agreement with respect to the sale and issuance of: (i) an initial
commitment fee in the amount of 1,071,430 shares of the Company’s restricted common stock, (ii) a promissory note in the aggregate
principal amount of $150,000, and (iii) Common stock warrants to purchase 5,357,143 shares of the Company’s common stock at $0.028.
The company received proceeds of $135,000 resulting in an original issue discount of $15,000. The convertible promissory note has a due
date of June 14, 2025, and bears interest at the rate of 10% per year that is convertible into shares of common stock at $0.028. In the
event of default as defined in the note, the outstanding balance of the note will increase to 140% of the balance immediately prior to
the occurrence of the event of default. The conversion of the note into shares of the Company’s common stock is potentially highly
dilutive to current shareholders. There are additional terms and conditions contained in the note that could result in the Company being
required to issue a significant amount of shares and/or warrants to the lender. 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.

On
July 3, 2024, the Company entered into a convertible promissory note agreement with respect to the sale and issuance of: (i) an initial
commitment fee in the amount of 125,000 shares of the Company’s restricted common stock, (ii) a promissory note in the aggregate
principal amount of $75,000, and (iii) Common stock warrants to purchase 2,678,572 shares of the Company’s common