Company: BLIS
Filing Date: 2025-09-19
Form Type: 10-K/A
Source: 0001199835-25-000330
Chunk: 12

Company: NAPC Defense, Inc.
Filing Date: 2025-09-19
Form: 10-K/A
Chunk 12
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 debt, including convertible promissory notes, in order to continue to fund business operations. Issuances of additional
shares will result in dilution to existing shareholders. There is no assurance that the Company will achieve any additional sales of
equity securities or arrange for debt or other financing to fund planned operations.

Convertible Promissory Note Dilution

| The Company’s convertible notes payable may                                                                                       
 result in significant dilution to the current shareholders and result in a decrease in the price of the Company’s stock. 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 notes that could result in the Company being required to issue a significant 
 amount of shares and/or warrants to the lenders. 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 substantial decrease in the market price of  
 the Company’s shares.                                                                                                             |

Liquidity and Capital Resources and Cash Requirements

As of the date of this report, the current funds available to the Company will not be sufficient to continue maintaining a reporting status. At April 30, 2025, the Company had a working capital deficit of $1,146,674. The Company is in immediate need of further working capital and is seeking options, with respect to financing, in the form of debt, equity or a combination thereof. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from the issuance date of these financial statements.

The Company may not be able to continue as a going concern. The report of our independent auditors for the years ended April 30, 2025 and 2024 raises substantial doubt as to our ability to continue as a going concern. If the Company is not able to continue as a going concern, it is highly likely that all capital invested in the Company will be lost.

Management believes that current trends toward lower capital investment in start-up companies pose the most significant challenge to the Company’s success over the next year and in future years. Additionally, the Company will have to meet all the financial disclosure and reporting requirements associated with being a publicly reporting company. The Company’s management will have to spend additional time on policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley Act of 2002.