Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 16

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 16
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, and were subject to issuance under control of the Company’s
prior President until sign off and final determination of certain contingent terms and conditions. The shares were valued based on the
closing price of the Company’s stock on the date of the agreement. Upon completion of due diligence and a verification of certain
terms and conditions, the deal closed and the shares issued to NAPC, LLC were reclassified from a prepaid asset to intellectual property.
NAPC Defense, Inc.’s management has determined that the intellectual property should be impaired based on the Company not having
closed sales and licensing deals for CornerShot and related products and services as of April 30, 2025. Accordingly, the Company elected
to write down the value of the intellectual property to $0 which is included in general and administrative expenses in the statement
of operations for the year ended April 30, 2025.

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 or service provider 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

Convertible
Notes

Given that the Convertible
Notes, Warrants and Common Stock (“ Commitment Shares”) that were issued in a singular transaction are not subject to subsequent
fair value accounting treatment, Management determined the relative fair value method shall be used for allocating the proceeds of the
transaction. Under the relative fair value method, the instrument being analyzed is allocated a portion of the proceeds based on
its fair value to the sum of the fair value of all the instruments covered in the allocation.

Customer
Deposits

Customer
deposits are an amount paid by a customer prior to the Company providing it with goods or services. The Company has an obligation to
provide the goods or services to the customer or to return the money. The Company had $8,700 in customer deposits as of April 30, 2025
and 2024.

Leases

The
Company accounts for leases under ASU 842. At