Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 97

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 the supervision and with the participation of our management, we conducted an evaluation of the effectiveness
of the design and operations of our internal control over financial reporting, as defined in Rules 13a-15(f) or 15d-15(f) promulgated
under the Securities Exchange Act of 1934 and based on the criteria for effective internal control described in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (as revised). Based on our evaluation,
management concluded that our internal control over financial reporting was not effective so as to timely record, process, summarize
and report financial information required to be included on our Securities and Exchange Commission (“SEC”) reports due to
the Company’s limited internal resources and lack of ability to have multiple levels of transaction review. However, as a result
of our evaluation and review process, management believes that the financial statements and other information presented herewith are
materially correct.

The
management including its Principal Executive Officer/Principal Financial Officer, does not expect that its disclosure controls and procedures,
or its internal controls over financial reporting will prevent all error and all fraud. A control system no matter how well conceived
and operated, can provide only reasonable not absolute assurance that the objectives of the control system are met. Further, the design
of the control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative
to their costs.

Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the Company have been detected.

The
Company has limited resources and as a result, a material weakness in financial reporting currently exists, because of our limited resources
and personnel, including those described below.

    *
    The
    Company has an insufficient quantity of dedicated resources and experienced personnel involved in reviewing and designing internal
    controls. As a result, a material misstatement of the interim and annual financial statements could occur and not be prevented or
    detected on a timely basis.

    *
    We
    have not achieved the optimal level of segregation of duties relative to key financial reporting functions.

    *
    We
    do not have an audit committee or an independent audit committee financial expert. While not being legally obligated to have an audit
    committee or independent audit committee financial expert, it is managements view that to have an audit committee, comprised of independent
    board members, and an independent