Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 38

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 38
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 the period presented. The Company had no accruals for interest and penalties at
April 30, 2025 and 2024. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended
activities.

The valuation allowance at April 30, 2025 and 2024
was $1,308,887 and $1,047,389, respectively. The net change in valuation allowance during the years ended April 30, 2025 and 2024 was
$261,498. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion
or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers
the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this
assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization
of the deferred income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2025 and 2024. All
tax years since inception remains open for examination only by taxing authorities.

Reconciliation
between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2025 and 2024:

                                            For the Year Ended                  For the Year Ended              
                                            April 30, 2025                      April 30, 2024                  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Income tax at federal statutory rate                              21.00                               21.00   
  Valuation allowance                                               (21.00                              (21.00  
  Income tax expense                                                -                                   -       

The
Company has a net operating loss carryforward for tax purposes totaling $6,232,797 at April 30, 2025, which may be carried forward indefinitely.
There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally
greater than a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as
follows:

                                        As of April 30,                      As of April 30,                  
                                        2025                                 2024                             
 ─────────────────────────────────