Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 9

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 been prepared on a going concern basis, which assumes the Company will be able to realize
its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred net losses
and used net cash in its operations since inception. 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. Management’s plans include raising
capital through the equity markets to fund operations and the generation of revenue through its business. The Company does not expect
to generate any significant revenues for the foreseeable future. At July 31, 2025, the Company had a net working capital deficit of $1,486,603.
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.

Failure to raise adequate capital and generate adequate
revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through
the future issuances of the common stock is unknown. Additionally, even if the Company does raise sufficient capital to support its operating
expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop to a level
where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability
to continue as a going concern for a period of twelve months from the issuance of these consolidated financial statements; however, the
accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments
relating to the recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be
unable to continue as a going concern.  

Convertible
Notes Payable and Notes Payable, in Default

The
Company does not have additional sources of debt or equity financing to refinance or pay off its notes payable that are currently in
default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets
held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held
as collateral, then the Company may be forced to significantly scale back or cease its operations which would more than likely result
in a complete