Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 19

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 the period presented. The Company had no accruals for interest and penalties at
October 31, 2024 and April 30, 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 October
31, 2024 and 2023 was $1,234,244 and $986,066, respectively, and the net change in valuation allowance during the six month period ended
October 31, 2024 and 2023 was $248,178 and $212,490. 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 October 31, 2024 and 2023. 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 2024 and 2023:

                                            For the Three         For the Three     
                                            Months Ended          Months Ended      
                                            October 31, 2024      October 31, 2023  
 ────────────────────────────────────────────────────────────────────────────────────
  Income tax at federal statutory rate      21                    21                
  Valuation allowance                       (21.00                (21.00            
  Income tax expense                        -                     -                 

The
Company has a net operating loss carryforward for tax purposes totaling $5,837,379 at October 31, 2024, expiring through 2035. 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 October 31, 2024                      As of October 31, 2023                 
 �