Company: BLIS
Filing Date: 2025-03-10
Form Type: 10-Q/A
Source: 0001199835-25-000067
Chunk: 7

Company: NAPC Defense, Inc.
Filing Date: 2025-03-10
Form: 10-Q/A
Chunk 7
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 consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.

The Company recognizes revenue from its services agreement to provide consulting services with respect to ammunition and military equipment to Free Falcon Limited to providers after it has provided the services required under the services agreement.

9

Licensing Revenue

The Company recognizes licensing revenue under ASC 606-10-55-59. In order to determine whether the Company’s promise to provide a right to access or to use its intellectual property, the Company should consider the nature of the intellectual property to which the customer will have rights. Intellectual property is either:

| a. | Functional                                                                                                                                     
 intellectual property. Intellectual property that has significant standalone functionality (for example, the ability to process a transaction, 
 perform a function or task, or be played or aired). Functional intellectual property derives a substantial portion of its utility (that        
 is, its ability to provide benefit or value) from its significant standalone functionality.                                                    |

| b. | Symbolic                                                                                                                                
 intellectual property. Intellectual property that is not functional intellectual property (that is, intellectual property that does not 
 have significant standalone functionality). Because symbolic intellectual property does not have significant standalone functionality,  
 substantially all of the utility of symbolic intellectual property is derived from its association with the entity’s past or ongoing    
 activities, including its ordinary business activities.                                                                                 |

Intellectual property that has significant standalone functionality is functional IP. Functional IP is a right to use IP because the IP has standalone functionality and the customer can use the IP as it exists at a point in time.

Basic Loss per Share

The Company has adopted the Financial Accounting Standards Board (“FASB”) ASC 260-10, which provides for the calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.

The potentially dilutive common stock equivalents for the six month periods ended October 31, 2024 and 2023 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss. As of October 31, 2024 and 2023, there were approximately 38,903,595and 16,322,590shares of common stock underlying our outstanding convertible notes payable and warrants, respectively.

Fair Value of Financial Instruments

The