Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 20

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 20
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 April 30, 2025. Accordingly, the Company
impaired the balance of $1,615,000 of the intellectual property to $0 which is included in general and administrative expenses in the
accompanying consolidated statement of operations for the year ended April 30, 2025.

F-13

NOTE
5 - NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE

Related
Party Convertible Loans

An
officer of the Company provided a loan to NAPC Defense, Inc., under a convertible promissory note in the year ended April 30, 2022. This
convertible promissory note is unsecured, non-interest bearing, and is convertible into common shares of the Company stock at $2.75 per
share and due on demand. The balance due to the officer was $60,890 as of April 30, 2025 and 2024.

On
April 20, 2022, the Company entered into a convertible note payable with an individual who was a member of the Company’s Board of
Directors. The convertible note payable, with a face value of $50,000, bears interest at 10% per annum and was due on July 21, 2022.
The convertible note payable is convertible upon default, at the note holder’s option, into the Company’s common shares at
a fixed conversion rate of $0.05. The conversion of the note into shares of the Company’s common stock is potentially highly dilutive
to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares
of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares. This convertible
promissory note was converted to common stock during the year ended April 30, 2024.

On
February 1, 2024 the Company entered into a master convertible corporate note agreement with Native American Pride Constructors, LLC
(“ NAPC, LLC”). NAPC, LLC advanced $63,791 to NAPC Defense, Inc. during the year ended April 30, 2024 to cover various operating
expenses. The loan balance is convertible into the shares of NAPC Defense, Inc. at the discretion of the NAPC, LLC at a rate of $0.03
per share. The note does not pay interest and there is no specific time frame for repayment of the