Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 62

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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8,700 in customer deposits as of July 31, 2025 and April 30, 2025.

Leases

The
Company accounts for leases under ASU 842. At the inception of a contract the Company assesses whether the contract is, or contains,
a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether
the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether
it has the right to direct the use of the asset. The Company will allocate the consideration in the contract to each lease component
based on its relative stand-alone price to determine the lease payments.

Operating
lease right of use (“ROU”) assets represents the right to use the leased asset for the lease term and operating lease liabilities
are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases
do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the adoption date
in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over
the lease term and is presented in operating expenses on the consolidated statements of operations.

Finance
leases are recorded as a finance lease liability and property, plant and equipment asset, based on the present value of lease payments.
The asset is depreciated, and the liability is amortized with interest expense incurred over the life of the lease.

As
permitted under the guidance, the Company has made an accounting policy election not to apply the recognition provisions of the guidance
to short term leases (leases with a lease term of twelve months or less that do not include an option to purchase the underlying asset
that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments for short term leases on a
straight-line basis over the lease term.

Income
Taxes

Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities
are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using
the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available
evidence, are not expected to be realized.

Discontinued
Operations

A
component of an entity that is