Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 67

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 deferred income tax asset balances to warrant the application
of a full valuation allowance as of January 31, 2025 and 2024. 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 2025 and 2024:

Schedule of Effective Income Tax Rate Reconciliation 

    For the Three Months Ended January 31, 2025  
    For the Three Months Ended January 31, 2024 
  
    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 $6,516,565 at January 31, 2025, 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:

Schedule of Deferred Tax Assets and Liabilities

    As of January 31, 2025  
    As of January 31, 2024 
  
    Non-current deferred tax assets: 

    Net operating loss carryforward 
    $6,516,565  
    $4,783,297 
  
    Tax rate 
     21% 
     21%
  
    Deferred tax asset 
     1,368,479  
     1,004,492 
  
    Valuation allowance 
     (1,368,479) 
     (1,004,492)
  
    Net deferred tax assets 
    $-  
    $- 

    18

The
Company is currently in the process of gathering the information necessary for filing tax returns for past years, due to the Company’s
lack of profitability since inception management does not believe that there is any income tax liability for past years.

NOTE
13 – SUBSEQUENT EVENTS 

Subsequent
to January 31, 2025 the Company issued the following shares of restricted common stock and warrants as follows:

    -
    4,000,000 shares for the conversion of the principal