Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 49

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 49
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 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 nine month periods ended January 31, 2025 and 2024 were excluded from the dilutive
loss per share calculation as they would be antidilutive due to the net loss. As of January 31, 2025 and 2024, there were approximately
46,476,214 and 9,351,762 shares of common stock underlying our outstanding convertible notes payable and warrants, respectively.

Fair
Value of Financial Instruments

The
carrying amounts of financial assets and liabilities, such as cash, accounts payable, short term loans, and the Company’s related
party convertible loan from a shareholder approximate their fair values because of the short maturity of these instruments.

Fixed
Assets

Fixed
assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective
assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance
and repair expenditures are charged to expense as incurred.

Impairment
of Long-Lived and Intangible Assets

Long-lived
assets are reviewed