Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 11

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 additional terms and conditions contained in the note that could result in the Company being required to issue a significant
amount of shares and/or warrants to the lender. 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.

On July 3, 2024, the Company entered into a convertible promissory note agreement with respect to the sale and issuance of: (i)
an initial commitment fee in the amount of 150,000 shares of the Company’s restricted common stock, (ii) a promissory note in the
aggregate principal amount of $75,000, and (iii) Common stock warrants to purchase 2,678,572 shares of the Company’s common stock
at $0.28. The company received proceeds of $67,500 resulting in an original issue discount of $7,500. The convertible promissory note
has a due date of July 3, 2025, and bears interest at the rate of 10% per year that is convertible into shares of common stock at $0.028.
In the event of default as defined in the note, the outstanding balance of the note will increase to 140% of the balance immediately
prior to the occurrence of the event of default. The conversion of the note into shares of the Company’s common stock is potentially
highly dilutive to current shareholders. The conversion of the note into shares of the Company’s common stock is potentially highly
dilutive to current shareholders. There are additional terms and conditions contained in the note that could result in the Company being
required to issue a significant amount of shares and/or warrants to the lender. 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.

On August 12, 2024 the Company
entered into a convertible promissory note with a face value of $30,000, an annual rate of interest of 10% that is convertible into shares
of common stock at $0.02, and that is due on August 12, 2025. The Company also issued stock warrants to the note holder to purchase 1,500,000
shares of the Company’s common stock at $0