Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 50

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable.
The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment
indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related
asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. Identified intangible assets
are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. During the nine month period ended January 31, 2025 the Company’s Management determined that three of its vessels
were impaired and the Company wrote down the value of the vessels to $0.

Stock
Based Compensation to Employees and Service Providers

The
Company recognizes all share-based payments to employees and service providers, including grants of employee stock options, as compensation
expense in the consolidated financial statements based on their fair values. That expense will be recognized over the period during which
an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period)
or immediately if the share-based payments vest immediately.

Convertible
Debentures

The
Company adheres to the guidance in Accounting Standards Updated (“ASU”) 2020-06, Accounting for Convertible
Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments
and its application of the derivatives scope exception for contracts in its own equity. Additionally, ASU 2020-06 removes the requirements
for accounting for beneficial conversion features.

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Customer
Deposits

Customer
deposits are an amount paid by a customer prior to the Company providing it with goods or services. The Company has an obligation to
provide the goods or services to the customer or to return the money. The Company had $8,700 in customer deposits as of January 31, 2025
and 2024.

Leases

The
Company accounts for leases under ASU 2016-02. 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