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

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 October 31, 2024 and April 30, 2024.

On
February 1, 2024 the Company entered into a master convertible corporate note agreement with Native American Pride, LLC. Native
American Pride, LLC advanced $63,791 to NAPC Defense, Inc. during the year ended April 30, 2024 to cover various operating expenses.
The loan balance is convertible into the shares of NAPC Defense, Inc. at the discretion of the Native American Pride, LLC at a rate
of $0.03 per share. The note does not pay interest and there is no specific time frame for repayment of the principal balance.
During the six month period ended October 31, 2024 the Company repaid $61,712 of principal to Native America Pride Constructors, LLC.
The balances owed on the note were $2,079 and $63,791 at October 31, 2024 and April 30, 2024, respectively.

Short
Term Loans

As
of October 31, 2024 and April 30, 2024, the Company had short term loans totaling $22,925. This consists of two loans totaling $2,700
and $20,225. All loans are unsecured, non-interest bearing and due on demand.

New
Convertible Notes Payable

On June 14, 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 1,071,430 shares of the Company’s restricted common stock, (ii) a promissory note in the aggregate principal amount of $150,000,
and (iii) Common stock warrants to purchase 5,357,143 shares of the Company’s common stock at $0.028. The company received proceeds
of $135,000 resulting in an original issue discount of $15,000. The convertible promissory note has a due date of June 14, 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.
There are