Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 4

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 7
Chunk 4
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 notes payable and cash
proceeds from the sale of common stock.

We
qualify as a “smaller reporting company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions
from certain disclosure requirements.

For
example, smaller reporting companies are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation
S-K or the auditor attestation of internal controls over financial reporting.

Future
Financings

The Company will continue to rely on equity sales
of common shares and debt, including convertible promissory notes, in order to continue to fund business operations. Issuances of additional
shares will result in dilution to existing shareholders. There is no assurance that the Company will achieve any additional sales of
equity securities or arrange for debt or other financing to fund planned operations.

Convertible Promissory Note Dilution

  The Company’s convertible notes payable may                                                                                        
  result in significant dilution to the current shareholders and result in a decrease in the price of the Company’s stock. 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 notes that could result in the Company being required to issue a significant  
  amount of shares and/or warrants to the lenders. 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 substantial decrease in the market price of   
  the Company’s shares.                                                                                                              
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Liquidity
and Capital Resources and Cash Requirements

As
of the date of this report, the current funds available to the Company will not be sufficient to continue maintaining a reporting status.
At April 30, 2025, the Company had a working capital deficit of $1,146,674. The Company is in immediate need of further working capital
and is seeking options, with respect to financing, in the form of debt, equity or a combination thereof. Based on its historical rate
of expenditures, the Company expects to expend its available cash in less than one month from the issuance date of these financial statements.

The
Company may not be able to continue as a going concern. The report of our independent auditors for the years ended April 30, 2025