Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 94

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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 control over financial reporting such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management
has determined that a material weakness exists due to a lack of segregation of duties, resulting from the Company’s limited resources
and personnel.

25

Remediation
Efforts to Address Deficiencies in Internal Control Over Financial Reporting

As
a result of these findings, management, upon obtaining sufficient capital and operations, intends to take practical, cost-effective steps
in implementing internal controls, including the possible remedial measures set forth below. As of January 31, 2025, we did not have
sufficient capital and/or operations to implement any of the remedial measures described below.

    *
    Assessing
    the current duties of existing personnel and consultants, assigning additional duties to existing personnel and consultants, and,
    in a cost effective manner, potentially hiring additional personnel to assist with the preparation of the Company’s financial
    statements to allow for proper segregation of duties, as well as additional resources for control documentation.

    *
    Assessing
    the duties of the existing officers of the Company and, in a cost effective manner, possibly promote or hire additional personnel
    to diversify duties and responsibilities of such executive officers.

    *
    Board
    to review and make recommendations to shareholders concerning the composition of the Board of Directors, with particular focus on
    issues of independence. The Board of Directors will consider nominating an audit committee and audit committee financial expert,
    which may or may not consist of independent members.

    *
    Interviewing
    and potentially hiring outside consultants that are experts in designing internal controls over financial reporting based on criteria
    established in Internal Control Integrated Framework issued by Integrated Framework issued by the Committee of Sponsoring Organizations
    of the Treadway Commission (“COSO”) (as revised).

This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial
reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules
of the SEC that permit us to provide only management’s report in this annual report.

(b)
Change in Internal Control Over Financial Reporting

The
Company has not made any change in our internal control over financial reporting during the nine month period ended January 31, 2025.

PART
II. OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

The