Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 6

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 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 six month period ended October 31, 2024 the Company’s Management
determined that three of its vessels were impaired and the Company wrote down the value of the vessels to $0, a total of
$22,340 net of depreciation.

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

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 October 31, 2024
and 2023.

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 the use of the asset throughout the period, and (3) whether
it has the right to direct the use of the asset. The Company will allocate the consideration in the contract to each lease component
based on its relative stand-alone price to determine the lease payments.

Operating
lease right of use (“ ROU”) assets represents the right to use the leased asset for the lease term and operating lease liabilities
are recognized based on the present value of the future minimum lease payments over the lease term at commencement