Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 18

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 experience and business contacts in order to manufacture, market, distribute and broker the product. The Company
did not acquire any interest in the limited liability company, but starting its own defense related business, while purchasing the product
rights.

In
March of 2024 the Company issued 95,000,000 shares of its restricted common stock valued at $1,615,000 to NAPC, LLC which was shown on
the accompanying consolidated balance sheet as prepaid asset as of April 30, 2024. The shares were issued for the purchase of the product
rights, expertise and knowledge necessary to commercialize the product rights, and were subject to issuance under control of the Company’s
prior President until sign off and final determination of certain contingent terms and conditions. The shares were valued based on the
closing price of the Company’s stock on the date of the agreement. Upon completion of due diligence and a verification of certain
terms and conditions, the deal closed and the shares issued to NAPC, LLC were reclassified from a prepaid asset to intellectual property.
NAPC Defense, Inc.’s management has determined that the intellectual property should be impaired based on the Company’s not
having closed sales and licensing deals for CornerShot and related products and services as of April 30, 2025. Accordingly, the Company
impaired the balance of $1,615,000 of the intellectual property to $0 during the year ended April 30, 2025.

12

NOTE
5 – RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

Operating
Leases

Operating
lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement
date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate
implicit in most of the Company’s leases are not readily determinable. Operating lease expense is recognized on a straight-line
basis over the lease term.

NAPC
Defense Inc. entered into a lease agreement for approximately
2,900 square feet of commercial office space located in Clearwater, Florida that commenced on May 1, 2025 and that terminates on May 1,
2028. The base rent during the term of the lease is $3,138 per month in year one, $3,295 per month in year two, and $3,460 per month
in year three.

On
May 1