Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 12

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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.02.

On October 17, 2024, the Company
entered into a convertible promissory note 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 $75,000, and (iii)
Common stock warrants to purchase 3,750,000 shares of the Company’s common stock at $0.02. The company received proceeds of $67,500
resulting in an original issue discount of $7,500. The convertible promissory note has a due date of October 17, 2025, and bears interest
at the rate of 10% per year that is convertible into shares of common stock at $0.02. 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 additional terms and conditions contained in the note that could result in the Company being required to issue a significant amount
of shares and/or warrants to the lender. 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 significant decrease in the market price of the Company’s
shares.

Convertible
Notes Payable

The
following table reflects the convertible notes payable as of October 31 and April 30, 2024:

                                         Issue Date      Maturity        October 31,                                   Rate      Conversion  
                                                         Date            2024                                                         Price  
                                                                         Principal                                                           
                                                                         Balance                                                             
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Convertible notes payable                                                                                                                  
                                         04/26/2021      04/26/2023      $                 112,975      112,975      10.00%           0.100  
                                         05/05/2021      05/05/2022                         53,619      150,000      10.00%           0.100  
                                         05/19/2021      02/19/2023                        131,790      150,000