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

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 11
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. The Company does not expect to generate any significant revenues for the foreseeable
future. At April 30, 2025, the Company had a net 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.

Failure to raise adequate capital and generate adequate
revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through
the future issuances of the common stock is unknown. Additionally, even if the Company does raise sufficient capital to support its operating
expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop to a
level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s
ability to continue as a going concern for a period of twelve months from the issuance of these financial statements; however, the accompanying
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction
of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments relating to the
recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue
as a going concern.

Convertible
Notes Payable and Notes Payable, in Default

The
Company does not have additional sources of debt or equity financing to refinance or pay off its notes payable that are currently in
default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets
held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held
as collateral, then the Company may be forced to significantly scale back or cease its operations which would more than likely result
in a complete loss of all capital that has been invested in or borrowed by the Company.

F-9

The
convertible notes that have been issued by the Company are convertible at the lender’s option. These convertible notes represent
significant potential dilution to the Company’s current shareholders. As such when these notes are converted into equity there is
typically a highly dilutive effect on current shareholders and very high probability that such dilution may significantly negatively
affect the trading price of the Company’s common stock.

See
Note 5 - Notes Pay