Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 4

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 assumptions
that affect the reported amounts of assets, liabilities, revenues and expenses at the date of the consolidated financial statements.
Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual events and results could materially
differ from those assumptions and estimates.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

There
were no cash equivalents at October 31, 2024 and April 30, 2024. Financial instruments that potentially subject the Company to concentration
of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation
(“ FDIC”) up to $250,000. As of October 31, 2024, the Company had $0 in excess of the FDIC insured limit.

Research
and Development Expenses

Expenditures
for research and development are expensed as incurred. The Company incurred research and development expenses of $4,103 for the six month
period ended October 31, 2024 and $0 for the six month period ended October 31, 2023 and the Company incurred research and development
expenses of $0 for the three month period ended October 31, 2024 and $0 for the three month period ended October 31, 2023. which is included
in operating expenses in the accompanying unaudited condensed consolidated statements of operations.

Revenue
Recognition

The
Company recognizes revenue in accordance with the Financial Accounting Standards Board’s (“ FASB”) Accounting Standards
Codification (“ ASC”) Topic 606, “ Revenue from Contracts with Customers

The
core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASC
606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required
within the revenue recognition process than required under GAAP, including identifying performance obligations in the contract, estimating
the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance
obligation.

The
Company recognizes revenue from its services agreement to provide consulting services with respect to ammunition and military equipment
to Free Falcon Limited to providers after it has provided the services required under the services agreement.

Licensing
Revenue

The