Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 48

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 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 January 31, 2025, 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 $10,112 for the nine
month period ended January 31, 2025 and $0 for the nine month period ended January 31, 2024 and the Company incurred research and development
expenses of $6,009 for the three month period ended January 31, 2025 and $0 for the three month period ended January 31, 2024. 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” (“ASC 606”) and all
the related amendments.

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. 

    9

Licensing
Revenue

The
Company recognizes licensing revenue under ASC 606-10-55-59. In order to determine whether the Company’s promise to provide a right
to access or to use its intellectual property, the Company should consider the nature of the intellectual property to which the customer
will have rights. Intellectual property is either:

    a.
    Functional
    intellectual property. Intellectual property that has significant standalone functionality (for example, the ability to process