Company: BLIS
Filing Date: 2025-09-11
Form Type: 10-K
Source: 0001199835-25-000302
Chunk: 23

Company: NAPC Defense, Inc.
Filing Date: 2025-09-11
Form: 10-K
Item: Item 8
Chunk 23
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 $0.028. 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. 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. The common
stock and the warrants were recorded at their relative fair values of $1,642 and $35,040 respectively. The resulting debt discount on
this note was $ 44,182.

On August 12, 2024 the Company entered into a convertible
promissory note with a face value of $30,000, an annual rate of interest of 6% that is convertible into shares of common stock at $0.02,
and that is due on February 12, 2025. The Company also issued stock warrants to the note holder to purchase 1,500,000 shares of the Company’s
common stock at $0.02. This note is currently in default due to non payment of principle and accrued interest. The common stock was recorded
at its relative fair value of $13,090 as a debt discount.

On October 17, 2024, the Company entered into a convertible
promissory note with respect to the sale and issuance of: (i) an initial financing fee in the amount of 750,000 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. 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. The common stock and the warrants were recorded at their relative fair values of $6,833 and $30