Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 47

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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, 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.

    8

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 6 – Notes Payable and Convertible Notes Payable, for further information regarding the Company’s convertible notes payable
and notes that are currently in default. 

NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of the Presentation

The
accompanying condensed consolidated financial statements and related disclosures have been prepared in accordance with generally accepted
accounting principles in the United States of America (“GAAP”), and pursuant to the rules and regulations of the SEC and
reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial
position, results of operations and cash flows of the Company for the three and nine months ended January 31, 2025 and 2024. Certain
information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed
or omitted pursuant to such rules and regulations. They should be read in conjunction with the annual financial statements reported in
the latest Form 10-K filed for the year ended April 30, 2024. The results of operations of any interim period are not necessarily indicative
of the results for the full year. The fiscal year end is April 30.

Use
of Estimates

The
preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and 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 January 31, 2025 and April 30, 2024. Financial