Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 35

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 the consolidated financial statements.

In
May of 2023, NAPC Defense, Inc. was sued in county court over a contract by the firm of Delmar which contends that the Company did not
follow through on a contract for their services related to its regulation A offering in 2022. The Company has defended and is defending
such on the basis that Del Mar never performed on its obligations and therefore was discharged on the contract. Such matter is pending
motions by NAPC Defense, Inc. in the county court. Such lawsuit is seeking $20,000 by Delmar. As of July 31, 2025, the suit was pending
dismissal and awaiting court dates.

Media
Use and License Agreement

On
February 5, 2023, the Company entered into a Media Use and License Agreement with a corporation. Under the terms of the Media Use and
License Agreement, the Company granted the user entity (the “Licensee”) an exclusive license to use photographic and video
rights of NAPC Defense, Inc.’s then treasure recovery activities for use to publicize non-fungible token sales as well as appearances
by persons for such publication and sales. The authority to use the works includes the right to visit and photograph or video activities
of NAPC Defense, Inc. treasure recovery operations. The Licensee agreed to pay to NAPC Defense, Inc. an initial net rights fee of $85,000.
NAPC Defense, Inc. was to be owed a royalty from any net revenue to the Licensee for such amounts of sales over the initial rights payment
in the amount of 30% for such net sales for any which shall be calculated within thirty days of annual year end. The Licensor never fully
developed the Media related business and as of July 31, 2025, no such activity had occurred, nor is it expected to occur in its former
form.

Vessel
Loan and Treasure Recovery Agreement

On
March 5, 2023, the Company entered into a loan agreement with an individual. Under the terms of the loan agreement, the lender
provided a vessel loan to NAPC Defense, Inc. toward the purchase price of a vessel at auction in the amount of $50,000 at a 0% per
annum rate of interest. In exchange for the loan, NAPC Defense, Inc. agreed to grant to the lender an amount of treasure recovered
from the vessel for the 202