Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 40

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 Company of $45,000, an annual rate of interest of 10% that is convertible into shares
at $0.01 and that is due on September 12, 2026. The note also states that the lender will receive monthly performance bonus payments of
$500 per unit of the CornerShot product manufactured and delivered by the Company upon receipt of customer payment, limited to 100% of
the loan value.

Subsequent
to July 31, 2025 the following convertible notes went into default:

    -
    A
    convertible promissory note dated August 12, 2024 that was due on August 12, 2025;

    -
    A
    convertible promissory note dated May 2, 2025 that was due on August 2, 2025; and

    -
    A
    convertible promissory note dated May 2, 2025 that was due on August 2, 2025.

Subsequent to July 31, 2025 the Company entered into an agreement with
a related party to lease 6,500 square feet of warehouse space and 1,200 share feet office space. The lease is month-to-month until terminated
by either the Company or the landlord and the base monthly rent is $10,000 per month.

21

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking
statements

Statements
made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe
harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act
of 1934. These statements often can be identified by the use of terms such as “may,” “will,” “expect,”
“believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the
negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution
readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking
statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject
to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from
histor