Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 7

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 date. As most leases
do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the adoption date
in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over
the lease term and is presented in operating expenses on the unaudited condensed consolidated statements of operations.

Finance
leases are recorded as a finance lease liability and property, plant and equipment asset, based on the present value of lease payments.
The asset is depreciated, and the liability is amortized with interest expense incurred over the life of the lease.

As
permitted under the new guidance, the Company has made an accounting policy election not to apply the recognition provisions of the guidance
to short term leases (leases with a lease term of twelve months or less that do not include an option to purchase the underlying asset
that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments for short term leases on a
straight-line basis over the lease term.

Segment
Information

During
the six month period ended October 31, 2024, NAPC Defense, Inc. began operations for its defense related business including generating
revenue and incurring expenses. The defense related business has no relation to the Company’s shipwreck exploration and recovery
operations other than common ownership. As such, the Company concluded that the operations of the defense business and the shipwreck
business were separate reportable segments as of the six month period ended October 31, 2024. (see Note 10 - Segment Information).

Income
Taxes

Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities
are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using
the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available
evidence, are not expected to be realized.

Recent
Accounting Pronouncements

All
other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified
Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on
the Company’s present or future consolidated financial statements.

NOTE
4 - FIXED ASSETS

Fixed
assets at October 31 and April 30, 2024 are