Company: BLIS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0001199835-25-000051
Chunk: 5

Company: NAPC Defense, Inc.
Filing Date: 2025-02-26
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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Company recognizes licensing revenue under ASC 606-10-55-59. In order to determine whether the Company’s promise to provide a right
to access or to use its intellectual property, the Company should consider the nature of the intellectual property to which the customer
will have rights. Intellectual property is either:

  Functional                                                                                                                                      

  Symbolic                                                                                                                                 

Intellectual
property that has significant standalone functionality is functional IP. Functional IP is a right to use IP because the IP has
standalone functionality and the customer can use the IP as it exists at a point in time.

Basic
Loss per Share

The
Company has adopted the Financial Accounting Standards Board (“ FASB”) ASC 260-10, which provides for the calculation of “basic”
and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or
loss available to common stockholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect
the potential dilution of securities that could share in the earnings of an entity.

The
potentially dilutive common stock equivalents for the six month periods ended October 31, 2024 and 2023 were excluded from the
dilutive loss per share calculation as they would be antidilutive due to the net loss. As of October 31, 2024 and 2023, there were
approximately 38,903,595 and 16,322,590 shares of common stock underlying our outstanding convertible notes payable and
warrants, respectively.

Fair
Value of Financial Instruments

The
carrying amounts of financial assets and liabilities, such as cash, accounts payable, short term loans, and the Company’s related
party convertible loan from a shareholder approximate their fair values because of the short maturity of these instruments.

Fixed
Assets

Fixed
assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective
assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance
and repair expenditures are charged to expense as incurred.

Impairment
of Long-Lived and Intangible Assets

Long-lived
assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be
recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment.
When impairment indicators exist, the Company uses market quotes, if available or an