Company: BLIS
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001199835-25-000342
Chunk: 59

Company: NAPC Defense, Inc.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 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 three month periods ended July 31, 2025 and 2024 were excluded from the dilutive
loss per share calculation as they would be antidilutive due to the net loss. As of July 31, 2025 and 2024, there were approximately
163,582,925 and 35,536,302 shares of common stock underlying our outstanding convertible notes payable and warrants, respectively.

Fair
Value of Financial Instruments

Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date.
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable,
as follows:

Level
1 – Quoted prices in active markets for identical assets or liabilities.

Level
2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.

Level
3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair
value of the assets or liabilities.

The
carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable, accrued expenses and interest,
certain notes payable and notes payable – due to related parties, 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. During the three month period ended
July 31, 2025, the Company made leasehold improvements on its commercial office location with an estimated useful life of three years.
Gains and losses upon disposition are reflected in the consolidated statements