Company: BLIS
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0001199835-25-000092
Chunk: 46

Company: NAPC Defense, Inc.
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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 recovery
business on a more limited basis as opportunities arise.

NOTE
2 – GOING CONCERN

These
unaudited condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will be
able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has
incurred net losses since inception, which raises substantial doubt about the Company’s ability to continue as a going concern.
Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from March 24,
2025. Management’s plans include raising capital through the equity markets to fund operations and the generation of revenue through
its business. The Company does not expect to generate any significant revenues for the foreseeable future. At January 31, 2025,
the Company had a net working capital deficit of $1,035,381. The Company is in immediate need of further working capital and is seeking
options, with respect to financing, in the form of debt, equity or a combination thereof.

Failure
to raise adequate capital and generate adequate revenues could result in the Company having to curtail or cease operations. The Company’s
ability to raise additional capital through the future issuances of the common stock is unknown. Additionally, even if the Company does
raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenue
will be sufficient to enable it to develop to a level where it will generate profits and cash flows from operations. These matters raise
substantial doubt about the Company’s ability to continue as a going concern; however, the accompanying condensed consolidated
financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities
in the normal course of business. These condensed consolidated financial statements do not include any adjustments relating to the recovery
of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue as
a going concern.  

Convertible
Notes Payable and Notes Payable, in Default

The
Company does not have additional sources of debt or equity financing to refinance or pay off its convertible notes payable that are currently
in default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets
held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held
as collateral