Company: BLIS
Filing Date: 2025-09-19
Form Type: 10-K/A
Source: 0001199835-25-000330
Chunk: 40

Company: NAPC Defense, Inc.
Filing Date: 2025-09-19
Form: 10-K/A
Chunk 40
---
 $                      | 0.02 |     |                |   2.46 |

The 54,860,001 warrants issued during the year ended
April 30, 2025 consisted of the following:

| · | 1,250,000                                                        
 warrants were issued in connection with subscription agreements; |

| · | 47,035,715                                                           
 warrants were issued in connection with convertible debt financings; |

| · | 3,360,000                                                                     
 warrants were issued as additional consideration to a prior note holder*; and |
| · | 3,214,286 warrants issued for                                                 
 full ratchet price protection.                                                |

*A prior note holder was issued 140,000 warrants
in connection with a debt financing from 2021. The Company and the note holder had a verbal agreement to issue this note holder an additional
3,360,000 warrants during the year ended April 30, 2025. These warrant were recorded at their fair value of $67,000. During the year
ended April 30, 2025, this warrant holder cashless exercised 3,500,000 warrants which included the 140,000 original warrants and the
additional 3,360,000 warrants resulting in the issuance of 1,750,000 shares of common stock.

During the year ended April 30, 2025, the Company recorded a deemed dividend in the amount of $82,913 as a result of 3,214,286 additional warrants issuable due to full ratchet price protection.

Significant range of inputs and results arising from
the Black-Scholes process are as follows for the warrants:

Schedule of Share Based Compensation by Share Based Payment Award Method

| Quoted market price on valuation date |     | $ | 0.0086 - .0347  |   |
| Exercise price                        |     | $ | 0.02 – 0.028    |   |
| Expected life (in years)              |     |   | 1 - 5 Years     |   |
| Equivalent volatility                 |     |   | 219.18 – 397.40 | % |
| Interest rates                        |     |   | 3.60 - 4.50     | % |

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Litigation

During the normal course of business, the Company
may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of