NAPC Defense Plunges Deeper into Red with Zero Revenue, Soaring Losses

Ticker: BLIS · Form: 10-Q · Filed: Dec 15, 2025 · CIK: 1703625

Sentiment: bearish

Topics: Defense Industry, Going Concern, Net Loss, Zero Revenue, Convertible Debt, Liquidity Crisis, Share Dilution

Related Tickers: BLIS

TL;DR

**BLIS is a burning dumpster fire with no revenue and massive debt; avoid at all costs.**

AI Summary

NAPC Defense, Inc. (BLIS) reported a significant net loss of $1,481,668 for the six months ended October 31, 2025, a substantial increase from the $889,784 net loss in the prior year period. The company generated no revenue for the current six-month period, a sharp decline from $67,467 in revenue for the six months ended October 31, 2024. Operating expenses surged to $959,006 for the six months ended October 31, 2025, up from $519,700 in the comparable prior year period, driven primarily by a rise in general and administrative expenses to $565,824 from $178,530. The company's total assets increased to $140,429 as of October 31, 2025, from $16,452 as of April 30, 2025, largely due to the recognition of a right-of-use asset of $80,588. Total liabilities also dramatically increased to $1,885,156 from $1,163,126, with convertible notes payable, net of discounts, rising to $1,379,631 from $806,787. NAPC Defense, Inc. is operating with a net working capital deficit of $1,775,936 and expects to expend its available cash of $27,492 in less than one month, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing paints a dire picture for NAPC Defense, Inc., highlighting severe financial distress with zero revenue and escalating losses. For investors, this signals extreme risk, as the company's going concern status is in substantial doubt, and current shareholders face significant dilution from convertible notes. Employees face job insecurity given the company's immediate need for capital and lack of revenue. Customers and the broader defense market should note the company's inability to generate sales, suggesting its strategic pivot to military arms and law enforcement has yet to yield results, potentially impacting its competitive standing against established defense contractors. The company's reliance on highly dilutive debt conversions further weakens its long-term viability.

Risk Assessment

Risk Level: high — The company explicitly states "substantial doubt about the Company's ability to continue as a going concern" and expects to expend its available cash of $27,492 in less than one month. It has a net working capital deficit of $1,775,936 and convertible notes payable of $1,379,631, many of which are in default, indicating severe liquidity and solvency issues.

Analyst Insight

Investors should immediately sell any holdings in BLIS, as the company faces imminent financial collapse with no revenue, substantial debt defaults, and a critical lack of cash. Do not consider this as a speculative investment given the explicit going concern warning and high dilution risk.

Financial Highlights

debt To Equity
N/A
revenue
$0
operating Margin
N/A
total Assets
$140,429
total Debt
$1,885,156
net Income
-$1,481,668
eps
N/A
gross Margin
N/A
cash Position
$27,492
revenue Growth
-100.0%

Revenue Breakdown

SegmentRevenueGrowth
Total Revenue$0-100.0%

Key Numbers

Key Players & Entities

FAQ

What is NAPC Defense, Inc.'s current financial health?

NAPC Defense, Inc. is in severe financial distress, reporting a net loss of $1,481,668 for the six months ended October 31, 2025, and zero revenue. The company has a net working capital deficit of $1,775,936 and expects to run out of its $27,492 cash in less than one month.

Why did NAPC Defense, Inc.'s net loss increase significantly?

The net loss increased from $889,784 to $1,481,668 primarily due to a complete lack of revenue ($0 compared to $67,467) and a substantial increase in operating expenses to $959,006 from $519,700, particularly in general and administrative costs which rose to $565,824.

What are the key risks for NAPC Defense, Inc. investors?

Key risks include the company's 'going concern' warning, immediate liquidity crisis with less than one month of cash, significant potential for shareholder dilution from $1,379,631 in convertible notes payable, and the inability to generate any revenue despite its strategic pivot to the defense sector.

How has NAPC Defense, Inc.'s business strategy changed?

NAPC Defense, Inc. changed its name from Beliss Corp. on April 1, 2024, to reflect its focus on the military arms and law enforcement field. It intends to produce CornerShot units under license, develop proprietary small arms, and distribute ballistic protection and less-than-lethal products.

What is the impact of convertible notes payable on NAPC Defense, Inc.?

The convertible notes payable, totaling $1,379,631, represent a significant debt burden and a major source of potential dilution for current shareholders. Many of these notes are in default, which could lead to lenders filing suit and foreclosing on assets, potentially forcing the company to cease operations.

Does NAPC Defense, Inc. have enough cash to continue operations?

No, NAPC Defense, Inc. does not have enough cash. As of October 31, 2025, the company had only $27,492 in cash and expects to expend this amount in less than one month, necessitating immediate capital raising efforts.

What is the company's plan to address its financial challenges?

Management's plan includes raising capital through equity markets to fund operations and generating revenue through its business. However, the company does not expect to generate significant revenues for the foreseeable future, and its ability to raise additional capital is uncertain.

How many common shares of NAPC Defense, Inc. are outstanding?

As of December 15, 2025, NAPC Defense, Inc. had 334,633,460 common shares issued and outstanding. This represents a significant increase from 238,251,927 shares outstanding as of April 30, 2025, indicating substantial dilution.

What are the implications of NAPC Defense, Inc. being a 'smaller reporting company'?

As a 'smaller reporting company,' NAPC Defense, Inc. is subject to scaled-down disclosure requirements, which may mean less detailed financial and operational information compared to larger public companies. This status does not mitigate its severe financial issues.

What does 'going concern' mean for NAPC Defense, Inc.?

A 'going concern' warning means that there is substantial doubt about NAPC Defense, Inc.'s ability to continue operating for the next twelve months. This is due to its recurring net losses, negative cash flows from operations, significant working capital deficit, and insufficient cash to fund future operations.

Risk Factors

Industry Context

The defense industry is characterized by long sales cycles, significant R&D investment, and reliance on government contracts. Companies often face intense competition and regulatory scrutiny. Recent trends include increased global defense spending and a focus on advanced technologies like AI and cybersecurity.

Regulatory Implications

As a defense contractor, NAPC Defense is subject to stringent government regulations, including those related to procurement, security clearances, and export controls. Non-compliance can lead to severe penalties, contract cancellations, and reputational damage.

What Investors Should Do

  1. Monitor cash burn rate closely: With cash expected to last less than a month, investors should track any new financing or significant changes in cash expenditure.
  2. Scrutinize revenue generation strategy: The complete absence of revenue is a critical concern. Investors need to understand the company's plan to generate sales.
  3. Assess debt conversion impact: Understand the terms of the convertible notes and the potential dilution to existing shareholders upon conversion.
  4. Evaluate operational efficiency: The surge in operating expenses, particularly G&A, needs to be justified and managed to improve financial performance.

Glossary

Right-of-use asset
An asset representing a lessee's right to use an underlying asset for the lease term. It is recognized under ASC 842 lease accounting standards. (The recognition of an $80,588 right-of-use asset contributed significantly to the increase in total assets for NAPC Defense.)
Convertible notes payable, net of discounts
Debt instruments that can be converted into a predetermined amount of the issuer's equity. 'Net of discounts' means the carrying value reflects any original issuance discounts. (This represents a substantial portion of NAPC Defense's liabilities ($1,379,631) and carries the risk of future equity dilution.)
Amortization of debt discount
The process of gradually expensing the difference between the face value of a debt instrument and its issue price over the life of the debt. (The significant increase in this expense ($349,041) indicates rising costs associated with NAPC Defense's debt financing.)
Net working capital deficit
The amount by which current liabilities exceed current assets. A deficit indicates a company may struggle to meet its short-term obligations. (NAPC Defense has a substantial deficit of $1,775,936, highlighting severe liquidity issues.)

Year-Over-Year Comparison

NAPC Defense has experienced a severe deterioration in its financial performance compared to the prior year. Revenue has dropped to zero from $67,467, while the net loss has widened significantly from $889,784 to $1,481,668. Operating expenses have nearly doubled, driven by a substantial increase in general and administrative costs. Total liabilities have also grown considerably, with convertible notes payable increasing by over $570,000, contributing to a worsening liquidity position and raising going concern doubts.

Filing Stats: 4,718 words · 19 min read · ~16 pages · Grade level 16.3 · Accepted 2025-12-15 14:29:28

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of October 31, 2025 (Unaudited) and April 30, 2025 4 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended October 31, 2025 and 2024 5 Unaudited Condensed Consolidated 6 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended October 31, 2025 and 2024 7 Notes to the Condensed Consolidated Unaudited Financial Statements 8 Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

Managements Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30 PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Submission of Matters to a Vote of Securities Holders 32 Item 5. Other Information 32 Item 6. Exhibits 34

Signatures

Signatures 35 2 PART I - FINANCIAL INFORMATION Item 1. Financial Statements Forward-looking made in this Form 10-Q that are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the Act) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as may, will, expect, believe, anticipate, estimate, approximate or continue, or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. Financial information contained in this report and in our financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principals (GAAP). 3 NAPC Defense, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS October 31, 2025 April 30, 2025 Unaudited ASSETS Current assets: Cash $ 27,492 $ 11,812 Security deposit, related party 10,000 - Prepaid expenses 11,623 4,640 Total current assets 49,115 16,452 Security deposit 4,900 - Fixed assets 5,826 - Right of use asset 80,588 - Total Assets $ 140,429 $ 16,452 LIABILITIE

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