NAPC Defense, Inc. (BLIS) presents a deeply negative liquidation posture as of January 31, 2026. Total assets of $163,072 are set against total liabilities of $1,774,523, producing a book stockholders' deficit of -$1,611,451. The MFFAIS-computed cash liquidation value of approximately -$3.1M reflects the asymmetric treatment of assets under haircut and liabilities at face value. Asset-side recoverable value is negligible: cash of $25,015 (100% recovery) is the only material liquid asset; prepaid expenses of $44,151 recover at near-zero under a liquidation; the right-of-use asset of $73,764 is an ASC 842 construct with no standalone liquidation value, while the associated lease liability of $84,009 survives at face value. Intangibles of $5,242 receive a zero haircut recovery. The liability stack is dominated by convertible notes payable with a net carrying value of $1,296,464 (face $1,379,284, unamortized discount $82,820). Critically, the filing discloses that $1,040,117 of the $1,379,284 aggregate principal was in default as of January 31, 2026 due to non-payment of principal and/or accrued interest—this accelerates the entire default tranche to immediate face-value claim in any liquidation scenario. Accrued interest on convertible notes was $160,919 at period end, up from $108,059 at April 30, 2025, and is not separately XBRL-tagged as a balance sheet line in TAG_CONTEXT. The contingent liability of $50,000 (vessel loan from discontinued treasure recovery operations) is carried on the balance sheet and would be a face-value claim in liquidation. The Company also carries an ASC 842 operating lease commitment totaling approximately $186,882 in undiscounted future payments ($9,415 remainder of FY, $39,544 year 2, $41,521 year 3, $3,461 year 4) for a Clearwater, FL office lease, plus a month-to-month related-party lease at $10,000/month that does not terminate and would not extinguish on windup. Management explicitly states the Company expects to exhaust available cash within one month of the filing date (March 17, 2026), and the going-concern qualification is in place. The prior filing (period ended October 31, 2025) showed total assets of $140,429 and current liabilities of $1,825,051 with a working capital deficit of $1,775,936; the current period shows modest improvement in working capital deficit to $1,653,789, primarily driven by additional equity issuances and new convertible debt proceeds partially offsetting operating cash burn of $594,278 for the nine-month period. Accumulated deficit reached -$10,337,044. The $1,615,000 intellectual property acquired via related-party transaction (95M shares issued to NAPC LLC for CornerShot rights) was fully impaired to $0 in the year ended April 30, 2025 and does not appear in the current balance sheet. No revenue was generated in the nine months ended January 31, 2026.
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