STOCKHOLDERS’ DEFICIT

12 Months Ended

Apr. 30, 2025

NOTE 6 – STOCKHOLDERS’ DEFICIT

Common Stock

On February 20, 2025, the Company filed with the State of Nevada to increase the authorized shares of the Corporation from 300,000,000 common shares to 500,000,000 common shares. Such filing was processed to be effective with the State of Nevada on February 20, 2025. At April 30, 2025 the Company had 500,000,000 authorized shares of common stock.

During the year ended April 30, 2025 NAPC Defense, Inc. issued 69,851,625 shares of the Company’s restricted common stock, including:

3,659,524 shares with warrants under subscription agreements for total proceeds of $95,000;

20,976,467 shares for $422,351 of principal, interest and fees converted at the contractual conversion rate.

5,866,667 shares with a fair value of $173,653 based on the closing market price on the conversion upon conversion of the principle, accrued interest and fees of a convertible note at a conversion price different than the contractual price in the amount of $125,655, resulting in a loss on debt extinguishment of $47,998;

31,596,430 shares valued at $148,608 based on the closing price on the date of issuance for loan origination fees and stock subscription commitment fees;

4,902,537 shares valued at $248,050 based on the closing market price on the date of issuance for loan financing fees;

1,100,000 shares for various services provided, valued at $13,560 based on the closing market price of the common shares on the grant dates; and

1,750,000 shares for the cashless exercise of warrants.

Series A Preferred Stock

On May 1, 2020, the Company’s Board authorized the creation of 100 Series A preferred shares. The Series A preferred shares was planned to pay a quarterly payment based upon treasure operations under the former business operations for revenue sharing, which all 100 Series A preferred shares were to receive twenty percent of the operations from recoveries at sea at the time. Each Series A preferred share was priced at $4,000 with a minimum purchase of three Series A preferred shares and are only eligible to be purchased by accredited investors. The Series A preferred shares are not convertible into common shares and are subject to all other restrictions on securities as set forth.

At April 30, 2025 and 2024 the Company had 51 shares of Series A preferred shares outstanding.

Warrants

The following table reflects the warrants outstanding at April 30, 2025 and 2024:

Schedule of Warrant Outstanding

Number of Warrants	Number of Warrants			Weighted- Average Exercise Price		Weighted- Remaining Term
Outstanding at April 30, 2023		7,177,333		$	0.09		1.1428
Granted		-
Exercised		-
Cancelled		(5,921,666	)
Outstanding at April 30, 2024		1,255,667		$	0.25		2.1438
Granted		51,645,715		$	0.02		2.2574
Warrants issued under full ratchet price protection		3,214,286			0.02		4.16
Exercised		(3,500,000	)
Cancelled		-
Outstanding at April 30, 2025		52,615,668		$	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:


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	%

- Definition

The entire disclosure for equity.

+ References

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+ Details

NAPC Defense, Inc. 10-K/A