NAPC Defense, Inc. (NAPD) reported its first significant operating revenue as a defense subcontractor for the quarter ended July 31, 2026, generating $5.29 million in related-party revenue from U.S. government contract management work and a gross profit of $1.55 million.
The company posted net income of $775,538, compared with a net loss of $584,252 a year earlier, while keeping operating expenses roughly flat at $240,656. Cash was $764,831, and total assets were $902,238 against total liabilities of $1.68 million, resulting in a stockholders’ deficit of $774,352 and a working capital deficit of $804,952.
Management states there is substantial doubt about the ability to continue as a going concern, expecting existing cash to be exhausted in less than one month from the report issuance date without new financing. The company also highlights convertible and other notes in default that could lead to litigation or foreclosure and notes that conversions could be highly dilutive to existing shareholders.
NAPC Defense, Inc. (NAPD) notified that its Quarterly Report on Form 10-Q for the period ended July 31, 2026 will be filed late. The company cites delays in finalizing financial statement presentation and subsequent events, and its independent registered public accounting firm needs additional time to complete its review. NAPC Defense expects to file the report within the five-day extension allowed under Rule 12b-25 and indicates it does not anticipate any significant change in results of operations versus the same period last year.