NAPC Defense, Inc.

NAPC Defense, Inc. Annual Review – Plain English Edition

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1. What Does This Company Do?

NAPC Defense makes military gear like drones, cybersecurity tools, guns (pistols/rifles), and bulletproof equipment. Their big move this year: securing rights to produce the CornerShot (a gadget that lets soldiers shoot around corners) through a deal with an Israeli company. They’ve also tried to broker international ammo sales (including support for Ukraine) and attended trade shows in Florida, New Jersey, and Saudi Arabia.

The Catch: Despite these efforts, they made $0 in sales this year.

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2. Financial Health: Red Flags Everywhere

Revenue: Still $0 (no sales from drones, NATO deals, or new products).
Losses: $3.4 million lost this year vs. $712K last year.

Where Did the Money Go?

• Office/admin costs: $1.8M (up 1,843% from $94K last year).
• Rent: $315K (up 3,180% from $9,600).
• Consultants: Paid $118,500 in company stock (diluting existing investors).
• Legal fees: Up 152% to $42K.
• $1.6M write-off: Spent 95 million shares on rights to tech that’s now worthless.

Cash Crisis:

• Out of money in <30 days.
• Auditors warn they’ll burn through cash by May 2025 without a miracle.

Debt Disaster:

• $1.16M owed, including defaulted loans.
• New high-interest loans (10% interest, due in 3 months).
• $108K+ in unpaid interest piling up.

Stockholder Deficit:

• Owe $799,121 more than they own (an 81% improvement from last year’s $4.3M deficit).
• Flooding the market: Increased max shares from 300M to 500M.

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3. Wins vs. Mistakes

The Good (Sort Of):

• Reduced total deficit by 81% (financial details unclear – the company didn’t explain how).
• Landed a $900M NATO drone contract (still $0 earned).
• Partnered to make bulletproof gear and CornerShot (no sales yet).

The Ugly:

• Execs paid themselves $1.7M ($120K cash + $1.6M stock) during a cash crisis.
• Spending spiraled: Office/rent costs up 1,800%+ with no results.
• Stock dilution: Printed 69.8 million new shares (23% of existing shares), hurting investor value.
• Debt defaults: Risk immediate shutdown if lenders demand repayment.

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4. What’s Next? Do-or-Die in 2024

Hail Mary Plays:

• Start making CornerShots if Saudi Arabia or U.S. police place orders.
• Broker ammo sales to Ukraine-related allies (needs U.S. government approval).
• Develop new rifles/ammo using tribal permits (early stage).

Make-or-Break:

• Must raise cash in <30 days to avoid collapse.
• Auditors say investors will “likely lose everything” if they fail.
• 400M+ new shares could flood the market, wiping out remaining stock value.

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5. External Risks to Watch

• War zones: Conflicts in Ukraine/Middle East might boost demand… if NAPC survives.
• Government approvals: Every ammo deal needs State Department sign-off (slow process).
• Investor distrust: Reckless spending ($1.8M on offices vs. $94K last year) makes bailouts unlikely.
• Stock collapse: Shares already trade for pennies – dilution could erase them entirely.

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Key Takeaways for Investors

🚩 Avoid This Stock Unless You Love Extreme Risk 🚩

• No revenue + exploding costs: $3.4M lost on $0 sales. Office spending up 1,800% with no justification.
• Debt time bomb: Defaults, 10% interest loans, and unpaid bills could shut operations tomorrow.
• Stock dilution tsunami: Execs and consultants paid in shares – your stake could vanish overnight.
• Only "win": Reduced deficit from $4.3M to $799K (but still in the red).
• Auditors’ verdict: “We doubt they’ll survive.”

Bottom Line: NAPC looks like a sinking ship. The CEO’s $18,800 loan (vs. $1.7M self-pay) says it all. Unless they land a massive order immediately, this is a gamble, not an investment.