EPS of $0.00 decreased by 121.4% from previous year
Net income of -639.21K
"N/A" - N/A
NAPC Defense Inc (BLIS) QQ3 2025 Results Analysis: Industrials Edge in a Distressed Micro‑Cap with Negative Earnings and Waning Liquidity
Executive Summary
NAPC Defense Inc (BLIS) reported a deeply negative QQ3 2025 financials showing a continuation of loss generation with limited liquidity and a precarious balance sheet. Key metrics indicate an operating loss of $259,498 and a net loss of $639,212 for the period, translating to earnings per share of -$0.0031. EBITDA stood at -$536,548, reflecting ongoing cost pressures against scarce revenue visibility. The company’s disclosed cash position remained minimal (cash and cash equivalents of $15,686) with current liabilities towering at $1,051,067, implying a critical liquidity constraint. The QQ3 2025 results come against a backdrop of YoY deteriorations in operating income (-246.62%) and net income (-628.48%), with QoQ declines of -26.75% and -40.82% respectively. Management commentary is not included in the provided transcript data, limiting the ability to attribute the deterioration to specific operational or strategic catalysts. The company also carries a substantial intangible asset base ($1.615 million) versus a modest cash cushion, suggesting potential impairment risk and high leverage (debt to equity ≈ 1.15). Given the absence of explicit forward guidance and the sparse cash flow generation (CFO = -$293,240; free cash flow = -$293,240; net change in cash = +$2,767 after a financing inflow of $296,007), the near-term investment thesis hinges on external financing, potential monetization of intangible assets, and any future defense-related revenue or salvage contracts. Investors should monitor liquidity development, debt maturation, and any management disclosures on strategic steps to stabilize operations or monetize assets.
Key Performance Indicators
Operating Income
-259.50K
QoQ: -26.75% | YoY:-246.62%
Net Income
-639.21K
QoQ: -40.82% | YoY:-628.48%
EPS
0.00
QoQ: -29.17% | YoY:-121.43%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the QQ3 2025 income statement; cost of revenue recorded at $75,000 with gross loss of $75,000, implying either minimal or unrecorded revenue for the period.
Gross Profit/Loss: -$75,000; Gross margin not defined due to revenue non-disclosure.
Operating Expenses: $184,498 in the QQ3 period, driving total operating expenses to $259,498 when including cost of revenue and other operating costs.
EBITDA: -$536,548 (negative).
Operating Income: -$259,498 (negative). This represents a QoQ and YoY deterioration in operating profitability given the fixed cost base.
Financial Highlights
Overview of QQ3 2025 performance with YoY and QoQ context where available:
- Revenue: Not disclosed in the QQ3 2025 income statement; cost of revenue recorded at $75,000 with gross loss of $75,000, implying either minimal or unrecorded revenue for the period.
- Gross Profit/Loss: -$75,000; Gross margin not defined due to revenue non-disclosure.
- Operating Expenses: $184,498 in the QQ3 period, driving total operating expenses to $259,498 when including cost of revenue and other operating costs.
- EBITDA: -$536,548 (negative).
- Operating Income: -$259,498 (negative). This represents a QoQ and YoY deterioration in operating profitability given the fixed cost base.
- Net Income: -$639,212, EPS -$0.0031. YoY and QoQ deteriorations in profitability are evident: YoY operating income is down approximately 246.6%, and YoY net income is down roughly 628.5%; QoQ declines in operating income and net income are approximately -26.8% and -40.8% respectively.
- EPS (Diluted): -$0.0031.
- Weighted Avg Shares (outstanding): 206,332,426.
- Cash Flow: Net cash provided by operating activities = -$293,240. Free cash flow = -$293,240. Net change in cash = $2,767; cash at end of period = $15,686.
- Balance Sheet health: Total assets $1,631,686; total current assets $15,686; total current liabilities $1,051,067; cash and equivalents $15,686; intangible assets $1,615,000; total liabilities $1,051,067; total stockholders’ equity $580,619; Retained earnings negative at -$6,516,565; short-term debt $667,655; net debt $651,969.
- Key liquidity and leverage ratios: current ratio 0.0149; quick ratio 0.0149; debt ratio 0.409; debt to equity 1.150; price to book 3.48; enterprise value multiple -4.98. Negative earnings support a highly speculative risk profile despite some relatively modest book value signals.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-75.00K
N/A
0.00%
Operating Income
-259.50K
-246.62%
-26.75%
Net Income
-639.21K
-628.48%
-40.82%
EPS
0.00
-121.43%
-29.17%
Key Financial Ratios
currentRatio
0.01
returnOnAssets
-39.2%
returnOnEquity
-110.1%
debtEquityRatio
1.15
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
3.48
priceEarningsRatio
-0.79
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript not provided in the data set. No earnings call transcript content available to extract management themes, strategic comments, or operational updates. Generated highlights and quotes are not available. If a transcript becomes available, we will summarize themes (strategy, operations, market conditions) and pull direct quotes with context.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was provided in the QQ3 2025 data set. In the absence of management commentary or guidance, the forward outlook must be grounded in the reported numbers and sector dynamics. The company shows severe liquidity constraints and negative earnings, suggesting that near-term performance will depend on: (1) securing additional financing or extending debt facilities, (2) monetization or impairment management of intangible assets, (3) any new defense-related contracts or salvage opportunities that could materialize into revenue, and (4) aggressive cost containment and capital expenditure discipline. The defense/aerospace salvage niche remains highly cyclical and dependent on variances in contract awards and regulatory approvals, which could materially impact the trajectory if a sizable contract is won or lost. Key monitoring factors for investors: liquidity runway (cash burn rate), debt maturities, any plan for asset monetization, and visibility into a potential revenue pipeline from salvage or defense activities.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BLIS Focus
0.00%
0.00%
-1.10%
-79.10%
SFRX
1.00%
-110.89%
33.30%
-22.47%
OMEX
-5.31%
-13.41%
-1.16%
22.90%
BEGI
0.00%
0.00%
12.10%
-2.78%
CYLC
0.00%
0.00%
3.18%
-1.25%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ3 2025 results place NAPC Defense in a high-risk, distressed micro-cap category within the Industrials sector. The company reports a sizable net loss and negative cash flow with a structurally weak balance sheet and an extremely tight liquidity position. Without identifiable revenue in QQ3 2025 and no disclosed forward guidance, the investment thesis is contingent on external financing and meaningful asset monetization or a near-term contract win that can convert into cash flow. In the near term, risk-reward appears skewed toward downside given the liquidity crunch, while any positive development (e.g., debt restructuring, share issuance with favorable terms, or a revenue-generating contract) could re-rate the stock if accompanied by improved cash flow visibility. Investors should approach with caution, requiring clarity on revenue pipelines, capital structure plans, and a credible path to profitability and cash flow break-even. Benchmarking against micro-cap defense peers suggests a wide dispersion in financial health; BLIS’s current metrics indicate a substantial discount to potential recovery scenarios, assuming the company can stabilize liquidity and secure contracts.
Key Investment Factors
Growth Potential
Limited near-term growth visibility given the absence of disclosed revenue drivers and the ongoing burn. Potential upside could come from monetizing intangible assets, reducing operating costs, and securing new salvage or defense contracts that convert into revenue and positive cash flow. A successful capital raise or debt restructuring could unlock liquidity to pursue growth assets or contracts.
Profitability Risk
High liquidity risk with current ratio ~0.015 and net debt ~$0.652 million against a small cash base. Negative EBITDA and net income signal ongoing operating losses. Intangible assets of $1.615 million create impairment risk if market conditions deteriorate. Dependency on external funding and potential capital raises introduces financing risk and dilution. Industry cyclicality and regulatory compliance in salvage and defense sectors add execution risk.
Financial Position
Weak liquidity and negative earnings characterized QQ3 2025 results. Balance sheet shows limited current assets versus sizable current liabilities, substantial intangible assets, and a moderate leverage profile (debt to equity ~1.15). Free cash flow is negative, and cash at period-end is modest ($15,686).
SWOT Analysis
Strengths
Niche specialization in treasure salvage and military/law enforcement alignment, potentially unique revenue opportunities if contracts materialize.
Intangible asset base of $1.615 million could offer strategic value (e.g., licensing, collateral for financing) if properly monetized or supported by a plan.
Low cash burn in the context of a struggling period may reflect a focus on cost controls and working-capital efficiency.
Weaknesses
Significant liquidity constraint: cash of $15,686 and current liabilities of $1,051,067 imply near-term funding risk.
Negative EBITDA and net income in QQ3 2025 with high operating costs relative to undefined revenue.
Heavy reliance on external financing or asset monetization to fund ongoing operations and potential growth initiatives.
Intangible assets dominate the asset base, elevating impairment risk if market conditions deteriorate.
Opportunities
Potential to secure new salvage or defense-related contracts that could translate into revenue and improved cash flow.
Opportunities to monetize intangible assets through licensing, partnership, or securitization with lenders.
Strategic cost reductions and optimization could improve margin if revenue stabilizes.
Threats
Industry cyclicality and dependence on contract awards in the aerospace/defense sector.
Regulatory and legal risks associated with salvage operations and defense contracting.
Market valuation and liquidity risk in micro-cap stocks may impede capital-raising efforts.