RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

3 Months Ended

Jul. 31, 2025

Leases [Abstract]

RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

NOTE 5 – RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

Operating Leases

Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases are not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term.

NAPC Defense Inc. entered into a lease agreement for approximately 2,900 square feet of commercial office space located in Clearwater, Florida that commenced on May 1, 2025 and that terminates on May 1, 2028. The base rent during the term of the lease is $3,138 per month in year one, $3,295 per month in year two, and $3,460 per month in year three.

On May 1, 2025, upon inception of the lease, the Company recorded a right-of-use asset and lease liability of $105,293.

Right-of-use assets at July 31, 2025 and April 30, 2025 are summarized below:

	July 31, 2025			April 30, 2025
Office lease	$	105,293		$	-
Less accumulated amortization		(7,410	)		-
Right of use assets, net	$	97,883		$	-

Rent expense for the three months ended July 31, 2025 was $13,001.

Operating Lease liabilities are summarized below:

	July 31, 2025			April 30, 2025
Office lease	$	98,374		$	-
Less: current portion		(29,942	)		-
Long term portion	$	68,432		$	-

Maturity of lease liabilities are as follows:

	July 31, 2025
Year ending April 30, 2026		28,246
Year ending April 30, 2027		39,544
Year ending April 30, 2028		41,521
Year ending April 30, 2029		3,460
Total future minimum lease payments	$	112,771
Less imputed interest		(14,397	)
PV of Payments	$	98,374