10-Q Impact 7/10 Earnings

$NAPD · NAPC Defense, Inc.

September 21, 2026 · AI-analyzed SEC filing

View original filing on SEC.gov → All SEC filings →

Summary

NAPC Defense filed its 10-Q for Q1 FY2027 (quarter ended July 31, 2026), reporting $5,288,000 in revenue — all from related party Native American Pride Constructors, LLC — versus $0 in the prior-year quarter. The company swung to net income of $775,538 from a $584,252 loss, with gross profit of $1,553,484 (29.4% margin). However, the auditor reiterates substantial doubt about the company's ability to continue as a going concern, noting cash of $764,831 could be exhausted in less than one month without new financing.

Key points

Revenue of $5,288,000 came entirely from a related party, Native American Pride Constructors, LLC, vs. $0 in the prior-year quarter.
Gross profit was $1,553,484 on a 29.4% gross margin; operating income reached $1,312,828.
Net income of $775,538 reversed a $584,252 net loss in Q1 FY2026, driven by the new subcontractor revenue.
Total other expenses of $537,290 included $284,572 in financing fees and a $210,646 loss on debt extinguishment.
Auditor raises substantial doubt about going concern: cash of $764,831 may be exhausted in under one month without new capital.

Financial results

PeriodQ1 FY2027

Revenue$5.3M

Revenue YoYN/A (prior year $0 revenue from related party, $0 total revenue in Q1 FY2026 per filing — revenue line shows $0 for three months ended July 31, 2025, though the filing states total revenue was $0 for that period; the $5.3M is entirely related-party revenue with no prior-year comparable from the same source, so a meaningful YoY growth rate cannot be computed from the data provided.) — NOTE: the filing shows Revenue, Related Party of $5,288,000 for Q1 FY2027 vs $0 for Q1 FY2026, but the prior-year period had no revenue at all per the income statement, so the growth rate is effectively infinite or not meaningful. We report 'N/A' to avoid fabricating a percentage.

EPS$0.00

Net income$775,538

Gross margin29.4%

Op. margin24.8%

Market impact

Price data unavailable.

Why this matters

A micro-cap defense contractor posts its first profitable quarter on a single related-party contract while simultaneously warning it may not survive the next month — a binary outcome for shareholders.

Sector context

NAPC Defense operates as a small-cap defense contractor brokering arms, CornerShot systems, and ballistic protection. The related-party subcontract with Native American Pride Constructors for Department of War work is the sole revenue driver, distinguishing it from peers with diversified government

Risk factors

All $5.3M in revenue is from a single related party, creating extreme customer-concentration risk. The going-concern warning is acute: the company states it could exhaust cash in less than one month from the filing date. Convertible notes payable of $989,010 and ongoing dilution from debt-to-equity

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