Company: BSAI
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001096906-25-000357
Chunk: 1293

Company: BLUSKY AI INC.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 9C
Chunk 1293
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 To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity. The fair value of financial instruments on December 31, 2024 are summarized below:   Level 1   Level 2   Level 3   Total              Debt derivative liabilities  -   -   186,542   186,542 Total Liabilities $-  $-  $186,542  $186,542 

 F-9Table of Contents

The fair value of financial instruments on December 31, 2023 are summarized below:   Level 1  Level 2  Level 3  Total              Warrant liabilities $-  $-  $-  $- Debt derivative liabilities  -   -   39,281   39,281 Total Liabilities $-  $-  $39,281  $39,281  The Company recognizes its derivative liabilities as level 3 and values its derivatives using the methods discussed below in Note 3. While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The primary assumptions that would significantly affect the fair values using the methods discussed below in Note 3 are that of volatility and market price of the underlying common stock of the Company. Notes Receivable – Notes receivable include amounts due to the Company pursuant to financial agreements stipulating interest rates, payment terms and maturity dates. As of December 31, 2024 and 2023, notes receivable balances include one note due from Mother Load Mining, Inc. in the amounts of $2,219,442, net