Company: BSAI
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001096906-25-001383
Chunk: 61

Company: BLUSKY AI INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 61
---
2024  (Decrease) General and Administrative $1,687,294  $260,175  $1,427,119 Depreciation and Amortization Expenses  -   362   (362 )Total Operating Expenses  1,687,294   260,537   1,426,757 Loss from Operations  (1,687,294 )  (260,537 )  (1,426,757 )Other Income (expense)  96   -   96 Change in Derivative Liabilities  -   49,036   49,036 Initial Derivative Expense  -   (193,582 )  193,582 Gain on Extinguishment of Debt  338,673   -   338,673 Interest Expense  (33,006 )  (354,426 )  321,420 Loss from Operations Before Taxes  (1,381,531 )  (759,509 )  (622,022 )Provision for Income Taxes  -   -   - Net Loss $(1,381,531 ) $(759,509 ) $(622,022 )

General and administrative expenses increased for the six-month period ended June 30, 2025 because of higher consulting and investor relations expenses, compared to the six-month period ended June 30, 2024.

Changes in derivative liabilities was because of the elimination of the derivative liabilities in the current year that was reported under the gain on extinguishment of debt.

Interest expense decreased in 2025 because of the interest expense related to settled notes was lower and the decrease of amortization of existing debt discounts.

 5Table of Contents

Liquidity and Capital Resources

Our balance sheet as of June 30, 2025 reflects assets of $32,802. We had cash in the amount of $889 and working capital deficit in the amount of $3,385,281 as of June 30, 2025. Thus, we do not have sufficient working capital to enable us to carry out our stated plan of operation for the next twelve months.

Working Capital

  June 30, 2025  December 31, 2024 Current assets $32,271  $- Current liabilities  3,417,552   3,346,850 Working