Company: BSAI
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001096906-25-000357
Chunk: 1198

Company: BLUSKY AI INC.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 9A
Chunk 1198
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 note was $15,327 and accrued interest was $766. Typically, any gains or losses on the extinguishment of debts are reported on the statement of operations. However, since all of the debts in this section are related parties, the gains or losses on the extinguishment of debts have been recorded as additional paid-in capital instead of gains or losses.

9. Convertible Notes Payable Convertible notes payable were comprised of the following as of December 31, 2024 and 2023: Convertible Notes Payable December 31, 2024  December 31, 2023 1800 Diagonal Lending $266,451  $77,701 Total Convertible Notes Payable  266,451   77,701 Less Unamortized Discount  -   (40,161)Total Convertible Notes Payable, Net of Unamortized Debt Discount  266,451   37,540 Less Short-Term Convertible Notes Payable  (266,451)  (37,540)Total Long-Term Convertible Notes Payable, Net of Unamortized Debt Discount $-  $- 

 F-16Table of Contents

1800 Diagonal Lending LLC – On September 12, 2023, the Company issued an unsecured Convertible Promissory Note (“Note”) to 1800 Diagonal Lending, LLC (“1800”), in the principal amount of $116,550 (the “Note”) due on June 15, 2024 and bears 11% per annum interest, due at maturity. The total net proceeds the Company received was $100,000 (less an original issue discount (“OID”) of $16,550). The Note is convertible into common stock, at holder’s option, at a 25% discount of the average of the three lowest trading price of the common stock during the 10 trading day period prior to conversion. During the year ended December 31, 2023, the Company paid $43,122 towards the principal balance of $38,849 and $4,273 in accrued interest. For the year ended December 31, 2023, the Company amortized $26,454 of debt discount as interest expense. During the year ended December 31, 2024, the Company paid $86,245 towards the principal balance of $77,701 and $8,544 in