Company: BSAI
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001096906-25-001383
Chunk: 11

Company: BLUSKY AI INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 11
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 The Company recognized a gain on the extinguishment of debt of $121,337 for the remaining derivative liability and of $11,842 for the remaining debt discount. As of June 30, 2025, the gross balance of the note was $60,000 and accrued interest was $134,719. Antczak Polich Law, LLC – On March 21, 2023, the Company issued an unsecured Promissory Note (“Note”) to Antczak Polich Law, LLC (“Antczak”), in the principal amount of $75,000 (the “Note”) and does not accrue interest. This note is due on December 31, 2023 and requires monthly payments of $10,000 starting July 2023 with any remaining balance paid in full by December 31, 2023. As of June 30, 2025, the gross balance of the note was $65,000.

7. Notes Payable – Related Parties Notes payable – related parties were comprised of the following as of June 30, 2025 and December 31, 2024: Notes Payable - Related Parties Relationship June 30, 2025  December 31, 2024 Cluff-Rich PC 401K Affiliate - Controlled by Director $51,000  $51,000 Whit Cluff Director  15,327   15,327 Digital Asset Medium, LLC Affiliate - Controlled by Director  227,500   - Debra D’ambrosio Immediate Family Member  530,840   531,434 Francis E. Rich Immediate Family Member  100,000   100,000 Pine Valley Investments Affiliate - Controlled by Director  295,000   295,000 Total Notes Payable - Related Parties    1,219,667   992,761 Less Short-Term Notes Payable - Related Parties    (1,219,667)  (992,761)Total Long-Term Notes Payable - Related Parties   $-  $-  Cluff-Rich PC 401K – On June 29, 2022, the Company issued an unsecured Short-Term Promissory Note to Cluff-Rich PC 401K in the principal amount of 60,000 (the “Note”) due on December