Company: BSAI
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001096906-25-001383
Chunk: 51

Company: BLUSKY AI INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 the Company issued an unsecured Short-Term Promissory Note to Cluff-Rich PC 401K in the principal amount of $15,327 (the “Note”) due on April 30, 2025 and bears a 5.0% interest rate. As of June 30, 2025, the gross balance of the 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.

8. Convertible Notes Payable Convertible notes payable were comprised of the following as of June 30, 2025 and December 31, 2024: Convertible Notes Payable June 30, 2025  December 31, 2024 1800 Diagonal Lending $-  $266,451 Total Convertible Notes Payable  -   266,451 Less Unamortized Discount  -   - Total Convertible Notes Payable, Net of Unamortized Debt Discount  -   266,451 Less Short-Term Convertible Notes Payable  -   (266,451 )Total Long-Term Convertible Notes Payable, Net of Unamortized Debt Discount $-  $- 

 F-12Table of Contents

 1800 Diagonal Lending LLC– On January 23, 2024, the Company issued an unsecured Convertible Promissory Note (“Note”) to 1800 Diagonal Lending, LLC (“1800”), in the principal amount of $63,250 (the “Note”) due on October 30, 2024 and bears 12% per annum interest, due at maturity. The total net proceeds the Company received was $50,000 (less an original issue discount (“OID”) of $13,250). 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 nine months ended September 30, 2024, the Company paid $23,613 towards the principal balance of 21,083 and $2,530 in accrued