Company: BSAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000818
Chunk: 61

Company: BLUSKY AI INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 61
---
im Financial Statements.

The interim financial statements included herein have been prepared by BluSky AI Inc. (“BluSky AI” or the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC” or the “Commission”). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These interim financial statements should be read in conjunction with the financial statements and notes thereto included in this filing.

In the opinion of management, all adjustments have been made consisting of normal recurring adjustments necessary to present fairly the financial position of the Company as of March 31, 2025, the results of its statements of operations for the three-month periods ended March 31, 2025 and 2024, and its cash flows for the three-month periods ended March 31, 2025 and 2024. The results of operations for the interim periods are not necessarily indicative of the results for the full year.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

 3Table of Contents

Overview and Plan of Operation

Overview

BluSky AI Inc., is a pioneering company in AI-driven data center solutions, combining innovation with regulatory compliance and sustainability. The company is focused on high-performance computing infrastructure, strategic site selection, and operational risk management.

Financial Condition

BluSky AI Inc., as a startup entering the highly competitive AI-driven data center industry, faces significant financial constraints, primarily due to limited capital resources and liquidity. In an industry characterized by high upfront infrastructure costs, regulatory compliance expenses, and ongoing operational investments, BluSky AI must carefully manage its financial position to sustain growth and innovation. The company’s liquidity challenges, reflected in a low current ratio and negative cash flow, highlight the need for strategic capital allocation and alternative financing options. With restricted access to immediate cash reserves and a growing need for funding, BluSky AI is actively structuring equity financing mechanisms, including convertible notes and stock issuance, to strengthen its financial foundation. Successfully navigating these early-stage financial pressures will be critical for positioning BluSky AI as a sustainable and competitive player in the AI-powered data center space.

Startups in the AI-driven data center industry face several key financial risks