Company: BSAI
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001096906-25-000357
Chunk: 1260

Company: BLUSKY AI INC.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 9B
Chunk 1260
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 (362)Change in Derivative Liability  (51,043)  (851,083)Amortization of Debt Discount  57,190   (20,028)Accrued Interest  48,050   11,212 Change in Valuation of Allowance  192,779   (2,456,210)Tax Provision $-  $-  The components of deferred income tax in the accompanying balance sheets are as follows: Deferred Tax Assets December 31, 2024  December 31, 2023 (21% Federal, 5% Average Corporate Rate)      Net Operating Loss Carry-forwards $4,127,868  $4,320,740 Depreciation  217,362   217,362 Accrued Interest  (48,050)  (11,213)Valuation Allowance  (4,297,180)  4,526,889)Deferred Tax Assets $-  $-  As of December 31, 2024 and 2023, the Company had net operating loss carry-forwards for U.S. federal income tax purposes of approximately $2,614,710 and $1,872,892, respectively. A portion of the federal amount, $1,710,000, is subject to an annual limitation of approximately $17,000 as a result of a change in the Company’s ownership through February 2013, as defined by Federal Internal Revenue Code Section 382 and the related income tax regulations. As a result of the 20-year federal carry-forward period and the limitation, approximately, $1,400,000 of the net operating loss will expire unutilized. These net operating loss carry-forwards will expire through the year ending 2044. The valuation allowance was established to reduce the deferred tax asset to the amount that will more likely than not be realized. This is necessary due to the Company’s continued operating losses and the uncertainty of the Company’s ability to utilize all of the net operating loss carry-forwards before they will expire through the year 2044. The Company is subject to income tax in the U.S. federal jurisdiction. The Company has not been audited by the U.S. Internal Revenue Service in connection with income taxes. The Company’s tax years beginning with the year ended June 30, 2012 through December 31,