Company: BSAI
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001096906-25-000357
Chunk: 188

Company: BLUSKY AI INC.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 11
Chunk 188
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 fiscal year. The Company accounts for U.S. income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The provision for income tax expense (recovery) is comprised the following amounts: Tax Reconciliations December 31, 2024  December 31, 2023 Tax at Statutory Rate $(246,913) $3,316,471 Meals and Entertainment  (63)  (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