Company: BSAI
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001096906-25-001383
Chunk: 14

Company: BLUSKY AI INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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,000. Pine Valley Investments, LLC –On January 1, 2023, there were three Notes outstanding with outstanding balance of the Notes of $295,000 and accrued interest of $115,250. On February 1, 2023, the Company re-negotiated these notes into one note with a maturity date of March 1, 2025 and is non-interest bearing. The Company issued 32,929 shares of common stock as settlement for the outstanding accrued interest of $115,250. As of June 30, 2025, the gross balance of the notes was $295,000. Whit Cluff (Affiliate – Director) – On March 28, 2024, 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