Company: BSAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000818
Chunk: 54

Company: BLUSKY AI INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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5 because of increased legal and travel, compared to the three-month period ended March 31, 2024.

Gain on forgiveness of debt increase by $338,673 in the current period

Interest expense decreased in 2025 because of the 1800 Diagonal Lending, LLC convertible notes payable being settled in early 2025.

Liquidity and Capital Resources

Our balance sheet as of March 31, 2025 reflects assets of $3,531. We had cash in the amount of $0 and working capital deficit in the amount of $3,171,461 as of March 31, 2025. Thus, we do not have sufficient working capital to enable us to carry out our stated plan of operation for the next twelve months.

Working Capital

  March 31, 2025  December 31, 2024 Current assets $3,000  $- Current liabilities  3,174,461   3,346,850 Working capital deficit $(3,171,461) $(3,346,850)

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We anticipate generating losses and, therefore, may be unable to continue operations in the future, if we don’t acquire additional capital and issue debt or equity or enter into a strategic arrangement with a third party.

Going Concern Consideration

As reflected in the accompanying unaudited condensed financial statements, the Company and has an accumulated deficit of $29,687,975. In addition, there is a working capital deficit of $3,171,461 as of March 31, 2025. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

  Three Months Ended   March 31, 2025  March 31, 2024 Net Cash Provided by (Used in) Operating Activities $(37,271) $(32,808)Net Cash Provided by (Used in) Investing Activities  -   - Net Cash Provided by (Used in) Financing Activities  37,271   32,818 Net Increase (Decrease) in Cash $-  $10 

Operating Activities

Net cash flow used in operating activities during the three months ended