--------------------------------------------------------------------------------
                     U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

[X]  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE ACT OF
     1934

                  For the fiscal year ended September 30, 2005

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

              For the transition period from__________to__________

                         Commission file number 0-32067


                           Big Sky Industries I, Inc.
            ---------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


            Florida                                     59-3646899
 -------------------------------            ------------------------------------
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
  incorporation or organization)


7557 West Sand Lake Road, Suite 153, Orlando, FL                32819
------------------------------------------------                -----
(Address of principal executive offices)                      (Zip Code)

                                 (407)-628-7033
                          -----------------------------
                           (Issuer's telephone number)

Securities registered under Section 12 (b) of the Exchange Act:

Title of Each Class                         Name of Exchange on Which Registered
------------------------                   -------------------------------------
       None                                            None

Securities registered under Section 12(g) of the Exchange Act:

                               Title of Each Class
                         ------------------------------
                         Common Stock, $0.001 Par Value

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant  was required to file such report),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [ X ] No [ ]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation  S-B is not  contained  in  this  form,  and no  disclosure  will  be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ X ]

State  issuer's   revenues  for  the  fiscal  year  ended   September  30,  2005
were..................$0.00.

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates  computed by reference to the price at which the common equity
was sold,  or the average bid and asked  price of such  common  equity,  as of a
specific  date within the past 60 days.  (See  definition  of  affiliate in Rule
12b-2 of the Exchange Act.)

As of August 23, 2007, there were 1,050,000  shares of common stock,  $0.001 par
value, issued and outstanding.

Transitional Small Business Disclosure Format (check one):

     Yes [   ]                                       No [ X ]


<PAGE>


                                TABLE OF CONTENTS



                                     Part I                               Page
                                                                         Numbers


Item 1    Description of Business                                              1


Item 2    Description of Property                                              3


Item 3    Legal Proceedings                                                    3


Item 4    Submission of Matters to a Voted of Security Holders                 3



                                     Part II



Item 5    Market for Common Equity and Related Stockholder Matters and Small
                    Business Issuers Purchases of Equity Securities            4


Item 6    Management's Discussion and Analysis or Plan of Operation            5


Item 7    Financial Statements                                                 6


Item 8    Changes in and Disagreements with Accountants on Accounting and
                   Financial Disclosures                                       6


Item 8A   Controls and Procedures                                              7


Item 8B   Other Information                                                    8



                                    Part III



Item 9    Directors and Executive Officers of the Registrant                   7


Item 10   Executive Compensation                                               9


Item 11   Security Ownership of Certain Beneficial Owners and Management and
                   Related Stockholder Matters                                10


Item 12   Certain Relationships and Related Transactions                      10


Item 13   Exhibits                                                            11


Item 14   Principal Accountant Fees and Services                              12
          Signatures                                                          12







<PAGE>



FORWARD LOOKING STATEMENTS

This report on Form 10-KSB  contains  statements that plan for or anticipate the
future.  Forward-looking  statements about the future of the blank check ("Blank
Check")  companies in general,  statements  about our future  business plans and
strategies, and most other statements that are not historical in nature. In this
report, the words "anticipate,"  "plan," "believe," "expect," "estimate," "may,"
"could,"   "will,"   and   similar   expressions   are   intended   to  identify
forward-looking  statements.  Because forward-looking  statements involve future
risks and  uncertainties,  there are factors that could cause actual  results to
differ  materially  from those expressed or implied.  For example,  a few of the
uncertainties  that could  affect the  accuracy of forward  -looking  statements
include:

     1.Changes in general economic and business  conditions,  which affect Blank
          Check companies;

     2.legal or policy developments that diminish the appeal of our company;

     3.the level of demand  for Blank  Check  companies;  and  4.changes  in our
          business strategies.

The Private  Securities  Litigation  Reform Act of 1995,  which provides a "safe
harbor" for similar  statements by existing public companies,  does not apply to
our company.



                                     PART I



ITEM 1. DESCRIPTION OF BUSINESS

General Development of the Company

We were  organized as Big Sky  Industries I, Inc. under the laws of the State of
Florida on January  31,  2000,  as a shell  ("Shell")  company,  which  conducts
virtually   no  business   operation,   other  than  our  effort   investigating
opportunities to effect a merger,  exchange of capital stock, asset acquisition,
or other similar business combination ("Business Combination") with an operating
or development stage business ("Target  Business").  We registered our Company's
common stock,  par value $0.001  ("Common  Stock")  pursuant to  Securities  and
Exchange Commission ("SEC") registration statement Form 10-SB (filed December 6,
2000) on a voluntary  basis in order to create a  reporting  Shell  company.  On
December 14, 2000, the SEC approved our Form 10-SB registration statement,  with
an effective  date sixty days after the filing date. We have a shareholder  base
of two  shareholders and 1,050,000  shares of Common Stock  outstanding,  all of
which are  restricted  pursuant to Rule 144 of the  Securities  Act of 1933,  as
amended (the  "Securities  Act").  Unless the context  otherwise  requires,  all
references to the "Company,"  "we," "our," and other similar terms means Big Sky
Industries, I, Inc.

Our Present Business

We make reference to our entire Form 10-SB registration  statement,  as amended,
filed with the U.S.  Securities  and  Exchange  Commission  on December 6, 2000,
which contains information and more comprehensive discussion of our business and
our industry, information and discussion not required to included in this report
on Form 10-KSB.

We are in our early development and promotional  stages. We are a Shell company,
conducting virtually no business operation,  other than our effort investigating
opportunities  to associate  with a suitable  business  partner and  identifying
merger partners or acquisition  candidates.  We do not engage in any substantive
commercial  business or other  business  operations.  Our executive and business
offices are located at 7557 West Sand Lake Road, Suite 153, Orlando, FL 32819.



                                        1



<PAGE>


ITEM 1. DESCRIPTION OF BUSINESS (CONTINUED)

Our  Company's  sole  officer  and  director,   Mr.  Ramon   Chimelis,   devotes
approximately 5% of his time to our business.  Mr. Chimelis intends to devote as
much time as he deems reasonably  necessary to carry out our Company's  business
and affairs,  including the  evaluation of potential  Target  Businesses and the
negotiation  of a  Business  Combination.  As a  result,  the  amount of time he
devotes to our business and affairs may vary significantly depending upon, among
other things, whether we have identified a Target Business or are engaged in the
active negotiation of a Business Combination.

We have no full-time  employees.  We expect to use consultants,  attorneys,  and
accountants  as  necessary,  and  we do not  anticipate  a need  to  engage  any
full-time  employees  while we are  investigating  opportunities  and evaluating
Target Businesses. We will address the need for employees and their availability
at the time we make a decision to consummate a specific Business Combination.

We are a  corporate  vehicle  created  to effect a merger,  exchange  of capital
stock,  asset  acquisition,  or  other  similar  Business  Combination  with  an
operating or development stage business,  which desires to employ our Company to
become a reporting  corporation  under the Securities  Exchange Act of 1934 (the
"Exchange  Act'). On December 6, 2000, we registered our Common Stock, par value
$0.001  pursuant to Form 10-SB  registration  statement on a voluntary  basis in
order to create a reporting  Shell  company.  We have a shareholder  base of two
shareholders and 1,050,000 shares of Common Stock  outstanding,  all of which is
restricted  pursuant  to Rule 144 of the  Securities  Act of 1933,  as  amended.
Pursuant to resolution of our board of directors,  no Business  Combination  may
occur prior to our Company obtaining the requisite audited financial  statements
required pursuant to Form 8-K (or its equivalent) promulgated under the Exchange
Act.

As a Shell  corporation,  we face special risks  inherent in the  investigation,
acquisition, or involvement in a new business opportunity.  Further, as a new or
start-up company, we face all of the unforseen costs,  expenses,  problems,  and
difficulties related to new companies.

We intend to seek  potential  business  opportunities  and  complete  a Business
Combination  transaction  with a Target  Business  that has  significant  growth
potential,  which, in the opinion of management,  could provide a profit for our
Company and our shareholders. We intend to seek opportunities, which demonstrate
the potential  for long-term  growth,  as opposed to  short-term  earnings.  Our
efforts in identifying a prospective  Target  Business are expected to emphasize
businesses primarily located in the United States; however, we reserve the right
to acquire a Target Business located primarily elsewhere.  We may, under certain
circumstances,  seek to affect Business  Combinations  with more than one Target
Business;  however,  due to our limited  resources,  we will, in all likelihood,
only have the ability to affect a single Business  Combination.  We may effect a
Business Combination with a Target Business that may be financially unstable, or
in its early stages of development or growth. We will not restrict our search to
any specific business, industry or geographical location, and we may participate
in a business  venture of virtually any kind or nature.  Our present  management
may become involved in the management of the Target Business and/ or it may hire
qualified but as of yet unidentified individuals to manage such Target Business.
Presently, we have no plan, proposal, agreement,  understanding,  or arrangement
to acquire or merge  with any  specific  business  or  company,  and we have not
identified any specific business or company for investigation and evaluation.

We encounter intense competition from other entities having a business objective
similar to ours. Many of these entities are  well-established and have extensive
experience in connection with identifying and effecting

Business Combinations directly or through affiliates.  Many of these competitors
possess greater financial,  marketing,  technical, personnel and other resources
than we do and we  cannot  assure  that we will  have  the  ability  to  compete
successfully. Our financial resources are limited in comparison to those of many
of our



                                        2



<PAGE>

ITEM 1. DESCRIPTION OF BUSINESS (CONTINUED)

competitors.  This  inherent  competitive  limitation  could compel us to select
certain  less  attractive  acquisition  prospects.  We cannot  assure  that such
prospects  will permit us to meet our stated  business  objectives.  We believe,
however,  that  our  status  as  a  reporting  public  entity  could  give  us a
competitive  advantage over privately held entities having a business  objective
similar to ours.

No  trading  market  in our  Common  Stock  presently  exists.  In  light of the
restrictions  concerning  Shell companies  contained in many state blue sky laws
and  regulations,  it is not likely that a trading market will be created in our
Common  Stock  until such time as a Business  Combination  occurs  with a Target
Business.  We cannot  assure  that a trading  market in our  Common  Stock  will
develop,  after a Business  Combination occurs,  especially in light of the U.S.
Securities  and Exchfange  Commission's  view that Rule 144 is not available for
resale  transactions for securities  issued by Blank Check  companies,  and that
resale of such securities cannot occur without registration under the Securities
Act.

Our  limited  resources  and lack of  full-time  management  will likely make it
impracticable to conduct a complete and exhaustive investigation and analysis of
a Target Business before we commit our capital or other resources.

We cannot  presently  ascertain  with any degree or certainty the time and costs
required to select and evaluate a Target  Business  (including  conducting a due
diligence  review) and to structure  and  consummate  the  Business  Combination
(including negotiating relevant agreements and preparing requisite documents for
filing pursuant to applicable securities laws and state blue sky and corporation
laws).

If we cannot  consummate  a Business  Combination  with a Target  Business  that
operates in an industry  which is  regulated or licensed by federal,  state,  or
local  authorities,  compliance with such regulations  could be a time-consuming
and expensive process.



ITEM 2. PROPERTIES

Our  executive  and  business  offices  are located at 7557 West Sank Lake Road,
Suite 153, Orlando, FL 32819. Pursuant to an oral arrangement,  we sub-lease our
office space on a  month-to-month  basis free of charge from Mr.  Chimelis,  our
sole officer and director. We believe this office space is adequate to serve our
needs until such time as a Business Combination occurs, and we expect to be able
to utilize these offices, pursuant to the terms described above, until such time
as a  Business  Combination  occurs.  See  "Certain  Relationships  and  related
Transactions."



ITEM 3. LEGAL PROCEEDINGS.

As of August 23, 2007, we are not a party to any material legal proceedings, nor
are we aware of any threatened litigation of a material nature.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matter was  submitted  to a vote of our  security  holders  during the fourth
quarter of our fiscal year.









                                        3



<PAGE>

                                     PART II



ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS.

Market Information

No public trading market  presently  exists for the Company's  Common Stock, and
there are no present plans, proposals,  arrangements, or understandings with any
person  with  regard  to the  development  of any  trading  market in any of the
Company's securities.  No shares of Common Stock have been registered for resale
under the federal  securities  laws or the blue sky laws of any state. We cannot
guarantee  that any trading  market will develop in our Common Stock at any time
in  the  future,  especially  in  light  of the  U.S.  Securities  and  Exchange
Commission's  view that Rule 144 is not  available for resale  transactions  for
securities  issued  by  Blank  Check  companies,  and that  the  resale  of such
securities cannot occur without  registration under the Securities Act. Further,
the  holders of shares of Common  Stock and  persons  who may desire to purchase
shares of Common Stock in any trading  market that might  develop in the future,
should be aware that there may be  significant  state blue sky law  restrictions
upon the  ability of  shareholders  to sell their  shares and of  purchasers  to
purchase  the  shares  of Common  Stock.  Some  jurisdictions  may not allow the
trading  or  resale  of   blind-pool  or  Blank  Check   securities   under  any
circumstances.  Accordingly,  shareholders  should consider the secondary market
for the Company's securities to be limited one.

We do not intend to develop any trading  market in the  Company's  Common  Stock
until such time as a  Business  Combination  is  effectuated  and the  requisite
audited financial  statements  required pursuant to Form 8-K (or its equivalent)
are filed with the SEC. No assurances are made,  however,  that a trading market
for the Company's Common Stock will ever develop.

Holders

As of August 23, 2007, two holders of record held our Common Stock.

Dividends

Since  inception,  the  Company  has not  declared  or paid cash  dividends.  No
restrictions  limit our  ability to pay  dividends  on our Common  Stock.  We do
expect to pay any dividends in the near future.

Recent Sales of Unregistered Securities

As of August 23, 2007, we have issued an aggregate of 1,050,000 shares of Common
Stock as follows:

On  January  31,  2000,  we  adopted  and  agreed to be bound by the items of an
organizational  agreement. Mr. Chimelis pursuant to which Mr. Chimelis agreed to
provide  cash in  return  for the  issuance  to him of our  Company  securities.
Accordingly,  on January 31, 2000,  we issued Mr.  Chimelis a total of 1,000,000
shares of Common Stock at $0.001 per share. The cash  consideration  provided by
Mr.  Chimelis  pursuant  to the terms of the  organizational  agreement  totaled
$1,000.00.

The Company relied on Section 4(2) of the Securities  Act, since the transaction
did not involve any public offering.

No underwriters  were utilized and no commissions or fees were paid with respect
to any of the above  transactions.  No other  shares of Common  Stock  have been
issued by our Company in any other transaction.






                                        4



<PAGE>

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

This Annual Report on Form 10-KSB should be read in conjunction with our audited
financial  statements  and notes,  which are attached  hereto  beginning on page
F-1and have been  incorporated  by reference  into Item 7 of this Report on Form
10-KSB.

This Annual Report on Form 10-KSB contains forward looking statements.  For this
purpose,  any  statements  contained in it that are not statements of historical
fact should be regarded as forward looking  statements.  For example,  the words
"believe,"  "anticipates,"  "plans,"  and  "expects"  are  intended  to identify
forward looking  statements.  There are a number of important factors that could
cause our Company's actual results to differ  materially from those indicated by
such forward looking-statements.

Plan of Operation

Big Sky  Industries  I, Inc.  is  presently a  development  stage  company  that
conducts   virtually   no   business   operations,   other  than   investigating
opportunities to effect a merger,  exchange of capital stock, asset acquisition,
or  other  similar  business  combination  (a  "Business  Combination")  with an
operating or development  stage business ("Target  Business"),  which desires to
employ  the  Company  to become a  reporting  corporation  under the  Securities
Exchange Act of 1934. To date, we have not engaged in any  operations,  nor have
we  generated  any  revenue;  it  has  not  received  cash  flow  from  business
operations.  The Company will carry out its plan of business as discussed above.
See "Description of Business." We do not have significant cash or other material
assets,  nor do we have an  established  source of  revenue  needed to cover the
costs of normal operations, which would allow us to continue as a going concern.
These  financial   statements  have  been  prepared  using  generally   accepted
accounting  principles  applicable to a going concern,  which  contemplates  the
realization  of assets and  liquidation  of  liabilities in the normal course of
business.  Our ability to meet those obligations and continue as a going concern
is  dependent  upon  us  raising  new  capital  through  advances  from  current
shareholders  and issuing equity  securities to complete a Business  Combination
transaction  with a Target  Business.  If it becomes  necessary  for us to raise
additional funds to support normal operations during the next twelve months, our
principal shareholder and founder, Ramon Chimelis, will advance funds as needed.
If we need to raise funds  beyond  funds  needed for normal  operations,  we may
choose to sell additional common stock, especially if we enter into an agreement
to effectuate a Business Combination with a Target Business.

Since inception,  we have received a cash infusion of $1,165. With the exception
of certain other professional fees and costs related to a Business  Combination,
we expect that we will incur minimal  operating  costs and, as indicated  above,
our principal shareholder and founder will advance funds, as needed, to meet our
cash requirements during the next twelve months. It is likely,  however,  that a
Business  Combination might not occur during the next twelve months;  and in the
event that our principal  shareholder does not advance adequate funds to support
normal operations and we deplete our present cash reserves prior to completing a
Business Combination transaction with a Target Business, we may cease operations
and a Business Combination may not occur.

To  date,  we have  not  yet  identified  a  Business  Combination  opportunity;
therefore,  we are  unable to  predict  our cash  requirements  subsequent  to a
Business  Combination with an unidentified Target Business.  As indicated above,
we may be  required  to  raise  capital  through  the  sale  of or  issuance  of
additional  securities,  in order to ensure that we can meet our operating costs
for the  remainder  of our fiscal  year,  if we complete a Business  Combination
transaction  with a  Target  Business.  In the  event  that we  elect  to  raise
additional  capital by selling  common stock,  prior to, or in connection  with,
completing a Business  Combination  transaction,  we expect to do so through the
private placement of restricted securities.

There are no agreements or  understandings of any kind with respect to any loans
from  officers or directors of the Company on behalf of the Company,  other than
that describe above.

Our cash  reserves  have been minimal since  inception;  therefore,  we have not
compensated our officers or directors.  In the near term, we may compensate them
for their services by issuing them stock in lieu of cash.  Presently,  there are
no  arrangements  or  anticipated  arrangements  to pay any  type of  additional
compensation  to any officer or director.  Regardless of whether our cash assets
prove  to be  inadequate  to  meet  our  operational  needs,  we  might  seek to
compensate providers of services by the issuance of stock in lieu of cash.



                                        5

<PAGE>

ITEM 7. FINANCIAL STATEMENTS

The Financial  Statements of the Company and the accompanying  notes thereto and
the  independent's  registered  public  accounting firm's report are included as
part of this Form 10-KSB and immediately  follow the signature page of this Form
10-KSB, beginning with page F-1.



ITEM 8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
         FINANCIAL DISCLOSURE

Not Applicable.


ITEM 8A. CONTROLS AND PROCEDURES

As required by the  Securities  Exchange Act of 1934 (the  "Exchange  Act"),  we
carried out an  evaluation of the  effectiveness  of the design and operation of
our disclosure  controls and procedures as of September 30, 2005, being the date
of our most recently  completed fiscal year end. This evaluation was carried out
under the supervision and with the participation of our Chief Executive Officer.
Based upon that  evaluation,  our Chief  Executive  Officer  concluded  that our
disclosure  controls and procedures are effective to ensure that the information
required to be  disclosed  by us in the reports that we file or submit under the
Exchange Act is recorded,  processed,  summarized  and reported  within the time
periods  specified  by the  rules  and  forms  of the  Securities  and  Exchange
Commission.

Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that  information  required to be disclosed our reports filed
or  submitted  under the Exchange Act is  recorded,  processed,  summarized  and
reported,  within the time  periods  specified  in the  Securities  and Exchange
Commission's  rules and  forms.  Disclosure  controls  and  procedures  include,
without limitation,  controls and procedures designed to ensure that information
required  to be  disclosed  in our  reports  filed  under  the  Exchange  Act is
accumulated and  communicated by our Chief  Executive  Officer,  to allow timely
decisions  regarding  required  disclosure.  During our most recently  completed
fiscal year ended  September  30,  2005,  there were no changes in our  internal
control  over  financial  reporting  that  have  materially  affected,   or  are
reasonably likely to affect, our internal control over financial reporting.

The term  "internal  control over  financial  reporting" is defined as a process
designed by, or under the supervision of, the registrant's  principal  executive
and principal financial officers,  or persons performing similar functions,  and
effected by the registrant's board of directors, management and other personnel,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial  statements for external purposes in accordance
with generally  accepted  accounting  principles and includes those policies and
procedures that:

     (1)  Pertain  to the  maintenance  of  records  that in  reasonable  detail
          accurately and fairly reflect the transactions and dispositions of the
          assets of the registrant;

     (2)  Provide  reasonable   assurance  that  transactions  are  recorded  as
          necessary to permit preparation of financial  statements in accordance
          with generally accepted accounting  principles,  and that receipts and
          expenditures  of the registrant are being made only in accordance with
          authorizations of management and directors of the registrant; and

     (3)  Provide  reasonable   assurance   regarding  of  timely  detection  of
          unauthorized  acquisition,  use or  disposition  of  the  registrant's
          assets that could have a material effect on the financial statements.









                                        6



<PAGE>

ITEM 8A. CONTROLS AND PROCEDURES (CONTINUED)

Our management,  including our Chief Executive Officer, does not expect that our
disclosure  controls or our  internal  controls  will  prevent all error and all
fraud. A control system, no matter how well conceived and operated,  can provide
only  reasonable,  not absolute,  assurance  that the  objectives of the control
system are met.  Further,  the design of a control  system must reflect the fact
that there are  resource  constraints,  and the  benefits  of  controls  must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control issues and instances of fraud,  if any, within our company have been
detected.  These  inherent  limitations  include the realities that judgments in
decision-making  can be faulty and that  breakdowns  can occur because of simple
errors or mistakes. Additionally, controls can be circumvented by the individual
acts of some  persons,  by  collusion  of two or more  people  or by  management
override of the control.  The design of any system of controls also is partially
based on certain  assumptions  about the  likelihood  of future  events,  and we
cannot  assure you hat any design will  succeed in  achieving  its stated  goals
under all potential future conditions. Over time, controls may become inadequate
because of changes in conditions,  or the degree of compliance with the policies
or  procedures  may  deteriorate.  Because  of  the  inherent  limitations  in a
cost-effective control system, misstatements due to error or fraud may occur and
not be detected.



ITEM 8B. OTHER INFORMATION.

     Not Applicable.



                                    PART III



ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH SECTION 16(a) OF THE EXCHANGE ACT.

Name                           Age                        Position
--------                     ----------                -----------------------
Ramon Chimelis                 41                         President,
                                                          Treasurer, Secretary

Mr.  Chimelis has served as our president,  treasurer,  and secretary  since our
inception in January 2000. Additionally, Mr. Chimelis is an officer and director
of other  Shell  companies  with  the same  business  plan as the  Company.  See
"Directors,  Executive Officers, Promoters and Control Persons-Other Blank Check
Activities."  Since June 2003, Mr. Chimelis has been  self-employed,  engaged in
day trading.  Form January 2000 to June 2003, he was a shareholder,  officer and
director of Design Pallets, Inc., a manufacturer of corrugated pallets,  located
in Orlando,  Florida. From 1999 to January 2000, Mr. Chimelis was engaged in day
trading through  Gunslinger  Group,  Inc., a privately held investing firm. From
1998 to 1999 he served as a trader at the  broker-dealer  firm of JOQ Financial,
Inc.,  and from 1995 to 1998,  he was a stock  broker  at  Collner  Higgins  and
Higgins and Anderson. Mr. Chimelis studied business finance at Brevard Community
College from 1984 to 1989.

Other Blank Check Activities

Mr.  Chimelis  holds  identical  positions,   as  an  officer,   director,   and
shareholder,  for a total of ten Blank Check companies  (including the Company).
The following table sets forth,  as of the date hereof,  the identities of these
companies,  the  amount  and  percentage  of  beneficial  ownership  held by Mr.
Chimelis in such  companies,  and the percentage of time he intends to devote to
the affairs of these companies.





                                        7



<PAGE>
<TABLE>
<CAPTION>

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH SECTION 16(a) OF THE EXCHANGE ACT (CONTINUED)


                                                                                  Percent of Time
                                            Amount and Percentage of         Intended to Devote To the
           Name, Filing Type                 of Beneficial Ownership          Affairs of the Company
       ------------------------          -------------------------------    -----------------------------
<S>    <C>                               <C>                                <C>



Big Sky Industries, I, Inc.
Form 10-SB/12G
SEC File No. 0-32067                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, II, Inc.
Form 10-SB/12G
SEC File No. 0-32069                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, III, Inc.
Form 10-SB/12G
SEC File No. 0-32071                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, IV, Inc.
Form 10-SB/12G
SEC File No. 0-32073                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, V, Inc.
Form 10-SB/12G
SEC File No. 0-32097                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, VI, Inc.
Form 10-SB/12G
SEC File No. 0-32077                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, VII, Inc.
Form 10-SB/12G
SEC File No. 0-32079                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, VIII, Inc.
Form 10-SB/12G
SEC File No. 0-32075                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, IX, Inc.
Form 10-SB/12G
SEC File No. 0-32083                     1,000,000 Shares (95.23%)                      5%

Big Sky Industries, X, Inc.
Form 10-SB/12G
SEC File No. 0-32081                     1,000,000 Shares (95.23%)                      5%

</TABLE>


The Company and each of these other  entities will be in  competition  with each
other for Target Businesses. Presently, no determination has been made as to the
priority  of these  companies,  with  respect  to the  order  with  which  these
companies  will  attempt to  effectuate  a Business  Combination,  once they are
prepared to effectuate a Business Combination.




                                        8



<PAGE>

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH SECTION 16(a) OF THE EXCHANGE ACT (CONTINUED

As of the date hereof, Mr. Chimelis, president,  treasurer,  secretary, and sole
director,  is the only persons who performs material operations on behalf of the
Company,  and he does not  anticipate  making  any  significant  changes  in the
composition  of Company  officers  or  directors,  until such time as a Business
Combination occurs.

Each director is elected until the next Annual Meeting of shareholders and until
a successor is  qualified.  There are no agreements  or  understandings  for Mr.
Chimelis,  the sole  officer and  director,  to resign at the request of another
person,  and he is not  acting on behalf  of or at the  discretion  of any other
person (nor will he act on behalf of or at the  discretion  of another  person).
Ramon Chimelis is the initial promoter of the Company;  the Company had no other
promoter.

COMMITTEES

Audit Committee Financial Expert

The Securities and Exchange  Commission has adopted rules  implementing  Section
407 of the  Sarbanes-Oxley  Act of 2002 requiring  public  companies to disclose
information  about "audit committee  financial  experts." As of the date of this
Annual report,  we do not have a standing Audit Committee . The functions of the
Audit  Committee  are  currently   assumed  by  our  full  Board  of  Directors.
Additionally,  we do not have a member of our Board of Directors  that qualifies
as an "audit  committee  financial  expert." For that reason,  we do not have an
audit committee financial expert.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

To the best of our  knowledge,  based  solely on a review of the  copies of such
reports  furnished to us and written  representation  that no other  reports are
required,   Section  16(a)  filing  requirements  applicable  to  our  officers,
directors,  and greater  than ten percent  beneficial  owners were filed  timely
during the most recent fiscal year.



ITEM 10. EXECUTIVE COMPENSATION

Compensation of Officers

During the period covered by this report, Mr. Chimelis received no salary or any
other type of compensation in his capacity as our president and sole officer. He
has no  employment  agreement  with our Company  and we have no other  executive
officers.  Pursuant to  Instruction 5 to Item 402 (a) (2) of Regulation  S-B, no
table or column is provided in this Item 10 to this report on Form 10-KSB.

Mr.  Chimelis is not bound by an  employment  agreement  with the Company.  As a
result,  he may terminate his relationship  with the Company at any time for any
reason.

Compensation of Directors

During the period covered by this report, Mr. Chimelis received no salary or any
other type of compensation  in his capacity as sole director of the Company.  As
of the date hereof,  we do not have in place a compensation  arrangement for our
directors for their  services as  directors,  for  committee  participation,  or
special assignments.

Employee Stock Option Plan

We have no stock option, retirement, pension, or profit-sharing programs for the
benefit  of  directors,  officers,  or other  employees;  however,  our board of
directors may recommend adoption of one or more such programs in the future.




                                        9


<PAGE>




ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following  table sets forth,  as of the date hereof,  the names,  addresses,
amount and nature of beneficial  ownership and percent of such ownership of each
person or group  known to the  Company to be the  beneficial  owner of more than
five percent (5%) of the Company's Common Stock.



     Name and Address of             Amount and Nature
      Beneficial Owner            of Beneficial Ownership     Percent of Class
 ---------------------------      -----------------------    ------------------
     Ramon Chimelis
 7557 West Sand Lake Road
       Suite 153
   Orlando, Florida 32836              1,000,000              95.23%


The following table sets forth, as of the date hereof,  the names and addresses,
amount and nature of beneficial  ownership and percent of such  ownership of the
Company's Common Stock of each of the officers and directors of the Company, and
the officers and directors of the Company as a group.


     Name and Address of             Amount and Nature
      Beneficial Owner            of Beneficial Ownership     Percent of Class
 ---------------------------      -----------------------    ------------------
     Ramon Chimelis
 7557 West Sand Lake Road
       Suite 153
   Orlando, Florida 32836              1,000,000 (D)          95.23%




ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Although our  management has no current plans to cause the Company to do so, our
affiliates,  officers and directors (at September 30, 2005,  our Company had one
officer,  one  director,  and two  shareholders)  may actively  negotiate for or
otherwise  consent to the  disposition of any portion of their Common Stock as a
condition to or in  connection  with a Business  Combination.  Therefore,  it is
possible that the terms of any Business Combination will provide for the sale of
some shares of Common Stock held by management or affiliates. Thus, it is likely
that none of our other  shareholders will be afforded the right to sell pursuant
to the same terms that such selling officers,  directors,  or affiliates will be
provided. Also, such shareholders will not be afforded an opportunity to approve
or consent to such management or affiliate's  stock purchase.  It is more likely
than not that any sale of securities by the Company's current stockholders to an
acquisition  candidate  would  be  at a  price  substantially  higher  than  the
originally  paid by such  stockholders.  Any payment to current  stockholders in
context of an acquisition  involving our Company would be determined entirely by
the largely unforeseen terms of a future agreement with an unidentified business
entity.

The  executive  and  business  offices of the  Company  consist of office  space
located at 7557 West Sand Lake Road, Suite 153, Orlando,  FL 32819.  Pursuant to
an oral  arrangement,  we sub-lease our office space on a  month-to-month  basis
free of charge from Mr. Chimelis, our sole officer and director. We believe this
office  space is  adequate  to serve our  needs  until  such time as a  Business
Combination occurs, and we expect to be able to utilize these offices,  pursuant
to the terms described above, until such time as a Business Combination occurs.

Pursuant  to  Sections  607.0901(5)  and  607.0902(5)  of the  Florida  Business
Corporation Act, our Company has inserted  certain  provision in our articles of
incorporation,  which have the  effect of  removing  us from the  purview of the
control-share  acquisition and affiliated transaction statutes promulgated under
Sections  607.0901  and  607.0902 of the Florida  business  Corporation  Act and
hence, the protections afforded by such statues.



                                       10



<PAGE>

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS (CONTINUED)


Section 607.0901 of the Florida Business  Corporation Act imposes limitations on
the exercise of corporate control, directly or indirectly, by a beneficial owner
of more than 10% of a  corporation's  outstanding  voting stock (an  "interested
shareholder").  The corporation's  "disinterested directors" as defined therein,
or a supermajority of the corporation's  shareholders (other than the interested
shareholder  and  related  parties)  are  required to approve  certain  business
combinations and corporate  transactions with the interested  shareholder or any
entity or  individual  controlled  by the  interested  shareholder  ("affiliated
transaction"), unless certain statutory exemptions apply, or the corporation has
opted out of the  affiliated  transactions  statue.  The  stated  purpose of the
affiliated  transactions  statute is to assure that Florida  shareholders who do
not tender their  shares in a hostile  takeover  offer  receive a fair price for
those shares in a second-step,  freeze-out transaction.  By removing the Company
from the purview of Florida's affiliated  transaction stature, the consideration
received by selling  shareholders in a "second-step"  transaction  could be less
than the  consideration  received  by the  selling  shareholders  in the initial
transaction.

Section  607.0902  of the  Florida  Business  Corporation  Act denies  corporate
control to an acquirer of control shares by  extinguishing  the voting rights of
shares of an "issuing public  corporation,"  as defined  therein,  acquired in a
"control share acquisition,"as  defined therein. Voting rights may be reinstated
to the extent provided in a shareholders'  resolution approved by (1) each class
or series entitled to vote separately on the proposal by a majority of all votes
entitled  to be cast by such  class  or  series  and (2) each  class  or  series
entitled to vote  separately on the proposal by a majority of all votes entitled
to be cast by  such  class  or  series,  excluding  all  "interested  shares"  (
generally  speaking,  those shares that may be voted by or at the direction of a
person who made a control-share  acquisition or an officer or  employee/director
of the subject "issuing public  corporation").  The acquisition of shares is not
directly  affected,  only the voting rights  attendant to control shares.  Other
shares of the same  corporation  are owned r acquired by the same person are not
affected.

The  stated  purpose  of the  control  share  acquisition  statute is to protect
Florida shareholders by affording them an opportunity to decide whether a change
in corporate  control is desirable.  By removing the Company from the purview of
Florida's  control-share  acquisition  stature,  shares  of an  "issuing  public
corporation"  acquired  pursuant to a control  acquisition  are not deemed to be
"control-share  acquisitions," which, in the Company's case,  effectively denies
non-management/affiliate shareholders an opportunity to approve or consent to an
acquirer's  purchase  of such  management  or  affiliate's  stock  pursuant to a
Business Combination.


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

31.1      Certification  by Chief Executive  Officer  pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.*

32.1      Certification by Chief Executive  Officer pursuant to 18 U.S.C Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002.*

*Filed herewith

(b) Reports on Form 8-K

We filed no  reports on Form 8-K  during  the last  quarter  of the fiscal  year
ending September 30, 2005.







                                       11



<PAGE>

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees:

The Company incurred  aggregate fees and expenses from Patrick Rodgers,  CPA, PA
of $-0- for the audit of the fiscal years ended September 30, 2005 and September
30, 2004,  respectively,  including review of the Company's financial statements
included in its Forms  10-QSB for the fiscal year ended  September  30, 2005 and
September 30, 2004, respectively.


Tax Fees:

The Company  did not incur any tax fees from  Patrick  Rodgers,  CPA, PA for the
fiscal years ended September 30, 2005 and 2004.

All Other Costs:

During  fiscal years ended  September  30, 2005 and 2004,  the Company  incurred
aggregate fees and expenses of $-0- from Patrick Rodgers,  CPA, PA for all other
services consisting of other fees and expenses.


Audit Committee:

All of the services  described  above for fiscal years ended  September 30, 2005
and 2004 were approved by the sole director  pursuant to the Company's  policies
and procedures.  On May 22, 2007, Patrick Rodgers,  CPA, PA was appointed as the
new  independent  registered  public  accounting  firm, to provide  auditing and
related  services,  including  review  of  the  Company's  financial  statements
included in its Form 10-QSB and Form 10-KSB,  beginning  with the quarter  ended
June 30, 2003. The Company  intends to continue using Patrick  Rodgers,  CPA, PA
for  audit and audit  Related  services,  and as  needed  for due  diligence  in
acquisitions.

                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                                     BIG SKY INDUSTRIES I, INC.

Date:  August 23, 2007                               By: /s/ Ramon Chimelis
                                                     ---------------------------
                                                     Ramon Chimelis
                                                     Chief Executive Officer







                                       12



<PAGE>


                           BIG SKY INDUSTRIES I, INC.
                              FINANCIAL STATEMENTS
                   FOR YEARS ENDED SEPTEMBER 30, 2005 AND 2004





                                TABLE OF CONTENTS



Report of Independent Registered Public Accounting Firm                      F-2

Balance Sheet as of September 30, 2005                                       F-3

Statement of Operations for the years ended September 30, 2005 and 2004      F-4

Statement of Shareholders Equity (Deficit) for the period January 31, 2000
    (inception) to September 30, 2005                                        F-5

Statements of Cash Flows for the years ended September 30, 2005
    and 2004                                                                 F-6

Notes to Financial Statements                                        F-7 to F-12




















                                       F-1





<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors and Stockholders
Big Sky Industries I, Inc.
Orlando, Florida 32819

I have audited the  accompanying  balance sheet of Big Sky  Industries,  I, Inc.
("the Company"),  a development stage company, as of September 30, 2005, and the
related statements of operations, stockholders' equity (deficit), and cash flows
for the years ended September 30, 2005 and 2004. These financial  statements are
the responsibility of the Company's management.  My responsibility is to express
an opinion on these financial statements based on my audit.

I  conducted  my  audit in  accordance  with  standards  of the  Public  Company
Accounting Oversight Board (United States).  Those standards require that I plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statement presentation.  I believe that my audit provides a reasonable
basis for my opinion.

In my opinion,  these  financial  statements  present  fairly,  in all  material
respects,  the financial  position of Big Sky Industries I, Inc. as of September
30,  2005 and the  results  of its  operations  and its cash flows for the years
ended  September  30, 2005 and 2004, in conformity  with  accounting  principles
generally accepted in the United States.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 1 to the
financial  statements,  the Company has a continuing record of losses, a working
capital deficiency,  and negative  stockholders' equity which raises substantial
doubt about its ability to continue as a going  concern.  Management's  plans in
regard to these matters are also  described in Note 1. The financial  statements
do not  include  any  adjustments  that might  result  from the  outcome of this
uncertainty.



/s/ Patrick Rodgers, CPA, PA
Altamonte Springs, Florida
August 23, 2007






                                       F-2





<PAGE>

                            BIG SKY INDUSTIES I, INC.

                          (a Development Stage Company)

                                  BALANCE SHEET

                              AT SEPTEMBER 30, 2005


ASSETS

       Cash                                                          $  --
                                                                     -------

TOTAL ASSETS                                                         $  --
                                                                     =======


LIABILITIES AND STOCKHOLDERS' DEFICIT

       LIABILITIES

       Accrued expenses                                              $ 5,780
                                                                     -------

TOTAL LIABILITIES                                                      5,780
                                                                     -------

STOCKHOLDERS' DEFICIT

       Preferred stock, no par value; 5,000,000 shares authorized,
            none outstanding

       Common stock, $.001 par value, 50,000 shares authorized
            1,050,000 shares issued and outstanding                    1,050
       Additional paid-in capital                                        187
       Deficit accumulated during the development stage               (7,017)
                                                                     -------

TOTAL STOCKHOLDERS' DEFICIT                                           (5,780)
                                                                     -------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                          $  --
                                                                     =======















   The accompanying notes are an integral part of these financial statements.


                                       F-3







<PAGE>
<TABLE>
<CAPTION>

                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                             STATEMENT OF OPERATIONS


                                                                               Period From
                                                                               January 31,
                                                                                  2000
                                            Year Ended       Year Ended      (Inception) to
                                          September 30,     September 30,     September 30,
                                              2005              2004              2005
                                           ----------        ----------        ----------
<S>                                        <C>               <C>               <C>

          EXPENSES

General and administrative expenses        $      --         $     --          $    7,017
                                           ----------        ----------        ----------

NET LOSS BEFORE INCOME TAXES                      --               --               7,017

PROVISION FOR INCOME TAXES                       --                --                --
                                           ----------        ----------        ----------

NET LOSS                                   $      --         $     --          $    7,017
                                           ==========        ==========        ==========

Basic and diluted loss per share           $     0.00        $     0.00        $     0.01
                                           ==========        ==========        ==========

Weighted average number of common
     shares outstanding
         (basic and diluted)                1,050,000         1,050,000         1,050,000
                                           ==========        ==========        ==========


</TABLE>
















   The accompanying notes are an integral part of these Financial statements.


                                       F-4






<PAGE>
<TABLE>
<CAPTION>



                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                   STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
        FOR THE PERIOD JANUARY 31, 2000 (INCEPTION) TO SEPTEMBER 30, 2005


                                                                           Deficit
                                                                         Accumulated
                                                              Additional During the
                                           Common Stock        Paid-in   Development
Description                            Shares       Amount     Capital      Stage        Total
                                      ---------   ---------   ---------   ---------    ---------
<S>                                   <C>         <C>         <C>         <C>          <C>


Issuance of common stock              1,000,000   $   1,000   $    --     $    --      $   1,000

Common stock exchanged for services      50,000          50        --          --             50

Capital contributed by stockholders        --          --           165         165

Net loss for the initial period
ended September 30,2000                    --          --          --        (3,227)      (3,227)
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2000           1,050,000       1,050         165      (3,227)      (2,012)

Net loss for the fiscal year
ended September 30, 2001                   --          --          --        (2,830)      (2,830)
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2001           1,050,000       1,050         165      (6,057)      (4,842)

Net loss for the fiscal year
ended September 30, 2002                   --          --          --          (700)        (700)
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2002           1,050,000       1,050         165      (6,757)      (5,542)

Capital Contibuted by stockholders         --          --            22        --             22

Net loss for the fiscal year
ended September 30, 2003                   --          --          --          (260)        (260)
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2003           1,050,000       1,050         187      (7,017)      (5,780)

Net loss for the fiscal year
ended September 30, 2004                   --          --          --            --           --
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2004           1,050,000       1,050         187      (7,017)      (5,780)


Net loss for the fiscal year
ended September 30, 2005                   --          --          --            --           --
                                      ---------   ---------   ---------   ---------    ---------

Balance, September 30, 2005           1,050,000    $  1,050     $   187    $ (7,017)    $ (5,780)
                                      =========   =========   =========   =========    =========


</TABLE>






   The accompanying notes are an integral part of these financial statements.

                                       F-5


<PAGE>
<TABLE>
<CAPTION>

                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS

                                                                                 Period From
                                                                                 January 31,
                                                                                    2000
                                                    Year Ended     Year Ended   (Inception) to
                                                   September 30,  September 30,  September 30,
                                                      2005           2004           2005
                                                    --------       --------       -------
<S>                                                 <C>            <C>            <C>

CASH FLOW FROM OPERATING ACTIVITIES:

     Net loss                                       $   --         $   --         $(7,017)

     Adjustments to reconcile net loss to net
       cash used by operating activities:
     Common stock exchanged for services                --             --              50
     Increase in accrued liabilities                    --             --           5,780
                                                    --------       --------       -------


NET CASH USED BY OPERATING ACTIVITIES                   --             --          (1,187)
                                                    --------       --------       -------

CASH FLOWS FROM FINANCING ACTIVITIES:

     Sale of common stock                               --             --           1,000
     Contribution of capital by stockholders            --             --             187
                                                    --------       --------       -------

NET CASH PROVIDED BY FINANCING
     ACTIVITIES                                         --             --           1,187
                                                    --------       --------       -------

NET DECREASE IN CASH                                    --             --            --

CASH AT BEGINNING OF PERIOD                             --             --            --
                                                    --------       --------       -------

CASH AT END OF PERIOD                               $   --         $   --         $  --
                                                    ========       ========       =======

SUPPLEMENTAL DISCLOSURES:

     Cash paid during the period for interest       $  --          $  --          $  --
                                                    =======        =======        =======

     Cash paid during the period for income taxes   $  --          $  --          $  --
                                                    =======        =======        =======


</TABLE>





   The accompanying notes are an integral part of these financial statements.

                                       F-6





<PAGE>


                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2005 AND 2004



NOTE 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Activity and Organization

Big Sky Industries I (the "Company") was  incorporated in Florida on January 31,
2000. The Company was organized as a "shell"  company and conducts  virtually no
business operation,  other than investigating  opportunities to associate with a
suitable  business  partner  and  identifying  merger  partners  or  acquisition
candidates.  The  Company  is a  development  stage  enterprise,  as  defined by
Financial  Accounting  Standards  ("FAS") No 7,  "Accounting  and  Reporting  by
Development Stage Enterprises."

Since  incorporation  in January 2000, the Company has been devoting its efforts
to activities such as raising capital,  establishing sources of information, and
developing  markets for its planned  operations.  As of September 30, 2005,  the
Company  has not  generated  any  revenue,  and,  as such,  it is  considered  a
development stage company.

Basis of presentation and going concern uncertainty

The financial  statements  of the Company have been  prepared  assuming that the
Company will continue as a going concern.  However,  since inception the Company
has incurred losses from operations of approximately  $7,000.  As a result,  the
Company has a negative working capital and a negative  stockholders' equity. The
losses from  operations  are  primarily  attributable  to the overhead  expenses
deemed  necessary to support the  Company's  operations  during the  development
stage. In light of the Company's current financial  position and the uncertainty
of its ability to  consummate a business  Combination,  which would  involve the
acquisition,  a merger,  exchange of capital stock, asset acquisition,  or other
similar  business  combination (a "Business  Combination")  with an operating or
development stage business ("Target Business"), there is substantial doubt about
the Company's  ability to continue as a going concern.  The Company  anticipates
meeting its cash  requirements  through the financial  support of its management
and stockholders until it completes an acquisition or merger with a company

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the  reported  amounts  of assets  and  liabilities  and  disclosures  of
contingent assets and liabilities at the date of these financial  statements and
the  reported  amounts of revenues and expenses  during the  reporting  periods.
Actual results could differ from those estimates.

Income Taxes

The Company  computes  deferred income taxes under the provisions of FAS No.109,
which requires the use of an asset and liability method of accounting for income
taxes.  FAS No. 109 provides for the  recognition  and  measurement  of deferred
income tax  benefits  based on the  likelihood  of their  realization  in future
years. A valuation  allowance must be established to reduce  deferred income tax
benefits if it is more likely than not that a portion of the deferred income tax
benefits will not be realized.

Earnings Per Common Share

The Company follows the provisions of the Financial Accounting Standards Board's
Statement of Financial  Accounting  Standards  ("SFAS")  No. 128  "Earnings  Per
Share." SFAS No. 128  requires  companies  to present  basic  earnings per share
("EPS")  and  diluted  EPS,  rather  than the  primary  and  fully  diluted  EPS
presentations  that were formerly  required by Accounting  Principles  Board No.
15,"Earnings Per Share." Basic EPS is computed by dividing net income or loss by
the  weighted  average  number of common  shares  outstanding  during  the year.
Diluted  EPS is  calculated  using the "if  converted"  method  for  convertible
securities  and the treasury stock method for options and warrants as previously
prescribed by Accounting Principles Board Opinion No. 15, "Earnings Per Share."



                                       F-8





<PAGE>

                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2005 AND 2004


NOTE 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash and Cash Equivalents

The Company  considers all investments with original  maturities of three months
or less to be cash equivalents.

Fair value of financial instruments

In accordance with the reporting requirements of SFAS No. 107, Disclosures About
Fair Value of Financial  Instruments,  the Company  calculates the fair value of
its assets and  liabilities  which qualify as financial  instruments  under this
statement and includes this additional information in the notes to the financial
statements  when the fair value is different  than the  carrying  value of those
financial instruments.  The estimated fair value of the loans from related party
approximate   their  carrying  amounts  due  to  the  short  maturity  of  these
instruments. At September 30, 2005, the Company did not have any other financial
instruments.

Recent accounting pronouncements

In July  2006,  the FASB  issued  FASB  Interpretation  No. 48,  Accounting  for
Uncertainty in Income Taxes (FIN 48). FIN 48 clarifies the accounting for income
taxes by  prescribing a minimum  probability  threshold that a tax position must
meet before a financial  statement benefit is recognized.  The minimum threshold
is  defined  in FIN 48 as a tax  position  that is more  likely  than  not to be
sustained  upon  examination  by  the  applicable  taxing  authority,  including
resolution  of  any  related  appeals  or  litigation  processes,  based  on the
technical  merits of the position.  The tax benefit to be recognized is measured
as the largest  amount of benefit that is greater than fifty  percent  likely of
being realized upon ultimate settlement.  FIN 48 must be applied to all existing
tax positions upon initial adoption. The cumulative effect of applying FIN 48 at
adoption,  if any,  is to be  reported  as an  adjustment  to  opening  retained
earnings for the year of adoption.  FIN 48 is effective for the  Company's  year
end 2007,  although  early  adoption is permitted.  The Company is assessing the
potential effect of FIN 48 on its financial statements.

In  February  2006,  the FASB issued SFAS 155,  "Accounting  for Certain  Hybrid
Financial   Instruments."   This  Statement  amends  FASB  Statements  No.  133,
Accounting  for  Derivative  Instruments  and Hedging  Activities,  and No. 140,
Accounting for Transfers and Servicing of Financial  Assets and  extinguishments
of  Liabilities.  This  Statement  resolves  issues  addressed in Statement  133
Implementation  Issue  No.  Dl,  "Application  of  Statement  133 to  Beneficial
Interests in Securitized Financial Assets." This Statement:

     a)   Permits fair value  re-measurement for any hybrid financial instrument
          that  contains an embedded  derivative  that  otherwise  would require
          bifurcation.

     b)   Clarifies which interest-only strips and principal-only strips are not
          subject to the requirements of Statement 133.

     c)   Establishes  a  requirement  to  evaluate   interests  in  securitized
          financial   assets  to  identify   interests  that  are   freestanding
          derivatives or that are hybrid  financial  instruments that contain an
          embedded derivative requiring bifurcation.

     d)   Clarifies  that   concentrations   of  credit  risk  in  the  form  of
          subordination are not embedded derivatives.

Amends  Statement 140 to eliminate  the probation on qualifying  special-purpose
entity  from  holding a  derivative  financial  instrument  that  pertains  to a
beneficial interest other than another derivative financial instrument.





                                       F-9




<PAGE>


                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2005 AND 2004


NOTE 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


The fair value  election  provided for in paragraph  4(e) of this  Statement may
also be applied upon adoption of this Statement for hybrid financial instruments
that had been  bifurcated  under  paragraph  12 of  Statement  133  prior to the
adoption of this Statement. Earlier adoption is permitted as of the beginning of
our fiscal year, provided we have not yet issued financial statements, including
financial statements for any interim period, for that fiscal year. Provisions of
this  Statement  may be  applied  to  instruments  that we  hold at the  date of
adoption on an instrument-by-instrument basis.

Adoption of this  Statement is required as of the  beginning of the first fiscal
year that begins after September 15, 2005. The adoption of this statement is not
expected to have a material impact on the company's financial statements.

In March 2006, The FASB issued SEAS 156,  "Accounting for Servicing of Financial
Assets." This Statement amends FASB Statement No. 140,  Accounting for Transfers
and  Servicing of Financial  Assets and  Extinguishments  of  Liabilities,  with
respect  to the  accounting  for  separately  recognized  servicing  assets  and
servicing liabilities. This Statement:

     a)   Requires  an  entity  to  recognize  a  servicing  asset or  servicing
          liability each time it undertakes an obligation to service a financial
          asset by entering into a servicing contract in certain situations.

     b)   Requires all  separately  recognized  servicing  assets and  servicing
          liabilities to be initially measured at fair value, if practicable.

     c)   Permits an entity to choose either the amortization method or the fair
          value  measurement  method  for each  class of  separately  recognized
          servicing assets and servicing liabilities.

     d)   At its  initial  adoption,  permits  a  one-time  reclassification  of
          available-for-sale  securities to trading  securities by entities with
          recognized  servicing  rights,   without  calling  into  question  the
          treatment of other available-for-sale  securities under Statement 115,
          provided that the available-for-sale securities are identified in some
          manner as offsetting the entity's exposure to changes in fair value of
          servicing  assets or servicing  liabilities  that a servicer elects to
          subsequently measure at fair value.

     e)   Requires  separate  presentation  of  servicing  assets and  servicing
          liabilities  subsequently  measured at fair value in the  statement of
          financial  position  and  additional  disclosures  for all  separately
          recognized servicing assets and servicing liabilities.

Adoption of this  Statement is required as of the  beginning of the first fiscal
year that begins after September 15, 2006. The adoption of this statement is not
expected to have a material impact on the company's financial statements.

In September 2006, the FASB issued Statement No. 157, "Fair Value Measurements."
This  Statement  defines fair value,  establishes a framework for measuring fair
value in generally accepted  accounting  principles and expands disclosure about
fair value  measurement.  The implementation of this guidance is not expected to
have any impact on the company's financial statements.

In September 2006, the FASB issued Statement of Financial  Accounting  Standards
No.  158,   "Employers'   Accounting  for  Defined  Benefit  Pension  and  Other
Postretirement  Plans,  an amendment of PASS Statements No. 87, 106, and 132(R)"
("SFAS No. 158").  SFAS No. 158 requires  companies to recognize a net liability
or asset and an offsetting  adjustment to accumulate other comprehensive  income
to report the funded status of defined benefit pension and other  postretirement
benefit plans. SFAS No. 158 requires  prospective  application,  recognition and
disclosure  requirements effective for the company's fiscal year ending December
31, 2007.  Additionally,  SFAS No. 158 requires companies to measure plan assets
and  obligations  at their  year-end  balance sheet date.  This  requirement  is
effective for the company's fiscal year ending December 31, 2009. The company is
currently  evaluating  the impact of the  adoption  of SFAS No. 258 and does not
expect that it will have a material impact on its financial statements.


                                      F-10

<PAGE>


                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2005 AND 2004


NOTE 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In September 2006, the United States Securities and Exchange Commission ("SEC"),
adopted SAB No. 108,  "Considering the Effects of Prior Year  Misstatements when
Quantifying  Misstatements  in  Current  Year  Financial  Statements."  This SAB
provides   guidance  on  the   consideration   of  the  effects  to  prior  year
misstatements  in quantifying  current year  misstatements  for the purpose of a
materiality   assessment.   SAB  108   establishes  an  approach  that  requires
quantification of financial statement errors based on the effects of each of the
company's balance sheet and statement of operations financial statements and the
related  financial  statement  disclosures.  The  SAB  permits  existing  public
companies to record the cumulative effect of initially applying this approach in
the first year  ending  after  November  15,  2006 by  recording  the  necessary
correcting  adjustments to the carrying  values of assets and  liabilities as of
the  beginning  of that  year with the  offsetting  adjustment  recorded  to the
opening balance of retained  earnings.  Additionally,  the use of the cumulative
effect transition  method requires detailed  disclosure of the nature and amount
of each individual error being corrected  through the cumulative  adjustment and
how and when it arose. The company is currently  evaluating the impact,  if any,
that  SAB 108 may have on the  company's  results  of  operations  or  financial
position.

NOTE 2. LOSS PER COMMON SHARE

Net loss per common share  outstanding for the year ended September 30, 2005 and
2004, as shown on the Statement of Operations and Accumulated Deficit During The
Development  Stage,  is based on the number of common shares  outstanding at the
balance sheet date.  Weighted average shares  outstanding was not computed since
it would not be meaningful in the circumstances, as all shares issued during the
period from  incorporation  through  September 30, 2005 were for initial capital
and were issued to just two individuals. Therefore, the total shares outstanding
at the end of the period were deemed to be the most relevant number of shares to
use for purposes of this  disclosure.  For the year ended September 30, 2005 and
2004,  basic and diluted  weighted  average  common  shares  include only common
shares outstanding, since there were no common share equivalents.

NOTE 3. CAPITAL STOCK

Common Stock

The holders of the common  stock are  entitled to one vote per share;  they have
non-cumulative voting rights. The holders are also entitled to receive dividends
when, as, and if declared by the board of directors.  Additionally,  the holders
of the  common  stock do not have any  preemptive  right to  subscribe  for,  or
purchase any shares of any class of stock.

In January  2000,  the Company  issued  1,000,000  shares of common stock at par
value per share,  for a total of $1,000.  A stock  subscription  receivable  was
recorded at the date of  issuance  for the same  amount,  which was paid in June
2000.

Preferred Stock

The board of directors of the Company is  authorized to provide for the issuance
of preferred stock in classes or series, and, by filing the appropriate articles
of  amendment  with  the  Secretary  of  State  of  Florida,  is  authorized  to
established  the number of shares to be included in each class or series,  which
may include a conversion feature into common stock. As of September 30, 2005, no
shares of  preferred  stock have  issued  and no  preferences,  limitations,  or
relative rights have been assigned.

NOTE 4. RELATED PARTY TRANSACTION

In January 2000, the Company issued 50,000 shares valued at $50 as consideration
for services rendered by one of the two founding stockholders of the Company for
the formation of the Company.



                                      F-11





<PAGE>


                           BIG SKY INDUSTRIES I, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED SEPTEMBER 30, 2005 AND 2004



NOTE 5. INCOME TAXES

At September 30, 2005,  the Company had a net  operating  loss  carryforward  of
approximately  $7,017. This loss may be carried forward to offset federal income
taxes in future years through the year 2023.  However, if subsequently there are
ownership  changes in the  Company,  as defined in Section  382 of the  Internal
Revenue Code, the Company's  ability to utilize net operating  losses  available
before the  ownership  change may be  restricted  to a percentage  of the market
value of the Company at the time of the ownership change.

Therefore,   substantial  net  operating  loss   carryforwards   could,  in  all
likelihood,  be  limited  or  eliminated  in  future  years  due to a change  in
ownership as defined in the Code. The utilization of the remaining carryforwards
is dependent on the Company's  ability to generate  sufficient income during the
carryforward periods and no further significant changes in ownership.

It is management's opinion that the entire deferred tax benefit of approximately
$1,500, resulting from the net operating loss carryforward may not be recognized
in future  years.  Therefore,  a  valuation  allowance  of $1,500,  equal to the
deferred  tax  benefit,  has been  established,  resulting  in no  deferred  tax
benefits as of the balance sheet date.

















                                      F-12





<PAGE>