UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


________________





FORM 10-K





ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934





FOR THE FISCAL YEAR ENDED JUNE 30, 2010





Commission File Number:  333-152955


_______________________________





BIGSKY PRODUCTIONS, INC.


(Exact name of registrant as specified in its charter)





NEVADA

51-0670127(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)





204 Mescal Circle NW


Albuquerque, New Mexico 87105


(Address of principal executive offices, including zip code)





310.430.1388


(Registrant's telephone number, including area code)





Securities registered pursuant to Section 12(b) of the Act:





Title of class

Name of each exchange on which registeredNone

None





Securities registered pursuant to Section 12(g) of the Act:


None





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in 405 of the Securities Act.   Yes o   No x





Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.   Yes x   No o





Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x   No o




Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]





1





Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not 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-K or any amendment to this Form 10-K.   o





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):





Large accelerated filer o

Accelerated filer oNon-accelerated filer o

(Do not check if smaller reporting company)

Smaller Reporting Company x





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes x   No o





As of November 3, 2010, no market price existed for voting and non-voting common equity held by non-affiliates of the registrant.





As of November 3, 2010, the Registrant had outstanding 12,063,381 shares of common stock, $0.001 par value, issued and outstanding.





DOCUMENTS INCORPORATED BY REFERENCE


None.








2





INDEX


BIGSKY PRODUCTIONS, INC.


PAGE NOPART IITEM 1.
BUSINESS
5ITEM 1A.
RISK FACTORS
7ITEM 1B.
UNRESOLVED STAFF COMMENTS
7ITEM 2.
PROPERTIES
7ITEM 3.
LEGAL PROCEEDINGS
7ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
7PART IIITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
8ITEM 6.
SELECTED FINANCIAL DATA
9ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
9ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
11ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
11ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
11ITEM 9A(T).
CONTROLS AND PROCEDURES
12ITEM 9B.
OTHER INFORMATION
14PART IIIITEM 10.
DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
14ITEM 11.
EXECUTIVE COMPENSATION
15ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
16ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
16ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
17PART IVITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
17SIGNATURES
18





3





PART I.





Cautionary Note





Actual results may vary materially from those in such forward-looking statements as a result of various factors that are identified in "Item 1A.—Risk Factors" and elsewhere in this document. No assurance can be given that the risk factors described in this Annual Report on Form 10-K are all of the factors that could cause actual results to vary materially from the forward-looking statements. All forward-looking statements speak only as of the date of this Annual Report on Form 10-K. These statements appear in a number of places and can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "future," "intend," or "certain" or the negative of these terms or other variations or comparable terminology, or by discussions of strategy.





References in this Annual Report on Form 10-K to (i) the "Company,", "BigSky”  "we," "our," “BSPI,” and "us" refer to BigSky Productions, Inc.





Explanatory Note





Restatement





The June 30, 2009 financial statements have been restated to properly reflect transactions related to activities of a former consultant.  In financial statements issued from March 31, 2009 through March 31, 2010, the Company had listed a shareholder loan payable for $22,500 ($23,000 after June 30, 2009) for services paid for on behalf of the Company.  The loan was listed due to a consultant that had never acquired shares in the Company.  The Company disavows any knowledge of the loan and that the loan did not exist and that several vendors listed never performed services for the Company.  The financial statements are restated to remove the misposted note payable and accrued interest that the Company shows never existed.





From June 2008 through November 2008, the Company advanced funds to the consultant for services rendered that were never recorded in the books and records of the Company.  Also, an officer of the Company had provided services for the Company and the invoice was not included in financial statements.  The financial statements are restated to include the transactions of the President of the Company.





The June 30, 2009 financial statements did not include a material invoice from the attorney who had prepared the S-1 filing, comment responses, post-effective amendments, and the first Form 10-Q in March 2009, all services provided prior to June 30, 2009.  The $35,000 invoice has been included in the accounts payable and income statements as of June 30, 2009.








4





The net effect on the revised statements for June 30, 2009 are:





Balance sheet:


As Reported

Adjustments

As RestatedPrepaid expenses

$
-
$
500
$
500Accounts payable


700

35,000

35,700Accrued interest


754

(754)

-Shareholder loan


22,500

(22,500)

-Shareholder loan


-

15,000

15,000Accumulated Deficit

$
(47,502)
$
(26,246)
$
(73,748)Statement of Operations:Professional fees

$
44,658
$
27,000
$
71,658Interest expense


754

(754)

-Net loss

$
(45,502)
$
(26,246)
$
(71,748)




ITEM 1.
BUSINESS





Company History





BigSky Productions, Inc.(“BSPI”) is a Nevada Corporation, incorporated on February 28, 2008. We are a development stage business and have generated only minimal revenue to date. BSPI’s fiscal year end is June 30.





BigSky has never declared bankruptcy, it has never been in receivership, and it has never been involved in any legal action or proceedings. Since becoming incorporated, BigSky has not made any significant purchase or sale of assets, nor has it been involved in any mergers, acquisitions or consolidations.  BigSky has no subsidiaries or predecessors.





Since our inception, we have been engaged in business planning activities, including researching the industry, developing our economic models and financial forecasts, performing due diligence regarding potential geographic locations most suitable for our services and identifying future sources of capital is developing a business plan as a producer of low-budget motion pictures.  The Company intends to use Canada as its primary area for producing these feature films.  Within the past year we have engaged in minimal operations.  We have been involved with the productions of an AM radio show called "The Opportunity Show" now the “Ellis Martin Report” whereby we sell radio airtime to customers who tell their story with the hopes of attracting potential investors and/or partners.  The airtime is purchased from a third party radio airtime broker at a discount to the Company.  Through this activity we have generated revenues in the amount of $38,431with a gross margin of approximately $7,274 and net loss for the year end of ($44,551).  We cannot provide any assurance or guarantee that we will be able to continue generating revenues in the future years through this activity.  Potential investors must be aware if we are unable to raise additional funds through the sale of our common stock and generate sufficient revenues, any investment made into the Company would be lost in its entirety.





5





During the year ended June 30, 2010, the Company issued 1,070,000 shares of its common stock for $0.05 per share for total cash consideration of $53,500 pursuant to its S-1 registration statement filed with the SEC on December 16, 2008.  In the fourth quarter we submitted through a broker-dealer a 15c-211 application to the FINRA for quotation of our common stock on the Over-the-Counter Bulletin Board (OTCBB). As of the date of this filing we have not received clearance for the quotation of our common stock and there can be no guarantee or assurance we will in the future.




Currently, BSPI has three (3) Officers Ellis Martin (President/CEO/CFO), Mirza Santillan (Secretary/Treasurer) and Brett Whitelaw (Vice President).  The Company has two (2) Directors, Ellis Martin and Brett Whitelaw. To date, Mr. Martin has assumed the primary responsibility for all planning, development and operational duties, and will continue to do so throughout the beginning stages of the Company.  Other than the Officers/Directors, there are no employees at the present time and there are no plans to hire employees during the next twelve months.




Our principal office is located at 204 Mescal Circle NW, Albuquerque, New Mexico 87105.  Our telephone number is 310.430.1388 and our e-mail contact is Sky@big-skyproductions.com.  We are currently developing our website which can be viewed at www.big-sky productions.com.









Business Development





We must raise cash to continue to implement our business plan. We will require approximately $100,000 for the next twelve months in order to continue our proposed business.  We have liabilities of $28,760. We estimate that we will require $10,000 for reporting requirements (bookkeeping, accounting, and filing fees) this would leave the Company with approximately $61,000 to expend towards the development of its proposed business.  Since incorporation, the Company has financed its operations through sale of its common stock and nominal business activity resulting in minimal revenues.  As of June 30, 2010 we had $1,233 of cash on hand.





To date, the Company has not implemented its fully planned principal operations or strategic business plan. Presently, BSPI is attempting to secure sufficient monetary assets to increase operations.  BSPI cannot assure any investor that it will be able to enter into sufficient business operations adequate enough to insure continued operations.  If BSPI does not produce sufficient cash flow to support its operations over the next 12 months, the Company will need to raise additional capital by issuing capital stock in exchange for cash in order to continue as a going concern.  There are no formal or informal agreements to attain such financing.  BSPI cannot assure any investor that, if needed, sufficient financing can be obtained or, if obtained, that it will be on reasonable terms.  Without realization of additional capital, it would be unlikely for operations to continue and any investment made by an investor would be lost in its entirety.





BSPI management does not expect to incur research and development costs within the next twelve months.





BSPI currently does not own any significant plant or equipment that it would seek to sell in the near future





The Company has not paid for expenses on behalf of any director.  Additionally, BSPI believes that this policy shall not materially change within the next twelve months.





Compliance with Government Regulation





If and when BigSky begins its planned motion picture operations the business may be subjected to governmental regulation and required to comply in the following areas:





Distribution Arrangements.We intend to release our films in the United States through existing distribution companies, primarily independent distributors. We will retain the right for ourselves to market the films on a jurisdiction-by-jurisdiction basis throughout the rest of the world and to market television and other uses separately.  To the extent that we may engage in foreign distribution of our films, we will be subject to all of the governmental regulations of doing business abroad including, but not limited to, government censorship, exchange controls, and copying, and licensing or qualification.  At this point it is not possible to predict, with certainty, the nature of the distribution arrangements and extent of exact governmental regulations that may impact our business.  6





Intellectual Property Rights.Rights to motion pictures are granted legal protection under the copyright laws of the United States and most foreign countries, including Canada.  These laws provide substantial civil and criminal penalties for unauthorized duplication and exhibition of motion pictures. Motion pictures, musical works, sound recordings, artwork, and still photography are separately subject to copyright under most copyright laws. The results of such investigations may warrant legal action, by the owner of the rights, and, depending on the scope of the piracy, investigation by the Federal Bureau of Investigation and/or the Royal Canadian Mounted Police with the possibility of criminal prosecution.  Under the copyright laws of Canada and the United States, copyright in a motion picture is automatically secured when the work is created and "fixed" in a copy. We intend to register our films for copyright with both the Canadian Copyright Office and the United States Copyright Office.  Both offices will register claims to copyright and issue certificates of registration but neither will "grant" or "issue" copyrights.  Only the expression (camera work, dialogue, sounds, etc.) fixed in a motion picture can be protected under copyright. Registration with the appropriate office establishes a public record of the copyright claim.





Censorship.An industry trade association, the Motion Picture Association of America, assigns ratings for age group suitability for domestic theatrical distribution of motion pictures under the auspices of its Code and Rating Administration. The film distributor generally submits its film to the Code and Rating Administration for a rating. We plan to follow the practice of submitting our motion pictures for ratings.





Labor Laws.  Many of the screenplay writers, performers, directors and technical personnel in the entertainment industry who we intend to be involved in our productions are members of guilds or unions that bargain collectively on an industry-wide basis and may have state and governmental regulations that we must comply with.





Investors and security holders may obtain a free copy of the Annual Report on Form10-K and other documents filed by BSPI with the Securities and Exchange Commission ("SEC") at the SEC's website at http://www.sec.gov. Free copies of the Annual Report on Form 10-K and other documents filed by BigSky with the SEC may also be obtained from BigSky Productions, Inc. by directing a request to:  Ellis Martin, President and Chief Executive Officer, 204 Mescal Circle NW, Albuquerque, New Mexico 87105.





ITEM 1B.
UNRESOLVED STAFF COMMENTS


Not Applicable





ITEM 2.
PROPERTIES





Ellis Martin, officer and director, makes available his office located at 204 Mescal Circle NW, Albuquerque, New Mexico 87105 to the Company free of charge.  There are no arrangements by and between Mr. Martin and the Company for use of the office space.  The Company does not have exclusive use of this office space; Mr. Martin also utilizes this space for purposes other than those of the Company.





BigSky’s management does not currently have policies regarding the acquisition or sale of real estate assets primarily for possible capital gain or primarily for income.  BigSky does not presently hold any investments or interests in real estate, investments in real estate mortgages or securities of or interests in persons primarily engaged in real estate activities.





ITEM 3.
LEGAL PROCEEDINGS





BigSky Productions is not currently a party to any legal proceedings. The Company’s agent for service of process in Nevada is:  InCorp Services, Inc., 3155 East Patrick Lane, Suite 1, Las Vegas, NV 89120.  Phone 702-866-2500.





BSPI’s officers and directors have not been convicted in a criminal proceeding nor have they been permanently or temporarily enjoined, barred, suspended or otherwise limited from involvement in any type of business, securities or banking activities.  The Company’s officers and directors have not been convicted of violating any federal or state securities or commodities law. There are no known pending legal or administrative proceedings against the Company.





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


None.





7





PART II





ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.





As of date of this annual report the Company has 12,063,381 common shares issued and outstanding.  There is currently no market for BigSky’s common stock and there can be no assurance that a market will ever develop in the future.





Sales of Unregistered Securities. We have sold securities within the past three years without registering the securities under the Securities Act of 1933 as follows:





On February 29, 2008, BigSky issued 10,411,381 shares of Common stock to Ellis Martin for $2,250 in cash and $20,808 in services.  The Company believes that this issuance was exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering.





On February 29, 2008 BigSky issued 250,000 shares of Common stock to Mirza Santillan for $250. The Company believes that this issuance was exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering.




In the fourth quarter of 2010 BigSky issued 232,000 share of Common stock to Jameson Capital, LLC for services rendered. The Company believes that this issuance was exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering






In the fourth quarter of 2010 BigSky issued 100,000 share of Common stock to Island Stock Transfer for services rendered. The Company believes that this issuance was exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering




Sales of Registered Securities.  During the year ended June 30, 2010, the Company issued 1,070,000 shares of its common stock for $0.05 per share for total cash consideration of $53,500 pursuant to its S-1registration statement filed with the SEC on December 16, 2008.





Issuer Purchases of Equity Securities. None during the Fiscal Year 2010.





Holders.  There are approximately fifty-three (53) holders of the Company’s common stock.





Dividends. We did not declare or pay dividends during the Fiscal Year 2010 and do not anticipate declaring or paying dividends in fiscal year 2011.





Securities Authorized for Issuance under Equity Compensation Plans. The Company has no Equity Compensation Plan.


8




ITEM 6.
SELECTED FINANCIAL DATA.





Summary of Financial Data





As of June 30, 2010Revenues

$
38,431Operating Expenses

$
(51,828)Earnings (Loss)

$
(44,551)Total Assets

$
4,119Liabilities

$
28,760Shareholders’ deficit

$
(24,641)








ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.





The following discussion is intended to assist in the understanding and assessment of significant changes and trends related to the results of operations and financial condition of BigSky Productions, Inc. This discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K for the fiscal year ended June 30, 2010.





Cautionary Statement





Except for the historical information contained herein, the matters discussed should be considered forward-looking statements and readers are cautioned not to place undue reliance on those statements. The forward-looking statements in this discussion are made based on information available as of the date hereof and are subject to a number of risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those expressed or implied in the forward-looking statements and to be below the expectations of public market analysts and investors.  The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by applicable laws and regulations.





Critical Accounting Policies





The preparation of our consolidated financial statements and notes thereto requires management to make estimates and assumptions that affect the amounts and disclosures reported within those financial statements. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, contingencies, litigation and income taxes. Management bases its estimates and judgments on historical experiences and on various other factors believed to be reasonable under the circumstances. Actual results under circumstances and conditions different than those assumed could result in differences from the estimated amounts in the financial statements. There have been no material changes to these policies during fiscal 2010.





Our critical accounting policies are as follows:





Stock Based Compensation.ASC 718 "Compensation - Stock Compensation" codified SFAS No. 123 prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights, may be classified as either equity or liabilities.  9





The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction is recognized as a liability; otherwise, the transaction is recognized as equity




The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.




Recently Issued Accounting Standards





In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010-17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company does not expect this ASU will have a material impact on its financial position or results of operations when it adopts this update on October 1, 2010.





Management believes recently issued accounting pronouncements will have no impact on the financial statements of BigSky Productions, Inc.





Executive Overview





Fiscal Year 2010 the focus of the Company was primarily on raising proceeds through its registered offering whereby during the year ended June 30, 2010, the Company issued 1,070,000 shares of its common stock for $0.05 per share for total cash consideration of $53,500 pursuant to its S-1 registration statement filed with the SEC.  Management intends to focus on raising additional funds for the first and second quarters going forward.  In addition, the Company began generating nominal revenues with the productions of an AM radio show called "The Opportunity Show" (now the Ellis Martin Report) whereby we sold radio airtime to customers who tell their story with the hopes of attracting potential investors and/or partners.  The airtime was purchased from a third party radio airtime broker at a discount to the Company.  We cannot provide any assurance or guarantee that we will be able to continue generating revenues in the future quarters through this activity.  Potential investors must be aware if we are unable to raise additional funds through the sale of our common stock and generate sufficient revenues, any investment made into the Company would be lost in its entirety.





Fiscal 2010





Liquidity.As of June 30, 2010, the Company had $1,233 of cash on hand compared to $10 of cash at year end 2009.  This increase was primarily due to the proceeds received from the sale of our common stock.  The Company will be required to raise additional funds in order to continue its business.  Management plans to focus efforts on raising these required funds over the course of the next two quarters.   The Company has generated nominal revenues of $38,431.





Capital Resources.We will require significant amounts of working capital to continue our business operations described herein and to pay expenses relating to maintaining the status of a reporting company including legal, accounting and filing fees.  We currently have $1,233 of cash available.  In order to maintain our status as a going concern we must raise additional proceeds of $100,000 over the course of the next twelve months in order to cover current liabilities and expenses related to maintaining its status as a reporting company (legal, auditing, and filing fees) estimated at $40,000 leaving approximately $60,000 to fund our business.


10





There is no assurance we will receive the required financing to complete our business strategies.  Even if we are successful in raising proceeds from the offering we have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations.  If we are unable to accomplish raising adequate funds then any it would be likely that any investment made into the Company would be lost in its entirety.





Results of Operations.  Since our inception, we have been engaged in business planning activities, including researching the industry, developing our economic models and financial forecasts, performing due diligence regarding potential geographic locations most suitable for our services and identifying future sources of capital. Within the past two quarters we have engaged in minimal operations.  We have been involved with the productions of an AM radio show called "The Opportunity Show" (now the “Ellis Martin Report”) whereby we sell radio airtime to customers who tell their story with the hopes of attracting potential investors and/or partners.  The airtime is purchased from a third party radio airtime broker at a discount to the Company.  Through this activity we have generated revenues in the amount of $38,431with a gross margin of approximately $7,274-net loss for the year end of ($44,551).  We cannot provide any assurance or guarantee that we will be able to continue generating revenues in the future quarters through this activity.  Potential investors must be aware if we are unable to raise additional funds through the sale of our common stock and generate sufficient revenues, any investment made into the Company would be lost in its entirety.





Off-Balance Sheet Arrangements.None





Contractual Obligations. None





ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.





There is no market for our common stock. We do not currently hold any market risk sensitive instruments entered into for hedging transaction risks related to foreign currencies.  In addition, we have not entered into any transactions with derivative financial instruments for trading purposes.





ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.




Our financial statements appear beginning on page F-2, immediately following the signature page of this report.





The June 30, 2009 financial statements have been restated to properly reflect transactions related to activities of a former consultant.  In financial statements issued from March 31, 2009 through March 31, 2010, the Company had listed a shareholder loan payable for $22,500 ($23,000 after June 30, 2009) for services paid for on behalf of the Company.  The loan was listed due to a consultant that had never acquired shares in the Company.  The Company disavows any knowledge of the loan and that the loan did not exist and that several vendors listed never performed services for the Company.  The financial statements are restated to remove the misposted note payable and accrued interest that the Company shows never existed.





From June 2008 through November 2008, the Company advanced funds to the consultant for services rendered that were never recorded in the books and records of the Company.  Also, an officer of the Company had provided services for the Company and the invoice was not included in financial statements.  The financial statements are restated to include the transactions of the President of the Company.





The June 30, 2009 financial statements did not include a material invoice from the attorney who had prepared the S-1 filing, comment responses, post-effective amendments, and the first Form 10-Q in March 2009, all services provided prior to June 30, 2009.  The $35,000 invoice has been included in the accounts payable and income statements as of June 30, 2009.





ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.


None


11





ITEM 9A(T).
CONTROLS AND PROCEDURES.





Disclosure Controls and Procedures





Management of BigSky Productions Inc. is responsible for maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.





In addition, the disclosure controls and procedures must ensure that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial and other required disclosures.





At the end of the period covered by this report, an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) was carried out under the supervision and with the participation of our Principal Executive Officer, Principal Financial and Accounting Officer, Ellis Martin. Based on his evaluation of our disclosure controls and procedures, he concluded that during the period covered by this report, such disclosure controls and procedures were not effective.  For details of the specific areas that management identified as problems leading to the ineffectiveness of control and procedures see “Management’s Annual Report on Internal Control over Financial Reporting”below.





BigSky plans to continue to create and refine a structure in which critical accounting policies and estimates are identified, and together with other complex areas, are subject to multiple reviews by accounting personnel. In addition, BigSky will enhance and test our year-end financial close process. Additionally, BigSky’s audit committee will increase its review of our disclosure controls and procedures. Finally, we plan to designated individuals responsible for identifying reportable developments. We believe these actions will remediate the material weakness by focusing additional attention and resources in our internal accounting functions. However, the material weakness will not be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.





Management’s Annual Report on Internal Control over Financial Reporting





Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, for the company.





Internal control over financial reporting 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 our assets;


(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 our receipts and expenditures are being made only in accordance with authorizations of its management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.





Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because changes in conditions may occur or the degree of compliance with the policies or procedures may deteriorate.





Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2010. This assessment is based on the criteria for effective internal control described in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its assessment, management concluded that our internal control over financial reporting as of June 30, 2010 was not effective.





As of June 30, 2010 the Principal Executive Officer/Principal Financial Officer identified the following specific material weaknesses in the Company’s internal controls over its financial reporting processes:  12





• Policies and Procedures for the Financial Close and Reporting Process — Currently there are no policies or procedures that clearly define the roles in the financial close and reporting process. The various roles and responsibilities related to this process should be defined, documented, updated and communicated. Failure to have such policies and procedures in place amounts to a material weakness to the Company’s internal controls over its financial reporting processes.





• Representative with Financial Expertise — For the year ending June 30, 2010, the Company did not have a representative with the requisite knowledge and expertise to review the financial statements and disclosures at a sufficient level to monitor the financial statements and disclosures of the Company. Failure to have a representative with such knowledge and expertise amounts to a material weakness to the Company’s internal controls over its financial reporting processes.





• Adequacy of Accounting Systems at Meeting Company Needs — The accounting system in place at the time of the assessment lacks the ability to provide high quality financial statements from within the system, and there were no procedures in place or built into the system to ensure that all relevant information is secure, identified, captured, processed, and reported within the accounting system. Failure to have an adequate accounting system with procedures to ensure the information is secure and accurately recorded and reported amounts to a material weakness to the Company’s internal controls over its financial reporting processes.





• Segregation of Duties — Management has identified a significant general lack of definition and segregation of duties throughout the financial reporting processes. Due to the pervasive nature of this issue, the lack of adequate definition and segregation of duties amounts to a material weakness to the Company’s internal controls over its financial reporting processes.





•  Audit Committee and Outside Directors in the Company’s Board of Directors – Until recently, we did not have a functioning audit committee or outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.  The Company has appointed an outside director and formed an audit committee in order to enhance the establishment and review of internal controls and procedures.





In light of the foregoing, once we have the adequate funds, management plans to develop the following additional procedures to help address these material weaknesses:





• BigSky plans to create and refine a structure in which critical accounting policies and estimates are identified, and together with other complex areas, are subject to multiple reviews by accounting personnel. In addition, we plan to enhance and test our month-end and year-end financial close process. Additionally, our audit committee will increase its review of our disclosure controls and procedures. We also intend to develop and implement policies and procedures for the financial close and reporting process, such as identifying the roles, responsibilities, methodologies, and review/approval process. We believe these actions will remediate the material weaknesses by focusing additional attention and resources in our internal accounting functions. However, the material weaknesses will not be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.





This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.





This report shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section , and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.





Changes in Internal Controls





The changes in our internal control over financial reporting that occurred during our fiscal year ended June 30, 2010 that have materially affected our internal control over financial reporting was the appointment of Brett Whitelaw as an independent director and the establishment of the audit committee.


13








ITEM 9B.
OTHER INFORMATION.


None.





PART III





ITEM 10.
DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.





Background of Directors, Executive Officers, Promoters and Control Persons





Ellis Martin, Age 61: From 2000 to present, Mr. Martin has been the Executive Producer of The Opportunity Show (now the Ellis Martin Report) and is the President and CEO of the parent corporation, Sol Media International Ltd.  Sol Media produces and airs syndicated financial and talk radio programs such as The Opportunity Show heard on radio stations across North America. Prior to this employment Mr. Martin has held a variety of broadcasting positions in California, New York and New Mexico.   He has been a member of the Hollywood Screen Actors Guild since 1990. He is a founding director of the New Mexico Film Industry Coalition, as well as the Southwest Playwright’s Laboratory.





Mirza Santillan, Age 31: Since 2008, Ms. Santillan has worked at Sol Media as the Director of Operations where she has been engaged in research, investigation and reporting in addition to her management role. During her tenure at Sol Media, she has assisted in the Company’s radio production of its syndicated national program, “The Opportunity Show.” As Director of Operations she has been responsible for management of the staff, scheduling guests and managing the financial needs of Sol Media. Prior to this employment, Ms. Santillan worked for the Law Offices of L. Edmund Kellogg as Office Manager and a paralegal. She is approved as a paralegal by the American Bar Association. She received her training at Pasadena City College.





Douglas Brett Whitelaw, age 57: Since January 2000, Mr. Whitelaw has been an officer and director of Conquest Resources Limited, which trades on the TSX Venture exchange under the ticker symbol “CQR” where he heads up the corporate development and investor relations department





There are no familial relationships among our officers or directors.  None of our directors or officers is a director in any other reporting companies.  None of our directors or officers has been affiliated with any company that has filed for bankruptcy within the last five years.  The Company is not aware of any proceedings to which any of the Company’s officers or directors, or any associate of any such officer or director, is a party adverse to the Company.





Each director of the Company serves for a term of one year or until the successor is elected at the Company's annual shareholders' meeting and is qualified, subject to removal by the Company's shareholders.  Each officer serves, at the pleasure of the board of directors, for a term of one year and until the successor is elected at the annual meeting of the board of directors and is qualified.





Corporate Governance





Code of Ethics.We have adopted a Code of Ethics for our principal executive and financial officer, Ellis Martin.  Our Code of Ethics is filed as an Exhibit to the registration statement filed on Form S-1 on August 12, 2008.





Nominating Committee.We have not established a Nominating Committee because of our limited operations; and because we have only one director/officer, we believe that we are able to effectively manage the issues normally considered by a Nominating Committee.





Audit Committee. The Company has appointed an outside director and formed an audit committee in order to enhance the establishment and review of internal controls and procedures.  We believe that we are now able to effectively manage the issues normally considered by the Audit Committee.


14








ITEM 11.
EXECUTIVE COMPENSATION.





Summary Compensation Table


Name and principal position

Fiscal

Year

Salary

Bonus

Other annual compensation

Restricted stock

award(s)

Securities underlying

options/ SARs

LTIP

payouts

All other

compensationEllis Martin

Director, CEO,CFO, President

2009

0

0

0

20,808

0

0

02010

0

0

10,100

0

0

0

0





Mirza Santillan

Secretary/Treasurer

2009

0

0

0

0

0

0

02010

0

0

11,590

0

0

0

0





Douglas Brett Whitelaw

Vice Pres./

Director

2009

0

0

0

0

0

0

02010

0

0

0

0

0

0

0





Notes:





1.
Mr. Martin, Ms. Santillan and Mr. Whitelaw have obligations to entities other than BigSky.  We expect them to spend approximately 10 hours per week on our business affairs.  As of the date of this Form 10-K, BigSky is not engaged in any transactions, either directly or indirectly, with any persons or organizations considered promoters.2.
There were cash payments paid to the executive officers for commissions and contract services rendered in all capacities to us for the period ended June 30, 2010. Otherwise as detailed above, there has been no other compensation awarded to, earned by, or paid to the executive officers by any person for services rendered in all capacities to us for the fiscal period ending June 30, 2010.





Stock Option Grants





BigSky did not grant any stock options to the executive officer during the most recent fiscal period ended June 30, 2010.  BigSky has also not granted any stock options to the officers or directors of the Company.


15








ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.





The following table provides the names and addresses of each person known to BigSky to own more than 5% of the outstanding common stock as of June 30, 2010, and by the Officers and Directors, individually and as a group. Except as otherwise indicated, all shares are owned directly.








Title of Class
Name and Address

of Beneficial Owner

Amount of

Beneficial Ownership


Percent

of Class*Common Stock
Ellis Martin

204 Mescal Circle NW

Albuquerque, New Mexico 87105


5,411,381



44.86
%Common Stock
Mirza Santillan

204 Mescal Circle NW

Albuquerque, New Mexico 87105


250,000



2.07
%Common Stock
Douglas Brett Whitelaw

204 Mescal Circle NW

Albuquerque, New Mexico 87105


5,000,000



41.45%





*The percent of class is based on 12,063,381 shares of common stock issued and outstanding as of June 30, 2010.





During the fiscal year 2010 Mr. Ellis Martin sold in a private placement transaction 5,000,000 common shares of stock to Mr. Douglas Brett Whitelaw.





Changes in Control.There are no arrangements known to the Company involving any pledge by any person of securities of the Company’s common stock to effective a change of control of the Company.





ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.





During Fiscal Year 2010, other than detailed below, there were no material transactions between the Company and any Officer, Director or related party and the Company described herein, none of the following parties has, since the date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:





-The Officers and Director (During the fiscal year 2010 Mr. Ellis Martin sold in a private placement transaction 5,000,000 common shares of stock to Mr. Douglas Brett Whitelaw.)





-Any person proposed as a nominee for election as a director;


-Any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to the outstanding shares of common stock;





-Any relative or spouse of any of the foregoing persons who have the same house as such person.





Any future transactions between us and our Officers, Directors, and Affiliates will be on terms no less favorable to us than can be obtained from unaffiliated third parties. Such transactions with such persons will be subject to approval of our Board of Directors.


16








ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES.





As of June 30, 2010 the Company has incurred auditing expenses of approximately $4,775.00.  There were no other audit related services or tax fees incurred.





PART IV





ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.





(a)
The following documents have been filed as a part of this Annual Report on Form 10-K.





1.
Financial Statements





PageReport of Independent Registered Public Accounting Firm
F-1Balance Sheets
F-2Statements of Operations
F-3Statements of Cash Flows
F-4Statements of Stockholders' Equity
F-5Notes to Financial Statements
F-6-13





2.
Financial Statement Schedules.


All schedules are omitted because they are not applicable or not required or because the required information is included in the Financial Statements or the Notes thereto.








3.
Exhibits.


The following exhibits are filed as part of, or incorporated by reference into, this Annual Report:





EXHIBIT


NUMBER
DESCRIPTION


23.1
Consent of Accountant


31.1
Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002





32.1
Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002





17








































BIGSKY PRODUCTIONS, INC.




(A DEVELOPMENT STAGE ENTERPRISE)









Financial Statements




June 30, 2010 and 2009 (restated)




















































































BIGSKY PRODUCTIONS, INC.


(A DEVELOPMENT STAGE ENTERPRISE)





Financial Statements


June 30, 2010 and 2009 (restated)











TABLE OF CONTENTS











Page(s)Report of Independent Registered Accounting Firm
F-1Balance Sheets as of  June 30, 2010 and 2009
F-2Statements of Operations for years ended June 30, 2010 and 2009 and the period of February 28, 2008 (Inception) to June 30, 2010
F-3Statement of Changes in Stockholders’ Equity (Deficit) Cumulative from February 28, 2008 (inception) to June 30, 2010
F-4Statements of Cash Flows for the years ended June 30, 2010 and 2009 and the period of February 28, 2008 (Inception) to June 30, 2010
F-5Notes to the Financial Statements
F-6 – F-13












































Report of Independent Registered Public Accounting Firm
 
 
 To the Board of Directors
 BigSky Productions, Inc.
 
 We have audited the accompanying balance sheets of BigSky Productions, Inc. (A Development Stage Enterprise) as of June 30, 2010 and 2009 and the related statements of operations, stockholders’ deficit, and cash flows for the years then ended and the period February 28, 2008 (inception) through June 30, 2010.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits
 
 We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.  Accordingly, we express no such opinion. 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. We believe that our audits provide a reasonable basis for our opinion.
 In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BigSky Productions, Inc. (A Development Stage Enterprise) as of June 30, 2010 and 2009 and the results of its operations and cash flows for the years then ended and the period February 28, 2008 (inception) through June 30, 2010, in conformity with U.S. generally accepted accounting principles.
 
 The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has limited operations and has no established source of revenue.  This raises substantial doubt about its ability to continue as a going concern. Management’s plan in regard to these matters is also described in Note 2.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
 As discussed in Note 6 to the financial statements, the June 30, 2009 financial statements have been restated to correct a misstatement.
 
 
 
 Kyle L. Tingle, CPA, LLC
 
 November 1, 2010
 Las Vegas, Nevada


F-1





BIGSKY PRODUCTIONS, INC(A Development Stage Enterprise)Balance SheetsJune 30,2010

2009(Restated)ASSETSCurrent assetsCash

$
1,233


$
10Accounts receivable


450



-Officer receivable


1,240



-Other current assets


1,196



500Total current assets


4,119



510Total assets

$
4,119


$
510LIABILITIES AND STOCKHOLDERS' DEFICITCurrent LiabilitiesAccounts payable

$
25,662


$
35,700Deferred revenue


3,098



-Shareholder loan


-



15,000Total current liabilities


28,760



50,700Stockholders' DeficitCommon stock, $0.001 par value; 75,000,000 shares authorized, 12,063,381 and 10,661,381 shares issued and outstanding at June 30, 2010 and 2009


12,063



10,661Additional paid in capital


81,595



12,897Deficit accumulated during the development stage


(118,299
)


(73,748
)Total stockholders' deficit


(24,641
)


(50,190
)Total liabilities and stockholders' deficit

$
4,119


$
510See accompanying notes to financial statements.











F-2


BIGSKY PRODUCTIONS, INC(A Development Stage Enterprise)Statements of OperationsFrom February 28, 2008 (inception) to June 30, 2010Year ended June 30,2010


2009(Restated)Revenue

$
38,431


$
-


$
38,431Cost of revenue


31,157



-



31,157Gross margin


7,274



-



7,274Operating ExpensesProfessional fees


41,940



71,658



115,598General and administrative


9,888



90



9,978Total operating expenses


51,828



71,748



125,576Other incomeInterest income


3



-



3Total other income


3



-



3Net loss

$
(44,551
)

$
(71,748
)

$
(118,299
)Basic and diluted loss per common share

$
(0.00
)

$
(0.01
)Weighted average shares outstanding


10,665,222



10,661,381See accompanying notes to financial statements.











F-3


BIGSKY PRODUCTIONS, INC(A Development Stage Enterprise)Statement of Changes in Stockholders' DeficitCommon Stock


Additional Paid In Capital


Accumulated Deficit


TotalShares


AmountBalance, February 28, 2008 (Inception)


-


$
-


$
-


$
-


$
-Common stock issued for cash, $.001 per share


2,500,000



2,500



-



-



2,500Common stock issued for services, $.0026 per share


8,161,381



8,161



12,897



-



21,058Net loss, period ended June 30, 2008


-



-



-



(2,000
)


(2,000
)Balance, June 30, 2008


10,661,381



10,661



12,897



(2,000
)


21,558Net loss, year ended June 30, 2009


-



-



-



(71,748
)


(71,748
)Balance, June 30, 2009


10,661,381



10,661



12,897



(73,748
)


(50,190
)Common stock issued for cash


1,070,000



1,070



52,430



-



53,500Common stock issued for services


332,000



332



16,268



-



16,600Net loss, year ended June 30, 2010


-



-



-



(44,551
)


(44,551
)Balance, June 30, 2010


12,063,381


$
12,063


$
81,595


$
(118,299
)

$
(24,641
)See accompanying notes to financial statements.








F-4


BIGSKY PRODUCTIONS, INC(A Development Stage Enterprise)Statements of Cash FlowsFor the period from February 28, 2008 (inception) to June 30, 2010Year ended June 30,2010

2009(Restated)Cash flows from operating activitiesNet loss

$
(44,551
)

$
(71,748
)

$
(118,299
)Adjustments to reconcile net loss to net cash used in operating activitiesCommon stock issued for services


16,600



-



37,658Changes in operating assets and liabilitiesAccounts receivable


(450
)


-



(450
)Officer receivable


(1,240
)


-



(1,240
)Other current assets


(696
)


24,558



(1,196
)Accounts payable


(10,038
)


35,700



25,662Deferred revenue


3,098



-



3,098Net cash used in operating activities


(37,277
)


(11,490
)


(54,767
)Cash flows from investing activities


-



-



-Cash flows from financing activitiesShareholder loan


(15,000
)


11,000



-Proceeds from sale of stock


53,500



-



56,000Net cash provided by financing activities


38,500



11,000



56,000Net change in cash


1,223



(490
)


1,233Cash at beginning of period


10



500



-Cash at end of period

$
1,233


$
10


$
1,233Supplemental disclosure of non-cash investing and financing activities:Issuance of common stock for professional and consulting services

$
16,600


$
-


$
37,658Supplemental cash flow Information:Cash paid for interest

$
-


$
-


$
-Cash paid for income taxes

$
-


$
-


$
-See accompanying notes to financial statements.





F-5





BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009 (restated)





Note 1 – Nature of Business





BigSky Productions, Inc. (the Company) was incorporated in the State of Nevada on February 28, 2008. BigSky Productions, Inc. is developing a business plan as a producer of low-budget motion pictures.  The Company intends to use Canada as its primary area for producing these feature films.  To date, our business activities have been limited to organizational matters, reselling of radio advertising time, research of film scripts on which to acquire film rights, developing our website and the preparation and filing of the statements with the Securities and Exchange Commission. The Company has elected a fiscal year end of June 30.





The Company currently has limited operations and, in accordance with ASC 915 “Development Stage Entities,” is considered a Development Stage Enterprise.  The Company has been in the development stage since its formation and has realized minimal revenues from its operations.





Note 2 – Significant Accounting Policies





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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.





Cash





For the Statements of Cash Flows, all highly liquid investments with maturity of three months or less are considered to be cash equivalents.  There were no cash equivalents as of June 30, 2010 or 2009.





Income taxes





The Company accounts for income taxes under FASB ASC 740 "Income Taxes." Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements 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 FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.








F-6


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 2 – Significant Accounting Policies (continued)





Share Based Expenses





ASC 718 "Compensation - Stock Compensation" which codified SFAS No. 123 prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights, may be classified as either equity or liabilities. The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction is recognized as a liability; otherwise, the transaction is recognized as equity.




The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.





Going Concern





The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease operations.





Fiscal Year 2010 the focus of the Company was primarily on raising proceeds through its registered offering whereby during the year ended June 30, 2010, the Company issued 1,070,000 shares of its common stock for $0.05 per share for total cash consideration of $53,500 pursuant to its S-1 registration statement filed with the SEC.  Management intends to focus on raising additional funds for the first and second quarters going forward.  In addition, the Company began generating nominal revenues with the productions of an AM radio show called "The Opportunity Show" (now the Ellis Martin Report) whereby we sold radio airtime to customers who tell their story with the hopes of attracting potential investors and/or partners.  The airtime was purchased from a third party radio airtime broker at a discount to the Company.  We cannot provide any assurance or guarantee that we will be able to continue generating revenues in the future quarters through this activity.  Potential investors must be aware if we are unable to raise additional funds through the sale of our common stock and generate sufficient revenues, any investment made into the Company would be lost in its entirety.





The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.


F-7





BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 2 – Significant Accounting Policies (continued)





Fair Value of Financial Instruments





The Company's financial instruments as defined by FASB ASC 825, “Financial Instruments”include cash, trade accounts receivable, and accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at June 30, 2010.





FASB ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:





Level 1. Observable inputs such as quoted prices in active markets;





Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and





Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.





The Company does not have any assets or liabilities measured at fair value on a recurring basis at June 30, 2010 and June 30, 2009. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the periods ended June 30, 2010 and June 30, 2009.





Revenue Recognition





The Company's financial statements are prepared under the accrual method of accounting. Revenues are recognized when evidence of an agreement exists, the price is fixed or determinable, collectability is reasonably assured and goods have been delivered or services performed.  The Company derives revenues from the sale of advertising space on its radio program “The Opportunity Show.” “The Opportunity Show” is a paid news magazine airing on select AM radio stations in the United States.  Clients and/or guests compensate the Company for time on this program to expose their business or stories to the listening audience.





Advertising contracts are structured to run for a time period between 30 and 90 days. Accordingly, revenues are recognized on a pro-rata basis resulting in recognized revenue and deferred revenue of $38,431 and $3,098 of and for the year ended June 30, 2010.





F-8


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 2 – Significant Accounting Policies (continued)





Recently Implemented Standards





ASC 105, Generally Accepted Accounting Principles ("ASC 105") (formerly Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162) reorganized by topic existing accounting and reporting guidance issued by the Financial Accounting Standards Board ("FASB") into a single source of authoritative generally accepted accounting principles ("GAAP") to be applied by nongovernmental entities. All guidance contained in the Accounting Standards Codification ("ASC") carries an equal level of authority. Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Accordingly, all other accounting literature will be deemed "non-authoritative". ASC 105 is effective on a prospective basis for financial statements issued for interim and annual periods ending after September 15, 2009. The Company has implemented the guidance included in ASC 105 as of July 1, 2009. The implementation of this guidance changed the Company's references to GAAP authoritative guidance but did not impact the Company's financial position or results of operations.





ASC 855, Subsequent Events ("ASC 855") (formerly Statement of Financial Accounting Standards No. 165, Subsequent Events) includes guidance that was issued by the FASB in May 2009, and is consistent with current auditing standards in defining a subsequent event. Additionally, the guidance provides for disclosure regarding the existence and timing of a company's evaluation of its subsequent events. ASC 855 defines two types of subsequent events, "recognized" and "non-recognized". Recognized subsequent events provide additional evidence about conditions that existed at the date of the balance sheet and are required to be reflected in the financial statements. Non-recognized subsequent events provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date and, therefore; are not required to be reflected in the financial statements. However, certain non-recognized subsequent events may require disclosure to prevent the financial statements from being misleading. This guidance was effective prospectively for interim or annual financial periods ending after June 15, 2009. The Company implemented the guidance included in ASC 855 as of April 1, 2009. The effect of implementing this guidance was not material to the Company's financial position or results of operations.





In August 2009, the FASB issued Accounting Standards Update No. 2009-05, “Measuring Liabilities at Fair Value,” (“ASU 2009-05”). ASU 2009-05 provides guidance on measuring the fair value of liabilities and is effective for the first interim or annual reporting period beginning after its issuance. The Company’s adoption of ASU 2009-05 did not have an effect on its disclosure of the fair value of its liabilities.





In September 2009, the FASB issued ASC Update No. 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) ("ASC Update No. 2009-12"). This update sets forth guidance on using the net asset value per share provided by an investee to estimate the fair value of an alternative investment. Specifically, the update permits a reporting entity to measure the fair value of this type of investment on the basis of the net asset value per share of the investment (or its equivalent) if all or substantially all of the underlying investments used in the calculation of the net asset value is consistent with ASC 820. The update also requires additional disclosures by each major category of investment, including, but not limited to, fair value of underlying investments in the major category, significant investment strategies, redemption restrictions, and unfunded commitments related to investments in the major category.





F-9


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 2 – Significant Accounting Policies (continued)





Recently Implemented Standards (continued)





The amendments in this update are effective for interim and annual periods ending after December 15, 2009 with early application permitted. The Company does not expect that the implementation of ASC Update No. 2009-12 will have a material effect on its financial position or results of operations.





In June 2009, FASB issued Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46(R)("Statement No. 167"). Statement No. 167 amends FASB Interpretation No. 46R, Consolidation of Variable Interest Entities an interpretation of ARB No. 51 ("FIN 46R") to require an analysis to determine whether a company has a controlling financial interest in a variable interest entity. This analysis identifies the primary beneficiary of a variable interest entity as the enterprise that has a) the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. The statement requires an ongoing assessment of whether a company is the primary beneficiary of a variable interest entity when the holders of the entity, as a group, lose power, through voting or similar rights, to direct the actions that most significantly affect the entity's economic performance. This statement also enhances disclosures about a company's involvement in variable interest entities. Statement No. 167 is effective as of the beginning of the first annual reporting period that begins after November 15, 2009. Although Statement No. 167 has not been incorporated into the Codification, in accordance with ASC 105, the standard shall remain authoritative until it is integrated. The Company does not expect the adoption of Statement No. 167 to have a material impact on its financial position or results of operations





In June 2009, the FASB issued Statement of Financial Accounting Standards No. 166, Accounting for Transfers of Financial Assets an amendment of FASB Statement No. 140 ("Statement No. 166"). Statement No. 166 revises FASB Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Extinguishment of Liabilities a replacement of FASB Statement 125 ("Statement No. 140") and requires additional disclosures about transfers of financial assets, including securitization transactions, and any continuing exposure to the risks related to transferred financial assets. It also eliminates the concept of a "qualifying special-purpose entity", changes the requirements for derecognizing financial assets, and enhances disclosure requirements. Statement No. 166 is effective prospectively, for annual periods beginning after November 15, 2009, and interim and annual periods thereafter. Although Statement No. 166 has not been incorporated into the Codification, in accordance with ASC 105, the standard shall remain authoritative until it is integrated. The Company does not expect the adoption of Statement No. 166 will have a material impact on its financial position or results of operations.





In February 2010, the FASB issued amended guidance on subsequent events to alleviate potential conflicts between FASB guidance and SEC requirements. Under this amended guidance, SEC filers are no longer required to disclose the date through which subsequent events have been evaluated in originally issued and revised financial statements. This guidance was effective immediately and we adopted these new requirements for the period ended June 30, 2010. The adoption of this guidance did not have a material impact on our financial statements.





In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010-17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company does not expect this ASU will have a material impact on its financial position or results of operations when it adopts this update on October 1, 2010.





Management believes recently issued accounting pronouncements will have no impact on the financial statements of BigSky Productions, Inc.


F-10


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 3 – Stockholders’ Equity





Common stock





The authorized common stock of the Company consists of 75,000,000 shares with par value of $0.001.





On February 29, 2008, the Company issued 10,411,381 shares of common stock to its officer and director for $2,250 cash and $21,058 of services rendered for the Company.   Also, on February 29, 2008, 250,000 shares were issued to the Corporate Secretary for $250 cash.





During the year ended June 30, 2010, the Company issued 1,070,000 shares of its common stock for $0.05 per share for total cash consideration of $53,500 pursuant to its S-1/A registration statement filed with the SEC on December 16, 2008.





The Company issued 332,000 shares of its common stock valued at $.05 per share for business and legal services totaling $16,600.





Net loss per common share





Net loss per share is calculated in accordance with FASB ASC 260, “Earnings Per Share.”  The weighted-average number of common shares outstanding during each period is used to compute basic loss per share.  Diluted loss per share is computed using the weighted averaged number of shares and dilutive potential common shares outstanding.  Dilutive potential common shares are additional common shares assumed to be exercised.





Basic net loss per common share is based on the weighted average number of shares of common stock outstanding during 2010 or 2009 and since inception.  As of June 30, 2010 and 2009 and since inception, the Company had no dilutive potential common shares.





Note 4 – Income Taxes





We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception.  When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit.  We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.




The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the twelve-months ended June 30, 2010 or 2009, or during the prior three years applicable under FASB ASC 740.  We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet.   All tax returns for the Company remain open.





The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:


F-11


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 4 – Income Taxes (continued)





Income tax provision at the federal statutory rate


35
%Effect on operating losses


(35
%)-





Changes in the net deferred tax assets consist of the following:





2010


2009Net operating loss carry forward

$
41,405


$
25,812Valuation allowance


(41,405
)


(25,812
)Net deferred tax asset

$
-


$
-








A reconciliation of income taxes computed at the statutory rate is as follows:





2010


2009


Since InceptionTax at statutory rate (35%)

$
15,593


$
25,112


$
41,405Increase in valuation allowance


(15,593
)


(25,112
)


(41,405
)Net deferred tax asset

$
-


$
-


$
-





The net federal operating loss carry forward will expire between 2028 and 2030.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.





Note 5 – Related Party Transactions





The Company neither owns nor leases any real or personal property.  An officer or resident agent of the corporation provides office services without charge.  Such costs are immaterial to the financial statements and accordingly, have not been reflected therein.  The officers and directors for the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interest.  The Company has not formulated a policy for the resolution of such conflicts.





The Company had received a loan from one of its shareholders totaling $15,000 during the year ended June 30, 2009 for the purposes of funding start up operations which was repaid in full during the year ended June 30, 2010. The loan was non-interest bearing and was due on demand and as such was included in current liabilities as of June 30, 2009. Imputed interest had been considered and was determined to be immaterial to the financial statements as a whole.





F-12


BIGSKY PRODUCTIONS, INC.


(A Development Stage Enterprise)


Notes to the Financial Statements


June 30, 2010 and 2009





Note 6 – Restatement





The June 30, 2009 financial statements have been restated to properly reflect transactions related to activities of a former consultant.  In financial statements issued from March 31, 2009 through March 31, 2010, the Company had listed a shareholder loan payable for $22,500 ($23,000 after June 30, 2009) for services paid for on behalf of the Company.  The loan was listed due to a consultant that had never acquired shares in the Company.  The Company disavows any knowledge of the loan, that the loan did not exist and that several vendors listed never performed services for the Company.  The financial statements are restated to remove the misposted note payable and accrued interest that the Company shows never existed.





From June 2008 through November 2008, the Company advanced funds to the consultant for services rendered that were never recorded in the books and records of the Company.  Also, an officer of the Company had provided services for the Company and the invoice was not included in the financial statements.  The financial statements are restated to include the transactions of the President of the Company.





The June 30, 2009 financial statements did not include a material invoice from the attorney who had prepared the S-1 filing, comment responses, post-effective amendments, and the first Form 10-Q in March 2009, all services provided prior to June 30, 2009.  The $35,000 invoice has been included in the accounts payable and income statements as of June 30, 2009.





The net effect on the revised statements for June 30, 2009 are:





Balance sheet:


As Reported

Adjustments

As RestatedPrepaid expenses

$
-
$
500
$
500Accounts payable


700

35,000

35,700Accrued interest


754

(754)

-Shareholder loan


22,500

(22,500)

-Shareholder loan


-

15,000

15,000Accumulated Deficit

$
(47,502)
$
(26,246)
$
(73,748)Statement of Operations:Professional fees

$
44,658
$
27,000
$
71,658Interest expense


754

(754)

-Net loss

$
(45,502)
$
(26,246)
$
(71,748)







F-13




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.











BigSky Productions, Inc.





November 16, 2010





/s/ Ellis Martin


Ellis Martin                                       President, Principal Executive Officer,


Principal Financial Officer, and


Principal Accounting Officer


Director








/s/ Mirza Santillan


Mirza Santillan                                  Secretary/Treasurer













18