| Pennsylvania                    | 05-6141009                        |
|---------------------------------|-----------------------------------|
| (State or other jurisdiction of | (IRS Employer Identification No.) |
| incorporation or organization)  |                              |

| Large accelerated filer    |  ̈                                                          |
|---------------------------------|-----------------------------------------------------------------|
| Non-accelerated filer      |  ̈ (Do not check if a smaller reporting company)  |
| Accelerated filer          |  ̈                                                          |
| Smaller reporting company  | þ                                                          |

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TABLE OF CONTENTS

|                                                                                          |                                                                | Page No. |
|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------|----------|
|                                                                                          |                                                                |     |
| PART I                                                                                        |                                                                |
|                                                                                          |                                                                |     |
| Item 1. Financial Statements                                                                  | 2                                                                   |
|                                                                                          |                                                                |     |
| Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations | 8                                                                   |
|                                                                                          |                                                                |     |
| Item 3. Quanitative and Qualitative Disclosures about Market  Risk                  | 12                                                                  |
|                                                                                          |                                                                |
| Item 4. Controls and Procedures                                                               | 12                                                                  |
|                                                                                          |                                                                |
| Iten 4T. Control and Procedures                                                               |  12                                                            |
|                                                                                          |                                                                |     |
| PART II                                                                                       |                                                                |
|                                                                                          |                                                                |     |
|                                                                                          | Item 1. Legal Proceedings                                           |  13 |
|                                                                                          |                                                                |     |
|                                                                                          | Item 1A. Risk and Factors                                           | 13       |
|                                                                                          |                                                                |     |
|                                                                                          | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |  13 |
|                                                                                          |                                                                |     |
|                                                                                          | Item 3. Defaults Upon Senior Securities                             |  13 |
|                                                                                          |                                                                |     |
|                                                                                          | Item 4. Submission of Matters to a Vote of Security Holders         |  13 |
|                                                                                          |                                                                |     |
|                                                                                          | Item 5. Other Information                                           |  13 |
|                                                                                          |                                                                |     |
|                                                                                          | Item 6. Exhibits                                                    |  13 |
|                                                                                          |                                                                |     |

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|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    | (Unaudited)                                                                                                                                                   |                                                                                              | (Audited)                                                                                                                                          |
|---------------------------------------------|-----------------------------|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Assets:                                     |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     | 6/30/2009                                                                                                               |                                                                                                                                                          | 12/31/2008                                                                                        |
|                                        | Current assets              |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |
|                                        |                        | Cash                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |  $                      54                 |                                                                                              |  $                       - |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Total current assets        |                                                                  |   |                                                                                                         |                                                                                                                    |                          54 |                                                                                                                    |                           - |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Fixed assets                |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |
|                                        |                        | Property and equipment                                                |   |                                                                                                         |                                                                                                                    |                105,000                                                        |                                                                                                                    |                105,000                                                             |
|                                        |                        | Accumulated depreciation                                              |   |                                                                                                         |                                                                                                                    |                   (2,592)                                      |                                                                                                                    |                      (648)                           |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Total fixed assets          |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                102,408                       |                                                                                                                                                          |                104,352 |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
| Total assets                                |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |  $           102,462                                        |                                                                                                                                                          |  $           104,352                  |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
| Liabilities and Stockholders' Deficit       |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |
|                                        | Current liabilities         |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |
|                                        |                        | Accounts payable and other current liabilities                        |   |  $                8,500 |                                                                                                                    |  $                8,500                                             |
|                                        |                        | Current portion of mortgage payable                                   |   |                                                                                                         |                    1,114 |                                                                                                                                                     |                    5,000 |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Total current liabilities   |                                                                  |   |                                                                                                         |                                                                                                                    |                    9,614                                  |                                                                                                                    |                  13,500                                                  |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Long-term mortgage payable  |                                                                  |   |                                                                                                         |                                                                                                                    |                103,515                                                        |                                                                                                                    |                100,185                                                             |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Total liabilities           |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                113,129                       |                                                                                                                                                          |                113,685 |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Stockholders' Deficit       |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |
|                                        |                        | Common stock, (50,000,000 shares authorized, 25,548,933 shares issued |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |
|                                        |                        | and outstanding, par value $.001 per share)                           |   |                  25,549 |                                                                                                                    |                  25,499                                             |
|                                        |                        | Additional paid-in capital                                            |   |                                                                                                         |                                                                                                                    |            1,239,020                                                                              |                                                                                                                    |            1,234,070                                                                                   |
|                                        |                        | Retained deficit                                                      |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |           (1,275,236)                                                 |                                                                                                                                                          |           (1,268,902)                           |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
|                                        | Total stockholders' deficit |                                                                  |   |                                                                                                         |                                                                                                                    |                (10,667)                                                       |                                                                                                                    |                   (9,333)                                           |
|                                        |                        |                                                                  |   |                                                                                                         |                                                                                                                    |                                                                                                                                                     |                                                                                                                    |                                                                                                                                                          |                                                                                              |                                                                                                                                               |
| Total liabilities and stockholders' deficit |                        |                                                                  |   |  $           102,462                             |                                                                                                                    |  $           104,352                                                                         |

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|                                                 |   | 3 Months Ended |         |   | 3 Months Ended |   |       | 6 Months Ended |   |   | 6 Months Ended |   |
|------------------------------------------------------|--------|----------------|--------------|--------|----------------|--------|------------|----------------|--------|--------|----------------|--------|
|                                                 |   | 6/30/2009      |         |   | 6/30/2008      |   |       | 6/30/2009      |   |   | 6/30/2008      |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |
| Rental income                                        |   | $              | 4,350        |   |           | $      | 7,500      |           |   | $      | 10,200         |   |   | $ | 15,000 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Total revenue                                        |   |           | 4,350        |   |           |   | 7,500      |           |   |   | 10,200         |   |   |   | 15,000 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Selling, general and administrative expenses         |   |           | 7,546        |   |           |   | 2,199      |           |   |   | 11,568         |   |   |   | 2,892 |   |
| Depreciation                                         |   |           | 972          |   |           |   | 2,261      |           |   |   | 1,944          |   |   |   | 4,622 |   |
| Total expenses                                       |   |           | 8,518        |   |           |   | 4,460      |           |   |   | 13,512         |   |   |   | 7,514 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Net ordinary income                                  |   |           |  (4,168 | )      |           |   | 3,040      |           |   |   | (3,312         | )      |   |   | 7,486 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Other income (expense):                              |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Interest expense                                     |   |           | (1,548       | )      |           |   | (2,946     | )              |   |   | (3,022         | )      |   |   | (5,925 | ) |
| Total other (expense)                                |   |           | (1,548       | )      |           |   | (2,946     | )              |   |   | (3,022         | )      |   |   | (5,925 | ) |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Net income (loss)                                    |   | $              | (5,716       | )      |           | $      | 94         |           |   | $      | (6,334         | )      |   | $ | 1,561 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Net income (loss) per share, basic and fully diluted |   | $              | *            |   |           | $      | *          |           |   | $      | *              |   |   | $ | * |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| Weighted Average Common Shares Outstanding           |   |           | 25,511,433   |   |           |   | 15,819,933 |           |   |   | 25,523,933     |   |   |   | 15,819,933 |   |
|                                                 |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |
| * = Less than $.01 per share.                        |   |           |         |   |           |   |       |           |   |   |           |   |   |   |   |   |

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|                                                              |   |              |   |   |   |   |       |       |   |   |      |   |
|-------------------------------------------------------------------|--------|-------------------|--------|--------|--------|--------|------------|------------|--------|--------|-----------|--------|
|                                                              |   | Common            |   |   |   |   |       | Additional |   |   |      |   |
|                                                              |   | Stock             |   |   | Common |   |       | Paid in    |   |   | Retained  |   |
|                                                              |   | (Par Value $.001) |   |   | Shares |   |       | Capital    |   |   | (Deficit) |   |
|                                                              |   |              |   |   |   |   |       |       |   |   |      |   |   |
| Balances, January 1, 2009                                         |   | $                 | 25,499 |   |   |   | 25,498,933 |       |   | $      | 1,234,070 |   |   | $ | (1,268,902 | ) |
|                                                              |   |              |   |   |   |   |       |       |   |   |      |   |   |   |   |   |
| Issuance of common shares to party related under common ownership |   | $                 | 50     |   |   |   | 50,000     |       |   | $      | 4,950     |   |   | $ | - |   |
|                                                              |   |              |   |   |   |   |       |       |   |   |      |   |   |   |   |   |
| Net loss for the period                                           |   | $                 | -      |   |   |   | -          |       |   | $      | -         |   |   | $ | (6,334 | ) |
|                                                              |   |              |   |   |   |   |       |       |   |   |      |   |   |   |   |   |
| Balances, June 30, 2009                                           |   | $                 | 25,549 |   |   |   | 25,548,933 |       |   | $      | 1,239,020 |   |   | $ | (1,275,236 | ) |

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|                                                                  |   | 6 Months Ended |   |   | 6 Months Ended |   |
|-----------------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
|                                                                  |   | 6/30/2009      |   |   | 6/30/2008      |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                 |   |           |   |   |           |   |
| Net income (loss)                                                     |   | $              | (6,334 | )      |           | $      | 1,561 |   |
| Adjustments to reconcile net income (loss) to net cash provided by    |   |           |   |   |           |   |   |   |
| (used in) operating activities:                                       |   |           |   |   |           |   |   |   |
| Depreciation                                                          |   |           | 1,944  |   |           |   | 4,622 |   |
| Increase (decrease) in operating liabilities:                         |   |           |   |   |           |   |   |   |
| Accounts payable and other current liabilities                        |   |           | -      |   |           |   | (2,659 | ) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                   |   |           | (4,390 | )      |           |   | 3,524 |   |
|                                                                  |   |           |   |   |           |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                 |   |           |   |   |           |   |   |   |
| Contribution of capital from majority shareholder                     |   |           | -      |   |           |   | 725 |   |
| Contribution of capital from company related through common ownership |   |           | 5,000  |   |           |   | - |   |
| Principal repayments of long term debt                                |   |           | (556   | )      |           |   | (4,224 | ) |
| NET CASH  PROVIDED BY (USED IN) FINANCING ACTIVITIES        |   |           | 4,444  |   |           |   | (3,499 | ) |
|                                                                  |   |           |   |   |           |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                  |   |           | 54     |   |           |   | 25 |   |
|                                                                  |   |           |   |   |           |   |   |   |
| CASH AND CASH EQUIVALENTS:                                            |   |           |   |   |           |   |   |   |
| Beginning of period                                                   |   |           | -      |   |           |   | - |   |
|                                                                  |   |           |   |   |           |   |   |   |
| End of period                                                         |   | $              | 54     |   |           | $      | 25 |   |
|                                                                  |   |           |   |   |           |   |   |   |
| OTHER SUPPLEMENTAL CASH FLOW DISCLOSURES:                             |   |           |   |   |           |   |   |   |
|                                                                  |   |           |   |   |           |   |   |   |
| Cash paid during the period for interest                              |   | $              | 3,022  |   |           | $      | 5,925 |   |
|                                                                  |   |           |   |   |           |   |   |   |
| Cash paid during the period for income taxes                          |   | $              | -      |   |           | $      | - |   |

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Table of Contents

| For the year ending |   | Amount |    |
|---------------------|--------|--------|---------|
|  2009          |   | $      | 1,114   |   |
| 2010                |   | $      | 1,193   |   |
| 2011                |   | $      | 1,277   |   |
| 2012                |   | $      | 1,368   |   |
| 2013                |   | $      | 1,465   |   |
| Thereafter          |   | $      | 98,212  |   |
| Total               |   | $      | 104,629 |   |

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Table of Contents

ION

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Table of Contents

| -         | Reviewing real estate sales information provided by local board of realtors associations and our review of the census tract increases. The information that we may obtain that would weigh in favor or our proceeding with a property acquisition would be: |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  o   | High volume of real estate sales within the specific area                                                                                                                                                                                                   |
| o         | New schools and major commercial developments in the area                                                                                                                                                                                                   |
| o         | Improved state and city roads in the area                                                                                                                                                                                                                   |

| o   | Hazardous waste in the area                                                                                                                          |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| o   | Crime rates in the area that are higher than the national average (per 100,000 people, based on 2005 FBI Uniform Crime Reports, released Sept. 2006) |
| o   | Vacancy rates of 10% or more in the area                                                                                                             |

| -   | Demographic data that suggests increased demand in a specific area. The data that would weigh in favor of our proceeding with a purchase would be:            |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o   | Continued economic development in the area, such as a major corporation moving into the area creating new jobs and increasing residential housing demand.     |
| o   | Increase in the population’s median income levels of 5 – 10% per year for a certain area.                                                         |
| o   | Lower than the national average of violent and property crimes in the area (per 100,000 people, based on 2005 FBI Uniform Crime Reports, released Sept. 2006) |

| -   | Demographic data that would weigh against a purchase would be:                                                                                                            |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o   | Migration of industrial companies outside the area.                                                                                                                       |
| o   | Decrease of 10% or more in median income levels                                                                                                                           |
| o   | Violent and property crime rates in the area that are higher than the national average (per 100,000 people, based on 2005 FBI Uniform Crime Reports, released Sept. 2006) |

| -   | Number of properties on the market.              |
|---------------|--------------------------------------------------|
| -   | Number of properties sold in the past 12 months. |
| -   | Sales prices asked per property.                 |
| -   | Sales price sold per property.                   |

| -   | Total square footage and acreage per property  |
|---------------|------------------------------------------------|
| -   | Total number of units per property.            |
| -   | Total number of pending closings per property. |

| -                                                                                 | When does the owner want to sell and close? Favorable conditions we look for regarding this factor are:                                                                                       |
|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               o  | The seller is willing and able to sell within a six-month period.                                                                                                                             |
| o                                                                                 | Typically, the timing and motivation of sellers to enter into contract to sell may include several factors such as: estate planning, gifts to family, age, health and other personal factors. |

| -   | How much will the owner sell the land for? Favorable conditions we will look for regarding this factor are:             |
|---------------|-------------------------------------------------------------------------------------------------------------------------|
| o   | The price is below market value. We determine market value through appraisals and comparable sales reports in the area. |
| o   | With respect to price, we would also consider value trends, such as historical yearly increases in property values      |

| -                                                                                                                            | Are there any defects on the title?  Favorable conditions we will look for regarding this factor are: |
|----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
|                      o   | No liens and/or encumbrances.                                                                                   |
|                      o   | The buyer is able to deliver a clean title within the time we would like to close.                              |

| -                                                                                                                            | Does the landowner have title insurance on the property? Favorable conditions we will look for regarding this factor are: |
|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                      o   | The landowner has title insurance on the property.                                                                        |
|                      o   | The landowner is able to secure title insurance on the property.                                                          |
|                      o   | We would be able to obtain title insurance on the purchased property.                                                     |

| -   | General maps;                                   |
|---------------|-------------------------------------------------|
| -   | Environmental reports                           |
| -   | Copies of existing zoning maps and regulations; |
| -   | Conduct land inspection procedures;             |

| -   | Proposed zoning regulations; |
|---------------|------------------------------|
| -   | Deeds;                       |
| -   | Title insurance; and         |
| -   | Tax bills.                   |

|   | * We plan to evaluate properties not listed for sale because of the potential benefit of acquiring a property in a particular location at a lower cost by not having to pay realtor commissions or other costs and fees associated with purchasing properties onlylisted for sale with realtors. Since, in this case, there would not be a seller’s agent, there is a chance that we can get a better price on the property since a seller would not have to pay a realtor a commission. Therefore, the seller would not have to absorb the realtor’s commission in to his or hers selling price, which there is a chance a seller would do in order to obtain his or her needed price on a property. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 1.   | File loan application.                                                                                                   |
|----------------|--------------------------------------------------------------------------------------------------------------------------|
| 2.   | Credit checks, property appraisal done.                                                                                  |
| 3.   | Loan documents drafted.                                                                                                  |
| 4.   | Down payment made that is typically approximately 5 to 10% of the appraised value.                                       |
| 5.   | Institution lends funds for the balance, less certain transaction fees that are typically between approximately 2 to 3%. |
| 6.   | A lien is then filed with the appropriate recorder’s office.                                                       |

| -   | Pulte Homes;        |
|---------------|---------------------|
| -   | Ryan Homes;         |
| -   | Ryland Homes;       |
| -   | John Weiland Homes; |

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KET RISK

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Table of Contents

DINGS

URITIES

OLDERS

MATION

31.1 CEO Certification Pursuant to Section 302

32.1 CEO Certification Pursuant to Section 906

 8-K

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|                  |                                                                              |              |
|-----------------------|-----------------------------------------------------------------------------------|-------------------|
|                  | BLUESKY SYSTEMS CORPORATION(Registrant)                                           |
|                  |                                                                              |              |
| Date: August 11, 2009 | By:                                                                     | /s/ Duane Bennett |
|                  | Duane BennettPresident, Chief Executive Officer, andChief Financial Officer  |