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Blusky AI Inc. (IMIID0.00%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's transition from mining operations to focusing on data centers for artificial intelligence and high-performance computing. Previously known as Inception Mining Inc., the company rebranded in March 2025 to align with its new strategic direction.
Blusky AI reported a net loss of $949,782 for the year ended December 31, 2024, compared to a net income of $12,755,659 for the previous year. This change is attributed to increased interest expenses, changes in derivative liabilities, and a decrease in gain on debt extinguishment.
The company's balance sheet reflects current assets of $0 and a working capital deficit of $3,346,850 as of December 31, 2024. The company does not have sufficient working capital to carry out its operations for the next twelve months.
Blusky AI's operations now focus on developing modular data centers across various U.S. jurisdictions, targeting facilities with existing power capacities. This strategy aims to provide scalable, cost-effective solutions to meet the growing demand for AI compute infrastructure.
The company faces several risks, including reliance on third parties for modular data center components, constraints in the U.S. energy grid, and competition from established data center providers.
Blusky AI is involved in litigation with Mother Lode Mining, Inc. over unpaid amounts related to the sale of its former subsidiary, Compañía Minera Cerros Del Sur, S.A. de C.V. The company is pursuing the lawsuit aggressively.
The company has identified material weaknesses in its internal controls over financial reporting, primarily due to a lack of segregation of duties and reliance on outside consultants.
Blusky AI's management continues to seek additional financing to support its operations and address its liquidity challenges.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Blusky AI Inc. annual 10-K report dated April 1, 2025. To report an error, please email earnings@qz.com.