BluSky AI Reports Net Income of $175,389 for Q1 2025, Significant Turnaround from Previous Year

BluSky AI, Inc., formerly known as Inception Mining, Inc., reported a net income of $175,389 for the three months ending March 31, 2025, a significant turnaround from a net loss of $256,980 during the same period in 2024. The company’s total operating expenses increased slightly to $146,105 from $123,938 year-over-year, primarily due to higher general and administrative costs. The improved financial performance is attributed to a gain on extinguishment of debt amounting to $338,673, which contributed positively to the overall income statement.

In terms of balance sheet changes, BluSky AI's total liabilities decreased to $3,174,461 as of March 31, 2025, down from $3,346,850 at the end of the previous fiscal year. The company’s stockholders' deficit also improved, narrowing to $(3,170,930) from $(3,346,319). The reduction in liabilities was primarily driven by a decrease in derivative liabilities and accrued interest, while accounts payable and accrued liabilities saw an increase, reflecting ongoing operational commitments.

Operationally, BluSky AI has undergone strategic changes, including a shift in focus following the divestiture of its Clavo Rico mine. The company is now positioned as a consultant and advisor to the mining industry, particularly to Mother Lode Mining, Inc., the new owner of the Clavo Rico mine. This transition is part of a broader strategy to enhance profitability and secure additional funding sources. The company continues to maintain a financial interest in the Clavo Rico mine through a net smelter royalty agreement.

As of March 31, 2025, BluSky AI reported a total of 2,644,205 shares of common stock outstanding, reflecting a slight increase from 2,638,773 shares at the end of 2024. The company’s cash position remains limited, with no cash on hand as of the latest reporting date. Management has indicated that the company is actively seeking to develop profitable operations and secure funding to address its working capital deficit, which stood at $3,171,461.

Looking ahead, BluSky AI's management has expressed a commitment to improving operational efficiency and exploring new business opportunities to enhance revenue generation. However, the company acknowledges substantial doubt regarding its ability to continue as a going concern without successful financing efforts and operational improvements. The outlook remains contingent on the successful execution of its strategic initiatives and the overall market conditions affecting the mining and consulting sectors.