{"url_path":"/sec/bsai/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1416090/0001493152-26-023189-index.html","accession_number":"0001493152-26-023189","cik":"0001416090","ticker":"BSAI","issuer_name":"BLUSKY AI INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1416090/0001493152-26-023189-index.html","primary_entity_key":"0001416090","primary_entity_name":"BLUSKY AI INC."},"word_count":266,"has_tables":true,"body_markdown":"**ITEM\n1. LEGAL PROCEEDINGS**\n\n \n\nFrom\ntime to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However,\nlitigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may\nharm our business. Except as set forth below, we are currently not aware of any such pending or threatened legal proceedings or claims\nthat we believe will have a material adverse effect on our business, financial condition or operating results.\n\n \n\nOn\nor about March 4, 2024, the Company filed a complaint against Mother Lode Mining, Inc., a Canadian company, and Robert Salna (the “Defendants”),\nseeking damages in an amount of not less than $2,237,800 (plus interest, additional costs and attorneys’ fees) due from Defendants\nas a result of their breach of their obligations and duties arising from the sale of Compañía Minera Cerros Del Sur, S.A.\nde C.V. in 2023 (the “Sale”). The complaint was filed in the United States District Court for the District of Utah, Central\nDivision (Case No. 2:24-cv-00171-TS-CMR, the “Case”). On February 4, 2026, the Company and the Defendants entered into a\nsettlement agreement resolving all disputes in connection with the Sale. Under the settlement, the parties agreed to a mutual dismissal\nwith prejudice of all claims, counterclaims, and causes of action asserted or that could have been asserted in the Case or in any other\nforum. As part of the settlement, the parties executed a mutual general release of all claims and potential claims against the other\nparties and their affiliates."}