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    <TD STYLE="width: 59%; font-size: 10pt; border-bottom: Black 1pt solid">As filed with the Securities and Exchange Commission</td>
    <TD STYLE="width: 41%; font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">on Registration No._000-00000</td></tr>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM S-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">REGISTRATION STATEMENT UNDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THE SECURITIES ACT OF 1933</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B><U>Blue
Sky Group Holdings, Inc.</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD NOWRAP STYLE="width: 33%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Delaware</FONT></td>
    <TD NOWRAP STYLE="width: 1%; text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="width: 32%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;6162&nbsp;&nbsp;]</FONT></td>
    <TD NOWRAP STYLE="width: 1%; text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="width: 33%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">81-4015013</FONT></td></tr>
<tr style="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">State or other jurisdiction</FONT></td>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Primary Standard Industrial</FONT></td>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer</FONT></td></tr>
<tr style="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">incorporation or organization</FONT></td>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Classification Code Number)</FONT></td>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</td>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Identification Number)</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Blue Sky Group Holdings, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">8017 Glenview Drive Suite A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">North Richland Hills, TX 76180</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Telephone:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">(Address, including zip code, and telephone number, including
area code of registrant&rsquo;s principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Chirag Patel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">President, CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Blue Sky Group Holdings, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">8017 Glenview Drive Suite A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">North Richland Hills, TX 76180</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Telephone:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Name, address, including zip code, and
telephone number,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Benjamin L. Bunker, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">The Bunker Law Group, PLLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">benbunker@bunkerlawgroup.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">T (702) 784-5990</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">3753 Howard Hughes Parkway, Suite 200</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Las Vegas, Nevada 89169</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Approximate Date of Commencement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>of proposed sale to the public: </B>As
soon as practicable after the effective date of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If any of the securities being registered on this Form are
to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment filed pursuant to
Rule 462&copy; under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration number of the earlier effective
registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 definitions &ldquo;large accelerated
filer,&rdquo;&ldquo;accelerated filer,&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act. (Check
one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 33%; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Large accelerated filer</FONT></td>
    <td style="width: 11%"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></td>
    <td style="width: 28%"><FONT STYLE="font-size: 10pt">Accelerated filer</FONT></td>
    <td style="width: 28%"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></td>
    <td><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></td>
    <td><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></td>
    <td><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registrant hereby may this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission acting pursuant
to said section 8(a), may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CALCULATION OF REGISTRATION FEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Proposed</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Proposed</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Amount</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Maximum</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Maximum</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Amount of</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Title of Each Class of</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">to be</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Offering Price</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Aggregate</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Registration</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Securities to be Registered</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Registered</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Per Unit (1)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Offering Price</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Fee (2)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 20%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 19%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Common stock, $0.01 par value per share</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">1,000,000 Shares</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">20,00</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">20,000,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">2,320.00</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXPLANATORY NOTE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><SUP>1</SUP>
</FONT>Estimated solely for purposed of calculating the registration fee under Rule 457(a) and (o) of the Securities Act. This
registration statement shall also cover any additional shares of common stock which become issuable by reason of any stock split,
stock dividend, anti-dilution provisions or similar transaction effected without the receipt of consideration which results in
an increase in the number of the outstanding shares of common stock of the registrant. These securities may not be sold until
this registration statement filed with the Securities and Exchange Commission is effective. This is not an offer to sell these
securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibits Included Hereto: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Articles of Incorporation (1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By-Laws(1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">XBRL *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certification of Chief Executive Officer and Principal Financial
Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certification of Chief Executive Officer and Principal Financial
Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red">The information contained in this registration
statement is not complete and may be changed. These securities may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is
not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BLUE SKY GROUP HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Blue Sky Group Holdings, Inc (&ldquo;Blue
Sky Group Holdings, Inc,&rdquo; &ldquo;Company,&rdquo; &ldquo;we,&rdquo; or &ldquo;us.&rdquo;) is offering for sale a maximum
of 1,000,000 shares of its common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be
sold by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold.
The offering is being conducted on a self- underwritten, best efforts basis, which means our president and chief executive officer
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell. Chirag Patel
will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, she will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities and
Exchange Act of 1934. The intended methods of communication include, without limitations, telephone and personal contact. For
more information, see the section of this prospectus entitled &ldquo;Plan of Distribution&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The common stock offered by this prospectus
is being offered by the company. The common stock may be sold or distributed from time to time by the company directly to one
or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the
time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.
The sale of the common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers&rsquo;
transactions, transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents,
&ldquo;at the market&rdquo; into an existing market for the common stock, in other ways not involving market makers or established
business markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions;
or any combination of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The proceeds from the sale of the shares
in this offering will be payable to the Company. All subscribed funds will be held in a noninterest- bearing account pending the
completion of the offering of which there is no minimum number of shares that must be sold. The offering will be completed 180
days from the effective date of this prospectus, unless extended by our board of directors for an additional 180 days. All subscription
agreements and checks for payment of shares are irrevocable (except as to any states that require a statutory cooling-off period
or rescission right). For more information, see the section of this prospectus entitled &ldquo;Plan of Distribution&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is a development stage company
and our independent registered auditors included an explanatory paragraph in their opinion on our financial statements as of and
for the period ended October 24, 2016 that states that Company losses from operations raise substantial doubt about our ability
to continue as a going concern. Because this offering is self-underwritten and there is no minimum amount of shares that must
be sold, the Company may lose money from this offering if the proposed proceeds of this offering are substantially less than the
estimated costs of this offering. There is currently no public or established market for our shares. Consequently, our shareholders
will not be able to sell their shares in any organized market place and may be limited to selling their shares privately. Accordingly,
an investment in our Company is an illiquid investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not a blank check company and our
business plan does not include engaging in a merger or acquisition with an unidentified company, companies, entity, or person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NASDAQ SYMBOL RESERVATION CONFIRMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our request to reserve the ticker symbol
&ldquo;BSGH&rdquo; for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved for us for twenty four months.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company has yet to identify and acquire properties for
the development of a Blue Sky Group Holdings, Inc center.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Since there is no minimum amount of shares that must be sold
by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors may end up holding
shares in a company that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">- Has not received enough proceeds from the offering
to begin operations; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">- Has no market for its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>Proceeds</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>THIS&nbsp;INVESTMENT&nbsp;INVOLVES&nbsp;A&nbsp;HIGH&nbsp;DEGREE&nbsp;OF
    RISK. YOU</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>Number</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>Underwriting</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>to</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>SHOULD&nbsp;PURCHASE&nbsp;ONLY&nbsp;IF&nbsp;YOU&nbsp;CAN
    AFFORD A COMPLETE</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>of</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt"><B>Offering</B></FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>Discounts &amp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>the</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>LOSS OF YOUR INVESTMENT. SEE &ldquo;RISK
    FACTORS&rdquo;</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Shares</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Price</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Commissions</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 8pt"><B>Company</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 85%; font-weight: bold"><FONT STYLE="font-size: 8pt">Per Share</FONT></TD><TD STYLE="width: 85%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 85%; text-align: right"><FONT STYLE="font-size: 8pt">1</FONT></TD><TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 85%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 85%; text-align: right"><FONT STYLE="font-size: 8pt">20.00</FONT></TD><TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 85%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 85%; text-align: right"><FONT STYLE="font-size: 8pt">0.00</FONT></TD><TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 85%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 85%; text-align: right"><FONT STYLE="font-size: 8pt">20.00</FONT></TD><TD STYLE="width: 85%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">10% of shares are sold</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">50% of shares are sold</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">500,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">10,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">10,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">75% of shares are sold</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">750,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">15,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">15,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">Maximum Offering</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">20,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">20,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus is not an offer to sell
these securities, and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">INVESTING IN OUR SECURITIES INVOLVES
A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE OUR SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE &ldquo;RISK
FACTORS&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are selling the shares without an underwriter
and may not be able to sell all or any of the shares offered herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are considered a &ldquo;shell company&rdquo;
under applicable securities rules and subject to additional regulatory requirements as a result, including the inability of our
shareholders to sell our shares in reliance on Rule 144 promulgated pursuant to the Securities Act of 1933, as well as our inability
to register our securities on Form S-8 (an abbreviated registration process). Accordingly, investors should consider our shares
to be significantly risky and illiquid investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THE INFORMATION IN THIS PROSPECTUS IS
NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES, AND IT IS NOT SOLICITING AN OFFER
TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The date of this prospectus is<U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;</U>,
2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Table Of Contents</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%"><FONT STYLE="font-size: 10pt">Prospectus Summary</FONT></td>
    <TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt">6</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Summary Financial Data</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">9</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">The Business</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">7</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Risk Factors</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">12</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Use of Proceeds</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">24</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Dilution</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">27</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Dividend Policy</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">30</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Market for Securities</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">30</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Description of Securities</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">12</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Use of Proceeds</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">24</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Plan of Operation</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">21</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Forward Looking Statement</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">32</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">32</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Plan of Operation</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">33</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Liquidity</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">35</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">The Business</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">37</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Intellectual Property</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">40</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Litigation</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">42</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Property</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">42</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Management</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">42</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Executive Compensation</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">45</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Principal Stockholders</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">47</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Description of Capital Stock</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">47</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Transfer Agent</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">48</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Plan of Distribution</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">49</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">OTCQB/OTCBB Considerations</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">51</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Section 15(g) of the Exchange Act</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">51</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">State Securities &ndash; Blue Sky Laws</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">52</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Legal Matters</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">53</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Experts</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">53</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Other expenses of Issuance and Distribution</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">54</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Indemnification of Directors and Officers</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">55</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Recent Sales of Unregistered securities</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">56</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Undertakings</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">59</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Financial Statements</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">60</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROSPECTUS SUMMARY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>This summary highlights some information
from this prospectus, and it may not contain all the information important to making an investment decision. A potential investor
should read the following summary together with the more detailed information regarding the Company and the common stock being
sold in this offering, including &ldquo;Risk Factors&rdquo; and the financial statements and related notes, included elsewhere
in this prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>History</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company was incorporated in Delaware
on Sept 30 2016 and is a development stage company focusing on originating mortgage loans. At Blue Sky Group Holdings , we seek
to provide loans to mid-grade and high-grade borrowers that are seeking to purchase primary residences. Among these borrowers,
Management has developed the following demographic profile that the Company will continue use for its marketing campaigns and
credit guidelines. Much like other mortgage banking firms, the business continually maintain strict controls over its lending
procedures to ensure that defaults are kept to an absolute minimum. Blue Sky Group Holdings, may sell the mortgages it originates
to Fannie Mae, Freddie Mac and Ginnie Mae.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Below is Management&rsquo;s average customer profile:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Household income of $50,000+</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">FICO Score of 680 or higher</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Is seeking a mortgage loan of $150,000 to $300,000</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Has documented income (W-2) or an extended history
of independently earned income.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Nonbank mortgage servicers expanded their
footprint in agency mortgage servicing rights during the third quarter of 2016, according to a new Inside Mortgage Finance analysis.
Overall, there were $6.062 trillion of single-family mortgages outstanding tied to Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed
securities at the end of September according to <U>http://www.insidemortgagefinance.com/</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Blue Sky Group Holdings may originate
mortgage loans domestically in the U.S. only and at its sole discretion may sell to Fannie Mae, Freddie Mac and Ginnie Mae. Furthermore,
Blue Sky Group Holdings Group Holdings originates mortgage loans it intends to sell into the secondary markets through whole loan
sales or securitizations. Blue Sky Group Holdings, may also purchase loans out of a Ginnie Mae securitization pool if that loan
meets certain criteria, including being delinquent greater than 90 days. Blue Sky Group Holdings has elected to carry these loans
at fair value; furthermore Blue Sky Group Holdings measures our newly originated prime (RML&rsquo;s) Residential Mortgage Loans
held for sale at fair value. Blue Sky Group Holdings also determines the fair value of loans held for investment, net, using internally
developed valuation models. These valuation models estimate the exit price Blue Sky Group Holdings expects to receive in the loan&rsquo;s
principal market primarily.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Blue Sky Group Holdings, Inc will grow through three main avenues:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
successful marketing and growth of the Company&rsquo;s financial infrastructure through the acquisition of larger warehouse
lines of credit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued
implementation of streamlined methods for closing and selling loans while conforming to all state and federal level laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to develop relationships
with investors and institutional loan buyers so that the Company can quickly divest its loan and lending assets at a premium while
retaining servicing rights for originated financings. This will be achieved once the business acquires its warehouse credit facilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Blue sky mortgage understands
that the refinance boom will potentially be declining with HARP coming to an end within the next year and the market shifting
a purchase market. While there is still a possibility of an extension and expansion of HARP, we already make preparations for
focusing a significant portion of our resources on REO asset management which is positioning Blue Sky Mortgage strongly into the
home purchase market. Furthermore, Blue sky mortgage has multiple home builders and realtor contacts that have assured multiple
referrals to the company for their client&rsquo;s needs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Marketing Objectives</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company&rsquo;s targeted Southwestern and Midwestern
United States markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to make substantial reinvestments into the
Company&rsquo;s online visibility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development of strategic marketing
relationships with a number of mortgage brokers, attorneys, and accountants throughout the Company&rsquo;s targeted Southwestern
and Midwestern United States markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue
to make substantial reinvestments into the Company&rsquo;s online visibility (via www.blueskymortgageloans.com). At the onset
of operations, the Company will develop a network of affiliated mortgage brokers that are licensed within the State of Texas
and other Midwestern states in order to drive business to the Company. These agents will be compensated based on loan
closings. These individuals will act as independent contractors on behalf of the Company. Additionally, the business will pay
for mortgage leads among companies that specialize in lead generation. The Company will use a number of businesses that have
extensive experience with providing quality leads among prime borrowers. Management anticipates that each qualified loan lead
will cost the business $50 to $150 depending on the verified credit quality of the potential borrower, the amount they are
seeking to borrow, and how quickly they need a mortgage. The Company will use an online based marketing campaign to develop
its sales. Primarily, the Company will use search engine optimization techniques that increase the Company&rsquo;s visibility
when selected key words are used among major search engines. For instance, when a person does a Google search for mortgages
in a selected market, the Company will appear on the first page of the search. This strategy is technically complicated, and
the Company will use a search engine optimization firm to develop the Company&rsquo;s visibility on a non-paid basis. A
majority of web portal and search engine companies use very complicated algorithms to determine a website&rsquo;s relevance
in relation to a specific keyword. These website visibility strategies will be heavily implemented into the Company&rsquo;s
website. At the onset of operations, Blue Sky will continue to use several pay methods for increasing the Company&rsquo;s
online visibility. This strategy is expensive, but the results can be phenomenal if this marketing strategy is properly
executed. These advertisements appear along the border and side of a website, and each time a person clicks on the website, a
small fee ranging from fifty cents to one dollar is charged to the Company&rsquo;s account. An SEO firm will also manage this
aspect of the Company&rsquo;s marketing operation. Management expects that these costs will reach approximately $15,000
per year towards the end of the first expansion year. We receive fees from both the closing of the mortgage as well as a
premium from the sale of mortgages to investors in the secondary market. However, each transaction yields approximately 2.5%
to 3% of the face value of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Risks and Uncertainties facing the
Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a development stage company, the Company
has no operating history and is expected to continuously experience losses in the near term. The Company needs to create a source
of revenue or locate additional financing in order to continue its developmental plans. As a development stage company, management
of the Company must build and market its development plans in order to execute the business plan of the Company on a broad scale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">One of the biggest challenges facing the
Company will be in securing adequate capital to acquire properties and develop its recreational centers and products. Likewise,
operating the Company will need to secure sufficient capital to originate and purchase prime mortgages. Secondarily, following
development of its products and properties, a major challenge will be implementing effective sales, marketing and distribution
strategies to reach the intended end customers. The Company has considered and devised its initial sales, marketing and advertising
strategy, however, the Company will need to skillfully implement this strategy in order to achieve success in its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to these and other factors, the Company&rsquo;s
need for additional capital, the Company&rsquo;s independent auditors have issued a report raising substantial doubt of the Company&rsquo;s
ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Offering</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Blue Sky Group Holdings, Inc (&ldquo;Blue
Sky Group Holdings, Inc,&rdquo; &ldquo;Company,&rdquo; &ldquo;we,&rdquo; or &ldquo;us.&rdquo;) is offering for sale a maximum
of 1,000,000 shares of its common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be
sold by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold.
The offering is being conducted on a self-underwritten, best efforts basis, which means our president and chief executive officer
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell. Chirag Patel
will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, he will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities and
Exchange Act of 1934. The intended methods of communication include, without limitations, telephone and personal contact. For
more information, see the section of this prospectus entitled &ldquo;Plan of Distribution&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The common stock offered by this prospectus
is being offered by the company. The common stock may be sold or distributed from time to time by the company directly to one
or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the
time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.
The sale of the common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers&rsquo;
transactions, transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents,
&ldquo;at the market&rdquo; into an existing market for the common stock, in other ways not involving market makers or established
business markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions;
or any combination of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since there is no minimum amount of shares
that must be sold by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors
may end up holding shares in a company that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">- Has not received enough proceeds from the
offering to begin operations; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">- Has no market for its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The proceeds from the sale of the shares
in this offering will be payable to the Company. All subscription agreements and checks are irrevocable and should be delivered
to the Company at the address provided in the Subscription Agreement (see Exhibit).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All subscription funds will be held in
a noninterest-bearing account subject to the completion of the offering. The offering will be completed 180 days from the effective
date of this prospectus, unless extended by our board of directors for an additional 180 days. There is no minimum number of shares
that must be sold. All subscription agreements and checks for payment of shares are irrevocable (except as to any states that
require a statutory cooling-off period or rescission right).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will deliver stock certificates attributable
to shares of common stock purchased directly to the purchasers approximately 30 days after the close of the offering or as soon
thereafter as practicable or process them through a book entry system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering price of the common stock
has been determined arbitrarily and bears no relationship to any objective criterion of value. The price does not bear any relationship
to our assets, book value, historical earnings, if any, or net worth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shares of common stock offered by us are
a maximum of 1,000,000 shares. There is no minimum number of shares that must be sold by us for the offering to close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Use of proceeds</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Blue Sky Group Holdings, Inc (&ldquo;Blue
Sky Group Holdings, Inc,&rdquo; &ldquo;Company,&rdquo; &ldquo;we,&rdquo; or &ldquo;us.&rdquo;) will use the proceeds from the
offering to pay for professional fees and other general expenses, as well as fund the development of the Company&rsquo;s operations.
The total estimated costs of the offering ($15,974) may exceed the amount of offering proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Termination of the offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering will conclude when all 1,000,000
shares of common stock have been sold, or 180 days after this registration statement becomes effective with the Securities and
Exchange Commission. We may at our discretion extend the offering for an additional 180 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Risk Factors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purchase of our common stock involves
a high degree of risk. The common stock offered in this prospectus is for investment purposes only and currently no market for
our common stock exists. <I>Please refer to the sections entitled &ldquo;Risk Factors&rdquo; and &ldquo;Dilution&rdquo; before making
an investment in this stock.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Trading Market</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">NASDAQ SYMBOL RESERVATION CONFIRMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our request to reserve the ticker symbol
&ldquo;BSGH&rdquo; for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved for us for twenty four months. While
we plan to find a market maker to file a Rule 211 application with the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;)
in order to apply for the inclusion of our common stock in OTC Markets (&ldquo;OTCQB&rdquo;) or the Over-the-Counter Bulletin
Board (&ldquo;OTCBB&rdquo;), such efforts may not be successful and our shares may never be quoted and owners of our common stock
may not have a market in which to sell the shares. Also, no estimate may be given as to the time that this application process
will require. Even if Blue Sky Group Holdings, Inc &rsquo;s common stock is quoted or granted a listing, a market for the common shares
may not develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PART I</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 1. FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BLUE SKY GROUP HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condense Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">As of October 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">As of October 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: center">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%; padding-bottom: 1pt; padding-left: 0.125in">Cash</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="width: 15%; text-align: right; border-bottom: Black 1pt solid">500</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="width: 15%; text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total Stockholders&rsquo; deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Total Liabilities and Partner Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left"></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">The accompanying notes are an integral part of these condensed
financial statements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>PART I. Financial Information</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1. Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BLUE SKY GROUP HOLDINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED
BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Thousands of dollars)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Oct 24,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">December 31,</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-style: italic; text-align: center">(unaudited)</TD><TD STYLE="font-style: italic">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 15%; font-weight: bold; text-align: right">500</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mortgage servicing rights,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Advances and other receivables,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage loans held for sale at fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mortgage loans held for investment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Property and equipment, net of accumulated depreciation respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total assets</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">500</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Liabilities and stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Warehouse facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payables and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage servicing liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other nonrecourse debt,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Commitments and contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common stock at $0.01 par value - 100,000,000 million shares authorized, 20,250,000 issued, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional paid-in-capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Retained earnings</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Treasury shares at cost, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total Blue Sky Group Holdings stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Total liabilities and stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>See accompanying notes to the consolidated financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BLUE STAR GROUP HOLDINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Thousands of dollars, except for earnings
per share data)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Three
    months ended Oct 24,</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Six
    months ended June 30,</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Revenues:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Service related,
    net</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>$</B></FONT></TD><TD STYLE="font-weight: bold; text-align: right"></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
    gain on mortgage loans held for sale</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total revenues</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Expenses:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Salaries, wages
    and benefits</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; padding-left: 0.125in; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">General
    and administrative</FONT></TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font-weight: bold; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,700</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Other income (expenses):</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Interest income</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Interest
    expense</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total other expenses,
    net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Income (loss) before income tax expense
    (benefit)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less: income tax
    expense (benefit)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net income (loss)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less: net income
    attributable to non-controlling interests</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net income (loss)
    attributable to Blue Sky Group Holdings</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">(15,200</FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net income (loss) per common share attributable
    to common stockholders:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Basic</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Weighted average shares of common stock outstanding (in thousands):</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Basic</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dilutive
    effect of stock awards</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>See accompanying notes to the consolidated financial statements</I></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table presents the estimated carrying amount
and fair value of Blue Sky Group Holdings&rsquo;s financial instruments and other assets and liabilities measured at fair value
on a recurring basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Oct
    24, 2016</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Recurring
    Fair Value Measurements</FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Fair Value</FONT></TD><TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assets</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mortgage
    loans held for sale <SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font-weight: bold; text-align: right"></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mortgage servicing rights</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Property and equipment</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property and equipment,
    at cost <SUP>(1)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total assets</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>$</B></FONT></TD><TD STYLE="font-weight: bold; text-align: right"></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Liabilities</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total liabilities</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Oct
    24, 2016</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
    31, 2015</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Warehouse Facilities</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Interest
    Rate</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Maturity
    Date</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Collateral</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Capacity
                                         </B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Amount</B></FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Outstanding</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Collateral</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pledged</B></FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Outstanding</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Collateral
                                         </B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>pledged</B></FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; text-align: left"><FONT STYLE="font-size: 8pt">$ warehouse facility</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%; text-align: center"><FONT STYLE="font-size: 8pt">Mortgage loans or MBS</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
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    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
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    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$ warehouse facility</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: baseline"><FONT STYLE="font-size: 8pt; vertical-align: baseline">Mortgage loans or&nbsp;&nbsp;MBS</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; vertical-align: baseline"><FONT STYLE="font-size: 8pt; vertical-align: baseline">Warehouse
    facilities</FONT><FONT STYLE="font-size: 8pt"> principal amount</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Debt issuance costs</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">0</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&ndash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">0</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&ndash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in"><FONT STYLE="font-size: 8pt">Warehouse facilities, net of unamortized
    debt issuance costs</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Mortgage loans, net</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Reverse mortgage interests, net</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>(1)</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>(2)</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RISK FACTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A purchase of any Shares is an investment
in the Company&rsquo;s common stock and involves a high degree of risk. Investors should consider carefully the following information
about these risks, together with the other information contained in this prospectus, before the purchase of the Shares. If any
of the following risks actually occur, the business, financial condition or results of operations of the Company would likely
suffer. In this case, the market price of the common stock could decline, and investors may lose all or part of the money they
paid to buy the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The Dodd-Frank Act could increase our regulatory compliance
burden and associated costs, limit our future capital raising strategies, and place restrictions on certain originations and servicing
operations all of which could adversely affect our business, financial condition and results of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 21, 2010, President Obama signed the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (the &ldquo;Dodd-Frank Act&rdquo;) into law. The Dodd-Frank Act represents a
comprehensive overhaul of the financial services industry in the United States. The Dodd-Frank Act includes, among other things:
(i) the creation of a Financial Stability Oversight Council to identify emerging systemic risks posed by financial firms, activities
and practices, and to improve cooperation among federal agencies; (ii) the creation of a Bureau of Consumer Financial Protection
(&ldquo;CFPB&rdquo;) authorized to promulgate and enforce consumer protection regulations relating to financial products; (iii)
the establishment of strengthened capital and prudential standards for banks and bank holding companies; (iv) enhanced regulation
of financial markets, including the derivatives and securitization markets; and (v) amendments to the Truth in Lending Act aimed
at improving consumer protections with respect to mortgage originations, including originator compensation, minimum repayment
standards and prepayment considerations. On July 21, 2011, the CFPB obtained enforcement authority pursuant to the Dodd-Frank
Act and began official operations. On October 13, 2011, the CFPB issued guidelines governing how it supervises mortgage transactions,
which involves sending examiners to banks and other institutions that service mortgages to assess whether consumers&rsquo; interests
are protected. On January 11, 2012, the CFPB issued guidelines governing examination procedures for bank and non-bank mortgage
originators. The exact scope and applicability of many of these requirements to us are currently unknown as the regulations to
implement the Dodd-Frank Act generally have not yet been finalized. These provisions of the Dodd-Frank Act and actions by the
CFPB could increase our regulatory compliance burden and associated costs and place restrictions on certain originations and servicing
operations, all of which could in turn adversely affect our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The continued deterioration of the residential mortgage
market may adversely affect our business, financial condition and results of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since mid-2007, adverse economic conditions, including high
unemployment, have impacted the residential mortgage market, resulting in unprecedented delinquency, default and foreclosure rates,
all of which have led to increased loss severities on all types of residential mortgage loans due to sharp declines in residential
real estate values. Falling home prices have resulted in higher loan-to-value ratios (&ldquo;LTVs&rdquo;), lower recoveries in
foreclosure and an increase in loss severities above those that would have been realized had property values remained the same
or continued to increase. As LTVs increase, borrowers are left with equity in their homes that is not sufficient to permit them
to refinance their existing loans. This may also provide borrowers an incentive to default on their mortgage loan even if they
have the ability to make principal and interest payments, which we refer to as strategic defaults. Increased mortgage defaults
negatively impact our Servicing Segment because they increase the costs to service the underlying loans and may ultimately reduce
the number of mortgages we service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Adverse economic conditions may also impact our Originations
Segment. Declining home prices and increasing LTVs may preclude many potential borrowers, including borrowers whose existing loans
we service, from refinancing their existing loans. An increase in prevailing interest rates could decrease our originations volume
through our originations channel; this channel focuses predominantly on refinancing existing mortgage loans.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A continued deterioration or a delay in any recovery in the
residential mortgage market may reduce the number of mortgages we service or new mortgages we originate, reduce the profitability
of mortgages currently serviced by us, adversely affect our ability to sell mortgage loans originated by us or increase delinquency
rates. Any of the foregoing could adversely affect our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>We may experience serious financial difficulties as some
mortgage servicers and originators have experienced, which could adversely affect our business, financial condition and results
of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since late 2016, a number of mortgage servicers and originators
of residential mortgage loans have experienced serious financial difficulties and, in some cases, have gone out of business. These
difficulties have resulted, in part, from declining markets for their mortgage loans as well as from claims for repurchases of
mortgage loans previously sold under provisions requiring repurchase in the event of early payment defaults or breaches of representations
and warranties regarding loan quality and certain other loan characteristics. Higher delinquencies and defaults may contribute
to these difficulties by reducing the value of mortgage loan portfolios and requiring originators to sell their portfolios at
greater discounts to par. In addition, the cost of servicing an increasingly delinquent mortgage loan portfolio may rise without
a corresponding increase in servicing compensation. The value of many residual interests retained by sellers of mortgage loans
in the securitization market has also been declining. Overall originations volumes are down significantly in the current economic
environment. Any of the foregoing could adversely affect our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>We principally service higher risk loans, which exposes
us to a number of different risks.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A significant percentage of the mortgage loans we service will
be of a significantly Higher Credit Worthiness and eligible to be sold. We may originate higher risk loans, meaning that the loans
are to less creditworthy borrowers or for properties the value of which has decreased. These loans are more expensive to service
because they require more frequent interaction with customers and greater monitoring and oversight. As a result, these loans tend
to have higher delinquency and default rates, which can have a significant impact on our revenues, expenses and the valuation
of our MSRs. It may also be more difficult for us to recover advances we are required to make with respect to higher risk loans.
In connection with the ongoing mortgage market reform and regulatory developments, servicers of higher risk loans may be subject
to increased scrutiny by state and federal regulators or may experience higher compliance costs, which could result in higher
servicing costs. We may not be able to pass along any incremental costs we incur to our servicing clients. All of the foregoing
factors could therefore adversely affect our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Delinquency rates have a significant impact on our revenues,
our expenses and on the valuation of our MSRs as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><I>Revenue. </I>An increase in delinquencies will result
in lower revenue for loans we service for GSEs because we only collect servicing fees from GSEs for performing loans. Additionally,
while increased delinquencies generate higher ancillary fees, including late fees, these fees are not likely to be recoverable
in the event that the related loan is liquidated. In addition, an increase in delinquencies lowers the interest income we receive
on cash held in collection and other accounts.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><I>Expenses. </I>An increase in delinquencies will
result in a higher cost to service due to the increased time and effort required to collect payments from delinquent borrowers.
It may also result in an increase in interest expense as a result of an increase in our advancingobligations.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><I>Liquidity. </I>An increase in delinquencies could
also negatively impact our liquidity.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Federal, state and local laws and regulations could materially
adversely affect our business, financial condition and results of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Federal, state and local governments have recently proposed
or enacted numerous laws, regulations and rules related to mortgage loans generally and foreclosure actions in particular. These
laws, regulations and rules may result in delays in the foreclosure process, reduced payments by borrowers, modification of the
original terms of mortgage loans, permanent forgiveness of debt and increased servicing advances. In some cases, local governments
have ordered moratoriums on foreclosure activity, which prevent a servicer or trustee, as applicable, from exercising any remedies
they might have in respect of liquidating a severely delinquent mortgage loan. Several courts also have taken unprecedented steps
to slow the foreclosure process or prevent foreclosure altogether.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the Federal Housing Finance Agency (the &ldquo;FHFA&rdquo;)
recently proposed changes to mortgage servicing compensation structures, including cutting servicing fees and channeling funds
toward reserve accounts for delinquent loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Due to the highly regulated nature of the residential mortgage
industry, we are required to comply with a wide array of federal, state and local laws and regulations that regulate, among other
things, the manner in which we conduct our servicing and originations business and the fees we may charge. These regulations directly
impact our business and require constant compliance, monitoring and internal and external audits. A material failure to comply
with any of these laws or regulations could subject us to lawsuits or governmental actions, which could materially adversely affect
our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Federal, state and local laws and regulations could materially
adversely affect our business, financial condition and results of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Federal, state and local governments have recently proposed
or enacted numerous laws, regulations and rules related to mortgage loans generally and foreclosure actions in particular. These
laws, regulations and rules may result in delays in the foreclosure process, reduced payments by borrowers, modification of the
original terms of mortgage loans, permanent forgiveness of debt and increased servicing advances. In some cases, local governments
have ordered moratoriums on foreclosure activity, which prevent a servicer or trustee, as applicable, from exercising any remedies
they might have in respect of liquidating a severely delinquent mortgage loan. Several courts also have taken unprecedented steps
to slow the foreclosure process or prevent foreclosure altogether.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the Federal Housing Finance Agency (the &ldquo;FHFA&rdquo;)
recently proposed changes to mortgage servicing compensation structures, including cutting servicing fees and channeling funds
toward reserve accounts for delinquent loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Due to the highly regulated nature of the residential mortgage
industry, we are required to comply with a wide array of federal, state and local laws and regulations that regulate, among other
things, the manner in which we conduct our servicing and originations business and the fees we may charge. These regulations directly
impact our business and require constant compliance, monitoring and internal and external audits. A material failure to comply
with any of these laws or regulations could subject us to lawsuits or governmental actions, which could materially adversely affect
our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Because we are required to follow the guidelines of the
GSEs with which we do business and are not able to negotiate our fees with these entities for the purchase of our loans, our competitors
may be able to sell their loans to GSEs on more favorable terms.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Even though we currently originate conventional agency and
government conforming loans, if we intend to originate non-prime mortgage loans, we believe we would be required to pay a higher
fee to access the secondary market for selling our loans to GSEs. We believe that because many of our competitors have always
originated conventional loans, they are able to sell newly originated loans on more favorable terms than us. As a result, these
competitors are able to earn higher margins than we earn on originated loans, which could materially impact our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to Our Organization and Structure</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>If the ownership of our common stock continues to be highly
concentrated, it may prevent you and other minority stockholders from influencing significant corporate decisions and may result
in conflicts of interest.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the completion of this offering, the Initial Stockholder,
which is primarily owned by Chirag Patel, Chirag Patel will own approximately 98.5% of our outstanding common stock . As a result,
the Initial Stockholder will own shares sufficient for the majority vote over all matters requiring a stockholder vote, including:
the election of directors; mergers, consolidations and acquisitions; the sale of all or substantially all of our assets and other
decisions affecting our capital structure; the amendment of our certificate of incorporation and our bylaws; and our winding up
and dissolution. This concentration of ownership may deter or prevent acts that would be favored by our other stockholders. The
interests of the Initial Stockholder may not always coincide with our interests or the interests of our other stockholders. This
concentration of ownership may also have the effect of delaying, preventing or deterring a change in control of us. Also, the
Initial Stockholder may seek to cause us to take courses of action that, in its judgment, could enhance its investment in us,
but which might involve risks to our other stockholders or adversely affect us or our other stockholders, including investors
in this offering. As a result, the market price of our common stock could decline or stockholders might not receive a premium
over the then-current market price of our common stock upon a change in control. In addition, this concentration of share ownership
may adversely affect the trading price of our common stock because investors may perceive disadvantages in owning shares in a
company with significant stockholders. See &ldquo;Principal Stockholder&rdquo; and &ldquo;Description of Capital Stock&mdash;Anti-Takeover
Effects of Delaware Law, Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>We are a Development Stage company with no operations and
will rely on our operating subsidiaries to provide us with funds necessary to meet our financial obligations and to pay dividends.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a holding company with no material direct operations.
Our principal assets are the equity interests we directly or indirectly hold in our operating subsidiaries, which own our operating
assets. As a result, we will be dependent on loans, dividends and other payments from our subsidiaries to generate the funds necessary
to meet our financial obligations and to pay dividends on our common stock. Our subsidiaries are legally distinct from us and
may be prohibited or restricted from paying dividends or otherwise making funds available to us under certain conditions. If we
are unable to obtain funds from our subsidiaries, we may be unable to, or our board may exercise its discretion not to, pay dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>We do not anticipate paying any dividends on our common
stock in the foreseeable future.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not expect to declare or pay any cash or other dividends
in the foreseeable future on our common stock because we intend to use cash flow generated by operations to grow our business.
The indenture governing our senior notes restricts our ability to pay cash dividends on our common stock. We may also enter into
credit agreements or other borrowing arrangements in the future that restrict or limit our ability to pay cash dividends on our
common stock. See &ldquo;Dividend Policy.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Risks Related to this Offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>An active trading market for our common stock may never
develop or be sustained.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we have received our NASDAQ SYMBOL RESERVATION CONFIRMATION
our request to reserve the ticker symbol &ldquo;BSGH&rdquo; for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved
for us for twenty four months. an active trading market for our common stock may not develop on that exchange or elsewhere or,
if developed, that market may not be sustained. Accordingly, if an active trading market for our common stock does not develop
or is not maintained, the liquidity of our common stock, your ability to sell your shares of common stock when desired and the
prices that you may obtain for your shares of common stock will be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The market price and trading volume of our common stock
may be volatile, which could result in rapid and substantial losses for our stockholders.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Even if an active trading market develops, the market price
of our common stock may be highly volatile and could be subject to wide fluctuations. In addition, the trading volume in our common
stock may fluctuate and cause significant price variations to occur. The initial public offering price of our common stock will
be determined by negotiation between us and the representatives of the underwriters based on a number of factors and may not be
indicative of prices that will prevail in the open market following completion of this offering. If the market price of our common
stock declines significantly, you may be unable to resell your shares at or above your purchase price, if at all. The market price
of our common stock may fluctuate or decline significantly in the future. Some of the factors that could negatively affect our
share price or result in fluctuations in the price or trading volume of our common stock include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">variations in our quarterly or annual operating results;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">changes in our earnings estimates (if provided) or
differences between our actual financial and operating results and those expected by investors and analysts;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">the contents of published research reports about us
or our industry or the failure of securities analysts to cover our common stock after this offering;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">additions or departures of key management personnel;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">any increased indebtedness we may incur in the future;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">announcements by us or others and developments affecting
us;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">actions by institutional stockholders;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">litigation and governmental investigations;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">changes in market valuations of similar companies;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: left">speculation or reports by the press or investment community
with respect to us or our industry in general;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">These broad market and industry factors may affect the market
price of our common stock, regardless of our actual operating performance. The stock market in general has from time to time experienced
extreme price and volume fluctuations, including in recent months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>As a public company, we will incur additional costs and
face increased demands on our management.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a public company with shares
listed on a U.S. exchange, we will need to comply with an extensive body of regulations that did not apply to us previously,
including provisions of the Sarbanes Oxley Act of 2002 (the &ldquo;Sarbanes-Oxley Act&rdquo;), regulations of the SEC and
requirements of the NYSE. We expect these rules and regulations to increase our legal and financial compliance costs and to
make some activities more time-consuming and costly. For example, as a result of becoming a public company, we intend to add
independent directors, create additional board committees and adopt certain policies regarding internal controls and
disclosure controls and procedures. In addition, we will incur additional costs associated with our public company reporting
requirements and maintaining directors&rsquo; and officers&rsquo; liability insurance. We are currently evaluating and
monitoring developments with respect to these rules, which may impose additional costs on us and materially affect our
business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">ESTIMATED</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OFFERING COST</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Blue Sky Group Holdings, Inc (&ldquo;Blue Sky Group Holdings,
Inc,&rdquo; &ldquo;Company,&rdquo; &ldquo;we,&rdquo; or &ldquo;us.&rdquo;) will apply the proceeds from the offering to pay for
accounting fees, legal and professional fees associated with the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The total estimated costs of the offering do not exceed the
maximum amount of offering proceeds ($20,000,000). The estimated costs of the offering, which principally relate to professional
costs, are estimated to consist of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 82%; text-align: left">SEC Registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">2320</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">NASD filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2400.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal fees and expenses (relating to the preparation of our registration statement from inception to effective date and related documents)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfer agent fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,740.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Blue Sky fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,800.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Consulting Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">7000.00</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,974.40</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Blue Sky Group Holdings, Inc will pay all costs related to
this offering. If the amount of offering costs exceed the amount raised, this amount in excess of the offering proceeds will be
paid when necessary or otherwise accrued on the books and records of Blue Sky Group Holdings, Inc until we are able to pay the
full amounts due either from revenues or loans from our president and chief executive officer, related or unrelated parties that
we may approach. A significant portion of the estimated costs of the offering ($15,974) are legal fees and expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our offering is being made on a best efforts
basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $20.00.
The following table sets forth the uses of proceeds assuming the sale 100%, 75%, 50% and 10% respectively, of the securities offered
for sale by the Company. There is no assurance that we will raise the full $20,000,000 as anticipated. The following scenarios
are for illustrative purposes only and the actual amounts of proceeds, if any, maydiffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 12%; font-weight: bold; text-align: right">20,000,000</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 12%; font-weight: bold; text-align: right">15,000,000</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 12%; font-weight: bold; text-align: right">10,000,000</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 12%; font-weight: bold; text-align: right">2,000,000</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Offering Costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net Proceeds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Acquisition of Mortgage Loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Infrastructure</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Purchase of Commercial Property</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Selling and General Administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Purchase of Ginnie Mae Pool</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Repurchase of Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">20,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our plans will not change regardless of whether the maximum
proceeds are raised, except to the extent indicated in MD&amp;A &ldquo;Liquidity&rdquo; section, first paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THE OFFERING</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company will have substantial costs
relating to this offering. We will also incur ongoing continuous costs to meet the reporting requirements of a public company.
These costs may very well exceed our current or anticipated revenues, significantly. However, the Company believes that the risks
are worth taking because management believes, based on its own observations which are not based on any formal studies, that potential
future vendors, consultants and manufacturers will have a higher regard in providing services for a public company than a small,
privately-held startup company. Management&rsquo;s belief is based solely on the advice and informal consultation with various
business and legal professionals who are known to us and have public company experience. These discussions have led us to believe
that being a public company may afford the business (management and its shareholders) with a higher degree of recognition than
would be typically attained as a small private (or non-public) company and may increase its ability and/or options to obtain financing
for its growth. In addition, by being a public company we believe increases the visibility of our future opportunities to raise
funds or to pay vendors by issuing restricted common stock rather than cash. We cannot predict the likelihood that our observations
and conclusions about the benefits of being a public company will prove accurate or beneficial to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are offering for sale a maximum of
1,000,000 shares of common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be sold
by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold. The
offering is being conducted on a self-underwritten, best efforts basis, which means our president, and chief executive officer,
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares that he may sell. Chirag
Patel will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, Chirag Patel will rely primarily on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under
the Securities and Exchange Act of 1934. The intended methods of communication include, without limitation, telephone and personal
contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As discussed above in connection with
Blue Sky Group Holdings, Inc&rsquo;s selling efforts in the offering, Chirag Patel will not register as a broker-dealer pursuant
to Section 15 of the Exchange Act, as amended, but rather will rely upon the &ldquo;safe harbor&rdquo; provisions of Rule 3a4-1,
promulgated under the Exchange Act, as amended. Generally speaking, Rule 3a4-1 provides an exemption from the broker-dealer registration
requirements of the Exchange Act for persons associated with an issuer that participate in an offering of the issuer&rsquo;s securities.
Chirag Patel is not subject to any statutory disqualification, as that term is defined in Section 3(a) (39) of the Exchange Act.
Mr. Chirag Patel will not be compensated in connection with his participation in the offering by the payment of commissions or
other remuneration based either directly or indirectly on transactions in our securities. Chirag Patel is not, nor has he been
within the past 12 months, a broker or dealer, and he is not, nor has he been within the past 12 months, an associated person
of a broker or dealer. At the end of the offering, Chirag Patel will continue to primarily perform duties for the Company or on
its behalf otherwise than in connection with transactions in securities. Chirag Patel will not participate in selling an offering
of securities for any issuer more than once every 12 months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The proceeds from the sale of the shares
in this offering will be made payable to the Company. All subscription agreements and checks are irrevocable and should be delivered
to the Company at the address provided on the Subscription Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will receive all proceeds from the
sale of up to 1,000,000 shares being offered. No proceeds will be received by any other entity other than the Company. The price
per share is fixed at $20.00 for the duration of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All subscribed funds will be held in a
noninterest-bearing account. Any subscribed funds may be immediately utilized by the Company prior to the completion of the offering.
The offering will be completed 180 days from the effective date of this prospectus (or such earlier date when all 1,000,000 shares
are sold), unless extended by our board of directors for an additional 180 days. There is no minimum number of shares that must
be sold in this offering. All subscription agreements and checks for payment of shares are irrevocable (except as to any states
that require a statutory cooling-off period or rescission right).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company will deliver stock certificates
attributable to shares of common stock purchased directly by the purchasers within 30 days of the close of this offering or as
soon thereafter as practicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have the right to accept or reject
subscriptions in whole or in part, for any reason or for no reason. All monies from rejected subscriptions will be returned immediately
by us to the subscriber, without interest or deductions. Subscriptions for securities will be accepted or rejected within 48 hours
after we receivethem.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The offering may terminate on the earlier of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.75in; text-align: left">i.</TD><TD STYLE="text-align: justify">the date when the sale of all 1,000,000 shares is completed,</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.75in; text-align: left">ii.</TD><TD STYLE="text-align: justify">180 days from the effective date of this document or any
extension thereto.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The offering price of the common stock has been determined
arbitrarily and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets,
book value, historical earnings or net worth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The purchase of the common stock in this
offering involves a high degree of risk. The common stock offered in this prospectus is for investment purposes only, and currently
no market for our common stock exists. While we plan to find a market maker to file a Rule 211 application with FINRA in order
to apply for the inclusion of our common stock in the OTCBB and OTCQB, such efforts may not be successful, and our shares may
never be quoted and owners of our common stock may not have a market in which to sell their shares. Also, no estimate may be given
as to the time that this application process may require<B>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we become able to have our shares of
common stock quoted on the OTCQB and/or OTCBB, we will then try, through a broker-dealer and its&rsquo; clearing firm, to become
eligible with the DTC to permit our shares to be traded electronically. If an issuer is not &ldquo;DTC-eligible,&rdquo; its shares
cannot be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists
today (especially the OTCQB and OTCBB), means that shares of a issuer will not be able to be traded (technically the shares can
be traded manually between accounts, but this may take days and is not a realistic option for issuers relying on broker-dealers
for stock transactions - like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility
is not a requirement to trade on the OTCQB or OTCBB, it is however a necessity to efficiently process trades on the OTCQB and
OTCBB if a company&rsquo;s stock is going to trade with any volume. There are no assurances that our shares will ever become DTC-eligible
or, if they do, how long it may take.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since there is no minimum amount of shares
that must be sold by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors
may end up holding shares in a company that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">- Has not received enough proceeds from the offering to begin
operations; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">- Has no market for its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please refer to the sections of this prospectus
entitled &ldquo;Risk Factors&rdquo; and &ldquo;Dilution&rdquo; before making an investment in the common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DETERMINATION OF OFFERING PRICE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering price of the common stock
has been arbitrarily determined and bears no relationship to any objective criterion of value. The price does not bear any relationship
to our assets, book value, any historical earnings or net worth. In determining the offering price, management considered such
factors as the prospects, if any, for similar companies, anticipated results of operations, present financial resources and the
likelihood of acceptance of this offering. No valuation or appraisal has been prepared for our business. We cannot assure you
that a public market for our securities will develop or continue or that the securities will ever trade at a price higher than
the offering price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DILUTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Dilution&rdquo; represents the
difference between the offering price of the shares of common stock hereby being offered and the net book value per share of common
stock immediately after completion of this offering. &ldquo;Net book value&rdquo; is the amount that results from subtracting total
liabilities from total assets. In this offering, the level of dilution is increased as a result of the relatively low net book
value of our issued and outstanding common stock and because the proceeds of the offering are substantially less than our estimated
costs. Assuming all of the shares of common stock offered herein are sold, the purchasers in this offering may lose the entire
value of their shares purchased in that each purchased share may have a negative net book value if raise less proceeds than the
cost of during the offering. Net book value of existing shareholders&rsquo; shares will also decrease if the costs exceed the
proceeds received from this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table illustrates the dilution to the purchasers
of the common stock in this offering (as of October 20, 2016):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center"><FONT STYLE="color: Black">Assuming the sale of:</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="color: Black">500,000 shares</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="color: Black">1,000,000 shares</FONT></TD><TD NOWRAP><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%"><FONT STYLE="color: Black">Offering Price Per Share</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="color: Black">20.00</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="color: Black">20.00</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="color: Black">Book Value Per Share Before the Offering</FONT></TD><TD STYLE="color: red"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="color: red; text-align: right"><FONT STYLE="color: Black">(0.00</FONT></TD><TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">)</FONT></TD><TD STYLE="color: red"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="color: red; text-align: right"><FONT STYLE="color: Black">(0.00</FONT></TD><TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="color: Black">Book Value Per Share After the Offering</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Net Increase to Original Shareholders</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Decrease in Investment to New Shareholders</FONT></TD><TD STYLE="color: red"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="color: red; text-align: right"><FONT STYLE="color: Black">(0.</FONT></TD><TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">)</FONT></TD><TD STYLE="color: red"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">$</FONT></TD><TD STYLE="color: red; text-align: right"><FONT STYLE="color: Black">(0.0</FONT></TD><TD STYLE="color: red; text-align: left"><FONT STYLE="color: Black">)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table summarizes the number and percentage of
shares purchased the amount and percentage of consideration paid and the average price per Share paid by our existing stockholders
and by new investors in this offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Price Per Share</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Number of Shares Held</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Percentage of Ownership</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Consideration</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic">10,000,000 shares sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; text-align: left">Existing shareholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">20.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">20,250,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">100</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">Grant</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Investors in this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.50</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: center">10,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic">20,000,000 shares sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Existing shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Grant</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Investors in this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: center">20,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DIVIDEND POLICY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have never paid cash or any other form
of dividend on our common stock, and we do not anticipate paying cash dividends in the foreseeable future. Moreover, any future
credit facilities might contain restrictions on our ability to declare and pay dividends on our common stock. We plan to retain
all earnings, if any, for the foreseeable future for use in the operation of our business and to fund the pursuit of future growth.
Future dividends, if any, will depend on, among other things, our results of operations, capital requirements and on such other
factors as our board of directors, in its discretion, may consider relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">MARKET FOR SECURITIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no established public market
for our common stock, and a public market may never develop. No market maker has agreed to file an application with FINRA. There
can be no assurance as to whether such a market maker will agree to file an application or the market maker&rsquo;s application
will be accepted by FINRA nor can we estimate the time period that will be required for the application process. Even if our common
stock were quoted in a market, there may never be substantial activity in such market. If there is substantial activity, such
activity may not be maintained, and no prediction can be made as to what prices may prevail in such market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we become able to have our shares of
common stock quoted on the OTCQB and/or OTCBB, we will then try, through a broker-dealer and its&rsquo; clearing firm, to become
eligible with the DTC to permit our shares to be traded electronically. If an issuer is not &ldquo;DTC-eligible,&rdquo; its shares
cannot be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists
today (especially the OTCQB and OTCBB), means that shares of a issuer will not be able to be traded (technically the shares can
be traded manually between accounts, but this may take days and is not a realistic option for issuers relying on broker-dealers
for stock transactions - like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility
is not a requirement to trade on the OTCBB, it is however a necessity to efficiently process trades on the OTCQB or OTCBB if a
company&rsquo;s stock is going to trade with any volume. There are no assurances that our shares will ever become DTC-eligible
or, if they do, how long it may take.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not have common stock or equity subject to outstanding
options or warrants to purchase or securities convertible into our common stock or equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Chirag Patel, our president, and chief
executive officer (20,000,000). In general, under Rule 144, a holder of restricted common shares who is an affiliate at the time
of the sale or any time during the three months preceding the sale can resell shares, subject to the restrictions described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we become a public reporting company
under the Exchange Act for at least 90 days immediately before the sale, then at least six months must have elapsed since those
shares were acquired from us or an affiliate, and we must remain current in our filings for an additional period of six months;
in all other cases, at least one year must have elapsed since the shares were acquired from us or an affiliate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The number of shares sold by such person within any three-month
period cannot exceed the greater of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">1% of the total number of our common shares then outstanding;
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">The average weekly trading volume of our common shares
during the four calendar weeks preceding the date on which notice on Form 144 with respect to the sale is filed with the SEC (or,
if Form 144 is not required to be filed, then four calendar weeks preceding the date the selling broker receives the sell order)
(This condition is not currently available to the Company because its securities do not trade on a recognized exchange).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Conditions relating to the manner of sale, notice requirements
(filing of Form 144 with the SEC) and the availability of public information about us must also besatisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of the presently outstanding shares
of our common stock are &ldquo;restricted securities&rdquo; as defined under Rule 144 promulgated under the Securities Act and may
only be sold pursuant to an effective registration statement or an exemption from registration, if available. The SEC has adopted
final rules amending Rule 144 which have become effective on August 15, 2008. Pursuant to the new Rule 144, one year must elapse
from the time a &ldquo;shell company,&rdquo; as defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act,
ceases to be a &ldquo;shell company&rdquo; and files a Form 8-K addressing Item 5.06 with such information as may be required
in a Form 10 Registration Statement with the SEC, before a restricted shareholder can resell their holdings in reliance on Rule
144. The Form 10 information or disclosure is equivalent to the information that a company would be required to file if it were
registering a class of securities on Form 10 under the Exchange Act. Under amended Rule 144, restricted or unrestricted securities
that were initially issued by a reporting or non-reporting shell company or a company that was at any time previously a reporting
or non-reporting shell company, can only be resold in reliance on Rule 144 if the following conditions are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">1)&#9;the issuer of the securities that was formerly a reporting
or non-reporting shell company has ceased to be a shell company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">2)&#9;the issuer of the securities is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">3)&#9;the issuer of the securities has
filed all reports and material required to be filed under Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding
twelve months (or shorter period that the Issuer was required to file such reports and materials), other than Form 8-K reports;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">4)&#9;at least one year has elapsed from
the time the issuer filed the current Form 10 type information with the SEC reflecting its status as an entity that is not a shell
company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the present time, we are classified as a &ldquo;shell company&rdquo;
under Rule 405 of the Securities Act Rule 12b-2 of the Exchange Act. At the present time, we are classified as a &ldquo;shell
company&rdquo; under Rule 405 of the Securities Act Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As such, all restricted securities presently held by our sole
stockholder may not be resold in reliance on Rule 144 until: (1) we file a Form 8-K addressing Item 5.06 with such information
as may be required in a Form 10 Registration Statement with the SEC when we cease to be a &ldquo;shell company&rdquo;; (2) we
have filed all reports as required by Section 13 and 15(d) of the Securities Act for twelve consecutive months; and (3) one year
has elapsed from the time we file the Form 8-K with the SEC reflecting our status as an entity that is not a &ldquo;shell company.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Current Public Information</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In general, for sales by affiliates and non-affiliates, the
satisfaction of the current public information requirement depends on whether we are a public reporting company under the Exchange
Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">If we have been a public reporting company for at
least 90 days immediately before the sale, then the current public information requirement is satisfied if we have filed all periodic
reports (other than Form 8-K) required to be filed under the Exchange Act during the 12 months immediately before the sale (or
such shorter period as we have been required to file those reports).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">If we have not been a public reporting company for
at least 90 days immediately before the sale, then the requirement is satisfied if specified types of basic information about
us (including our business, management and our financial condition and results of operations) are publicly available.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ever, no assurance can be given as to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the likelihood of a market for our common shares developing,</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the liquidity of any such market,</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the ability of the shareholders to sell the shares,
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the prices that shareholders may obtain for any of
the shares.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No prediction can be made as to the effect,
if any, that future sales of shares or the availability of shares for future sale will have on the market price prevailing from
time to time. Sales of substantial amounts of our common shares, or the perception that such sales could occur, may adversely
affect prevailing market prices of the commonshares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">NOTE REGARDING FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain matters discussed herein are forward-looking
statements. Such forward-looking statements contained in this prospectus which is a part of our registration statement involve
risks and uncertainties, including statements as to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">our future operating results;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">our business prospects;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">any contractual arrangements and relationships with third
parties;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the dependence of our future success on the general economy;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">any possible financings; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the adequacy of our cash resources and working capital.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These forward-looking statements can generally
be identified as such because the context of the statement will include words such as we &ldquo;believe,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;expect,&rdquo; &ldquo;estimate&rdquo; or words of similar meaning. Similarly, statements that describe our future plans,
objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties
which are described in close proximity to such statements and which could cause actual results to differ materially from those
anticipated as of the date of this prospectus. Shareholders, potential investors and other readers are urged to consider these
factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
The forward-looking statements included herein are only made as of the date of this prospectus, and we undertake no obligation
to publicly update such forward-looking statements to reflect subsequent events or circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OR PLAN OFOPERATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are an
emerging growth company as defined in Section 2(a)(19) of the Securities Act. We will continue to be an emerging growth
company until: (i) the last day of our fiscal year during which we had total annual gross revenues of $1,000,000,000 or more;
(ii) the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common stock
pursuant to an effective registration statement under the Securities Act; (iii) the date on which we have, during the
previous 3-year period, issued more than $1,000,000,000 in non-convertible debt; or (iv) the date on which we are deemed to
be a large accelerated filer, as defined in Section 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As an emerging growth company, we are exempt from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Sections 14A(a) and (b) of the Exchange Act, which require
companies to hold stockholder advisory votes on executive compensation and golden parachute compensation;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">The requirement to provide, in any registration statement,
periodic report or other report to be filed with the Securities and Exchange Commission (the &ldquo;Commission&rdquo; or &ldquo;SEC&rdquo;),
certain modified executive compensation disclosure under Item 402 of Regulation S-K or selected financial data under Item 301
of Regulation S-K for any period before the earliest audited period presented in our initial registration statement;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Compliance with new or revised accounting standards until
those standards are applicable to private companies;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">The requirement under Section 404(b) of the Sarbanes-Oxley
Act of 2002 to provide auditor attestation of our internal controls and procedures; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Any Public Company Accounting Oversight Board (&ldquo;PCAOB&rdquo;)
rules regarding mandatory audit firm rotation or an expanded auditor report, and any other PCAOB rules subsequently adopted unless
the Commission determines the new rules are necessary for protecting thepublic.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have elected to use the extended transition
period for complying with new or revised accounting standards under Section 102(b)(1) of the Jumpstart Our Business Startups Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are also a smaller reporting company
as defined in Rule 12b-2 of the Exchange Act. As a smaller reporting company, we are not required to provide selected financial
data pursuant to Item 301 of Regulation S-K, nor are we required to comply with the auditor attestation requirements of Section
404(b) of the Sarbanes-Oxley Act of 2002. We are also permitted to provide certain modified executive compensation disclosure
under Item 402 of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Blue Sky Group Holdings, Inc is a development
stage company focusing on the development of recreational amusement parks based upon innovative hover board technology. We are
a development stage company and have limited financial resources. Our financial statements include a note emphasizing the uncertainty
of our ability to remain as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Company Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Product Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The company also intends to generate revenues by the origination
and sell of prime mortgages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our plan is to continue as a going concern until we reach the
point where we begin generating sufficient revenues from our product(s) or services to meet our obligations on a timely basis.
We may not be able to finish the development of any products in the future because of a lack of available funds or financing to
do so. In the early stages of our operations, we will continue to keep costs to a minimum. The cost to develop our business plan
as currently outlined below may be in excess of $20,000,000. To the extent the development is more costly and our current funds
to undertake the business plan are insufficient, we will need to obtain additional funding. If we are unable to obtain adequate
funding or financing, the Company faces the ultimate likelihood of business failure. There are no assurances that we will be able
to raise any funds or establish any financing program for the Company&rsquo;s growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following outlines the steps or stages that we expect to
encounter and the necessary funding needed for each stage. Within each stage we have outlined the metrics or performance that
we must accomplish as we move forward with our business plan. This should enable the Company to continue as a going concern as
long as we are able to seek additional financing on acceptable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Stage One (Months 1 &ndash; 3) ($20,000,,000 est. costs)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Blue Sky Group Holdings, Inc Management has developed the
following plan to purchase Performing and non performing mortgages and sell them to credit agencies or service them in house.
The demographic profile that the Company will continue use for its marketing campaigns and credit guidelines. Much like other
mortgage banking firms, the business continually maintain strict controls over its lending procedures to ensure that defaults
are kept to an absolute minimum. Below is Management&rsquo;s average customer profile:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><I>&bull;</I></TD><TD STYLE="text-align: justify"><I>Household income of $50,000+</I></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><I>&bull;</I></TD><TD STYLE="text-align: justify"><I>FICO Score of 680 or higher</I></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><I>&bull;</I></TD><TD STYLE="text-align: justify"><I>Is seeking a mortgage loan of $150,000 to $300,000</I></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><I>&bull;</I></TD><TD STYLE="text-align: justify"><I>Has documented income (W-2) or an extended history of
independently earned income.</I></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Blue Sky Group Holdings, Inc will grow through three main
avenues:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The successful marketing and growth of the Company&rsquo;s
financial infrastructure through the acquisition of larger warehouse lines of credit.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued implementation of streamlined methods
for closing and selling loans while conforming to all state and federal level laws.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to develop relationships
with investors and institutional loan buyers so that the Company can quickly divest its loan and lending assets at a premium while
retaining servicing rights for originated financings. This will be achieved once the business acquires its warehouse credit facilities.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Blue sky mortgage understands that the refinance
boom will potentially be declining with HARP coming to an end within the next year and the market shifting a purchase market.
While there is still a possibility of an extension and expansion of HARP, we already make preparations for focusing a significant
portion of our resources on REO asset management which is positioning Blue Sky Mortgage strongly into the home purchase market.
Furthermore, Blue sky mortgage has multiple home builders and realtor contacts that have assured multiple referrals to the company
for their client&rsquo;s needs.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Marketing Objectives</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company&rsquo;s targeted Southwestern and Midwestern
United States markets.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to make substantial reinvestments into
the Company&rsquo;s online visibility.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Marketing Objectives</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company&rsquo;s targeted Southwestern and Midwestern
United States markets.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to make substantial reinvestments into
the Company&rsquo;s online visibility (via www.blueskymortgageloans.com).</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">As mentioned above the time-line estimate(s)
(stages) are predicated upon the Company obtaining the necessary financing either through our offering or additional equity or
debt financing. If we are not able to obtain the necessary levels of financing as determined by the above stages, we will not
be able to meet or achieve any of the time-line objectives. In that case the Company will be forced to proceed on a piecemeal
basis using primarily the services of board of directors and our president and chief executive officer and limited use of outside
contractors when and if limited funds are obtained. Our president and chief executive officer devotes in excess of twenty (20)
hours a week to our continued business efforts. There is no realistic way to predict the timing or completion in that scenario.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our business plan requires further completion of these tasks
which will require the hiring of employees and/or outside contractors. With the level of sophistication and expertise of our president
and chief executive officer, as well as other various industry professionals that she knows, the Company should make further progress
in its development of the intended products and services for its planned divisions, but currently no specific timeframe can be
provided. Most if not all of these actions will be predicated on the Company obtaining the necessary financing to accomplish these
steps. If financing is not available on terms reasonable to the Company and its shareholders, then the progression steps of this
business plan will not occur as planned and may never occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We currently have no additional sources of financing and no
commitments for financing. There are no assurances that we will obtain sufficient financing or the necessary resources to enter
into contractual agreements with outside developers or sales/marketing firms. If we do not receive any funding or financing, our
business is likely to be maintained with limited operations for at least the next 12 months because our president and chief executive
officer, will continue providing her professional services without current compensation. We do not currently have a formal agreement
in place with our president and chief executive officer covering this period; however, our president and chief executive officer&rsquo;s
current plan is to do substantially all administrative and planning work as well as basic programming and marketing work on her
own without cash compensation while she seeks other sources of funding for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a corporate policy, we will not incur any cash obligations
that we cannot satisfy with known resources, of which there are currently none except as described in &ldquo;Liquidity&rdquo;
below and/or elsewhere in this prospectus. We believe that the perception that many people have of a public company make it more
likely that they will accept restricted securities from a public company as consideration for indebtedness to them than they would
from a private company. We have not performed any studies of this matter. Our conclusion is based on our own observations. However,
there can be no assurances that we will be successful in any of those efforts even if we become a public entity. Additionally,
the issuance of restricted shares will dilute the percentage of ownership interest of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Potential Revenue</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Revenues and Losses for Period Ended October 24, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will pay all costs relating to this offering estimated at
$15,974. This amount will be paid as and when necessary and required or otherwise accrued on the books and records of Blue Sky
Group Holdings, Inc until we are able to pay the full amount due either from revenues or loans from a related or unrelated third
party. Absent sufficient revenues to pay these amounts within six months from the date of this prospectus, we will seek financial
assistance from our shareholders or a third party who may agree to loan us the funds to cover the balance of outstanding professional
and related fees relating to our prospectus to the extent that such liabilities cannot be extended or satisfied in other ways
and our professionals insist upon payment. If and when loaned, the loans will be evidenced by a noninterest-bearing unsecured
corporate note to be treated as a loan until repaid, if and when Blue Sky Group Holdings, Inc has the financial resources to do
so. No formal written arrangement exists with respect to anyone&rsquo;s commitment to loan funds for this purpose.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Since acquiring the Blue Sky Group Holdings, Inc. business
plan, most of our resources and work have been devoted to planning our business, web site development, Infrastructure, Blue Sky
Group Holdings, Inc systems and controls, and completing our registration statement. When those procedures are done, which we
believe will occur over the next few months, we will primarily work on our intended service offerings as well further internal
development of Blue Sky Group Holdings, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that the work needed to originate and acquire Prime
Loans will be between $20,000,000. If we are able to secure funding for these procedures, of which there are no assurances, we
can commence the launch of Blue Sky Group Holdings, Inc to the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we are only able to use internal resources only (primarily
consisting of the services of our board of directors, president and chief executive officer), the process will take much longer
and our initial launch may be limited to a much smaller target market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we are unable to raise any funds, the development costs
would have to be provided by our board of directors or president and chief executive officer to the extent that he is capable
and willing to provide such funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Private capital, if sought, we believe will be sought from
former business associates of our president and chief executive officer or through private investors referred to us by those same
business associates</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have limited our cash use and our cash can sustain our current
operations for approximately 12 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a market for our shares ever develops, of which there can
be no assurances, we may use restricted shares of our common stock to compensate employees/consultants and independent contractors
wherever possible. We cannot predict the likelihood or source of raising capital or funds that may be needed to complete the development
of our business plan and its stages as outlined above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have embarked upon an effort to become a public company
and, by doing so, have incurred and will continue to incur additional significant expenses for legal, accounting and related services.
Once we become a public entity, subject to the reporting requirements of the Exchange Act of 1934, we will incur ongoing expenses
associated with professional fees for accounting, legal and a host of other expenses including annual reports and proxy statements,
if required. We estimate that these costs will range up to $50,000 per year over the next few years and may be significantly higher
if our business volume and transactional activity increases but should be lower during our first year of being public because
our overall business volume (and financial transactions) will be lower, and we will not yet be subject to the requirements of
Section 404(b) of the Sarbanes-Oxley Act of 2002 relating to having our independent registered public accounting firm attest to,
and report on, management&rsquo;s assessment of its internal controls until we exceed $75 million in market capitalization (if
ever).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These obligations will certainly reduce our ability and resources
to expand our business plan and activities. We hope to be able to use our status as a public company to increase our ability to
use noncash means of settling outstanding obligations (i.e. issuance of restricted shares of our common stock) and compensate
independent contractors who provide professional services to us, although there can be no assurances that we will be successful
in any of these efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will also reduce compensation levels paid to management
(if we attract or retain outside personnel to perform this function) if there is insufficient cash generated from operations to
satisfy these costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are no current plans to seek private investment. We do
not have any current plans to raise funds through the sale of securities except as set forth herein. We hope to be able to use
our status as a public company to enable us to use non-cash means of settling obligations and compensate persons and/or firms
providing services to us, although there can be no assurances that we will be successful in any of those efforts. However, these
actions, if successful, will result in dilution of the ownership interests of existing shareholders, may further dilute common
stock book value, and that dilution may be material. Such issuances may also serve to enhance existing management&rsquo;s ability
to maintain control of Blue Sky Group Holdings, Inc, because the shares may be issued to parties or entities committed to supporting
existing management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Blue Sky Group Holdings, Inc may offer shares of its common
stock to settle a portion of the professional fees incurred in connection with its registration statement. No negotiations have
taken place with any professional and no assurances can be made as to the likelihood that any professional will accept shares
in settlement of obligations due them</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s financial statements are prepared
using generally accepted accounting principles in the United States of America applicable to a going concern, which
contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has not
yet established a stable ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a
going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its
shareholders, the ability of the Company to obtain necessary financing to sustain operations and the attainment of profitable
operations. The Company had an accumulated deficit of approximately $15,974.00 as of October 24, 2016 . In addition the
Company has total shareholders&rsquo; deficit of approximately $15,974.00 as of October 24, 2016. These factors, among
others, raise substantial doubt as to its ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to continue as a going concern, the Company needs
to develop a reliable source of revenues, and achieve a profitable level of operations. During the Three months ended October
24, 2016 and 2014 and the year ended December 31, 2015, the Company has been involved primarily with development of operations
and applying to trade in the public market. The Company has continued to organize and structure to meet the needs of shareholders
and attract suitable financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To fund operations for the next twelve months, the Company
projects a need for $20,000,000 that will have to be raised through debt or equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Company is unable to obtain adequate capital, it could
be forced to cease operations. Accordingly, the accompanying financial statements are accounted for as if the Company is a going
concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amount and classification of liabilities or other adjustments that might be necessary should be Company be unable to continue
as a going concern</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Recently Issued Accounting Pronouncements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has implemented all new accounting pronouncements
that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements
that have been issued that might have a material impact on its financial position or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Critical Accounting Policies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements and related notes requires
us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses,
and related disclosure of contingent assets and liabilities. An accounting policy is considered to be critical if it requires
an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made,
and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely
to occur periodically, could materially impact the financial statements. Financial Reporting Release No. 60 requires all companies
to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are
no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain
at the time the estimate is made. See notes to the financial statements, included elsewhere in this prospectus, includes a summary
of the significant accounting policies and methods used in the preparation of our financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Seasonality</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have not noted a significant seasonal impact in our business
(or businesses like ours) although having just commenced operations it is too early to tell.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Off-Balance Sheet Arrangements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have no off-balance sheet arrangements, as defined in Item
303(a)(4)(ii) of Regulation S-K, obligations under any guarantee contracts or contingent obligations. We also have no other commitments,
other than the costs of being a public company that will increase our operating costs or cash requirements in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">BUSINESS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are an emerging growth company as defined in Section 2(a)
(19) of the Securities Act. Pursuant to Section 107 of the Jumpstart Our Business Startups Act, we may take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards,
meaning that we can delay the adoption of certain accounting standards until those standards would otherwise apply to private
companies. We have chosen to take advantage of the extended transition period for complying with new or revised accounting standards
applicable to public companies to delay adoption of such standards until such standards are made applicable to private companies.
Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such
new or revised accounting standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Market Overview</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Marketing Strategy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has conducted limited advertising and marketing
to date as the primary focus of the Company since inception has been to concentrate on beginning its construction and development
efforts.].</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We expect to utilize common multi-targeted marketing approaches
used in the entertainment field, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Participation at trade shows and conferences to increase
awareness</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Television campaigns (National)</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Direct mail campaigns to our online subscribers</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Testimonials from Hover Air Boarders</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Trade publications</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Transit Shelters</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Bus</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Malls</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Airports</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">Spectacolor</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Strategic Partners and Suppliers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Market Opportunity</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Pricing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Sales Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Trademark applications</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Litigation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are not party to any pending, or to our knowledge, threatened
litigation of any type.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Chirag Patel </B>&ndash; Mr. Patel
began his professional career as a loan consultant with LMI Funding in Plano, Texas. He held this position from February of 2006
to March of 2008. In this position, he produced more than $14 million of loan volume. He also developed an internal loan review
program and restructured the business&rsquo; processing resulting in a more streamlined pipeline. From March of 2008 to December
of 2010, Chirag was a Senior Mortgage Consultant and Business Development Specialist with Town Square Financial in Frisco, Texas.
In this position, he co-launched and managed a completely new business platform from its inception. This program resulted in $11
million of loan volume per month. Within eight months this program began to produce $60 million of loan volume. Here, he also
boarded seven new branches and strengthened secondary pricing. Currently, Mr. Patel is a Finance Mortgage Professional within
Blue Sky Group Holdings Mortgage. He was the top producer in 2012 for number of locks, conversions, and funding. He was responsible
for $25 million of loan closings within 2012. He managed and maintained an existing pipeline of $55 million among more than 200
loans. For 2013, Chirag has averaged $10 million per month and 40 loans closed per month. Mr. Patel holds a bachelor&rsquo;s degree
in business administration (with a concentration on finance) from the University of Texas at Arlington. He graduated in 2003.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cyrus Sajna</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Cyrus Sajna serves as a CFO of the
Company. Mr. Cyrus Sajna is also the managing partner and Chief Operating Officer of Hoverink Opportunities Fund, LP a Delaware
Private Equity Fund and is a Managing Member of Hoverink Capital Management, LLC. which is registered as an exempt reporting adviser
with the State of Texas under the exemption available to managers of private funds pursuant to Section &sect;139.23 of 7 Texas
Administrative Code. He has 7 years of experience in investor relations, marketing, communications and general management. He
has in the past helped garner agreements with NASDAQ OMX GROUP and NASDAQ Private Market to facilitate completing an IPO; and
consulted entities seeking to become fully reporting companies and Trade on various platforms including; OTCQX U.S., OTCQX International,
OTCQX U.S. Premier, OTCQB, OTC PINK and provided consulting services involving the 15C2-11 application process and provisions
to ensure the market maker has adequate disclosures for completing the application with FINRA. Mr. Sajna attended Chicago State
University as a Pre-Med Major with an interest in Pediatric Cardiology and Mr. Sajna attended S&amp;P 500 Open Outcry trading
training sessions at the Chicago Mercantile Exchange where he learned to pit trade the S&amp;P 500. Mr. Sajna is knowledgeable
in the securities laws and regulations effecting reporting company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Possible Potential Conflicts</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The OTCQB and OTCBB on which we plan to have our shares of
common stock quoted does not currently have any director independence requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No member of management will be required by us to work on a
full time basis. Accordingly, certain conflicts of interest may arise between us and our officer(s) and director(s) in that they
may have other business interests in the future to which they devote their attention, and they may be expected to continue to
do so although management time must also be devoted to our business. As a result, conflicts of interest may arise that can be
resolved only through their exercise of such judgment as is consistent with each officer&rsquo;s understanding of his/her fiduciary
duties to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Currently we have only two officers and three directors and
will seek to add additional officer(s) and/or director(s) as and when the proper personnel are located and terms of employment
are mutually negotiated and agreed, and we have sufficient capital resources and cash flow to make such offers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We cannot provide assurances that our efforts to eliminate
the potential impact of conflicts of interest will be effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Code of Business Conduct and Ethics</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In October 2016, we adopted a Code of Ethics and Business Conduct
which is applicable to our future employees and which also includes a Code of Ethics for our founders, president, chief executive
officer, and principal financial officers and any persons performing similar functions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A code of ethics is a written standard designed to deter wrongdoing
and to promote:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 25%">Name</td>
    <TD STYLE="width: 20%; text-align: center">Age</td>
    <TD STYLE="width: 40%">Position</td>
    <TD STYLE="width: 15%">Year Commenced</td></tr>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<tr style="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Cyrus Sajna</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">34</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">CFO</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2016</FONT></td></tr>
<tr style="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Chirag Patel</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">36</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">CEO, Principal Executive Officer,</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2016</FONT></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD><FONT STYLE="font-size: 10pt">Treasurer, Chairman,</FONT></td>
    <TD>&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;honest and ethical conduct,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;full, fair, accurate, timely and understandable disclosure
in regulatory filings and public statements,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;compliance with applicable laws, rules and regulations,
the prompt reporting violation of the code, and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;accountability for adherence to the code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A copy of our Code of Business Conduct and Ethics has been
filed with the Securities and Exchange Commission as an Exhibit to our Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All directors will hold office until the completion of their
term of office, which is not longer than one year, or until their successors have been elected. Our current directors&rsquo; term
of office expires on Feb 15, 2016. All officers are appointed annually by the board of directors subject to existing employment
agreements (of which there are currently none) and will serve at the discretion of the board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Currently, directors receive compensation for their role as
directors and may receive compensation for their role as officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As long as we have no additional directors besides our current
board all votes on issues are resolved in favor of the board&rsquo;s vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Involvement in Certain Legal Proceedings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as described below, during the past ten years, no present
director, executive officer or person nominated to become a director or an executive officer of Blue Sky Group Holdings, Inc :</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;the prompt reporting violation of the code, and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">-&#9;accountability for adherence to the code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.&#9;had a petition under the federal bankruptcy laws or any
state insolvency law filed by or against, or a receiver, fiscal agent or similar officer appointed by a court for the business
or property of such person, or any partnership in which he was a general partner at or within two years before the time of such
filing, or any corporation or business association of which he was an executive officer at or within two years before the time
of such filing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.&#9;was convicted in a criminal proceeding or subject to
a pending criminal proceeding (excluding traffic violations and other minor offenses);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.&#9;was subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining his from or otherwise
limiting his involvement in any of the following activities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">i.&#9;acting as a futures commission merchant, introducing
broker, commodity trading advisor commodity pool operator, floor broker, leverage transaction merchant, any other person regulated
by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and
loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ii.&#9;engaging in any type of business practice; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">iii.&#9;engaging in any activity in connection with the purchase
or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities
laws; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.&#9;was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of an federal or state authority barring, suspending or otherwise limiting for more
than 60 days the right of such person to engage in any activity described in paragraph (3) (i), above, or to be associated with
persons engaged in any such activity; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.&#9;was found by a court of competent jurisdiction (in a
civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or
state securities or commodities law, and for which the judgment has not been reversed, suspended or vacated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Committees of the Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concurrent with having sufficient members and resources, the
Blue Sky Group Holdings, Inc board of directors will establish an audit committee and a compensation committee. We believe that
we will need a minimum of five directors to have effective committee system<B>s </B>. The audit committee will review the results
and scope of the audit and other services provided by the independent auditors and review and evaluate the system of internal
controls. The compensation committee will manage any stock option plan we may establish and review and recommend compensation
arrangements for the officers. No final determination has yet been made as to the memberships of these committees or when we will
have sufficient members to establish committees. See &ldquo;Executive Compensation&rdquo; hereinafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All directors will be paid by Blue Sky
Group Holdings, Inc and shall be reimbursed for any expenses incurred in attending directors&rsquo; meetings provided that Blue Sky
Group Holdings, Inc has the resources to pay these fees. Blue Sky Group Holdings, Inc will consider applying for officers and
directors liability insurance at such time when it has the resources to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Summary Executive Compensation Table</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table shows, for the period from March 30, 2015
to June 30, 2015, compensation awarded to or paid to, or earned by, our Board of directors and our Chief Executive Officer (the
&ldquo;Named Executive Officer&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SUMMARY COMPENSATION TABLE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Name<BR> and<BR> principal<BR> position<BR> (a)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Year<BR> (b)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Salary<BR> ($)<BR> (c)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Bonus<BR> ($)<BR> (d)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Stock<BR> Awards<BR> ($)<BR> (e)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards<BR> ($)<BR> (f)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Non-Equity<BR> Incentive<BR> Plan<BR> Compensation<BR> ($)<BR> (g)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Nonqualified<BR> Deferred<BR> Compensation<BR> Earnings<BR> ($)<BR> (h)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">All Other<BR> Compensation<BR> ($)<BR> (i)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Total<BR> ($)<BR> (j)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><SUP>1</SUP></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; width: 19%">Chairman of the Board, President</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">-</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">-</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">-</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">-</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">-</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 6%">&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no formal employment arrangement with Chirag Patel,
Cyrus Sajna at this time. Chirag Patel&rsquo;s compensation has not been fixed or based on any percentage calculations. He will
make all decisions determining the amount and timing of his compensation and, for the immediate future, has elected to receive
directors compensation which permits us to meet our financial obligations. Chirag Patel&rsquo;s and all executive&rsquo;s compensation
amount&rsquo;s may be formalized if and when the Company completes this offering and obtains any future financing beyond the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Grants of Plan-Based Awards Table</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of our named executive officers received
any grants of stock, option awards or other plan-based awards during the period of October 24, 2016 except as stated above. The
Company has no activity with respect to these awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Options Exercised and Stock Vested Table</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of our named executive officers exercised
any stock options, and no restricted stock units, if any, held by our named executive officers vested during the period ended
October 24, 2016 . The Company has no activity with respect to these awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Outstanding Equity Awards at Fiscal Year-End Table</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of our named executive officers had
any outstanding stock or option awards as of October 24, 2016 that would be compensatory to the officer. The Company has not issued
any awards to its named executive officers. The Company and its Board of Directors may grant awards as it sees fit to its employees
as well as key consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PRINCIPAL SHAREHOLDERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 20, 2016, we had 20,250,000 shares of common
stock outstanding which are held by 2 shareholders. The chart below sets forth the ownership, or claimed ownership, of certain
individuals and entities. This chart discloses those persons known by the board&#9;of directors to have, or claim to have, beneficial
ownership of more than 5% of the outstanding shares of our common stock as of Oct 31, 2016; of all directors and executive officers
of Blue Sky Group Holdings, Inc; and of our directors and officers as a group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Chirag Patel</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">20,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">98.5</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cyrus Sajna</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All Officers and Directors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">as a group (2 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 403 of Regulation S-K under Rule 13d-3; we disclose
that Chirag Patel currently is the beneficial owner 98.5% of the shares outstanding currently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* Means less than (1) percent</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The only promoters of Blue Sky Group Holdings, Inc would be
Chirag Patel president, and chief executive officer, and principal financial officer. Our office and mailing address is . The
space is provided to us by Chirag Patel who incurs no incremental costs as a result of our using the space. Therefore, he does
not charge us for its use. There is no written lease agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company issued 20,000,000 shares to Chirag Patel our president,
and chief executive officer, and 250,000 to our Cyrus Sajna, Chief Financial Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DESCRIPTION OF CAPITAL STOCK</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Introduction</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is authorized to issue 100,000,000 shares of common
stock, par value $0.01, of which [20,250,000] Shares are outstanding as of the date of the registration statement, of which this
prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Preferred Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None. We presently do not have plans to
authorize or issue any shares of preferred stock. However, preferred stock could be used to dilute a potential hostile acquirer.
Accordingly, any future issuance of preferred stock or any rights to purchase preferred shares may have the effect of making it
more difficult for a third party to acquire control of us. This may delay, defer or prevent a change of control in our Company
or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings attributable
to, and assets available for distribution to, the holders of our common stock and could adversely affect the rights and powers,
including voting rights, of the holders of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our certificate of incorporation authorizes the issuance of
100,000,000 shares of common stock. There are 20,250,000 shares of our common stock issued and outstanding at October 24, 2016
that is held by 2 shareholders. The holders of our common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">have equal ratable rights to dividends from funds
legally available for payment of dividends when, as and if declared by the board of directors;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">are entitled to share ratably in all of the assets
available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">do not have preemptive, subscription or conversion
rights, or redemption or access to any sinking fund; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">are entitled to one non-cumulative vote per share
on all matters submitted to stockholders for a vote at any meeting of stockholders</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">See also Plan of Distribution regarding negative implications
of being classified as a &ldquo;Penny Stock.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Authorized but Un-issued Capital Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Delaware law requires stockholder approval
for any issuance of authorized shares. These additional shares may be used for a variety of corporate purposes, including future
public offerings to raise additional capital or to facilitate corporate acquisitions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">One of the effects of the existence of
un-issued and unreserved common stock (and/or preferred stock) may be to enable our board of directors to issue shares to persons
friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our board
by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly
deprive the stockholders of opportunities to sell their shares of our common stock at prices higher than prevailing market prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shareholder Matters</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an issuer of &ldquo;penny stock&rdquo;
the protection provided by the federal securities laws relating to forward looking statements does not apply to us if our shares
are considered to be penny stocks which they currently are and probably will be for the foreseeable future. Although the federal
securities law provide a safe harbor for forward-looking statements made by a public company that files reports under the federal
securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this
safe harbor protection in the event of any claim that the material provided by us, including this prospectus, contained a material
misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make
the statements not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain provisions of Delaware law described
below create rights that might be deemed material to our shareholders. Other provisions might delay or make more difficult acquisitions
of our stock or changes in our control or might also have the effect of preventing changes in our management or might make it
more difficult to accomplish transactions that some of our shareholders may believe to be in their best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Amendments to Bylaws </B><I>- </I>Our articles of incorporation
provide that the power to adopt, alter, amend, or repeal our bylaws is vested exclusively with the board of directors. In exercising
this discretion, our board of directors could conceivably alter our bylaws in ways that would affect the rights of our shareholders
and the ability of any shareholder or group to effect a change in our control; however, the board would not have the right to
do so in a way that would violate law or the applicable terms of our articles of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Transfer Agent</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Transfer Agent for our common stock is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">VStock Transfer,
LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18 Lafayette Place</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Woodmere, New York 11598</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Phone: (212) 828-8436</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mobile: (516) 317-3912</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">F<FONT STYLE="color: Black">acsimile: (646) 536-3179</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><U>www.VStockTransfer.com</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">PLAN OF DISTRIBUTION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no public market for our common
stock. Our common stock is currently held by 2 shareholders. Therefore, the current and potential market for our common stock
is limited and the liquidity of our shares may be severely limited. No market maker has agreed to file an application with FINRA.
There can be no assurance as to whether a market maker will file an application with FINRA or such market maker&rsquo;s application
will be accepted by FINRA nor can we estimate the time period that will be required for the application process. In the absence
of quotation or listing, no market is available for investors in our common stock to sell their shares. We cannot provide any
assurance that a meaningful trading market will ever develop or that our common stock will ever be quoted or listed for trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the shares of our common stock ever
become tradable, the trading price of our common stock could be subject to wide fluctuations in response to various events or
factors, many of which are beyond our control. As a result, investors may be unable to sell their shares at or greater than the
price at which they are being offered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The common stock offered by this prospectus is being offered
by the company. The common stock may be sold or distributed from time to time by the company directly to one or more purchasers
or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at
prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the
common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers&rsquo; transactions,
transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents, &ldquo;at
the market&rdquo; into an existing market for the common stock, in other ways not involving market makers or established business
markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions; or any combination
of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This offering will be conducted on a best-efforts
basis utilizing the efforts of Chirag Patel, president, and chief executive officer of the Company. Potential investors include,
but are not limited to, family, friends and acquaintances of Chirag Patel . The intended methods of communication include, without
limitation, telephone calls and personal contact. In his endeavors to sell this offering, Mr. Chirag Patel will not use any mass
advertising methods such as the internet or print media.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Funds received in connection with the sale
of our securities will be transmitted immediately into an non-interest bearing account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There can be no assurance that all, or any, of the shares will
be sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Chirag Patel will not receive commissions
for any sales originated on our behalf. We believe that Chirag Patel is exempt from registration as a broker under the provisions
of Rule 3a4-1 promulgated under the Exchange Act. In particular, Chirag Patel :</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD STYLE="text-align: justify">Is not subject to a statutory disqualification, as
that term is defined in Section 3(a)39 of the Act, at the time of his participation;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.5in; text-align: left">a.</TD><TD STYLE="text-align: justify">Is not to be compensated in connection with his participation
by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.5in; text-align: left">b.</TD><TD STYLE="text-align: justify">Is not an associated person of a broker or dealer; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.5in; text-align: left">c.</TD><TD STYLE="text-align: justify">Meets the conditions of the following:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">i.</TD><TD STYLE="text-align: justify">Primarily performs, or is intended primarily to perform
at the end of the offering, substantial duties for or on behalf of the issuer otherwise than in connection with transactions in
securities;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">ii.</TD><TD STYLE="text-align: justify">Was not a broker or dealer, or associated persons of a
broker or dealer, within the preceding 12 months; and</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">iii.</TD><TD STYLE="text-align: justify">Did not participate in selling an offering of securities
for any issuer more than once every 12 months other than in reliance on paragraphs within this section, except that for securities
issued pursuant to Rule 415 under the Securities Act of 1933, the 12 months shall begin with the last sale of any security included
within a Rule 415 registration</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No officers or directors of the Company may purchase any securities
in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There can be no assurance that all, or
any, of the shares will be sold. As of this date, we have not entered into any agreements or arrangements for the sale of the
shares with any broker/dealer or sales agent. However, if we were to enter into such arrangements, we will file a post-effective
amendment to disclose those arrangements because any broker/dealer participating in the offering would be acting as an underwriter
and would have to be so named herein. In order to comply with the applicable securities laws of certain states, the securities
may not be offered or sold unless they have been registered or qualified for sale in such states or an exemption from such registration
or qualification requirement is available and with which we have complied. The purchasers in this offering and in any subsequent
trading market must be residents of such states where the shares have been registered or qualified for sale or an exemption from
such registration or qualification requirement is available. As of this date, we have not identified the specific states where
the offering will be sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The proceeds from the sale of the shares
in this offering will be payable to the Company, and will be deposited in a noninterest- bearing bank account until the subscription
agreements are accepted by the Company. Failure to do so will result in checks being returned to the investor who submitted the
check. No interest will be paid to any shareholder or the Company. All subscription agreements and checks are irrevocable (except
as to any states that require a statutory cooling-off period or rescission right). All subscription funds may be held in the Escrow
Account pending acceptance of the subscriptions by Blue Sky Group Holdings, Inc, and funds will be released to Blue Sky Group
Holdings, Inc, as received, until the maximum offering has been subscribed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors can purchase common stock in
this offering by completing a Subscription Agreement, a copy of which is filed as an Exhibit to the registration statement of
which this prospectus is a part, and sending it together with payment in full. All payments must be made in U.S. currency either
by personal check, bank draft, or cashier check. There is no minimum subscription requirement. All subscription agreements and
checks are irrevocable (except as to any states that require a statutory cooling-off period or rescission right). The Company
expressly reserves the right to either accept or reject any subscription. Any subscription rejected will be returned to the subscriber
within five business days of the rejection date. Furthermore, once a subscription agreement is accepted, it will be executed without
reconfirmation to or from the subscriber. Once we accept a subscription, the subscriber cannot withdraw it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any purchasers of our securities should
be aware that any market that develops in our common stock will be subject to &ldquo;penny stock&rdquo; restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will pay all expenses incident to the
registration, offering and sale of the shares other than commissions or discounts of underwriters, broker-dealers or agents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons, we have been advised that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any purchasers of our securities should
be aware that any market that develops in our stock will be subject to the penny stock restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The trading of our securities, if any,
will be in the over-the-counter markets which are commonly referred to as the OTCQB as maintained by OTC Markets or OTCBB as maintained
by FINRA (once and if and when quoting thereon has occurred). As a result, an investor may find it difficult to dispose of, or
to obtain accurate quotations as to the price of, our securities.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent we do not become listed on the OTCQB or
OTCBB, you will have a very limited, if any, ability to resell shares</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no established public market
for our common stock, and there can be no assurance that any market will develop in the foreseeable future. Transfer of our common
stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions,
commonly referred to as &ldquo;Blue Sky&rdquo; laws. Absent compliance with such individual state laws, our common stock may not
be traded in such jurisdictions. Because the securities registered hereunder have not been registered for resale under the blue
sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop
in the future, should be aware that there may be significant state blue-sky law restrictions upon the ability of investors to
sell the securities and of purchasers to purchase the securities. Accordingly, investors may not be able to liquidate their investments
and should be prepared to hold the common stock for an indefinite period of time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">In addition and without limiting the foregoing,
the Company will be subject to applicable provisions, rules and regulations under the Exchange Act with regard to security transactions
during the period of time when this Registration Statement is effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our shares of common stock are subject
to the &ldquo;penny stock&rdquo; rules of the Securities and Exchange Commission. The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in &ldquo;penny stocks&rdquo;. Penny stocks generally are equity securities with a price
of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system,
provided that current price and volume information with respect to transactions in such securities is provided by the exchange
or system). Penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those
rules, to deliver a standardized risk disclosure document prepared by the SEC, which specifies information about penny stocks
and the nature and significance of risks of the penny stock market. A broker-dealer must also provide the customer with bid and
offer quotations for the penny stock, the compensation of the broker- dealer, and sales person in the transaction, and monthly
account statements indicating the market value of each penny stock held in the customer&rsquo;s account. In addition, the penny stock
rules require that, prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make
a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser&rsquo;s written
agreement to the transaction. These disclosure requirements may have the effect of reducing the trading activity in the secondary
market for stock that becomes subject to those penny stock rules. If a trading market for our common stock develops, our common
stock will probably become subject to the penny stock rules, and shareholders may have difficulty in selling their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">OTCQB/OTCBB Considerations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">OTCQB and OTCBB securities are not listed
and traded on the floor of an organized national or regional stock exchange. Instead, OTCQB and OTCBB securities transactions
are conducted through a telephone and computer network connecting dealers in stocks. OTCQB and OTCBB stocks are traditionally
smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To be quoted on the OTCQB and OTCBB, a
market maker must file an application on our behalf in order to make a market for our common stock. We are not permitted to file
such application on our own behalf. No market maker has agreed to file an application with FINRA on our behalf. There can be no
assurance that a market maker will file an application with FINRA or that the market maker&rsquo;s application will be accepted
by FINRA, nor can we estimate as to the time period that the application will require.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The OTCBB is separate and distinct from
the NASDAQ stock market. NASDAQ has no business relationship with issuers of securities quoted on the OTCBB. The SEC&rsquo;s order
handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the OTCBB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the NASDAQ stock market has rigorous
listing standards to ensure the high quality of its issuers, and can delist issuers for not meeting those standards, the OTCQB
and OTCBB have limited to no listing standards. Rather, it is the market maker who chooses to quote a security on the system,
files the application, and is obligated to comply with keeping information about the issuer in its files. FINRA cannot deny an
application by a market maker to quote the stock of a company assuming all FINRA questions relating to its Rule 211 process are
answered accurately and satisfactorily. The only requirement for ongoing inclusion in the OTCBB is that the issuer be current
in its reporting requirements with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we anticipate that quotation
on the OTCQB and OTCBB will increase liquidity for our stock, investors may have difficulty in getting orders filled because trading
activity on the OTCBB in general is not conducted as efficiently and effectively as with NASDAQ- listed securities. As a result,
investors&rsquo; orders may be filled at a price much different than expected when an order is placed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Investors must contact a broker-dealer
to trade OTCBB securities. Investors do not have direct access to the bulletin board service. For bulletin board securities, there
only has to be one marketmaker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we become able to have our shares of
common stock quoted on the OTCQB and OTCBB, we will then try, through a broker- dealer and its clearing firm, to become eligible
with the DTC to permit our shares to trade electronically. If an issuer is not &ldquo;DTC- eligible,&rdquo; then its shares cannot
be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists today
(especially the OTCQB and OTCBB), means that shares of a company will not be traded (technically the shares can be traded manually
between accounts, but this takes days and is not a realistic option for companies relying on broker dealers for stock transactions
- like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility is not a requirement to
trade on the OTCQB and OTCBB, it is a necessity to process trades on the OTCQB and OTCBB if a company&rsquo;s stock is going to
trade with any volume. There are no assurances that our shares will ever become DTC-eligible or, if they do, how long it willtake.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because OTCQB and OTCBB stocks are usually
not followed by analysts, there may be lower trading volume than for NASDAQ- listed securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Section 15(g) of the Exchange Act</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our shares will be covered by Section
15(g) of the Exchange Act, and Rules 15g-1 through 15g-6 promulgated thereunder. They impose additional sales practice requirements
on broker-dealers who sell our securities to persons other than established customers and accredited investors (generally institutions
with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 excluding revenue or annual income exceeding
$200,000 or $300,000 jointly with their spouses).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rule 15g-1 exempts a number of specific transactions from the
scope of the penny stock rules (but is not applicable to us).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Rule 15g-2 declares unlawful broker-dealer
transactions in penny stocks unless the broker-dealer has first provided to the customer a standardized disclosure document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Rule 15g-3 provides that it is unlawful
for a broker-dealer to engage in a penny stock transaction unless the broker-dealer first discloses and subsequently confirms
to the customer current quotation prices or similar market information concerning the penny stock in question.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Rule 15g-4 prohibits broker-dealers from
completing penny stock transactions for a customer unless the broker-dealer first discloses to the customer the amount of compensation
or other remuneration received as a result of the penny stock transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Rule 15g-5 requires that a broker-dealer
executing a penny stock transaction, other than one exempt under Rule 15g-1, disclose to its customer, at the time of or prior
to the transaction, information about the sales persons compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rule 15g-6 requires broker-dealers selling penny stocks to
provide their customers with monthly account statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Rule 3a51-1 of the Exchange Act establishes
the definition of a &ldquo;penny stock,&rdquo; for purposes relevant to us, as any equity security that has a minimum bid price
of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions.
It is likely that our shares will be considered to be penny stocks for the immediately foreseeable future. For any transaction
involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person&rsquo;s account for transactions
in penny stocks and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity
and quantity of the penny stock to be purchased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to approve a person&rsquo;s account
for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience and objectives
of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that
that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions
in penny stocks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The broker or dealer must also deliver,
prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which,
in highlight form, sets forth:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">the basis on which the broker or dealer made the suitability
determination, and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">-</TD><TD STYLE="text-align: justify">that the broker or dealer received a signed, written
agreement from the investor prior to the transaction</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Disclosure also has to be made about the
risks of investing in penny stock in both public offerings and in secondary trading and commissions payable to both the broker-dealer
and the registered representative, current quotations for the securities and the rights and remedies available to an investor
in cases of fraud in penny stock transactions. Additionally, monthly statements have to be sent disclosing recent price information
for the penny stock held in the account and information on the limited market in penny stocks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Many brokers have decided not to trade
penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act
as market makers in such securities is limited. If the Company remains subject to the penny stock rules for any significant period,
which is likely, it could have an adverse effect on the market, if any, for the Company&rsquo;s securities. If the Company&rsquo;s
securities are subject to the penny stock rules, investors will find it difficult to dispose of the Company&rsquo;s securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>State Securities &ndash; Blue Sky Laws</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no established public market
for our common stock, and there can be no assurance that any market will develop in the foreseeable future. Transfer of our common
stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions,
commonly referred to as &ldquo;Blue Sky&rdquo; laws. Absent compliance with such individual state laws, our common stock may not
be traded in such jurisdictions. Because the securities registered hereunder have not been registered for resale under the blue
sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop
in the future, should be aware that there may be significant state blue-sky law restrictions upon the ability of investors to
sell the securities and of purchasers to purchase the securities. Accordingly, investors may not be able to liquidate their investments
and should be prepared to hold the common stock for an indefinite period of time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon effectiveness of this Prospectus,
the Company intends to continue to be deemed a &ldquo;reporting issuer&rdquo; under Section 12(g) of the Exchange Act, as amended,
by way of filing a Form 8-A with the SEC. A Form 8-A is a &ldquo;short form&rdquo; of registration whereby information about the
Company will be incorporated by reference to the Registration Statement on Form S-1, of which this prospectus is a part. Upon
filing of the Form 8-A, if done, the Company&rsquo;s shares of common stock will become &ldquo;covered securities,&rdquo; or &ldquo;federally
covered securities&rdquo; as described in some states&rsquo; laws, which means that unless you are an &ldquo;underwriter&rdquo;
or &ldquo;dealer,&rdquo; you will have a &ldquo;secondary trading&rdquo; exemption under the laws of most states (and the District
of Columbia, Guam, the Virgin Islands and Puerto Rico) to resell the shares of common stock you purchase in this offering. However,
four states do impose filing requirements on the Company: Michigan, New Hampshire, Texas and Vermont. The Company may, at its
own cost, make the required notice filings in Michigan, New Hampshire, Texas and Vermont immediately after filing its Form 8-A
with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently do not intend to and may
not be able to qualify securities for resale in other states which require shares to be qualified before they can be resold by
our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Limitations Imposed by Regulation M</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under applicable rules and regulations
under the Exchange Act, any person engaged in the distribution of the shares may not simultaneously engage in market making activities
with respect to our common stock for a period of two business days prior to the commencement of such distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bunker Law Group, PLLC has given its opinion as attorneys-at-law
regarding the validity of the issuance of the Shares offered by the company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Benjamin L. Bunker, Esq. | The Bunker Law
Group, PLLC | benbunker@bunkerlawgroup.com | T (702) 784-5990 |F 888.460.8609 | 3753 Howard Hughes Parkway, Suite 200 Las Vegas,
Nevada 89169</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXPERTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial statements of the Company
as th inception date of and for the period ending October 24, 2016 included in this prospectus have been audited by independent
registered public accountants and have been so included in reliance upon the report of Malone and Bailey, a professional corporation
given on the authority of such firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">WHERE YOU CAN FIND MORE INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have filed with the Securities and Exchange Commission a
registration statement on Form S-1, including exhibits, schedules and amendments, under the Securities Act with respect to the
shares of common stock to be sold in this offering. This prospectus does not contain all the information included in the registration
statement. For further information about us and the shares of our common stock to be sold in this offering, please refer to our
registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the effective date of our registration statement of which
this prospectus is a part, we will become subject to certain informational requirements of the Exchange Act, as amended and we
will be required to file periodic reports (i.e., annual, quarterly and material events) with the SEC which will be immediately
available to the public for inspection and copying. In the event during the year that our registration statement becomes effective,
these reporting obligations may be automatically suspended under Section 15(d) of the Exchange Act if we have less than 300 shareholders
and do not file a registration statement on Form 8-A (of which we have no current plans to file). If this occurs after the year
in which our registration statement becomes effective, we will no longer be obligated to file such periodic reports with the SEC
and access to our business information would then be even more restricted. After this registration statement on Form S-1 becomes
effective, we may be required to deliver periodic reports to security holders as proscribed by the Exchange Act, as amended. However,
we will not be required to furnish proxy statements to security holders and our directors, officers and principal beneficial owners
will not be required to report their beneficial ownership of securities to the SEC pursuant to Section 16 of the Exchange Act
until we have both 500 or more security holders and greater than $10 million in assets. This means that access to information
regarding our business and operations will be limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You may read and copy any document we file at the SEC&rsquo;s public
reference room at 100 F Street, N. E., Washington, D.C. 20549. You should call the SEC at 1-800-SEC-0330 for further information
on the public reference rooms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our SEC filings will also be available to the public at the
SEC&rsquo;s web site at &ldquo;htt<U>p:/www.sec.gov.</U>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You may request, and we will voluntarily provide, a copy of
our filings, including our annual report which will contain audited financial statements, at no cost to you, by writing or telephoning
us at the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Blue Sky Group Holdings, Inc</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PART II</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 13. Other expenses of Issuance and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth the Company&rsquo;s expenses
in connection with this registration statement. All of the listed expenses are estimates, other than the filing fees payable to
the Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 82%; text-align: left">SEC Registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">2320</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">NASD filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2400.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal fees and expenses (relating to the Opinion of Counsel)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfer agent fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,740.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Blue Sky fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,800.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Miscellaneous expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 14. Indemnification of Directors and Officers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 145(a) of the General Corporation Law of the State
of Delaware (the &ldquo;DGCL&rdquo;) provides that a corporation shall have the power to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by
him in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably
believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was
unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 145(b) of the DGCL provides that a corporation shall
have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the
person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation
as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys&rsquo; fees) actually and reasonably incurred by him in connection with the defense or settlement
of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made with respect to any claim, issue or
matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such expenses which the Court of Chancery or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Certificate of Incorporation provides for indemnification
of our directors, officers, employees and other agents to the maximum extent permitted by the DGCL, and our amended and restated
bylaws to be in effect upon the completion of this offering provide for indemnification of our directors, officers, employees
and other agents to the maximum extent permitted by the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, we have entered into indemnification agreements
with our directors and officers containing provisions which are in some respects broader than the specific indemnification provisions
contained in the DGCL. The indemnification agreements require us, among other things, to indemnify our directors against certain
liabilities that may arise by reason of their status or service as directors and to advance their expenses incurred as a result
of any proceeding against them as to which they could be indemnified..</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Item 15. Recent Sales of Unregistered
Securities</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ITEM 15</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RECENT SALES OF UNREGISTERED SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the three years preceding the filing of this Form S-1,
Registrant has issued securities without registration under the Securities Act on the terms and circumstances described in the
following paragraphs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, no underwriters participated
or effectuated any of the transactions specified below. Also, no underwriting discounts or commissions applied to any of the transactions
set forth below. All potential stockholders were contacted personally and possessed at the time of their investment bona fide
substantive, pre-existing business relationships with the Company and/or its officers, directors and affiliates. No potential
stockholders were contacted through other means, and no general advertising or general solicitation was used to solicit any investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1)&#9;On 10/14/2016, 20,000,000 shares
of common stock were issued to Chirag Patel as a Grant for services related to our business plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(2)&#9;On 10/17/2016, 250,000 shares of
common stock were issued to Cyrus Sajna as a Grant for services related to our business plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXHIBITS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibits Included Hereto:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Articles of Incorporation (1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By-Laws(1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Code of Ethics (1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">XBRL *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certification of Chief Executive Officer and Principal Financial
Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certification of Chief Executive Officer and Principal Financial
Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 17. Undertakings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned registrant hereby undertakes:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: justify">To file, during any period in which offers or sales
are being made, a post-effective amendment to this registration statement:</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: center">i.</TD><TD STYLE="text-align: justify">To include any prospectus required by section 10(a)(3)
of the Securities Act of 1933;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: center">ii.&nbsp;</TD><TD STYLE="text-align: justify">To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration
Fee&rdquo; table in the effectiveregistration statement.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: center">iii.&nbsp;</TD><TD STYLE="text-align: justify">To include any material information with respect to
the plan of distribution not previously disclosed in the registration statement or any material change to such information in
the registration statement.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify">That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">3.</TD><TD STYLE="text-align: justify">To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">That, for the purpose of determining liability
under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">4.</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such
issue.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities Act of 1933,
the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized
on <U>10/26/2016</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <td colspan="2">BLUE SKY GROUP HOLDINGS, INC.</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</td>
    <TD STYLE="width: 5%">&nbsp;</td>
    <TD STYLE="width: 30%">&nbsp;</td>
    <TD STYLE="width: 25%">&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>By:</td>
    <TD>/s/ Chirag Patel</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>Title:&nbsp;</td>
    <TD>Chairman of the Board,</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>President and Principal</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>Executive Officer,</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>By:</td>
    <TD>/s/ Cyrus Saina</td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>Title: Chief Financial Officer</td>
    <TD>&nbsp;</TD></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed below by the following persons, constituting all of the members of the board of directors,
in the capacities and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 33%"><FONT STYLE="font-size: 10pt">Signature</FONT></td>
    <TD STYLE="width: 34%; text-align: left"><FONT STYLE="font-size: 10pt">Capacity</FONT></td>
    <TD STYLE="width: 33%"><FONT STYLE="font-size: 10pt">Date</FONT></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD STYLE="text-align: left">&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">/s/ Chirag Patel</FONT></td>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">CEO</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">10/26/2016</FONT></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD STYLE="text-align: left">&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">/s/ Cyrus Saina</FONT></td>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">CFO</FONT></td>
    <TD><FONT STYLE="font-size: 10pt">10/26/2016</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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[{"type": "S-1", "sequence": "1", "filename": "s1.htm", "secsgml_size_bytes": 534801}]
{"company-data": {"conformed-name": "Blue Sky Group Holdings, Inc.", "cik": "0001688647", "irs-number": "814015013", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-214304", "film-number": "161958421"}, "business-address": {"street1": "8017 GLENVIEW DRIVE SUITE A", "city": "NORTH RICHLAND HILLS", "state": "TX", "zip": "76180", "phone": "8176163651"}, "mail-address": {"street1": "8017 GLENVIEW DRIVE SUITE A", "city": "NORTH RICHLAND HILLS", "state": "TX", "zip": "76180"}}
As filed with the Securities and Exchange Commission
on Registration No._000-00000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
Blue
Sky Group Holdings, Inc.
(Exact name of registrant as specified
in its charter)
Delaware
[  6162  ]
81-4015013
State or other jurisdiction
Primary Standard Industrial
(I.R.S. Employer
incorporation or organization
Classification Code Number)
Identification Number)
Blue Sky Group Holdings, Inc.
8017 Glenview Drive Suite A
North Richland Hills, TX 76180
Telephone:
(Address, including zip code, and telephone number, including
area code of registrant's principal executive offices)
Chirag Patel
President, CEO
Blue Sky Group Holdings, Inc.
8017 Glenview Drive Suite A
North Richland Hills, TX 76180
Telephone:
(Name, address, including zip code, and
telephone number,
including area code, of agent for service)
Benjamin L. Bunker, Esq.
The Bunker Law Group, PLLC
benbunker@bunkerlawgroup.com
T (702) 784-5990
3753 Howard Hughes Parkway, Suite 200
Las Vegas, Nevada 89169
Approximate Date of Commencement
of proposed sale to the public:
As
soon as practicable after the effective date of this Registration Statement.
If any of the securities being registered on this Form are
to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
x
If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to
Rule 462© under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration number of the earlier effective
registration statement for the same offering.
¨
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 definitions "large accelerated
filer,""accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check
one):
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
x
The registrant hereby may this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission acting pursuant
to said section 8(a), may determine.
CALCULATION OF REGISTRATION FEE
Proposed
Proposed
Amount
Maximum
Maximum
Amount of
Title of Each Class of
to be
Offering Price
Aggregate
Registration
Securities to be Registered
Registered
Per Unit (1)
Offering Price
Fee (2)
Common stock, $0.01 par value per share
1,000,000 Shares
$
20,00
$
20,000,000
$
2,320.00
EXPLANATORY NOTE
1
Estimated solely for purposed of calculating the registration fee under Rule 457(a) and (o) of the Securities Act. This
registration statement shall also cover any additional shares of common stock which become issuable by reason of any stock split,
stock dividend, anti-dilution provisions or similar transaction effected without the receipt of consideration which results in
an increase in the number of the outstanding shares of common stock of the registrant. These securities may not be sold until
this registration statement filed with the Securities and Exchange Commission is effective. This is not an offer to sell these
securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Exhibits Included Hereto:
Articles of Incorporation (1)
By-Laws(1)
XBRL *
Certification of Chief Executive Officer and Principal Financial
Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*
Certification of Chief Executive Officer and Principal Financial
Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
The information contained in this registration
statement is not complete and may be changed. These securities may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is
not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
1,000,000
SHARES
COMMON STOCK
BLUE SKY GROUP HOLDINGS, INC.
Blue Sky Group Holdings, Inc ("Blue
Sky Group Holdings, Inc," "Company," "we," or "us.") is offering for sale a maximum
of 1,000,000 shares of its common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be
sold by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold.
The offering is being conducted on a self- underwritten, best efforts basis, which means our president and chief executive officer
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell. Chirag Patel
will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, she will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities and
Exchange Act of 1934. The intended methods of communication include, without limitations, telephone and personal contact. For
more information, see the section of this prospectus entitled "Plan of Distribution".
The common stock offered by this prospectus
is being offered by the company. The common stock may be sold or distributed from time to time by the company directly to one
or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the
time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.
The sale of the common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers'
transactions, transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents,
"at the market" into an existing market for the common stock, in other ways not involving market makers or established
business markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions;
or any combination of the foregoing.
The proceeds from the sale of the shares
in this offering will be payable to the Company. All subscribed funds will be held in a noninterest- bearing account pending the
completion of the offering of which there is no minimum number of shares that must be sold. The offering will be completed 180
days from the effective date of this prospectus, unless extended by our board of directors for an additional 180 days. All subscription
agreements and checks for payment of shares are irrevocable (except as to any states that require a statutory cooling-off period
or rescission right). For more information, see the section of this prospectus entitled "Plan of Distribution".
The Company is a development stage company
and our independent registered auditors included an explanatory paragraph in their opinion on our financial statements as of and
for the period ended October 24, 2016 that states that Company losses from operations raise substantial doubt about our ability
to continue as a going concern. Because this offering is self-underwritten and there is no minimum amount of shares that must
be sold, the Company may lose money from this offering if the proposed proceeds of this offering are substantially less than the
estimated costs of this offering. There is currently no public or established market for our shares. Consequently, our shareholders
will not be able to sell their shares in any organized market place and may be limited to selling their shares privately. Accordingly,
an investment in our Company is an illiquid investment.
We are not a blank check company and our
business plan does not include engaging in a merger or acquisition with an unidentified company, companies, entity, or person.
NASDAQ SYMBOL RESERVATION CONFIRMATION
Our request to reserve the ticker symbol
"BSGH" for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved for us for twenty four months.
2
The Company has yet to identify and acquire properties for
the development of a Blue Sky Group Holdings, Inc center.
Since there is no minimum amount of shares that must be sold
by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors may end up holding
shares in a company that:
- Has not received enough proceeds from the offering
to begin operations; and
- Has no market for its shares.
Proceeds
THIS INVESTMENT INVOLVES A HIGH DEGREE OF
    RISK. YOU
Number
Underwriting
to
SHOULD PURCHASE ONLY IF YOU CAN
    AFFORD A COMPLETE
of
Offering
Discounts &
the
LOSS OF YOUR INVESTMENT. SEE "RISK
    FACTORS"
Shares
Price
Commissions
Company
Per Share
1
$
20.00
$
0.00
$
20.00
10% of shares are sold
100,000
$
2,000,000
$
0.00
$
2,000,000
50% of shares are sold
500,000
$
10,000,000
$
0.00
$
10,000,000
75% of shares are sold
750,000
$
15,000,000
$
0.00
$
15,000,000
Maximum Offering
1,000,000
$
20,000,000
$
0.00
$
20,000,000
This prospectus is not an offer to sell
these securities, and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
INVESTING IN OUR SECURITIES INVOLVES
A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE OUR SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE "RISK
FACTORS"
We are selling the shares without an underwriter
and may not be able to sell all or any of the shares offered herein.
We are considered a "shell company"
under applicable securities rules and subject to additional regulatory requirements as a result, including the inability of our
shareholders to sell our shares in reliance on Rule 144 promulgated pursuant to the Securities Act of 1933, as well as our inability
to register our securities on Form S-8 (an abbreviated registration process). Accordingly, investors should consider our shares
to be significantly risky and illiquid investments.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE INFORMATION IN THIS PROSPECTUS IS
NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES, AND IT IS NOT SOLICITING AN OFFER
TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
The date of this prospectus is
,
2016.
3
Table Of Contents
Prospectus Summary
6
Summary Financial Data
9
The Business
7
Risk Factors
12
Use of Proceeds
24
Dilution
27
Dividend Policy
30
Market for Securities
30
Description of Securities
12
Use of Proceeds
24
Plan of Operation
21
Forward Looking Statement
32
Management's Discussion and Analysis of Financial Condition and Results of Operations
32
Plan of Operation
33
Liquidity
35
The Business
37
Intellectual Property
40
Litigation
42
Property
42
Management
42
Executive Compensation
45
Principal Stockholders
47
Description of Capital Stock
47
Transfer Agent
48
Plan of Distribution
49
OTCQB/OTCBB Considerations
51
Section 15(g) of the Exchange Act
51
State Securities – Blue Sky Laws
52
Legal Matters
53
Experts
53
Other expenses of Issuance and Distribution
54
Indemnification of Directors and Officers
55
Recent Sales of Unregistered securities
56
Undertakings
59
Financial Statements
60
4
PROSPECTUS SUMMARY
This summary highlights some information
from this prospectus, and it may not contain all the information important to making an investment decision. A potential investor
should read the following summary together with the more detailed information regarding the Company and the common stock being
sold in this offering, including "Risk Factors" and the financial statements and related notes, included elsewhere
in this prospectus.
The Company
History
The Company was incorporated in Delaware
on Sept 30 2016 and is a development stage company focusing on originating mortgage loans. At Blue Sky Group Holdings , we seek
to provide loans to mid-grade and high-grade borrowers that are seeking to purchase primary residences. Among these borrowers,
Management has developed the following demographic profile that the Company will continue use for its marketing campaigns and
credit guidelines. Much like other mortgage banking firms, the business continually maintain strict controls over its lending
procedures to ensure that defaults are kept to an absolute minimum. Blue Sky Group Holdings, may sell the mortgages it originates
to Fannie Mae, Freddie Mac and Ginnie Mae.
Below is Management's average customer profile:
•
Household income of $50,000+
•
FICO Score of 680 or higher
•
Is seeking a mortgage loan of $150,000 to $300,000
•
Has documented income (W-2) or an extended history
of independently earned income.
Nonbank mortgage servicers expanded their
footprint in agency mortgage servicing rights during the third quarter of 2016, according to a new Inside Mortgage Finance analysis.
Overall, there were $6.062 trillion of single-family mortgages outstanding tied to Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed
securities at the end of September according to
http://www.insidemortgagefinance.com/
Blue Sky Group Holdings may originate
mortgage loans domestically in the U.S. only and at its sole discretion may sell to Fannie Mae, Freddie Mac and Ginnie Mae. Furthermore,
Blue Sky Group Holdings Group Holdings originates mortgage loans it intends to sell into the secondary markets through whole loan
sales or securitizations. Blue Sky Group Holdings, may also purchase loans out of a Ginnie Mae securitization pool if that loan
meets certain criteria, including being delinquent greater than 90 days. Blue Sky Group Holdings has elected to carry these loans
at fair value; furthermore Blue Sky Group Holdings measures our newly originated prime (RML's) Residential Mortgage Loans
held for sale at fair value. Blue Sky Group Holdings also determines the fair value of loans held for investment, net, using internally
developed valuation models. These valuation models estimate the exit price Blue Sky Group Holdings expects to receive in the loan's
principal market primarily.
Blue Sky Group Holdings, Inc will grow through three main avenues:
•          The
successful marketing and growth of the Company's financial infrastructure through the acquisition of larger warehouse
lines of credit.
•          Continued
implementation of streamlined methods for closing and selling loans while conforming to all state and federal level laws.
•          Continue to develop relationships
with investors and institutional loan buyers so that the Company can quickly divest its loan and lending assets at a premium while
retaining servicing rights for originated financings. This will be achieved once the business acquires its warehouse credit facilities.
•          Blue sky mortgage understands
that the refinance boom will potentially be declining with HARP coming to an end within the next year and the market shifting
a purchase market. While there is still a possibility of an extension and expansion of HARP, we already make preparations for
focusing a significant portion of our resources on REO asset management which is positioning Blue Sky Mortgage strongly into the
home purchase market. Furthermore, Blue sky mortgage has multiple home builders and realtor contacts that have assured multiple
referrals to the company for their client's needs.
5
Marketing Objectives
•          Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.
•          Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company's targeted Southwestern and Midwestern
United States markets.
•          Continue to make substantial reinvestments into the
Company's online visibility.
•          Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.
•          Development of strategic marketing
relationships with a number of mortgage brokers, attorneys, and accountants throughout the Company's targeted Southwestern
and Midwestern United States markets.
•          Continue
to make substantial reinvestments into the Company's online visibility (via www.blueskymortgageloans.com). At the onset
of operations, the Company will develop a network of affiliated mortgage brokers that are licensed within the State of Texas
and other Midwestern states in order to drive business to the Company. These agents will be compensated based on loan
closings. These individuals will act as independent contractors on behalf of the Company. Additionally, the business will pay
for mortgage leads among companies that specialize in lead generation. The Company will use a number of businesses that have
extensive experience with providing quality leads among prime borrowers. Management anticipates that each qualified loan lead
will cost the business $50 to $150 depending on the verified credit quality of the potential borrower, the amount they are
seeking to borrow, and how quickly they need a mortgage. The Company will use an online based marketing campaign to develop
its sales. Primarily, the Company will use search engine optimization techniques that increase the Company's visibility
when selected key words are used among major search engines. For instance, when a person does a Google search for mortgages
in a selected market, the Company will appear on the first page of the search. This strategy is technically complicated, and
the Company will use a search engine optimization firm to develop the Company's visibility on a non-paid basis. A
majority of web portal and search engine companies use very complicated algorithms to determine a website's relevance
in relation to a specific keyword. These website visibility strategies will be heavily implemented into the Company's
website. At the onset of operations, Blue Sky will continue to use several pay methods for increasing the Company's
online visibility. This strategy is expensive, but the results can be phenomenal if this marketing strategy is properly
executed. These advertisements appear along the border and side of a website, and each time a person clicks on the website, a
small fee ranging from fifty cents to one dollar is charged to the Company's account. An SEO firm will also manage this
aspect of the Company's marketing operation. Management expects that these costs will reach approximately $15,000
per year towards the end of the first expansion year. We receive fees from both the closing of the mortgage as well as a
premium from the sale of mortgages to investors in the secondary market. However, each transaction yields approximately 2.5%
to 3% of the face value of the transaction.
6
Risks and Uncertainties facing the
Company
As a development stage company, the Company
has no operating history and is expected to continuously experience losses in the near term. The Company needs to create a source
of revenue or locate additional financing in order to continue its developmental plans. As a development stage company, management
of the Company must build and market its development plans in order to execute the business plan of the Company on a broad scale.
One of the biggest challenges facing the
Company will be in securing adequate capital to acquire properties and develop its recreational centers and products. Likewise,
operating the Company will need to secure sufficient capital to originate and purchase prime mortgages. Secondarily, following
development of its products and properties, a major challenge will be implementing effective sales, marketing and distribution
strategies to reach the intended end customers. The Company has considered and devised its initial sales, marketing and advertising
strategy, however, the Company will need to skillfully implement this strategy in order to achieve success in its business.
Due to these and other factors, the Company's
need for additional capital, the Company's independent auditors have issued a report raising substantial doubt of the Company's
ability to continue as a going concern.
The Offering
Blue Sky Group Holdings, Inc ("Blue
Sky Group Holdings, Inc," "Company," "we," or "us.") is offering for sale a maximum
of 1,000,000 shares of its common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be
sold by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold.
The offering is being conducted on a self-underwritten, best efforts basis, which means our president and chief executive officer
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell. Chirag Patel
will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, he will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities and
Exchange Act of 1934. The intended methods of communication include, without limitations, telephone and personal contact. For
more information, see the section of this prospectus entitled "Plan of Distribution".
The common stock offered by this prospectus
is being offered by the company. The common stock may be sold or distributed from time to time by the company directly to one
or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the
time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.
The sale of the common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers'
transactions, transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents,
"at the market" into an existing market for the common stock, in other ways not involving market makers or established
business markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions;
or any combination of the foregoing.
7
Since there is no minimum amount of shares
that must be sold by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors
may end up holding shares in a company that:
- Has not received enough proceeds from the
offering to begin operations; and
- Has no market for its shares.
The proceeds from the sale of the shares
in this offering will be payable to the Company. All subscription agreements and checks are irrevocable and should be delivered
to the Company at the address provided in the Subscription Agreement (see Exhibit).
All subscription funds will be held in
a noninterest-bearing account subject to the completion of the offering. The offering will be completed 180 days from the effective
date of this prospectus, unless extended by our board of directors for an additional 180 days. There is no minimum number of shares
that must be sold. All subscription agreements and checks for payment of shares are irrevocable (except as to any states that
require a statutory cooling-off period or rescission right).
We will deliver stock certificates attributable
to shares of common stock purchased directly to the purchasers approximately 30 days after the close of the offering or as soon
thereafter as practicable or process them through a book entry system.
The offering price of the common stock
has been determined arbitrarily and bears no relationship to any objective criterion of value. The price does not bear any relationship
to our assets, book value, historical earnings, if any, or net worth.
Shares of common stock offered by us are
a maximum of 1,000,000 shares. There is no minimum number of shares that must be sold by us for the offering to close.
Use of proceeds
Blue Sky Group Holdings, Inc ("Blue
Sky Group Holdings, Inc," "Company," "we," or "us.") will use the proceeds from the
offering to pay for professional fees and other general expenses, as well as fund the development of the Company's operations.
The total estimated costs of the offering ($15,974) may exceed the amount of offering proceeds.
Termination of the offering
The offering will conclude when all 1,000,000
shares of common stock have been sold, or 180 days after this registration statement becomes effective with the Securities and
Exchange Commission. We may at our discretion extend the offering for an additional 180 days.
Risk Factors
The purchase of our common stock involves
a high degree of risk. The common stock offered in this prospectus is for investment purposes only and currently no market for
our common stock exists.
Please refer to the sections entitled "Risk Factors" and "Dilution" before making
an investment in this stock.
8
Trading Market
None.
NASDAQ SYMBOL RESERVATION CONFIRMATION
Our request to reserve the ticker symbol
"BSGH" for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved for us for twenty four months. While
we plan to find a market maker to file a Rule 211 application with the Financial Industry Regulatory Authority ("FINRA")
in order to apply for the inclusion of our common stock in OTC Markets ("OTCQB") or the Over-the-Counter Bulletin
Board ("OTCBB"), such efforts may not be successful and our shares may never be quoted and owners of our common stock
may not have a market in which to sell the shares. Also, no estimate may be given as to the time that this application process
will require. Even if Blue Sky Group Holdings, Inc 's common stock is quoted or granted a listing, a market for the common shares
may not develop.
9
PART I
ITEM 1. FINANCIAL STATEMENTS
BLUE SKY GROUP HOLDINGS, INC.
Condense Balance Sheets
As of October 31,
As of October 31,
2016
2015
(Unaudited)
ASSETS
Current Assets
Cash
$
500
-
Current Assets
$
Total Assets
$
500
$
-
Accumulated deficit
Total Stockholders' deficit
Total Liabilities and Partner Deficit
$
$
-
The accompanying notes are an integral part of these condensed
financial statements
10
PART I. Financial Information
Item 1. Financial Statements
BLUE SKY GROUP HOLDINGS INC.
CONSOLIDATED
BALANCE SHEETS
(Thousands of dollars)
Oct 24,
December 31,
2016
2015
(unaudited)
Assets
Cash and cash equivalents
$
500
Restricted cash
Mortgage servicing rights,
Advances and other receivables,
Mortgage loans held for sale at fair value
Mortgage loans held for investment
Property and equipment, net of accumulated depreciation respectively
Other assets
Total assets
$
500
$
Liabilities and stockholders' equity
Warehouse facilities
Payables and accrued liabilities
Mortgage servicing liabilities
Other nonrecourse debt,
Total liabilities
Commitments and contingencies
Common stock at $0.01 par value - 100,000,000 million shares authorized, 20,250,000 issued, respectively
Additional paid-in-capital
Retained earnings
Treasury shares at cost, respectively
Total Blue Sky Group Holdings stockholders' equity
Total stockholders' equity
Total liabilities and stockholders' equity
See accompanying notes to the consolidated financial statements.
11
BLUE STAR GROUP HOLDINGS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Thousands of dollars, except for earnings
per share data)
Three
    months ended Oct 24,
Six
    months ended June 30,
2016
2015
2016
2015
Revenues:
Service related,
    net
$
Net
    gain on mortgage loans held for sale
Total revenues
Expenses:
Salaries, wages
    and benefits
General
    and administrative
$
15,700
Total expenses
Other income (expenses):
Interest income
Interest
    expense
Total other expenses,
    net
Income (loss) before income tax expense
    (benefit)
Less: income tax
    expense (benefit)
Net income (loss)
Less: net income
    attributable to non-controlling interests
Net income (loss)
    attributable to Blue Sky Group Holdings
$
(15,200
)
Net income (loss) per common share attributable
    to common stockholders:
Basic
Diluted
Weighted average shares of common stock outstanding (in thousands):
Basic
Dilutive
    effect of stock awards
—
Diluted
See accompanying notes to the consolidated financial statements
12
The following table presents the estimated carrying amount
and fair value of Blue Sky Group Holdings's financial instruments and other assets and liabilities measured at fair value
on a recurring basis.
Oct
    24, 2016
Recurring
    Fair Value Measurements
Total
    Fair Value
Assets
Mortgage
    loans held for sale
(1)
$
$
—
$
$
—
Mortgage servicing rights
Property and equipment
Property and equipment,
    at cost
(1)
—
—
Total assets
$
Liabilities
$
—
$
—
$
—
—
—
Total liabilities
$
Oct
    24, 2016
December
    31, 2015
Warehouse Facilities
Interest
    Rate
Maturity
    Date
Collateral
Capacity
Amount
Outstanding
Collateral
Pledged
Outstanding
Collateral
pledged
$ warehouse facility
Mortgage loans or MBS
$ warehouse facility
Mortgage loans or  MBS
Warehouse
    facilities
principal amount
Debt issuance costs
0
–
0
–
Warehouse facilities, net of unamortized
    debt issuance costs
$
$
$
Mortgage loans, net
Reverse mortgage interests, net
(1)
(2)
13
RISK FACTORS
A purchase of any Shares is an investment
in the Company's common stock and involves a high degree of risk. Investors should consider carefully the following information
about these risks, together with the other information contained in this prospectus, before the purchase of the Shares. If any
of the following risks actually occur, the business, financial condition or results of operations of the Company would likely
suffer. In this case, the market price of the common stock could decline, and investors may lose all or part of the money they
paid to buy the Shares.
The Dodd-Frank Act could increase our regulatory compliance
burden and associated costs, limit our future capital raising strategies, and place restrictions on certain originations and servicing
operations all of which could adversely affect our business, financial condition and results of operations.
On July 21, 2010, President Obama signed the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") into law. The Dodd-Frank Act represents a
comprehensive overhaul of the financial services industry in the United States. The Dodd-Frank Act includes, among other things:
(i) the creation of a Financial Stability Oversight Council to identify emerging systemic risks posed by financial firms, activities
and practices, and to improve cooperation among federal agencies; (ii) the creation of a Bureau of Consumer Financial Protection
("CFPB") authorized to promulgate and enforce consumer protection regulations relating to financial products; (iii)
the establishment of strengthened capital and prudential standards for banks and bank holding companies; (iv) enhanced regulation
of financial markets, including the derivatives and securitization markets; and (v) amendments to the Truth in Lending Act aimed
at improving consumer protections with respect to mortgage originations, including originator compensation, minimum repayment
standards and prepayment considerations. On July 21, 2011, the CFPB obtained enforcement authority pursuant to the Dodd-Frank
Act and began official operations. On October 13, 2011, the CFPB issued guidelines governing how it supervises mortgage transactions,
which involves sending examiners to banks and other institutions that service mortgages to assess whether consumers' interests
are protected. On January 11, 2012, the CFPB issued guidelines governing examination procedures for bank and non-bank mortgage
originators. The exact scope and applicability of many of these requirements to us are currently unknown as the regulations to
implement the Dodd-Frank Act generally have not yet been finalized. These provisions of the Dodd-Frank Act and actions by the
CFPB could increase our regulatory compliance burden and associated costs and place restrictions on certain originations and servicing
operations, all of which could in turn adversely affect our business, financial condition and results of operations.
The continued deterioration of the residential mortgage
market may adversely affect our business, financial condition and results of operations.
Since mid-2007, adverse economic conditions, including high
unemployment, have impacted the residential mortgage market, resulting in unprecedented delinquency, default and foreclosure rates,
all of which have led to increased loss severities on all types of residential mortgage loans due to sharp declines in residential
real estate values. Falling home prices have resulted in higher loan-to-value ratios ("LTVs"), lower recoveries in
foreclosure and an increase in loss severities above those that would have been realized had property values remained the same
or continued to increase. As LTVs increase, borrowers are left with equity in their homes that is not sufficient to permit them
to refinance their existing loans. This may also provide borrowers an incentive to default on their mortgage loan even if they
have the ability to make principal and interest payments, which we refer to as strategic defaults. Increased mortgage defaults
negatively impact our Servicing Segment because they increase the costs to service the underlying loans and may ultimately reduce
the number of mortgages we service.
Adverse economic conditions may also impact our Originations
Segment. Declining home prices and increasing LTVs may preclude many potential borrowers, including borrowers whose existing loans
we service, from refinancing their existing loans. An increase in prevailing interest rates could decrease our originations volume
through our originations channel; this channel focuses predominantly on refinancing existing mortgage loans.
A continued deterioration or a delay in any recovery in the
residential mortgage market may reduce the number of mortgages we service or new mortgages we originate, reduce the profitability
of mortgages currently serviced by us, adversely affect our ability to sell mortgage loans originated by us or increase delinquency
rates. Any of the foregoing could adversely affect our business, financial condition and results of operations.
14
We may experience serious financial difficulties as some
mortgage servicers and originators have experienced, which could adversely affect our business, financial condition and results
of operations.
Since late 2016, a number of mortgage servicers and originators
of residential mortgage loans have experienced serious financial difficulties and, in some cases, have gone out of business. These
difficulties have resulted, in part, from declining markets for their mortgage loans as well as from claims for repurchases of
mortgage loans previously sold under provisions requiring repurchase in the event of early payment defaults or breaches of representations
and warranties regarding loan quality and certain other loan characteristics. Higher delinquencies and defaults may contribute
to these difficulties by reducing the value of mortgage loan portfolios and requiring originators to sell their portfolios at
greater discounts to par. In addition, the cost of servicing an increasingly delinquent mortgage loan portfolio may rise without
a corresponding increase in servicing compensation. The value of many residual interests retained by sellers of mortgage loans
in the securitization market has also been declining. Overall originations volumes are down significantly in the current economic
environment. Any of the foregoing could adversely affect our business, financial condition and results of operations.
We principally service higher risk loans, which exposes
us to a number of different risks.
A significant percentage of the mortgage loans we service will
be of a significantly Higher Credit Worthiness and eligible to be sold. We may originate higher risk loans, meaning that the loans
are to less creditworthy borrowers or for properties the value of which has decreased. These loans are more expensive to service
because they require more frequent interaction with customers and greater monitoring and oversight. As a result, these loans tend
to have higher delinquency and default rates, which can have a significant impact on our revenues, expenses and the valuation
of our MSRs. It may also be more difficult for us to recover advances we are required to make with respect to higher risk loans.
In connection with the ongoing mortgage market reform and regulatory developments, servicers of higher risk loans may be subject
to increased scrutiny by state and federal regulators or may experience higher compliance costs, which could result in higher
servicing costs. We may not be able to pass along any incremental costs we incur to our servicing clients. All of the foregoing
factors could therefore adversely affect our business, financial condition and results of operations.
Delinquency rates have a significant impact on our revenues,
our expenses and on the valuation of our MSRs as follows:
•
Revenue.
An increase in delinquencies will result
in lower revenue for loans we service for GSEs because we only collect servicing fees from GSEs for performing loans. Additionally,
while increased delinquencies generate higher ancillary fees, including late fees, these fees are not likely to be recoverable
in the event that the related loan is liquidated. In addition, an increase in delinquencies lowers the interest income we receive
on cash held in collection and other accounts.
•
Expenses.
An increase in delinquencies will
result in a higher cost to service due to the increased time and effort required to collect payments from delinquent borrowers.
It may also result in an increase in interest expense as a result of an increase in our advancingobligations.
•
Liquidity.
An increase in delinquencies could
also negatively impact our liquidity.
15
Federal, state and local laws and regulations could materially
adversely affect our business, financial condition and results of operations.
Federal, state and local governments have recently proposed
or enacted numerous laws, regulations and rules related to mortgage loans generally and foreclosure actions in particular. These
laws, regulations and rules may result in delays in the foreclosure process, reduced payments by borrowers, modification of the
original terms of mortgage loans, permanent forgiveness of debt and increased servicing advances. In some cases, local governments
have ordered moratoriums on foreclosure activity, which prevent a servicer or trustee, as applicable, from exercising any remedies
they might have in respect of liquidating a severely delinquent mortgage loan. Several courts also have taken unprecedented steps
to slow the foreclosure process or prevent foreclosure altogether.
In addition, the Federal Housing Finance Agency (the "FHFA")
recently proposed changes to mortgage servicing compensation structures, including cutting servicing fees and channeling funds
toward reserve accounts for delinquent loans.
Due to the highly regulated nature of the residential mortgage
industry, we are required to comply with a wide array of federal, state and local laws and regulations that regulate, among other
things, the manner in which we conduct our servicing and originations business and the fees we may charge. These regulations directly
impact our business and require constant compliance, monitoring and internal and external audits. A material failure to comply
with any of these laws or regulations could subject us to lawsuits or governmental actions, which could materially adversely affect
our business, financial condition and results of operations.
Federal, state and local laws and regulations could materially
adversely affect our business, financial condition and results of operations.
Federal, state and local governments have recently proposed
or enacted numerous laws, regulations and rules related to mortgage loans generally and foreclosure actions in particular. These
laws, regulations and rules may result in delays in the foreclosure process, reduced payments by borrowers, modification of the
original terms of mortgage loans, permanent forgiveness of debt and increased servicing advances. In some cases, local governments
have ordered moratoriums on foreclosure activity, which prevent a servicer or trustee, as applicable, from exercising any remedies
they might have in respect of liquidating a severely delinquent mortgage loan. Several courts also have taken unprecedented steps
to slow the foreclosure process or prevent foreclosure altogether.
In addition, the Federal Housing Finance Agency (the "FHFA")
recently proposed changes to mortgage servicing compensation structures, including cutting servicing fees and channeling funds
toward reserve accounts for delinquent loans.
Due to the highly regulated nature of the residential mortgage
industry, we are required to comply with a wide array of federal, state and local laws and regulations that regulate, among other
things, the manner in which we conduct our servicing and originations business and the fees we may charge. These regulations directly
impact our business and require constant compliance, monitoring and internal and external audits. A material failure to comply
with any of these laws or regulations could subject us to lawsuits or governmental actions, which could materially adversely affect
our business, financial condition and results of operations.
Because we are required to follow the guidelines of the
GSEs with which we do business and are not able to negotiate our fees with these entities for the purchase of our loans, our competitors
may be able to sell their loans to GSEs on more favorable terms.
Even though we currently originate conventional agency and
government conforming loans, if we intend to originate non-prime mortgage loans, we believe we would be required to pay a higher
fee to access the secondary market for selling our loans to GSEs. We believe that because many of our competitors have always
originated conventional loans, they are able to sell newly originated loans on more favorable terms than us. As a result, these
competitors are able to earn higher margins than we earn on originated loans, which could materially impact our business.
16
Risks Related to Our Organization and Structure
If the ownership of our common stock continues to be highly
concentrated, it may prevent you and other minority stockholders from influencing significant corporate decisions and may result
in conflicts of interest.
Following the completion of this offering, the Initial Stockholder,
which is primarily owned by Chirag Patel, Chirag Patel will own approximately 98.5% of our outstanding common stock . As a result,
the Initial Stockholder will own shares sufficient for the majority vote over all matters requiring a stockholder vote, including:
the election of directors; mergers, consolidations and acquisitions; the sale of all or substantially all of our assets and other
decisions affecting our capital structure; the amendment of our certificate of incorporation and our bylaws; and our winding up
and dissolution. This concentration of ownership may deter or prevent acts that would be favored by our other stockholders. The
interests of the Initial Stockholder may not always coincide with our interests or the interests of our other stockholders. This
concentration of ownership may also have the effect of delaying, preventing or deterring a change in control of us. Also, the
Initial Stockholder may seek to cause us to take courses of action that, in its judgment, could enhance its investment in us,
but which might involve risks to our other stockholders or adversely affect us or our other stockholders, including investors
in this offering. As a result, the market price of our common stock could decline or stockholders might not receive a premium
over the then-current market price of our common stock upon a change in control. In addition, this concentration of share ownership
may adversely affect the trading price of our common stock because investors may perceive disadvantages in owning shares in a
company with significant stockholders. See "Principal Stockholder" and "Description of Capital Stock—Anti-Takeover
Effects of Delaware Law, Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws."
We are a Development Stage company with no operations and
will rely on our operating subsidiaries to provide us with funds necessary to meet our financial obligations and to pay dividends.
We are a holding company with no material direct operations.
Our principal assets are the equity interests we directly or indirectly hold in our operating subsidiaries, which own our operating
assets. As a result, we will be dependent on loans, dividends and other payments from our subsidiaries to generate the funds necessary
to meet our financial obligations and to pay dividends on our common stock. Our subsidiaries are legally distinct from us and
may be prohibited or restricted from paying dividends or otherwise making funds available to us under certain conditions. If we
are unable to obtain funds from our subsidiaries, we may be unable to, or our board may exercise its discretion not to, pay dividends.
We do not anticipate paying any dividends on our common
stock in the foreseeable future.
We do not expect to declare or pay any cash or other dividends
in the foreseeable future on our common stock because we intend to use cash flow generated by operations to grow our business.
The indenture governing our senior notes restricts our ability to pay cash dividends on our common stock. We may also enter into
credit agreements or other borrowing arrangements in the future that restrict or limit our ability to pay cash dividends on our
common stock. See "Dividend Policy."
Risks Related to this Offering
An active trading market for our common stock may never
develop or be sustained.
Although we have received our NASDAQ SYMBOL RESERVATION CONFIRMATION
our request to reserve the ticker symbol "BSGH" for BLUE SKY GROUP HOLDINGS, INC has been approved and will be reserved
for us for twenty four months. an active trading market for our common stock may not develop on that exchange or elsewhere or,
if developed, that market may not be sustained. Accordingly, if an active trading market for our common stock does not develop
or is not maintained, the liquidity of our common stock, your ability to sell your shares of common stock when desired and the
prices that you may obtain for your shares of common stock will be adversely affected.
17
The market price and trading volume of our common stock
may be volatile, which could result in rapid and substantial losses for our stockholders.
Even if an active trading market develops, the market price
of our common stock may be highly volatile and could be subject to wide fluctuations. In addition, the trading volume in our common
stock may fluctuate and cause significant price variations to occur. The initial public offering price of our common stock will
be determined by negotiation between us and the representatives of the underwriters based on a number of factors and may not be
indicative of prices that will prevail in the open market following completion of this offering. If the market price of our common
stock declines significantly, you may be unable to resell your shares at or above your purchase price, if at all. The market price
of our common stock may fluctuate or decline significantly in the future. Some of the factors that could negatively affect our
share price or result in fluctuations in the price or trading volume of our common stock include:
•
variations in our quarterly or annual operating results;
•
changes in our earnings estimates (if provided) or
differences between our actual financial and operating results and those expected by investors and analysts;
•
the contents of published research reports about us
or our industry or the failure of securities analysts to cover our common stock after this offering;
•
additions or departures of key management personnel;
•
any increased indebtedness we may incur in the future;
•
announcements by us or others and developments affecting
us;
•
actions by institutional stockholders;
•
litigation and governmental investigations;
•
changes in market valuations of similar companies;
•
speculation or reports by the press or investment community
with respect to us or our industry in general;
These broad market and industry factors may affect the market
price of our common stock, regardless of our actual operating performance. The stock market in general has from time to time experienced
extreme price and volume fluctuations, including in recent months.
As a public company, we will incur additional costs and
face increased demands on our management.
As a public company with shares
listed on a U.S. exchange, we will need to comply with an extensive body of regulations that did not apply to us previously,
including provisions of the Sarbanes Oxley Act of 2002 (the "Sarbanes-Oxley Act"), regulations of the SEC and
requirements of the NYSE. We expect these rules and regulations to increase our legal and financial compliance costs and to
make some activities more time-consuming and costly. For example, as a result of becoming a public company, we intend to add
independent directors, create additional board committees and adopt certain policies regarding internal controls and
disclosure controls and procedures. In addition, we will incur additional costs associated with our public company reporting
requirements and maintaining directors' and officers' liability insurance. We are currently evaluating and
monitoring developments with respect to these rules, which may impose additional costs on us and materially affect our
business, financial condition and results of operations.
18
ESTIMATED
OFFERING COST
Blue Sky Group Holdings, Inc ("Blue Sky Group Holdings,
Inc," "Company," "we," or "us.") will apply the proceeds from the offering to pay for
accounting fees, legal and professional fees associated with the offering.
The total estimated costs of the offering do not exceed the
maximum amount of offering proceeds ($20,000,000). The estimated costs of the offering, which principally relate to professional
costs, are estimated to consist of:
SEC Registration fee
$
2320
NASD filing fee
100.00
Accounting fees and expenses
2400.00
Legal fees and expenses (relating to the preparation of our registration statement from inception to effective date and related documents)
750.00
Transfer agent fees
3,740.00
Blue Sky fees and expenses
3,800.00
Consulting Expenses
7000.00
Total
$
15,974.40
Blue Sky Group Holdings, Inc will pay all costs related to
this offering. If the amount of offering costs exceed the amount raised, this amount in excess of the offering proceeds will be
paid when necessary or otherwise accrued on the books and records of Blue Sky Group Holdings, Inc until we are able to pay the
full amounts due either from revenues or loans from our president and chief executive officer, related or unrelated parties that
we may approach. A significant portion of the estimated costs of the offering ($15,974) are legal fees and expenses
Our offering is being made on a best efforts
basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $20.00.
The following table sets forth the uses of proceeds assuming the sale 100%, 75%, 50% and 10% respectively, of the securities offered
for sale by the Company. There is no assurance that we will raise the full $20,000,000 as anticipated. The following scenarios
are for illustrative purposes only and the actual amounts of proceeds, if any, maydiffer.
$
20,000,000
$
15,000,000
$
10,000,000
$
2,000,000
Offering Costs
Net Proceeds
Acquisition of Mortgage Loans
Infrastructure
Purchase of Commercial Property
Selling and General Administrative
Purchase of Ginnie Mae Pool
Repurchase of Stock
Total
$
20,000,000
$
15,000,000
$
10,000,000
$
2,000,000
Our plans will not change regardless of whether the maximum
proceeds are raised, except to the extent indicated in MD&A "Liquidity" section, first paragraph.
19
THE OFFERING
The Company will have substantial costs
relating to this offering. We will also incur ongoing continuous costs to meet the reporting requirements of a public company.
These costs may very well exceed our current or anticipated revenues, significantly. However, the Company believes that the risks
are worth taking because management believes, based on its own observations which are not based on any formal studies, that potential
future vendors, consultants and manufacturers will have a higher regard in providing services for a public company than a small,
privately-held startup company. Management's belief is based solely on the advice and informal consultation with various
business and legal professionals who are known to us and have public company experience. These discussions have led us to believe
that being a public company may afford the business (management and its shareholders) with a higher degree of recognition than
would be typically attained as a small private (or non-public) company and may increase its ability and/or options to obtain financing
for its growth. In addition, by being a public company we believe increases the visibility of our future opportunities to raise
funds or to pay vendors by issuing restricted common stock rather than cash. We cannot predict the likelihood that our observations
and conclusions about the benefits of being a public company will prove accurate or beneficial to us.
We are offering for sale a maximum of
1,000,000 shares of common stock at a fixed price of $20.00 per share. There is no minimum number of shares that must be sold
by us for the offering to close, and we will retain the proceeds from the sale of any of the offered shares that are sold. The
offering is being conducted on a self-underwritten, best efforts basis, which means our president, and chief executive officer,
Chirag Patel, will attempt to sell the shares. This prospectus will permit our president and chief executive officer to sell the
shares directly to the public, with no commission or other remuneration payable to him for any shares that he may sell. Chirag
Patel will sell the shares and intends to offer them to friends, family members and business acquaintances. In offering the securities
on our behalf, Chirag Patel will rely primarily on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under
the Securities and Exchange Act of 1934. The intended methods of communication include, without limitation, telephone and personal
contacts.
As discussed above in connection with
Blue Sky Group Holdings, Inc's selling efforts in the offering, Chirag Patel will not register as a broker-dealer pursuant
to Section 15 of the Exchange Act, as amended, but rather will rely upon the "safe harbor" provisions of Rule 3a4-1,
promulgated under the Exchange Act, as amended. Generally speaking, Rule 3a4-1 provides an exemption from the broker-dealer registration
requirements of the Exchange Act for persons associated with an issuer that participate in an offering of the issuer's securities.
Chirag Patel is not subject to any statutory disqualification, as that term is defined in Section 3(a) (39) of the Exchange Act.
Mr. Chirag Patel will not be compensated in connection with his participation in the offering by the payment of commissions or
other remuneration based either directly or indirectly on transactions in our securities. Chirag Patel is not, nor has he been
within the past 12 months, a broker or dealer, and he is not, nor has he been within the past 12 months, an associated person
of a broker or dealer. At the end of the offering, Chirag Patel will continue to primarily perform duties for the Company or on
its behalf otherwise than in connection with transactions in securities. Chirag Patel will not participate in selling an offering
of securities for any issuer more than once every 12 months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii).
The proceeds from the sale of the shares
in this offering will be made payable to the Company. All subscription agreements and checks are irrevocable and should be delivered
to the Company at the address provided on the Subscription Agreement.
We will receive all proceeds from the
sale of up to 1,000,000 shares being offered. No proceeds will be received by any other entity other than the Company. The price
per share is fixed at $20.00 for the duration of this offering.
All subscribed funds will be held in a
noninterest-bearing account. Any subscribed funds may be immediately utilized by the Company prior to the completion of the offering.
The offering will be completed 180 days from the effective date of this prospectus (or such earlier date when all 1,000,000 shares
are sold), unless extended by our board of directors for an additional 180 days. There is no minimum number of shares that must
be sold in this offering. All subscription agreements and checks for payment of shares are irrevocable (except as to any states
that require a statutory cooling-off period or rescission right).
The Company will deliver stock certificates
attributable to shares of common stock purchased directly by the purchasers within 30 days of the close of this offering or as
soon thereafter as practicable.
20
We have the right to accept or reject
subscriptions in whole or in part, for any reason or for no reason. All monies from rejected subscriptions will be returned immediately
by us to the subscriber, without interest or deductions. Subscriptions for securities will be accepted or rejected within 48 hours
after we receivethem.
The offering may terminate on the earlier of:
i.
the date when the sale of all 1,000,000 shares is completed,
ii.
180 days from the effective date of this document or any
extension thereto.
The offering price of the common stock has been determined
arbitrarily and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets,
book value, historical earnings or net worth.
The purchase of the common stock in this
offering involves a high degree of risk. The common stock offered in this prospectus is for investment purposes only, and currently
no market for our common stock exists. While we plan to find a market maker to file a Rule 211 application with FINRA in order
to apply for the inclusion of our common stock in the OTCBB and OTCQB, such efforts may not be successful, and our shares may
never be quoted and owners of our common stock may not have a market in which to sell their shares. Also, no estimate may be given
as to the time that this application process may require
.
If we become able to have our shares of
common stock quoted on the OTCQB and/or OTCBB, we will then try, through a broker-dealer and its' clearing firm, to become
eligible with the DTC to permit our shares to be traded electronically. If an issuer is not "DTC-eligible," its shares
cannot be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists
today (especially the OTCQB and OTCBB), means that shares of a issuer will not be able to be traded (technically the shares can
be traded manually between accounts, but this may take days and is not a realistic option for issuers relying on broker-dealers
for stock transactions - like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility
is not a requirement to trade on the OTCQB or OTCBB, it is however a necessity to efficiently process trades on the OTCQB and
OTCBB if a company's stock is going to trade with any volume. There are no assurances that our shares will ever become DTC-eligible
or, if they do, how long it may take.
Since there is no minimum amount of shares
that must be sold by the company, you may receive no proceeds or very minimal proceeds from the offering and potential investors
may end up holding shares in a company that:
- Has not received enough proceeds from the offering to begin
operations; and
- Has no market for its shares.
Please refer to the sections of this prospectus
entitled "Risk Factors" and "Dilution" before making an investment in the common stock of the Company.
DETERMINATION OF OFFERING PRICE
The offering price of the common stock
has been arbitrarily determined and bears no relationship to any objective criterion of value. The price does not bear any relationship
to our assets, book value, any historical earnings or net worth. In determining the offering price, management considered such
factors as the prospects, if any, for similar companies, anticipated results of operations, present financial resources and the
likelihood of acceptance of this offering. No valuation or appraisal has been prepared for our business. We cannot assure you
that a public market for our securities will develop or continue or that the securities will ever trade at a price higher than
the offering price.
21
DILUTION
"Dilution" represents the
difference between the offering price of the shares of common stock hereby being offered and the net book value per share of common
stock immediately after completion of this offering. "Net book value" is the amount that results from subtracting total
liabilities from total assets. In this offering, the level of dilution is increased as a result of the relatively low net book
value of our issued and outstanding common stock and because the proceeds of the offering are substantially less than our estimated
costs. Assuming all of the shares of common stock offered herein are sold, the purchasers in this offering may lose the entire
value of their shares purchased in that each purchased share may have a negative net book value if raise less proceeds than the
cost of during the offering. Net book value of existing shareholders' shares will also decrease if the costs exceed the
proceeds received from this offering.
The following table illustrates the dilution to the purchasers
of the common stock in this offering (as of October 20, 2016):
Assuming the sale of:
500,000 shares
1,000,000 shares
Offering Price Per Share
$
20.00
$
20.00
Book Value Per Share Before the Offering
$
(0.00
)
$
(0.00
)
Book Value Per Share After the Offering
$
0.00
$
0.00
Net Increase to Original Shareholders
$
0.00
$
0.00
Decrease in Investment to New Shareholders
$
(0.
)
$
(0.0
)
The following table summarizes the number and percentage of
shares purchased the amount and percentage of consideration paid and the average price per Share paid by our existing stockholders
and by new investors in this offering:
Price Per Share
Number of Shares Held
Percentage of Ownership
Consideration
10,000,000 shares sold
Existing shareholders
$
20.00
20,250,000
100
%
Grant
Investors in this offering
$
20.00
500,000
2.50
%
$
10,000,000
20,000,000 shares sold
Existing shareholders
$
20.00
20,250,000
98.5
%
Grant
Investors in this offering
$
20.00
1,000,000
5.0
%
$
20,000,000
22
DIVIDEND POLICY
We have never paid cash or any other form
of dividend on our common stock, and we do not anticipate paying cash dividends in the foreseeable future. Moreover, any future
credit facilities might contain restrictions on our ability to declare and pay dividends on our common stock. We plan to retain
all earnings, if any, for the foreseeable future for use in the operation of our business and to fund the pursuit of future growth.
Future dividends, if any, will depend on, among other things, our results of operations, capital requirements and on such other
factors as our board of directors, in its discretion, may consider relevant.
MARKET FOR SECURITIES
There is no established public market
for our common stock, and a public market may never develop. No market maker has agreed to file an application with FINRA. There
can be no assurance as to whether such a market maker will agree to file an application or the market maker's application
will be accepted by FINRA nor can we estimate the time period that will be required for the application process. Even if our common
stock were quoted in a market, there may never be substantial activity in such market. If there is substantial activity, such
activity may not be maintained, and no prediction can be made as to what prices may prevail in such market.
If we become able to have our shares of
common stock quoted on the OTCQB and/or OTCBB, we will then try, through a broker-dealer and its' clearing firm, to become
eligible with the DTC to permit our shares to be traded electronically. If an issuer is not "DTC-eligible," its shares
cannot be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists
today (especially the OTCQB and OTCBB), means that shares of a issuer will not be able to be traded (technically the shares can
be traded manually between accounts, but this may take days and is not a realistic option for issuers relying on broker-dealers
for stock transactions - like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility
is not a requirement to trade on the OTCBB, it is however a necessity to efficiently process trades on the OTCQB or OTCBB if a
company's stock is going to trade with any volume. There are no assurances that our shares will ever become DTC-eligible
or, if they do, how long it may take.
We do not have common stock or equity subject to outstanding
options or warrants to purchase or securities convertible into our common stock or equity.
Mr. Chirag Patel, our president, and chief
executive officer (20,000,000). In general, under Rule 144, a holder of restricted common shares who is an affiliate at the time
of the sale or any time during the three months preceding the sale can resell shares, subject to the restrictions described below.
If we become a public reporting company
under the Exchange Act for at least 90 days immediately before the sale, then at least six months must have elapsed since those
shares were acquired from us or an affiliate, and we must remain current in our filings for an additional period of six months;
in all other cases, at least one year must have elapsed since the shares were acquired from us or an affiliate.
The number of shares sold by such person within any three-month
period cannot exceed the greater of:
-
1% of the total number of our common shares then outstanding;
or
-
The average weekly trading volume of our common shares
during the four calendar weeks preceding the date on which notice on Form 144 with respect to the sale is filed with the SEC (or,
if Form 144 is not required to be filed, then four calendar weeks preceding the date the selling broker receives the sell order)
(This condition is not currently available to the Company because its securities do not trade on a recognized exchange).
Conditions relating to the manner of sale, notice requirements
(filing of Form 144 with the SEC) and the availability of public information about us must also besatisfied.
23
All of the presently outstanding shares
of our common stock are "restricted securities" as defined under Rule 144 promulgated under the Securities Act and may
only be sold pursuant to an effective registration statement or an exemption from registration, if available. The SEC has adopted
final rules amending Rule 144 which have become effective on August 15, 2008. Pursuant to the new Rule 144, one year must elapse
from the time a "shell company," as defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act,
ceases to be a "shell company" and files a Form 8-K addressing Item 5.06 with such information as may be required
in a Form 10 Registration Statement with the SEC, before a restricted shareholder can resell their holdings in reliance on Rule
144. The Form 10 information or disclosure is equivalent to the information that a company would be required to file if it were
registering a class of securities on Form 10 under the Exchange Act. Under amended Rule 144, restricted or unrestricted securities
that were initially issued by a reporting or non-reporting shell company or a company that was at any time previously a reporting
or non-reporting shell company, can only be resold in reliance on Rule 144 if the following conditions are met:
1)	the issuer of the securities that was formerly a reporting
or non-reporting shell company has ceased to be a shell company;
2)	the issuer of the securities is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act;
3)	the issuer of the securities has
filed all reports and material required to be filed under Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding
twelve months (or shorter period that the Issuer was required to file such reports and materials), other than Form 8-K reports;
and
4)	at least one year has elapsed from
the time the issuer filed the current Form 10 type information with the SEC reflecting its status as an entity that is not a shell
company.
At the present time, we are classified as a "shell company"
under Rule 405 of the Securities Act Rule 12b-2 of the Exchange Act. At the present time, we are classified as a "shell
company" under Rule 405 of the Securities Act Rule 12b-2 of the Exchange Act.
As such, all restricted securities presently held by our sole
stockholder may not be resold in reliance on Rule 144 until: (1) we file a Form 8-K addressing Item 5.06 with such information
as may be required in a Form 10 Registration Statement with the SEC when we cease to be a "shell company"; (2) we
have filed all reports as required by Section 13 and 15(d) of the Securities Act for twelve consecutive months; and (3) one year
has elapsed from the time we file the Form 8-K with the SEC reflecting our status as an entity that is not a "shell company."
Current Public Information
In general, for sales by affiliates and non-affiliates, the
satisfaction of the current public information requirement depends on whether we are a public reporting company under the Exchange
Act:
-
If we have been a public reporting company for at
least 90 days immediately before the sale, then the current public information requirement is satisfied if we have filed all periodic
reports (other than Form 8-K) required to be filed under the Exchange Act during the 12 months immediately before the sale (or
such shorter period as we have been required to file those reports).
-
If we have not been a public reporting company for
at least 90 days immediately before the sale, then the requirement is satisfied if specified types of basic information about
us (including our business, management and our financial condition and results of operations) are publicly available.
ever, no assurance can be given as to:
-
the likelihood of a market for our common shares developing,
-
the liquidity of any such market,
-
the ability of the shareholders to sell the shares,
or
-
the prices that shareholders may obtain for any of
the shares.
No prediction can be made as to the effect,
if any, that future sales of shares or the availability of shares for future sale will have on the market price prevailing from
time to time. Sales of substantial amounts of our common shares, or the perception that such sales could occur, may adversely
affect prevailing market prices of the commonshares.
24
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters discussed herein are forward-looking
statements. Such forward-looking statements contained in this prospectus which is a part of our registration statement involve
risks and uncertainties, including statements as to:
-
our future operating results;
-
our business prospects;
-
any contractual arrangements and relationships with third
parties;
-
the dependence of our future success on the general economy;
-
any possible financings; and
-
the adequacy of our cash resources and working capital.
These forward-looking statements can generally
be identified as such because the context of the statement will include words such as we "believe," "anticipate,"
"expect," "estimate" or words of similar meaning. Similarly, statements that describe our future plans,
objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties
which are described in close proximity to such statements and which could cause actual results to differ materially from those
anticipated as of the date of this prospectus. Shareholders, potential investors and other readers are urged to consider these
factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
The forward-looking statements included herein are only made as of the date of this prospectus, and we undertake no obligation
to publicly update such forward-looking statements to reflect subsequent events or circumstances.
25
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OFOPERATION
We are an
emerging growth company as defined in Section 2(a)(19) of the Securities Act. We will continue to be an emerging growth
company until: (i) the last day of our fiscal year during which we had total annual gross revenues of $1,000,000,000 or more;
(ii) the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common stock
pursuant to an effective registration statement under the Securities Act; (iii) the date on which we have, during the
previous 3-year period, issued more than $1,000,000,000 in non-convertible debt; or (iv) the date on which we are deemed to
be a large accelerated filer, as defined in Section 12b-2 of the Exchange Act.
As an emerging growth company, we are exempt from:
•
Sections 14A(a) and (b) of the Exchange Act, which require
companies to hold stockholder advisory votes on executive compensation and golden parachute compensation;
•
The requirement to provide, in any registration statement,
periodic report or other report to be filed with the Securities and Exchange Commission (the "Commission" or "SEC"),
certain modified executive compensation disclosure under Item 402 of Regulation S-K or selected financial data under Item 301
of Regulation S-K for any period before the earliest audited period presented in our initial registration statement;
•
Compliance with new or revised accounting standards until
those standards are applicable to private companies;
•
The requirement under Section 404(b) of the Sarbanes-Oxley
Act of 2002 to provide auditor attestation of our internal controls and procedures; and
•
Any Public Company Accounting Oversight Board ("PCAOB")
rules regarding mandatory audit firm rotation or an expanded auditor report, and any other PCAOB rules subsequently adopted unless
the Commission determines the new rules are necessary for protecting thepublic.
We have elected to use the extended transition
period for complying with new or revised accounting standards under Section 102(b)(1) of the Jumpstart Our Business Startups Act.
We are also a smaller reporting company
as defined in Rule 12b-2 of the Exchange Act. As a smaller reporting company, we are not required to provide selected financial
data pursuant to Item 301 of Regulation S-K, nor are we required to comply with the auditor attestation requirements of Section
404(b) of the Sarbanes-Oxley Act of 2002. We are also permitted to provide certain modified executive compensation disclosure
under Item 402 of Regulation S-K.
Blue Sky Group Holdings, Inc is a development
stage company focusing on the development of recreational amusement parks based upon innovative hover board technology. We are
a development stage company and have limited financial resources. Our financial statements include a note emphasizing the uncertainty
of our ability to remain as a going concern.
Company Overview
Product Overview
The company also intends to generate revenues by the origination
and sell of prime mortgages.
26
Our Plan
Our plan is to continue as a going concern until we reach the
point where we begin generating sufficient revenues from our product(s) or services to meet our obligations on a timely basis.
We may not be able to finish the development of any products in the future because of a lack of available funds or financing to
do so. In the early stages of our operations, we will continue to keep costs to a minimum. The cost to develop our business plan
as currently outlined below may be in excess of $20,000,000. To the extent the development is more costly and our current funds
to undertake the business plan are insufficient, we will need to obtain additional funding. If we are unable to obtain adequate
funding or financing, the Company faces the ultimate likelihood of business failure. There are no assurances that we will be able
to raise any funds or establish any financing program for the Company's growth.
The following outlines the steps or stages that we expect to
encounter and the necessary funding needed for each stage. Within each stage we have outlined the metrics or performance that
we must accomplish as we move forward with our business plan. This should enable the Company to continue as a going concern as
long as we are able to seek additional financing on acceptable terms.
Stage One (Months 1 – 3) ($20,000,,000 est. costs)
Blue Sky Group Holdings, Inc Management has developed the
following plan to purchase Performing and non performing mortgages and sell them to credit agencies or service them in house.
The demographic profile that the Company will continue use for its marketing campaigns and credit guidelines. Much like other
mortgage banking firms, the business continually maintain strict controls over its lending procedures to ensure that defaults
are kept to an absolute minimum. Below is Management's average customer profile:
•
Household income of $50,000+
•
FICO Score of 680 or higher
•
Is seeking a mortgage loan of $150,000 to $300,000
•
Has documented income (W-2) or an extended history of
independently earned income.
Blue Sky Group Holdings, Inc will grow through three main
avenues:
•          The successful marketing and growth of the Company's
financial infrastructure through the acquisition of larger warehouse lines of credit.
•          Continued implementation of streamlined methods
for closing and selling loans while conforming to all state and federal level laws.
•          Continue to develop relationships
with investors and institutional loan buyers so that the Company can quickly divest its loan and lending assets at a premium while
retaining servicing rights for originated financings. This will be achieved once the business acquires its warehouse credit facilities.
•          Blue sky mortgage understands that the refinance
boom will potentially be declining with HARP coming to an end within the next year and the market shifting a purchase market.
While there is still a possibility of an extension and expansion of HARP, we already make preparations for focusing a significant
portion of our resources on REO asset management which is positioning Blue Sky Mortgage strongly into the home purchase market.
Furthermore, Blue sky mortgage has multiple home builders and realtor contacts that have assured multiple referrals to the company
for their client's needs.
Marketing Objectives
•          Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.
•          Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company's targeted Southwestern and Midwestern
United States markets.
•          Continue to make substantial reinvestments into
the Company's online visibility.
Marketing Objectives
•          Continue to establish a strong presence in among
the 20 states that the Company will target from the onset of operations.
•          Development of strategic marketing relationships
with a number of mortgage brokers, attorneys, and accountants throughout the Company's targeted Southwestern and Midwestern
United States markets.
•          Continue to make substantial reinvestments into
the Company's online visibility (via www.blueskymortgageloans.com).
27
As mentioned above the time-line estimate(s)
(stages) are predicated upon the Company obtaining the necessary financing either through our offering or additional equity or
debt financing. If we are not able to obtain the necessary levels of financing as determined by the above stages, we will not
be able to meet or achieve any of the time-line objectives. In that case the Company will be forced to proceed on a piecemeal
basis using primarily the services of board of directors and our president and chief executive officer and limited use of outside
contractors when and if limited funds are obtained. Our president and chief executive officer devotes in excess of twenty (20)
hours a week to our continued business efforts. There is no realistic way to predict the timing or completion in that scenario.
Our business plan requires further completion of these tasks
which will require the hiring of employees and/or outside contractors. With the level of sophistication and expertise of our president
and chief executive officer, as well as other various industry professionals that she knows, the Company should make further progress
in its development of the intended products and services for its planned divisions, but currently no specific timeframe can be
provided. Most if not all of these actions will be predicated on the Company obtaining the necessary financing to accomplish these
steps. If financing is not available on terms reasonable to the Company and its shareholders, then the progression steps of this
business plan will not occur as planned and may never occur.
We currently have no additional sources of financing and no
commitments for financing. There are no assurances that we will obtain sufficient financing or the necessary resources to enter
into contractual agreements with outside developers or sales/marketing firms. If we do not receive any funding or financing, our
business is likely to be maintained with limited operations for at least the next 12 months because our president and chief executive
officer, will continue providing her professional services without current compensation. We do not currently have a formal agreement
in place with our president and chief executive officer covering this period; however, our president and chief executive officer's
current plan is to do substantially all administrative and planning work as well as basic programming and marketing work on her
own without cash compensation while she seeks other sources of funding for the Company.
As a corporate policy, we will not incur any cash obligations
that we cannot satisfy with known resources, of which there are currently none except as described in "Liquidity"
below and/or elsewhere in this prospectus. We believe that the perception that many people have of a public company make it more
likely that they will accept restricted securities from a public company as consideration for indebtedness to them than they would
from a private company. We have not performed any studies of this matter. Our conclusion is based on our own observations. However,
there can be no assurances that we will be successful in any of those efforts even if we become a public entity. Additionally,
the issuance of restricted shares will dilute the percentage of ownership interest of our stockholders.
28
Potential Revenue
Revenues and Losses for Period Ended October 24, 2016
Liquidity
We will pay all costs relating to this offering estimated at
$15,974. This amount will be paid as and when necessary and required or otherwise accrued on the books and records of Blue Sky
Group Holdings, Inc until we are able to pay the full amount due either from revenues or loans from a related or unrelated third
party. Absent sufficient revenues to pay these amounts within six months from the date of this prospectus, we will seek financial
assistance from our shareholders or a third party who may agree to loan us the funds to cover the balance of outstanding professional
and related fees relating to our prospectus to the extent that such liabilities cannot be extended or satisfied in other ways
and our professionals insist upon payment. If and when loaned, the loans will be evidenced by a noninterest-bearing unsecured
corporate note to be treated as a loan until repaid, if and when Blue Sky Group Holdings, Inc has the financial resources to do
so. No formal written arrangement exists with respect to anyone's commitment to loan funds for this purpose.
Since acquiring the Blue Sky Group Holdings, Inc. business
plan, most of our resources and work have been devoted to planning our business, web site development, Infrastructure, Blue Sky
Group Holdings, Inc systems and controls, and completing our registration statement. When those procedures are done, which we
believe will occur over the next few months, we will primarily work on our intended service offerings as well further internal
development of Blue Sky Group Holdings, Inc.
We believe that the work needed to originate and acquire Prime
Loans will be between $20,000,000. If we are able to secure funding for these procedures, of which there are no assurances, we
can commence the launch of Blue Sky Group Holdings, Inc to the public.
If we are only able to use internal resources only (primarily
consisting of the services of our board of directors, president and chief executive officer), the process will take much longer
and our initial launch may be limited to a much smaller target market.
If we are unable to raise any funds, the development costs
would have to be provided by our board of directors or president and chief executive officer to the extent that he is capable
and willing to provide such funds.
Private capital, if sought, we believe will be sought from
former business associates of our president and chief executive officer or through private investors referred to us by those same
business associates
We have limited our cash use and our cash can sustain our current
operations for approximately 12 months.
If a market for our shares ever develops, of which there can
be no assurances, we may use restricted shares of our common stock to compensate employees/consultants and independent contractors
wherever possible. We cannot predict the likelihood or source of raising capital or funds that may be needed to complete the development
of our business plan and its stages as outlined above.
We have embarked upon an effort to become a public company
and, by doing so, have incurred and will continue to incur additional significant expenses for legal, accounting and related services.
Once we become a public entity, subject to the reporting requirements of the Exchange Act of 1934, we will incur ongoing expenses
associated with professional fees for accounting, legal and a host of other expenses including annual reports and proxy statements,
if required. We estimate that these costs will range up to $50,000 per year over the next few years and may be significantly higher
if our business volume and transactional activity increases but should be lower during our first year of being public because
our overall business volume (and financial transactions) will be lower, and we will not yet be subject to the requirements of
Section 404(b) of the Sarbanes-Oxley Act of 2002 relating to having our independent registered public accounting firm attest to,
and report on, management's assessment of its internal controls until we exceed $75 million in market capitalization (if
ever).
29
These obligations will certainly reduce our ability and resources
to expand our business plan and activities. We hope to be able to use our status as a public company to increase our ability to
use noncash means of settling outstanding obligations (i.e. issuance of restricted shares of our common stock) and compensate
independent contractors who provide professional services to us, although there can be no assurances that we will be successful
in any of these efforts.
We will also reduce compensation levels paid to management
(if we attract or retain outside personnel to perform this function) if there is insufficient cash generated from operations to
satisfy these costs.
There are no current plans to seek private investment. We do
not have any current plans to raise funds through the sale of securities except as set forth herein. We hope to be able to use
our status as a public company to enable us to use non-cash means of settling obligations and compensate persons and/or firms
providing services to us, although there can be no assurances that we will be successful in any of those efforts. However, these
actions, if successful, will result in dilution of the ownership interests of existing shareholders, may further dilute common
stock book value, and that dilution may be material. Such issuances may also serve to enhance existing management's ability
to maintain control of Blue Sky Group Holdings, Inc, because the shares may be issued to parties or entities committed to supporting
existing management.
Blue Sky Group Holdings, Inc may offer shares of its common
stock to settle a portion of the professional fees incurred in connection with its registration statement. No negotiations have
taken place with any professional and no assurances can be made as to the likelihood that any professional will accept shares
in settlement of obligations due them
The Company's financial statements are prepared
using generally accepted accounting principles in the United States of America applicable to a going concern, which
contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has not
yet established a stable ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a
going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its
shareholders, the ability of the Company to obtain necessary financing to sustain operations and the attainment of profitable
operations. The Company had an accumulated deficit of approximately $15,974.00 as of October 24, 2016 . In addition the
Company has total shareholders' deficit of approximately $15,974.00 as of October 24, 2016. These factors, among
others, raise substantial doubt as to its ability to continue as a going concern.
In order to continue as a going concern, the Company needs
to develop a reliable source of revenues, and achieve a profitable level of operations. During the Three months ended October
24, 2016 and 2014 and the year ended December 31, 2015, the Company has been involved primarily with development of operations
and applying to trade in the public market. The Company has continued to organize and structure to meet the needs of shareholders
and attract suitable financing.
To fund operations for the next twelve months, the Company
projects a need for $20,000,000 that will have to be raised through debt or equity.
If the Company is unable to obtain adequate capital, it could
be forced to cease operations. Accordingly, the accompanying financial statements are accounted for as if the Company is a going
concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amount and classification of liabilities or other adjustments that might be necessary should be Company be unable to continue
as a going concern
Recently Issued Accounting Pronouncements
The Company has implemented all new accounting pronouncements
that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements
that have been issued that might have a material impact on its financial position or results of operations.
30
Critical Accounting Policies
The preparation of financial statements and related notes requires
us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses,
and related disclosure of contingent assets and liabilities. An accounting policy is considered to be critical if it requires
an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made,
and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely
to occur periodically, could materially impact the financial statements. Financial Reporting Release No. 60 requires all companies
to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are
no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain
at the time the estimate is made. See notes to the financial statements, included elsewhere in this prospectus, includes a summary
of the significant accounting policies and methods used in the preparation of our financial statements
Seasonality
We have not noted a significant seasonal impact in our business
(or businesses like ours) although having just commenced operations it is too early to tell.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements, as defined in Item
303(a)(4)(ii) of Regulation S-K, obligations under any guarantee contracts or contingent obligations. We also have no other commitments,
other than the costs of being a public company that will increase our operating costs or cash requirements in the future.
BUSINESS
The Company
We are an emerging growth company as defined in Section 2(a)
(19) of the Securities Act. Pursuant to Section 107 of the Jumpstart Our Business Startups Act, we may take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards,
meaning that we can delay the adoption of certain accounting standards until those standards would otherwise apply to private
companies. We have chosen to take advantage of the extended transition period for complying with new or revised accounting standards
applicable to public companies to delay adoption of such standards until such standards are made applicable to private companies.
Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such
new or revised accounting standards.
31
Market Overview
Marketing Strategy
The Company has conducted limited advertising and marketing
to date as the primary focus of the Company since inception has been to concentrate on beginning its construction and development
efforts.].
We expect to utilize common multi-targeted marketing approaches
used in the entertainment field, including:
•
Participation at trade shows and conferences to increase
awareness
•
Television campaigns (National)
•
Direct mail campaigns to our online subscribers
•
Testimonials from Hover Air Boarders
•
Trade publications
•
Transit Shelters
•
Bus
•
Malls
•
Airports
•
Spectacolor
Strategic Partners and Suppliers
Market Opportunity
Pricing
32
Competition
Sales Strategy
Intellectual Property
Trademark applications
Litigation
We are not party to any pending, or to our knowledge, threatened
litigation of any type.
Chirag Patel
– Mr. Patel
began his professional career as a loan consultant with LMI Funding in Plano, Texas. He held this position from February of 2006
to March of 2008. In this position, he produced more than $14 million of loan volume. He also developed an internal loan review
program and restructured the business' processing resulting in a more streamlined pipeline. From March of 2008 to December
of 2010, Chirag was a Senior Mortgage Consultant and Business Development Specialist with Town Square Financial in Frisco, Texas.
In this position, he co-launched and managed a completely new business platform from its inception. This program resulted in $11
million of loan volume per month. Within eight months this program began to produce $60 million of loan volume. Here, he also
boarded seven new branches and strengthened secondary pricing. Currently, Mr. Patel is a Finance Mortgage Professional within
Blue Sky Group Holdings Mortgage. He was the top producer in 2012 for number of locks, conversions, and funding. He was responsible
for $25 million of loan closings within 2012. He managed and maintained an existing pipeline of $55 million among more than 200
loans. For 2013, Chirag has averaged $10 million per month and 40 loans closed per month. Mr. Patel holds a bachelor's degree
in business administration (with a concentration on finance) from the University of Texas at Arlington. He graduated in 2003.
Cyrus Sajna
Mr. Cyrus Sajna serves as a CFO of the
Company. Mr. Cyrus Sajna is also the managing partner and Chief Operating Officer of Hoverink Opportunities Fund, LP a Delaware
Private Equity Fund and is a Managing Member of Hoverink Capital Management, LLC. which is registered as an exempt reporting adviser
with the State of Texas under the exemption available to managers of private funds pursuant to Section §139.23 of 7 Texas
Administrative Code. He has 7 years of experience in investor relations, marketing, communications and general management. He
has in the past helped garner agreements with NASDAQ OMX GROUP and NASDAQ Private Market to facilitate completing an IPO; and
consulted entities seeking to become fully reporting companies and Trade on various platforms including; OTCQX U.S., OTCQX International,
OTCQX U.S. Premier, OTCQB, OTC PINK and provided consulting services involving the 15C2-11 application process and provisions
to ensure the market maker has adequate disclosures for completing the application with FINRA. Mr. Sajna attended Chicago State
University as a Pre-Med Major with an interest in Pediatric Cardiology and Mr. Sajna attended S&P 500 Open Outcry trading
training sessions at the Chicago Mercantile Exchange where he learned to pit trade the S&P 500. Mr. Sajna is knowledgeable
in the securities laws and regulations effecting reporting company.
Possible Potential Conflicts
The OTCQB and OTCBB on which we plan to have our shares of
common stock quoted does not currently have any director independence requirements.
No member of management will be required by us to work on a
full time basis. Accordingly, certain conflicts of interest may arise between us and our officer(s) and director(s) in that they
may have other business interests in the future to which they devote their attention, and they may be expected to continue to
do so although management time must also be devoted to our business. As a result, conflicts of interest may arise that can be
resolved only through their exercise of such judgment as is consistent with each officer's understanding of his/her fiduciary
duties to us.
Currently we have only two officers and three directors and
will seek to add additional officer(s) and/or director(s) as and when the proper personnel are located and terms of employment
are mutually negotiated and agreed, and we have sufficient capital resources and cash flow to make such offers.
We cannot provide assurances that our efforts to eliminate
the potential impact of conflicts of interest will be effective.
33
Code of Business Conduct and Ethics
In October 2016, we adopted a Code of Ethics and Business Conduct
which is applicable to our future employees and which also includes a Code of Ethics for our founders, president, chief executive
officer, and principal financial officers and any persons performing similar functions.
A code of ethics is a written standard designed to deter wrongdoing
and to promote:
Name
Age
Position
Year Commenced
Cyrus Sajna
34
CFO
2016
Chirag Patel
36
CEO, Principal Executive Officer,
2016
Treasurer, Chairman,
-	honest and ethical conduct,
-	full, fair, accurate, timely and understandable disclosure
in regulatory filings and public statements,
-	compliance with applicable laws, rules and regulations,
the prompt reporting violation of the code, and
-	accountability for adherence to the code.
A copy of our Code of Business Conduct and Ethics has been
filed with the Securities and Exchange Commission as an Exhibit to our Registration Statement.
Board of Directors
All directors will hold office until the completion of their
term of office, which is not longer than one year, or until their successors have been elected. Our current directors' term
of office expires on Feb 15, 2016. All officers are appointed annually by the board of directors subject to existing employment
agreements (of which there are currently none) and will serve at the discretion of the board.
Currently, directors receive compensation for their role as
directors and may receive compensation for their role as officers.
As long as we have no additional directors besides our current
board all votes on issues are resolved in favor of the board's vote.
Involvement in Certain Legal Proceedings
Except as described below, during the past ten years, no present
director, executive officer or person nominated to become a director or an executive officer of Blue Sky Group Holdings, Inc :
-	the prompt reporting violation of the code, and
-	accountability for adherence to the code.
1.	had a petition under the federal bankruptcy laws or any
state insolvency law filed by or against, or a receiver, fiscal agent or similar officer appointed by a court for the business
or property of such person, or any partnership in which he was a general partner at or within two years before the time of such
filing, or any corporation or business association of which he was an executive officer at or within two years before the time
of such filing;
2.	was convicted in a criminal proceeding or subject to
a pending criminal proceeding (excluding traffic violations and other minor offenses);
3.	was subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining his from or otherwise
limiting his involvement in any of the following activities:
34
i.	acting as a futures commission merchant, introducing
broker, commodity trading advisor commodity pool operator, floor broker, leverage transaction merchant, any other person regulated
by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and
loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;
ii.	engaging in any type of business practice; or
iii.	engaging in any activity in connection with the purchase
or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities
laws; or
4.	was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of an federal or state authority barring, suspending or otherwise limiting for more
than 60 days the right of such person to engage in any activity described in paragraph (3) (i), above, or to be associated with
persons engaged in any such activity; or
5.	was found by a court of competent jurisdiction (in a
civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or
state securities or commodities law, and for which the judgment has not been reversed, suspended or vacated.
Committees of the Board of Directors
Concurrent with having sufficient members and resources, the
Blue Sky Group Holdings, Inc board of directors will establish an audit committee and a compensation committee. We believe that
we will need a minimum of five directors to have effective committee system
s
. The audit committee will review the results
and scope of the audit and other services provided by the independent auditors and review and evaluate the system of internal
controls. The compensation committee will manage any stock option plan we may establish and review and recommend compensation
arrangements for the officers. No final determination has yet been made as to the memberships of these committees or when we will
have sufficient members to establish committees. See "Executive Compensation" hereinafter.
All directors will be paid by Blue Sky
Group Holdings, Inc and shall be reimbursed for any expenses incurred in attending directors' meetings provided that Blue Sky
Group Holdings, Inc has the resources to pay these fees. Blue Sky Group Holdings, Inc will consider applying for officers and
directors liability insurance at such time when it has the resources to do so.
35
Summary Executive Compensation Table
The following table shows, for the period from March 30, 2015
to June 30, 2015, compensation awarded to or paid to, or earned by, our Board of directors and our Chief Executive Officer (the
"Named Executive Officer").
SUMMARY COMPENSATION TABLE
Name
and
principal
position
(a)
Year
(b)
Salary
($)
(c)
Bonus
($)
(d)
Stock
Awards
($)
(e)
Option
Awards
($)
(f)
Non-Equity
Incentive
Plan
Compensation
($)
(g)
Nonqualified
Deferred
Compensation
Earnings
($)
(h)
All Other
Compensation
($)
(i)
Total
($)
(j)
1
Chairman of the Board, President
-
-
-
-
-
There is no formal employment arrangement with Chirag Patel,
Cyrus Sajna at this time. Chirag Patel's compensation has not been fixed or based on any percentage calculations. He will
make all decisions determining the amount and timing of his compensation and, for the immediate future, has elected to receive
directors compensation which permits us to meet our financial obligations. Chirag Patel's and all executive's compensation
amount's may be formalized if and when the Company completes this offering and obtains any future financing beyond the offering.
Grants of Plan-Based Awards Table
None of our named executive officers received
any grants of stock, option awards or other plan-based awards during the period of October 24, 2016 except as stated above. The
Company has no activity with respect to these awards.
Options Exercised and Stock Vested Table
None of our named executive officers exercised
any stock options, and no restricted stock units, if any, held by our named executive officers vested during the period ended
October 24, 2016 . The Company has no activity with respect to these awards.
Outstanding Equity Awards at Fiscal Year-End Table
None of our named executive officers had
any outstanding stock or option awards as of October 24, 2016 that would be compensatory to the officer. The Company has not issued
any awards to its named executive officers. The Company and its Board of Directors may grant awards as it sees fit to its employees
as well as key consultants.
36
PRINCIPAL SHAREHOLDERS
As of October 20, 2016, we had 20,250,000 shares of common
stock outstanding which are held by 2 shareholders. The chart below sets forth the ownership, or claimed ownership, of certain
individuals and entities. This chart discloses those persons known by the board	of directors to have, or claim to have, beneficial
ownership of more than 5% of the outstanding shares of our common stock as of Oct 31, 2016; of all directors and executive officers
of Blue Sky Group Holdings, Inc; and of our directors and officers as a group.
Chirag Patel
20,000,000
98.5
%
Cyrus Sajna
250,000
1.5
All Officers and Directors
as a group (2 persons)
20,250,000
100
%
(2)        Item 403 of Regulation S-K under Rule 13d-3; we disclose
that Chirag Patel currently is the beneficial owner 98.5% of the shares outstanding currently.
(3)        * Means less than (1) percent
CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS
The only promoters of Blue Sky Group Holdings, Inc would be
Chirag Patel president, and chief executive officer, and principal financial officer. Our office and mailing address is . The
space is provided to us by Chirag Patel who incurs no incremental costs as a result of our using the space. Therefore, he does
not charge us for its use. There is no written lease agreement.
The Company issued 20,000,000 shares to Chirag Patel our president,
and chief executive officer, and 250,000 to our Cyrus Sajna, Chief Financial Officer.
DESCRIPTION OF CAPITAL STOCK
Introduction
The Company is authorized to issue 100,000,000 shares of common
stock, par value $0.01, of which [20,250,000] Shares are outstanding as of the date of the registration statement, of which this
prospectus is a part.
Preferred Stock
None. We presently do not have plans to
authorize or issue any shares of preferred stock. However, preferred stock could be used to dilute a potential hostile acquirer.
Accordingly, any future issuance of preferred stock or any rights to purchase preferred shares may have the effect of making it
more difficult for a third party to acquire control of us. This may delay, defer or prevent a change of control in our Company
or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings attributable
to, and assets available for distribution to, the holders of our common stock and could adversely affect the rights and powers,
including voting rights, of the holders of our common stock.
Common Stock
Our certificate of incorporation authorizes the issuance of
100,000,000 shares of common stock. There are 20,250,000 shares of our common stock issued and outstanding at October 24, 2016
that is held by 2 shareholders. The holders of our common stock:
37
-
have equal ratable rights to dividends from funds
legally available for payment of dividends when, as and if declared by the board of directors;
-
are entitled to share ratably in all of the assets
available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs;
-
do not have preemptive, subscription or conversion
rights, or redemption or access to any sinking fund; and
-
are entitled to one non-cumulative vote per share
on all matters submitted to stockholders for a vote at any meeting of stockholders
See also Plan of Distribution regarding negative implications
of being classified as a "Penny Stock."
Authorized but Un-issued Capital Stock
Delaware law requires stockholder approval
for any issuance of authorized shares. These additional shares may be used for a variety of corporate purposes, including future
public offerings to raise additional capital or to facilitate corporate acquisitions.
One of the effects of the existence of
un-issued and unreserved common stock (and/or preferred stock) may be to enable our board of directors to issue shares to persons
friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our board
by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly
deprive the stockholders of opportunities to sell their shares of our common stock at prices higher than prevailing market prices.
Shareholder Matters
As an issuer of "penny stock"
the protection provided by the federal securities laws relating to forward looking statements does not apply to us if our shares
are considered to be penny stocks which they currently are and probably will be for the foreseeable future. Although the federal
securities law provide a safe harbor for forward-looking statements made by a public company that files reports under the federal
securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this
safe harbor protection in the event of any claim that the material provided by us, including this prospectus, contained a material
misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make
the statements not misleading.
Certain provisions of Delaware law described
below create rights that might be deemed material to our shareholders. Other provisions might delay or make more difficult acquisitions
of our stock or changes in our control or might also have the effect of preventing changes in our management or might make it
more difficult to accomplish transactions that some of our shareholders may believe to be in their best interests.
Amendments to Bylaws
-
Our articles of incorporation
provide that the power to adopt, alter, amend, or repeal our bylaws is vested exclusively with the board of directors. In exercising
this discretion, our board of directors could conceivably alter our bylaws in ways that would affect the rights of our shareholders
and the ability of any shareholder or group to effect a change in our control; however, the board would not have the right to
do so in a way that would violate law or the applicable terms of our articles of incorporation.
38
Transfer Agent
The Transfer Agent for our common stock is:
VStock Transfer,
LLC
18 Lafayette Place
Woodmere, New York 11598
Phone: (212) 828-8436
Mobile: (516) 317-3912
F
acsimile: (646) 536-3179
www.VStockTransfer.com
PLAN OF DISTRIBUTION
There is no public market for our common
stock. Our common stock is currently held by 2 shareholders. Therefore, the current and potential market for our common stock
is limited and the liquidity of our shares may be severely limited. No market maker has agreed to file an application with FINRA.
There can be no assurance as to whether a market maker will file an application with FINRA or such market maker's application
will be accepted by FINRA nor can we estimate the time period that will be required for the application process. In the absence
of quotation or listing, no market is available for investors in our common stock to sell their shares. We cannot provide any
assurance that a meaningful trading market will ever develop or that our common stock will ever be quoted or listed for trading.
If the shares of our common stock ever
become tradable, the trading price of our common stock could be subject to wide fluctuations in response to various events or
factors, many of which are beyond our control. As a result, investors may be unable to sell their shares at or greater than the
price at which they are being offered.
The common stock offered by this prospectus is being offered
by the company. The common stock may be sold or distributed from time to time by the company directly to one or more purchasers
or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at
prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the
common stock offered by this prospectus could be effected in one or more of the following methods: ordinary brokers' transactions,
transactions involving cross or block trades, through brokers, dealers, or underwriters who may act solely as agents, "at
the market" into an existing market for the common stock, in other ways not involving market makers or established business
markets, including direct sales to purchasers or sales effected through agents; in privately negotiated transactions; or any combination
of the foregoing.
This offering will be conducted on a best-efforts
basis utilizing the efforts of Chirag Patel, president, and chief executive officer of the Company. Potential investors include,
but are not limited to, family, friends and acquaintances of Chirag Patel . The intended methods of communication include, without
limitation, telephone calls and personal contact. In his endeavors to sell this offering, Mr. Chirag Patel will not use any mass
advertising methods such as the internet or print media.
Funds received in connection with the sale
of our securities will be transmitted immediately into an non-interest bearing account.
There can be no assurance that all, or any, of the shares will
be sold.
Chirag Patel will not receive commissions
for any sales originated on our behalf. We believe that Chirag Patel is exempt from registration as a broker under the provisions
of Rule 3a4-1 promulgated under the Exchange Act. In particular, Chirag Patel :
1.
Is not subject to a statutory disqualification, as
that term is defined in Section 3(a)39 of the Act, at the time of his participation;
a.
Is not to be compensated in connection with his participation
by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities;
b.
Is not an associated person of a broker or dealer; and
c.
Meets the conditions of the following:
i.
Primarily performs, or is intended primarily to perform
at the end of the offering, substantial duties for or on behalf of the issuer otherwise than in connection with transactions in
securities;
ii.
Was not a broker or dealer, or associated persons of a
broker or dealer, within the preceding 12 months; and
39
iii.
Did not participate in selling an offering of securities
for any issuer more than once every 12 months other than in reliance on paragraphs within this section, except that for securities
issued pursuant to Rule 415 under the Securities Act of 1933, the 12 months shall begin with the last sale of any security included
within a Rule 415 registration
No officers or directors of the Company may purchase any securities
in this offering.
There can be no assurance that all, or
any, of the shares will be sold. As of this date, we have not entered into any agreements or arrangements for the sale of the
shares with any broker/dealer or sales agent. However, if we were to enter into such arrangements, we will file a post-effective
amendment to disclose those arrangements because any broker/dealer participating in the offering would be acting as an underwriter
and would have to be so named herein. In order to comply with the applicable securities laws of certain states, the securities
may not be offered or sold unless they have been registered or qualified for sale in such states or an exemption from such registration
or qualification requirement is available and with which we have complied. The purchasers in this offering and in any subsequent
trading market must be residents of such states where the shares have been registered or qualified for sale or an exemption from
such registration or qualification requirement is available. As of this date, we have not identified the specific states where
the offering will be sold.
The proceeds from the sale of the shares
in this offering will be payable to the Company, and will be deposited in a noninterest- bearing bank account until the subscription
agreements are accepted by the Company. Failure to do so will result in checks being returned to the investor who submitted the
check. No interest will be paid to any shareholder or the Company. All subscription agreements and checks are irrevocable (except
as to any states that require a statutory cooling-off period or rescission right). All subscription funds may be held in the Escrow
Account pending acceptance of the subscriptions by Blue Sky Group Holdings, Inc, and funds will be released to Blue Sky Group
Holdings, Inc, as received, until the maximum offering has been subscribed.
Investors can purchase common stock in
this offering by completing a Subscription Agreement, a copy of which is filed as an Exhibit to the registration statement of
which this prospectus is a part, and sending it together with payment in full. All payments must be made in U.S. currency either
by personal check, bank draft, or cashier check. There is no minimum subscription requirement. All subscription agreements and
checks are irrevocable (except as to any states that require a statutory cooling-off period or rescission right). The Company
expressly reserves the right to either accept or reject any subscription. Any subscription rejected will be returned to the subscriber
within five business days of the rejection date. Furthermore, once a subscription agreement is accepted, it will be executed without
reconfirmation to or from the subscriber. Once we accept a subscription, the subscriber cannot withdraw it.
Any purchasers of our securities should
be aware that any market that develops in our common stock will be subject to "penny stock" restrictions.
We will pay all expenses incident to the
registration, offering and sale of the shares other than commissions or discounts of underwriters, broker-dealers or agents.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons, we have been advised that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable.
Any purchasers of our securities should
be aware that any market that develops in our stock will be subject to the penny stock restrictions.
The trading of our securities, if any,
will be in the over-the-counter markets which are commonly referred to as the OTCQB as maintained by OTC Markets or OTCBB as maintained
by FINRA (once and if and when quoting thereon has occurred). As a result, an investor may find it difficult to dispose of, or
to obtain accurate quotations as to the price of, our securities.
To the extent we do not become listed on the OTCQB or
OTCBB, you will have a very limited, if any, ability to resell shares
There is no established public market
for our common stock, and there can be no assurance that any market will develop in the foreseeable future. Transfer of our common
stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions,
commonly referred to as "Blue Sky" laws. Absent compliance with such individual state laws, our common stock may not
be traded in such jurisdictions. Because the securities registered hereunder have not been registered for resale under the blue
sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop
in the future, should be aware that there may be significant state blue-sky law restrictions upon the ability of investors to
sell the securities and of purchasers to purchase the securities. Accordingly, investors may not be able to liquidate their investments
and should be prepared to hold the common stock for an indefinite period of time.
In addition and without limiting the foregoing,
the Company will be subject to applicable provisions, rules and regulations under the Exchange Act with regard to security transactions
during the period of time when this Registration Statement is effective.
40
Our shares of common stock are subject
to the "penny stock" rules of the Securities and Exchange Commission. The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in "penny stocks". Penny stocks generally are equity securities with a price
of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system,
provided that current price and volume information with respect to transactions in such securities is provided by the exchange
or system). Penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those
rules, to deliver a standardized risk disclosure document prepared by the SEC, which specifies information about penny stocks
and the nature and significance of risks of the penny stock market. A broker-dealer must also provide the customer with bid and
offer quotations for the penny stock, the compensation of the broker- dealer, and sales person in the transaction, and monthly
account statements indicating the market value of each penny stock held in the customer's account. In addition, the penny stock
rules require that, prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make
a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written
agreement to the transaction. These disclosure requirements may have the effect of reducing the trading activity in the secondary
market for stock that becomes subject to those penny stock rules. If a trading market for our common stock develops, our common
stock will probably become subject to the penny stock rules, and shareholders may have difficulty in selling their shares.
OTCQB/OTCBB Considerations
OTCQB and OTCBB securities are not listed
and traded on the floor of an organized national or regional stock exchange. Instead, OTCQB and OTCBB securities transactions
are conducted through a telephone and computer network connecting dealers in stocks. OTCQB and OTCBB stocks are traditionally
smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.
To be quoted on the OTCQB and OTCBB, a
market maker must file an application on our behalf in order to make a market for our common stock. We are not permitted to file
such application on our own behalf. No market maker has agreed to file an application with FINRA on our behalf. There can be no
assurance that a market maker will file an application with FINRA or that the market maker's application will be accepted
by FINRA, nor can we estimate as to the time period that the application will require.
The OTCBB is separate and distinct from
the NASDAQ stock market. NASDAQ has no business relationship with issuers of securities quoted on the OTCBB. The SEC's order
handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the OTCBB.
Although the NASDAQ stock market has rigorous
listing standards to ensure the high quality of its issuers, and can delist issuers for not meeting those standards, the OTCQB
and OTCBB have limited to no listing standards. Rather, it is the market maker who chooses to quote a security on the system,
files the application, and is obligated to comply with keeping information about the issuer in its files. FINRA cannot deny an
application by a market maker to quote the stock of a company assuming all FINRA questions relating to its Rule 211 process are
answered accurately and satisfactorily. The only requirement for ongoing inclusion in the OTCBB is that the issuer be current
in its reporting requirements with the SEC.
Although we anticipate that quotation
on the OTCQB and OTCBB will increase liquidity for our stock, investors may have difficulty in getting orders filled because trading
activity on the OTCBB in general is not conducted as efficiently and effectively as with NASDAQ- listed securities. As a result,
investors' orders may be filled at a price much different than expected when an order is placed.
Investors must contact a broker-dealer
to trade OTCBB securities. Investors do not have direct access to the bulletin board service. For bulletin board securities, there
only has to be one marketmaker.
If we become able to have our shares of
common stock quoted on the OTCQB and OTCBB, we will then try, through a broker- dealer and its clearing firm, to become eligible
with the DTC to permit our shares to trade electronically. If an issuer is not "DTC- eligible," then its shares cannot
be electronically transferred between brokerage accounts, which, based on the realities of the marketplace as it exists today
(especially the OTCQB and OTCBB), means that shares of a company will not be traded (technically the shares can be traded manually
between accounts, but this takes days and is not a realistic option for companies relying on broker dealers for stock transactions
- like all the companies on the OTCQB and OTCBB). What this boils down to is that while DTC-eligibility is not a requirement to
trade on the OTCQB and OTCBB, it is a necessity to process trades on the OTCQB and OTCBB if a company's stock is going to
trade with any volume. There are no assurances that our shares will ever become DTC-eligible or, if they do, how long it willtake.
Because OTCQB and OTCBB stocks are usually
not followed by analysts, there may be lower trading volume than for NASDAQ- listed securities.
41
Section 15(g) of the Exchange Act
Our shares will be covered by Section
15(g) of the Exchange Act, and Rules 15g-1 through 15g-6 promulgated thereunder. They impose additional sales practice requirements
on broker-dealers who sell our securities to persons other than established customers and accredited investors (generally institutions
with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 excluding revenue or annual income exceeding
$200,000 or $300,000 jointly with their spouses).
Rule 15g-1 exempts a number of specific transactions from the
scope of the penny stock rules (but is not applicable to us).
Rule 15g-2 declares unlawful broker-dealer
transactions in penny stocks unless the broker-dealer has first provided to the customer a standardized disclosure document.
Rule 15g-3 provides that it is unlawful
for a broker-dealer to engage in a penny stock transaction unless the broker-dealer first discloses and subsequently confirms
to the customer current quotation prices or similar market information concerning the penny stock in question.
Rule 15g-4 prohibits broker-dealers from
completing penny stock transactions for a customer unless the broker-dealer first discloses to the customer the amount of compensation
or other remuneration received as a result of the penny stock transaction.
Rule 15g-5 requires that a broker-dealer
executing a penny stock transaction, other than one exempt under Rule 15g-1, disclose to its customer, at the time of or prior
to the transaction, information about the sales persons compensation.
Rule 15g-6 requires broker-dealers selling penny stocks to
provide their customers with monthly account statements.
Rule 3a51-1 of the Exchange Act establishes
the definition of a "penny stock," for purposes relevant to us, as any equity security that has a minimum bid price
of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions.
It is likely that our shares will be considered to be penny stocks for the immediately foreseeable future. For any transaction
involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person's account for transactions
in penny stocks and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity
and quantity of the penny stock to be purchased.
In order to approve a person's account
for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience and objectives
of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that
that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions
in penny stocks.
The broker or dealer must also deliver,
prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which,
in highlight form, sets forth:
-
the basis on which the broker or dealer made the suitability
determination, and
-
that the broker or dealer received a signed, written
agreement from the investor prior to the transaction
Disclosure also has to be made about the
risks of investing in penny stock in both public offerings and in secondary trading and commissions payable to both the broker-dealer
and the registered representative, current quotations for the securities and the rights and remedies available to an investor
in cases of fraud in penny stock transactions. Additionally, monthly statements have to be sent disclosing recent price information
for the penny stock held in the account and information on the limited market in penny stocks.
Many brokers have decided not to trade
penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act
as market makers in such securities is limited. If the Company remains subject to the penny stock rules for any significant period,
which is likely, it could have an adverse effect on the market, if any, for the Company's securities. If the Company's
securities are subject to the penny stock rules, investors will find it difficult to dispose of the Company's securities.
State Securities – Blue Sky Laws
There is no established public market
for our common stock, and there can be no assurance that any market will develop in the foreseeable future. Transfer of our common
stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions,
commonly referred to as "Blue Sky" laws. Absent compliance with such individual state laws, our common stock may not
be traded in such jurisdictions. Because the securities registered hereunder have not been registered for resale under the blue
sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop
in the future, should be aware that there may be significant state blue-sky law restrictions upon the ability of investors to
sell the securities and of purchasers to purchase the securities. Accordingly, investors may not be able to liquidate their investments
and should be prepared to hold the common stock for an indefinite period of time.
42
Upon effectiveness of this Prospectus,
the Company intends to continue to be deemed a "reporting issuer" under Section 12(g) of the Exchange Act, as amended,
by way of filing a Form 8-A with the SEC. A Form 8-A is a "short form" of registration whereby information about the
Company will be incorporated by reference to the Registration Statement on Form S-1, of which this prospectus is a part. Upon
filing of the Form 8-A, if done, the Company's shares of common stock will become "covered securities," or "federally
covered securities" as described in some states' laws, which means that unless you are an "underwriter"
or "dealer," you will have a "secondary trading" exemption under the laws of most states (and the District
of Columbia, Guam, the Virgin Islands and Puerto Rico) to resell the shares of common stock you purchase in this offering. However,
four states do impose filing requirements on the Company: Michigan, New Hampshire, Texas and Vermont. The Company may, at its
own cost, make the required notice filings in Michigan, New Hampshire, Texas and Vermont immediately after filing its Form 8-A
with the SEC.
We currently do not intend to and may
not be able to qualify securities for resale in other states which require shares to be qualified before they can be resold by
our shareholders.
Limitations Imposed by Regulation M
Under applicable rules and regulations
under the Exchange Act, any person engaged in the distribution of the shares may not simultaneously engage in market making activities
with respect to our common stock for a period of two business days prior to the commencement of such distribution.
LEGAL MATTERS
The Bunker Law Group, PLLC has given its opinion as attorneys-at-law
regarding the validity of the issuance of the Shares offered by the company
Benjamin L. Bunker, Esq. | The Bunker Law
Group, PLLC | benbunker@bunkerlawgroup.com | T (702) 784-5990 |F 888.460.8609 | 3753 Howard Hughes Parkway, Suite 200 Las Vegas,
Nevada 89169
EXPERTS
The financial statements of the Company
as th inception date of and for the period ending October 24, 2016 included in this prospectus have been audited by independent
registered public accountants and have been so included in reliance upon the report of Malone and Bailey, a professional corporation
given on the authority of such firm as experts in accounting and auditing.
43
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the Securities and Exchange Commission a
registration statement on Form S-1, including exhibits, schedules and amendments, under the Securities Act with respect to the
shares of common stock to be sold in this offering. This prospectus does not contain all the information included in the registration
statement. For further information about us and the shares of our common stock to be sold in this offering, please refer to our
registration statement.
As of the effective date of our registration statement of which
this prospectus is a part, we will become subject to certain informational requirements of the Exchange Act, as amended and we
will be required to file periodic reports (i.e., annual, quarterly and material events) with the SEC which will be immediately
available to the public for inspection and copying. In the event during the year that our registration statement becomes effective,
these reporting obligations may be automatically suspended under Section 15(d) of the Exchange Act if we have less than 300 shareholders
and do not file a registration statement on Form 8-A (of which we have no current plans to file). If this occurs after the year
in which our registration statement becomes effective, we will no longer be obligated to file such periodic reports with the SEC
and access to our business information would then be even more restricted. After this registration statement on Form S-1 becomes
effective, we may be required to deliver periodic reports to security holders as proscribed by the Exchange Act, as amended. However,
we will not be required to furnish proxy statements to security holders and our directors, officers and principal beneficial owners
will not be required to report their beneficial ownership of securities to the SEC pursuant to Section 16 of the Exchange Act
until we have both 500 or more security holders and greater than $10 million in assets. This means that access to information
regarding our business and operations will be limited.
You may read and copy any document we file at the SEC's public
reference room at 100 F Street, N. E., Washington, D.C. 20549. You should call the SEC at 1-800-SEC-0330 for further information
on the public reference rooms.
Our SEC filings will also be available to the public at the
SEC's web site at "htt
p:/www.sec.gov.
"
You may request, and we will voluntarily provide, a copy of
our filings, including our annual report which will contain audited financial statements, at no cost to you, by writing or telephoning
us at the following address:
Blue Sky Group Holdings, Inc
44
PART II
Item 13. Other expenses of Issuance and Distribution
The following table sets forth the Company's expenses
in connection with this registration statement. All of the listed expenses are estimates, other than the filing fees payable to
the Securities and Exchange Commission.
SEC Registration fee
$
2320
NASD filing fee
100.00
Accounting fees and expenses
2400.00
Legal fees and expenses (relating to the Opinion of Counsel)
750.00
Transfer agent fees
3,740.00
Blue Sky fees and expenses
3,800.00
Miscellaneous expenses
120.00
Item 14. Indemnification of Directors and Officers
Section 145(a) of the General Corporation Law of the State
of Delaware (the "DGCL") provides that a corporation shall have the power to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by
him in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably
believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was
unlawful.
Section 145(b) of the DGCL provides that a corporation shall
have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the
person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation
as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys' fees) actually and reasonably incurred by him in connection with the defense or settlement
of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made with respect to any claim, issue or
matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such expenses which the Court of Chancery or such other court shall deem proper.
Our Certificate of Incorporation provides for indemnification
of our directors, officers, employees and other agents to the maximum extent permitted by the DGCL, and our amended and restated
bylaws to be in effect upon the completion of this offering provide for indemnification of our directors, officers, employees
and other agents to the maximum extent permitted by the DGCL.
In addition, we have entered into indemnification agreements
with our directors and officers containing provisions which are in some respects broader than the specific indemnification provisions
contained in the DGCL. The indemnification agreements require us, among other things, to indemnify our directors against certain
liabilities that may arise by reason of their status or service as directors and to advance their expenses incurred as a result
of any proceeding against them as to which they could be indemnified..
45
Item 15. Recent Sales of Unregistered
Securities
ITEM 15
RECENT SALES OF UNREGISTERED SECURITIES
During the three years preceding the filing of this Form S-1,
Registrant has issued securities without registration under the Securities Act on the terms and circumstances described in the
following paragraphs.
Furthermore, no underwriters participated
or effectuated any of the transactions specified below. Also, no underwriting discounts or commissions applied to any of the transactions
set forth below. All potential stockholders were contacted personally and possessed at the time of their investment bona fide
substantive, pre-existing business relationships with the Company and/or its officers, directors and affiliates. No potential
stockholders were contacted through other means, and no general advertising or general solicitation was used to solicit any investors.
(1)	On 10/14/2016, 20,000,000 shares
of common stock were issued to Chirag Patel as a Grant for services related to our business plan.
(2)	On 10/17/2016, 250,000 shares of
common stock were issued to Cyrus Sajna as a Grant for services related to our business plan.
EXHIBITS
Exhibits Included Hereto:
Articles of Incorporation (1)
By-Laws(1)
Code of Ethics (1)
XBRL *
Certification of Chief Executive Officer and Principal Financial
Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*
Certification of Chief Executive Officer and Principal Financial
Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
46
Item 17. Undertakings
The undersigned registrant hereby undertakes:
1.
To file, during any period in which offers or sales
are being made, a post-effective amendment to this registration statement:
i.
To include any prospectus required by section 10(a)(3)
of the Securities Act of 1933;
ii.
To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effectiveregistration statement.
iii.
To include any material information with respect to
the plan of distribution not previously disclosed in the registration statement or any material change to such information in
the registration statement.
2.
That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
3.
To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.
That, for the purpose of determining liability
under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.
4.
Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such
issue.
47
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized
on
10/26/2016
.
BLUE SKY GROUP HOLDINGS, INC.
By:
/s/ Chirag Patel
Title:
Chairman of the Board,
President and Principal
Executive Officer,
By:
/s/ Cyrus Saina
Title: Chief Financial Officer
Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed below by the following persons, constituting all of the members of the board of directors,
in the capacities and on the dates indicated.
Signature
Capacity
Date
/s/ Chirag Patel
CEO
10/26/2016
/s/ Cyrus Saina
CFO
10/26/2016
48