Clear Skies Solar (CSKH) 8-K Completion of Acquisition or Disposition of Assets

CLEAR SKIES HOLDINGS, INC.

F/K/A BIP OIL, INC.

PRO FORMA BALANCE SHEET

AS OF DECEMBER 31, 2006

The following Pro forma balance sheet has been derived from the audited financial statements of Clear Skies Group, Inc. as of December 31, 2006. The weighted average shares outstanding has been adjusted to reflect the shares recevied in the merger as if the transaction had occurred on January 1, 2006. The results of Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc.'s operations were not included in the proforma balance sheet and income statement as the Company was not formed as of December 31, 2006.

	Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc.		Clear Skies Group, Inc.			Note		Pro Forma Adjustments			Pro Forma
	Historical		Historical			Ref		Dr. (Cr.)			Combined
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	111,439					-		$	111,439
Accounts receivable, less allowance for doubtful
accounts of $68,000				70,137								70,137
Costs and estimated earnings in excess of billings				79,875								79,875
Total Current Assets		-		261,451								261,451
Property and equipment, net				17,708								17,708
Other Assets				133,278								133,278
	$	-	$	412,437							$	412,437
LIABILITIES & STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities
Accounts payable	$	-	$	344,554								344,554
Billings in excess of costs and estimated earnings				48,056								48,056
Due to related parties				30,275								30,275
Loan payable, stockholder				73,569								73,569
Payroll liabilities				76,125								76,125
Installation warranty liability				6,100								6,100
Total current liabilities		-		578,679								578,679
Common stock to be issued		-		894,000								894,000
Stockholder's deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized,		-		-			1		9,025			9,025
Additional paid in capital		-		500			1		(9,025	)		(8,525	)
Accumulated deficit		-		(1,060,742	)				-			(1,060,742	)
Total stockholder's equity (deficit)		-		(1,060,242	)							(1,060,242	)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)	$	-	$	412,437							$	412,437

CLEAR SKIES HOLDINGS, INC.

F/K/A BIP OIL, INC.

PRO FORMA STATEMENT OF OPERATIONS

	(A)		(B)
	Clear Skies Holdings, Inc.
	f/k/a BIP Oil, Inc.		Clear Skies Group, Inc.			Pro Forma Adjustments		Pro Forma
	Historical		Historical			Dr. (Cr.)		Combined
Revenues
Contract revenue	$	-	$	291,915				$	291,915
Subcontractor revenue		-		644,681					644,681
Total revenues		-		936,596					936,596
Cost of revenues		-		701,702					701,702
Gross profit		-		234,894					234,894
Operating expenses
Selling expenses		-		215,071					215,071
General and administrative expenses		-		709,293			-		709,293
		-		924,364					924,364
Net loss	$	-	$	(689,470	)			$	(689,470	)
Weighted Average - Basic and Fully Diluted									9,025,000
Net Loss per shares - Basic and Fully Diluted								$	(0.08	)

Note 1

To reflect the issuance of stock received as part of the merger transaction.

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CLEAR SKIES HOLDINGS, INC.

F/K/A BIP OIL, INC.

PRO FORMA BALANCE SHEET

AS OF SEPTEMBER 30, 2007

The following Pro forma balance sheet has been derived from the unaudited financial statements of (A) Clear Skies Holdings, Inc., f/k/a BIP Oil, Inc. as of October 31, 2007, the statement of operations has been derived from the unaudited financial statements for the period January 31, 2007 (inception) to October 31, 2007 (B) Clear Skies Group, Inc. balance sheet as of September 30, 2007, the statement of operations has been derived from the unaudited statement of operations for the period January 1, 2007 through September 30, 2007.

	(A)			(B)
	Clear Skies Holdings, Inc.
	f/k/a BIP Oil, Inc.			Clear Skies Group, Inc,			Note		Pro Forma Adjustments			Pro Forma
	Historical			Historical			Ref		Dr. (Cr.)			Combined
ASSETS
Current Assets
Cash and cash equivalents	$	24,160		$	43,386			1		(24,160	)	$	43,386
Accounts receivable, less allowance for doubtful
accounts of $68,000					936,144								936,144
Costs and estimated earnings in excess of billings					23,114								23,114
Other current assets and prepaid expenses		7,500			-			1		(7,500	)		-
Total Current Assets		31,660			1,002,644								1,002,644
Property and equipment, net					13,293								13,293
Other Assets					81,260								81,260
	$	31,660		$	1,097,197							$	1,097,197
LIABILITIES & STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities
Accounts payable	$	-		$	394,020							$	394,020
Billings in excess of costs and estimated earnings					870,024								870,024
Note payable, net of discount of $494,156					250,844			2		(250,844	)		-
Due to related parties					12,412								12,412
Loan payable, stockholder					171,969								171,969
Payroll liabilities					126,389								126,389
Installation warranty liability					7,742								7,742
Total current liabilities		-			1,833,400								1,582,556
Stockholder's deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized,		6,510			44,420			1		(6,510	)		16,490
								3		(27,930	)
		153,290			2,386,599			2		250,844			2,665,373
Additional paid in capital								1		(153,290	)
								3		27,930
Accumulated deficit		(128,140	)		(3,167,222	)		1		128,140			(3,167,222	)
Total stockholder's equity (deficit)		31,660			(736,203	)							(485,359	)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)	$	31,660		$	1,097,197							$	1,097,197

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CLEAR SKIES HOLDINGS, INC.

F/K/A BIP OIL, INC.

PRO FORMA STATEMENT OF OPERATIONS

	Clear Skies Holdings, Inc.
	f/k/a BIP Oil, Inc.			Clear Skies Group, Inc.			Note		Pro Forma Adjustments			Pro Forma
	Historical			Historical			Ref		Dr. (Cr.)			Combined
Revenues
Contract revenue	$	-		$	82,081							$	82,081
Subcontractor revenue		-			210,614								210,614
Other revenue		-			27,645								27,645
Total revenues		-			320,340								320,340
Cost of revenues		-			289,152								289,152
Gross profit		-			31,188								31,188
Operating expenses
Selling expenses		-			359,610								359,610
General and administrative expenses		100,590			1,527,214			1		(100,590	)		1,527,214
Total Operating expenses		100,590			1,886,824								1,886,824
Loss from Operations		(100,590	)		(1,855,636	)							(1,855,636	)
Interest expense		-			250,844			2		(250,844	)		-
Net loss	$	(100,590	)	$	(2,106,480	)						$	(1,855,636	)
Weighted Average - Basic and Fully Diluted								4					16,490,050
Net Loss per shares - Basic and Fully Diluted												$	(0.11	)

Note 1

To reflect the spin off of Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc. to stockholders for the return of 53,866,873 shares

Note 2

To reflect the exchange of $745,000 of notes payable into 1,490,000 common shares upon completion of the merger with Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc.

Note 3

To reflect the issuance of stock received as part of the merger transaction.

Note 4

The weighted average calculation includes 1,490,000 shares to be issued upon the conversion of notes payable and 9,025,000 shares issued upon the acquisition of Clear Skies Group, Inc.

The financial statements are presented for informational purposes only and do not purport to be indicative of the financial position that would have resulted if the merger had been consummated at each Company's year end. The pro forma financial statements should be read in conjunction with the Registrant's financial statements and related notes thereto contained in the Registrant's SEC quarterly and annual filings (including its Current Reports on Form 8-K filed with the Commission in connection with the merger and the financial statements of Clear Skies Group, Inc. and related notes thereto contained elsewhere in this Form 8-K).

The transaction has been accounted for as a reverse merger by Clear Skies Group, Inc. The final determination of the purchase price adjustment to the assets acquired based on their respective fair values, has not been made. Accordingly, the purchase accounting adjustments made in connection with the development of the pro forma financial statements are preliminary and have been made solely for the purpose of developing the pro forma combined financial information.

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