Sky Quarry Reports First Quarter 2025 Financial Results
WOODS CROSS, Utah, May 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced its financial and operational results for the three months ended March 31, 2025.
Key Financial and Operational Highlights
- Generated $6.3 million in Q1 revenue, a 50% increase from Q4 2024.
- Signed a Letter of Intent with R & R Solutions, the only permitted asphalt shingle recycler in New Mexico, to explore the feasibility of establishing a modular waste-to-energy site in the Southwest.
- Executed a Letter of Intent with Southwind RAS, a leading recycler in the Midwest, to collaborate on regional facility deployment and feedstock supply.
- Engaged TAR360 to accelerate the company’s growth trajectory, optimize internal processes, and support execution across key operational initiatives.
Commentary by David Sealock, Chairman & Chief Executive Officer, and Darryl Delwo, Chief Financial Officer of Sky Quarry
“We are pleased with the continued growth across our operations and the progress we’ve made in the first quarter of 2025 toward executing our waste-to-energy strategy, which is central to our mission of transforming recycled asphalt shingles into sustainably produced fuels and other valuable materials. At PR Spring, asset upgrades are nearing completion, and once commissioned, the site will activate our fully integrated production model and enable commercial-scale output.
As part of our national expansion strategy, we signed non-binding Letters of Intent with Southwind RAS in the Midwest and R & R Solutions in the Southwest. These LOIs represent an early step in evaluating potential partnerships that could expand Sky Quarry’s geographic footprint and provide access to more than 1.5 million tons of asphalt shingle supply annually. If advanced, these relationships could unlock new revenue opportunities through facility development, expanded processing capacity, and the sale of high-value materials such as recycled liquid asphalt, blended fuels, and other products derived from waste asphalt shingles.
We’re seeing the impact of operational improvements made in 2024 at the Foreland Refinery, with a 50% increase in revenue from Q4 2024 to Q1 2025 as output stabilized and product volumes rebounded.
To build on this momentum, we engaged TAR360 to further optimize operations at Foreland. While we’re encouraged by recent performance gains, our shared goal is to increase throughput by up to 400% over time, scaling from our current 20,000 barrels per month to as much as 100,000. Achieving this level of production would enhance operating leverage, expand margins, and drive stronger profitability.
With these improvements and additional efficiencies underway, we believe Foreland is positioned to play a key role in meeting growing fuel demand across the Western U.S. California’s refining capacity is expected to decline by 21% in a single year due to major facility closures, while global price spreads and supply constraints are creating price dislocations that make local refining more competitive. As market conditions continue to evolve, we are executing with purpose by scaling production, improving performance, and positioning Sky Quarry for a strong 2025.”
Financial Results for the Three Months Ended March 31, 2025
Total revenues for the first quarter ended March 31, 2025, were approximately $6.3 million, down from $11.0 million in the same period of 2024. This decline was primarily driven by ongoing challenges in reestablishing supply streams following the Foreland Refinery outage and refurbishment in mid-2024. In addition, lower commodity prices contributed to the decrease, with WTI crude falling from $87 per barrel in April 2024 to $71 per barrel at the end of Q1 2025.
Gross profit for the quarter was negative $726,000, compared to a gross profit of $569,000 in the prior-year period.
Total operating expenses increased to $1.94 million in Q1 2025, up from $1.61 million in Q1 2024, reflecting higher general and administrative costs, non-cash share-based compensation, and depreciation.
As a result, the Company reported a net loss of $3.3 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period last year.
Net cash used in operating activities for the three months ended March 31, 2025, was approximately $2.0 million, compared to $1.2 million for the same period in 2024.
About Sky Quarry Inc.
Sky Quarry Inc. (NASDAQ:SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit .
Forward-Looking Statements
This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company’s Form 10-K as filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date of the document in which they are contained.
Investor Relations
Jennifer Standley
Director of Investor Relations
Company Website
| Sky Quarry Inc. Consolidated Balance Sheets As of March 31, 2025 and December 31, 2024 | ||||||
| March 31, 2025 | December 31, 2024 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 213,000 | $ | 385,116 | ||
| Accounts receivables | 1,758,159 | 1,123,897 | ||||
| Prepaid expenses and other assets | 641,427 | 339,124 | ||||
| Inventory | 2,103,379 | 3,149,236 | ||||
| Total current assets | 4,715,965 | 4,997,373 | ||||
| Property, plant, and equipment | 5,942,782 | 6,160,318 | ||||
| Oil and gas properties | 8,832,356 | 8,534,967 | ||||
| Restricted cash | 798,851 | 2,929,797 | ||||
| Right-of-use asset | 1,091,656 | 1,115,785 | ||||
| Goodwill | 3,209,003 | 3,209,003 | ||||
| Total assets | $ | 24,590,613 | $ | 26,947,243 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 3,233,613 | $ | 4,046,319 | ||||
| Current portion of operating lease liability | 81,775 | 38,422 | ||||||
| Current portion of finance lease liability | 16,626 | 16,120 | ||||||
| Warrant liability | 184,087 | 459,067 | ||||||
| Lines of credit | 2,328,127 | 1,260,727 | ||||||
| Current maturities of notes payable | 6,164,310 | 6,578,017 | ||||||
| Total current liabilities | 12,008,538 | 12,398,672 | ||||||
| Notes payable, less current maturities, net of debt issuance costs | 1,999,999 | 2,000,560 | ||||||
| Operating lease liability, net of current portion | 15,613 | 77,824 | ||||||
| Finance lease Liability, net of current portion | 987,018 | 971,690 | ||||||
| Total Liabilities | 15,011,168 | 15,448,746 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ Equity: | ||||||||
| Preferred stock $0.001 par value: 25,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | - | - | ||||||
| Common stock $0.0001 par value: 100,000,000 shares authorized: 21,260,924 and 19,027,208 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 2,126 | 1,903 | ||||||
| Additional paid in capital | 37,088,388 | 35,674,391 | ||||||
| Accumulated other comprehensive loss | (209,286 | ) | (209,708 | ) | ||||
| Accumulated deficit | (27,301,783 | ) | (23,968,089 | ) | ||||
| Total shareholders’ equity | 9,579,445 | 11,498,497 | ||||||
| Total liabilities and shareholders’ equity | $ | 24,590,613 | $ | 26,947,243 | ||||
| Sky Quarry Inc. Consolidated Statements of Operations and Comprehensive Loss For the Periods Ended March 31, 2025 and 2024 | ||||||||||||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||||||
| Net sales | $ | 6,332,967 | $ | 10,952,330 | ||||||||
| Cost of goods sold | 7,059,059 | 10,382,881 | ||||||||||
| Gross Margin | (726,092 | ) | 569,449 | |||||||||
| Operating expenses: | ||||||||||||
| General and administrative | 1,935,457 | 1,607,884 | ||||||||||
| Depreciation and amortization | 2,028 | 1,472 | ||||||||||
| Total Operating expenses | 1,937,485 | 1,609,356 | ||||||||||
| Loss from operations | (2,663,577 | ) | (1,039,907 | ) | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (872,468 | ) | (1,308,445 | ) | ||||||||
| Loss on extinguishment of debt | (85,753 | ) | (108,887 | ) | ||||||||
| Gain on warrant valuation | 274,980 | - | ||||||||||
| Other income (expense) | 7,477 | (5,306 | ) | |||||||||
| Gain on sale of assets | 5,647 | - | ||||||||||
| Other expense, net | (670,117 | ) | (1,422,638 | ) | ||||||||
| Loss before provision for income taxes | (3,333,694 | ) | (2,462,545 | ) | ||||||||
| Provision for income taxes | - | - | ||||||||||
| Net loss | (3,333,694 | ) | (2,462,545 | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||||
| Exchange gain (loss) on translation of foreign operations | 422 | (8,134 | ) | |||||||||
| Net loss and comprehensive loss | $ | (3,333,272 | ) | $ | (2,470,679 | ) | ||||||
| Loss per common share | ||||||||||||
| Basic and diluted | $ | (0.16 | ) | $ | (0.15 | ) | ||||||
| Weighted average shares outstanding | ||||||||||||
| Basic and diluted | 21,264,725 | 16,334,862 | ||||||||||
| Sky Quarry Inc. Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025 and 2024 | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (3,333,694 | ) | $ | (2,462,545 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Share based compensation | 78,880 | 270,176 | ||||||
| Depreciation and amortization | 242,004 | 164,534 | ||||||
| Amortization of debt issuance costs | 765,793 | 1,166,227 | ||||||
| Amortization of right-of-use asset | 24,129 | 21,952 | ||||||
| Gain on revaluation of warrant liabilities | (274,980 | ) | - | |||||
| Loss on extinguishment of debt | 56,660 | 108,887 | ||||||
| Gain on sale of assets | (5,647 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (634,263 | ) | (766,259 | ) | ||||
| Prepaid expenses and other assets | (302,302 | ) | (323,750 | ) | ||||
| Inventory | 1,045,857 | 203,235 | ||||||
| Accounts payable and accrued expenses | 373,889 | 371,043 | ||||||
| Operating lease liability | 450 | 21,952 | ||||||
| Net cash used in operating activities | (1,963,224 | ) | (1,224,548 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Proceeds from sale of assets | 14,060 | - | ||||||
| Purchase of exploration and evaluation assets | (297,389 | ) | (144,964 | ) | ||||
| Purchase of property, plant, and equipment | (32,881 | ) | (282,702 | ) | ||||
| Net cash used in investing activities | (316,210 | ) | (427,666 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds on lines of credit | 5,339,736 | 10,641,448 | ||||||
| Payments on lines of credit | (4,272,336 | ) | (11,638,704 | ) | ||||
| Proceeds from note payable | 143,237 | 9,820,288 | ||||||
| Payments on note payable | (1,231,214 | ) | (5,300,608 | ) | ||||
| Warrants Issued (net against payment of debt issuance costs) | - | |||||||
| Debt discount on note payable | (1,970,936 | ) | ||||||
| Payments on finance lease | (3,473 | ) | (19,851 | ) | ||||
| Proceeds on issuance of preferred stock | 197,500 | |||||||
| Preferred stock offering costs | (40,870 | ) | ||||||
| Proceeds on issuance of common stock | 19,492 | |||||||
| Common stock offering costs | - | |||||||
| Net cash provided by (used in) financing activities | (24,050 | ) | 1,707,755 | |||||
| Effect of exchange rate on cash | 422 | (8,134 | ) | |||||
| Increase (decrease) in cash and restricted cash | (2,303,062 | ) | 47,407 | |||||
| Cash and restricted cash, beginning of the period | 3,314,913 | 4,680,836 | ||||||
| Cash and restricted cash, end of the period | $ | 1,011,851 | $ | 4,728,243 | ||||
