Partnership will assess how traditional energy assets can participate in emerging digital infrastructureWOODS CROSS, Utah, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company, announced today that it has signed a Memorandum of Understanding (MOU) with Continuum Network, a Hong Kong based blockchain technology firm, to explore how the Company’s commodities could potentially be represented in blockchain-enabled markets. This ...

Core Viewpoint - Sky Quarry Inc. reported a 35% increase in revenue for Q2 2025 compared to Q2 2024, driven by operational improvements and regained supply volumes, despite a 24% decrease in revenue for the first half of 2025 compared to the prior year [3][9]. Financial Performance - Revenues for Q2 2025 were $4.54 million, up from $3.38 million in Q2 2024, marking a 35% increase [3]. - For the first half of 2025, revenues totaled $10.87 million, down from $14.33 million in the same period of 2024, reflecting a 24% decrease [3]. - Gross profit for Q2 2025 was a loss of $117,529, an improvement from a loss of $485,589 in Q2 2024, showing a positive change of $368,060 [4]. - The gross profit for the first half of 2025 was a loss of $843,060, compared to a profit of $83,860 in the prior year, indicating a decrease of $926,920 [4]. - Total operating expenses for Q2 2025 were $1.62 million, up from $0.97 million in Q2 2024 [5]. - The net loss for Q2 2025 was $2.21 million, an improvement from a net loss of $3.56 million in Q2 2024 [5]. - For the first half of 2025, the net loss was $5.54 million, compared to $6.03 million in the same period of 2024 [5]. Cash Flow and Assets - Net cash used in operating activities for the first half of 2025 was $0.73 million, significantly lower than $2.60 million in the prior year [6]. - As of June 30, 2025, total assets were $22.80 million, down from $26.95 million at the end of 2024 [11][12]. - Current assets decreased from $4.99 million at the end of 2024 to $3.20 million as of June 30, 2025 [11]. - Total liabilities decreased from $15.45 million at the end of 2024 to $14.94 million as of June 30, 2025 [12]. Strategic Initiatives - The company unveiled a strategic growth plan to ramp operations at the Foreland Refinery to its full permitted production capacity of up to 800,000 barrels per year [9]. - An application for a recycling permit was submitted to develop an integrated energy facility in Utah, aimed at recovering valuable oil from waste asphalt shingles [9]. - A strategic digital asset initiative was launched to explore the tokenization of real-world energy commodities, aiming to open new market channels [9].

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Sky Quarry Inc.'s unaudited condensed consolidated financial statements as of June 30, 2025, show total assets decreased to **$22.8 million**, a net loss of **$5.5 million**, and an accumulated deficit of **$29.5 million**, indicating significant going concern uncertainty [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial statements show a weakened balance sheet with cash at **$173,795** and total assets at **$22.8 million**, while net sales decreased to **$10.9 million** for the six months ended June 30, 2025, resulting in a **$5.5 million** net loss and **$0.7 million** cash used in operations Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $173,795 | $385,116 | | Total Current Assets | $3,199,332 | $4,997,373 | | Total Assets | $22,800,561 | $26,947,243 | | Total Current Liabilities | $11,723,448 | $12,398,672 | | Total Liabilities | $14,935,079 | $15,448,746 | | Total Shareholders' Equity | $7,865,482 | $11,498,497 | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Sales | $10,874,439 | $14,327,574 | | Gross Margin | ($843,060) | $83,860 | | Loss from Operations | ($4,402,430) | ($2,498,347) | | Net Loss | ($5,542,344) | ($6,025,023) | | Basic and Diluted Loss per Share | ($0.27) | ($0.37) | Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($729,401) | ($2,602,375) | | Net cash used in investing activities | ($381,296) | ($1,371,716) | | Net cash provided by (used in) financing activities | ($1,226,930) | $4,178,508 | | Increase (decrease) in cash and restricted cash | ($2,339,302) | $196,283 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's oil production and environmental remediation business, highlighting a significant **'Going Concern'** uncertainty due to an accumulated deficit of **$29.5 million** and reliance on additional capital, alongside disclosures on debt, revenue, and subsequent management and financing events - The company is an oil production, refining, and development-stage environmental remediation company focused on recycling waste asphalt shingles and remediating oil-saturated soils[21](index=21&type=chunk) - Management has identified material uncertainties that cast **significant doubt** on the Company's ability to continue as a **going concern**, with an **accumulated deficit of $29,510,433** as of June 30, 2025, and insufficient operating cash flows without **additional financing**[26](index=26&type=chunk)[28](index=28&type=chunk) - Subsequent to the quarter end, the company entered into an agreement for the potential purchase of up to **$8.125 million of common stock**, secured a new **$1 million promissory note**, and appointed **Marcus Laun as President and Interim CFO** following the resignation of Darryl Delwo[136](index=136&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **24%** year-over-year decrease in net sales for the first six months of 2025 due to supply challenges and lower WTI pricing, alongside increased operating expenses, critical liquidity with only **$173,795** in cash, and the ongoing need for additional capital to address going concern uncertainties [Results of Operations](index=37&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2025, net sales decreased **24%** to **$10.9 million**, resulting in a gross loss of **$843,060** due to lower product sales, while general and administrative expenses rose **38%** to **$3.6 million**, though the net loss slightly improved to **$5.5 million** Net Sales by Product (Six Months Ended June 30) | Product | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Diesel | $3,608,873 | $5,318,870 | (32%) | | Liquid Asphalt | $4,125,288 | $3,631,543 | 14% | | VGO | $2,931,119 | $3,474,668 | (16%) | | Naphtha | $196,482 | $1,340,594 | (85%) | | **Total** | **$10,874,439** | **$14,327,574** | **(24%)** | - The decline in net sales was primarily due to challenges in regaining supply volumes after the **2024 Foreland Refinery outage** and a drop in **WTI pricing from $87 to $68 per barrel**[168](index=168&type=chunk) - General and administrative expenses increased by **38%** for the six-month period, mainly due to a **$926,000 increase in professional fees** and a **$156,000 increase in executive compensation** associated with becoming a public company[174](index=174&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is precarious, with cash at **$173,795** and total assets decreasing by **$4.1 million**, alongside negative operating cash flow of **$729,401**, necessitating additional capital through debt or equity to fund ongoing operations Balance Sheet Summary | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $173,795 | $385,116 | | Total Current Assets | $3,199,332 | $4,997,373 | | Total Assets | $22,800,561 | $26,947,243 | | Total Current Liabilities | $11,723,448 | $12,398,672 | - The company had **negative operating cash flows of $729,401** for the six months ended June 30, 2025[179](index=179&type=chunk)[188](index=188&type=chunk) - The company will continue to require **additional cash** for operational and capital needs, which it anticipates satisfying through **debt or equity issuance** until cash flows from operations are sufficient[186](index=186&type=chunk) [Quantitative and Qualitative Disclosure About Market Risks](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risks) This section is not applicable as the company is a smaller reporting company - Not applicable[192](index=192&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were **not effective** as of June 30, 2025, with no material changes to internal controls during the quarter, though a CFO resignation and interim appointment occurred subsequently - Management concluded that the Company's disclosure controls and procedures as of June 30, 2025, were **not effective**[192](index=192&type=chunk) - There were no changes in internal controls over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect internal controls[193](index=193&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the ordinary course of business, but management does not expect a material adverse effect on its financial position or results of operations - Management does not expect currently pending or threatened legal matters to have a **material adverse effect** on the company's financial position or results of operations[196](index=196&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Sky Quarry is not required to provide this information - As a smaller reporting company, this item is not required[197](index=197&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the six months ended June 30, 2025, the company issued **1,050,824 shares** of common stock in exchange for services and interest payments on promissory notes, receiving no cash proceeds - The company issued an aggregate of **1,050,824 shares of common stock** during the six-month period, which were issued in exchange for services and to pay interest on notes, with **no cash proceeds received**[198](index=198&type=chunk) [Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no events under this item - There have been no events required to be reported under this Item[199](index=199&type=chunk) [Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[200](index=200&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) On August 12, 2025, Marcus Laun, an Executive VP and director, was appointed President and Interim Chief Financial Officer - **Marcus Laun** was appointed **President and Interim Chief Financial Officer** on August 12, 2025[201](index=201&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The report includes **CEO and CFO certifications** pursuant to Rule 13a-14(a) and Section 1350, as well as **XBRL filings**[202](index=202&type=chunk)

Core Insights - Sky Quarry Inc. is launching a crowdfunding offering through its subsidiary, Foreland Refining Corporation, to support its sustainable resource recovery initiatives [1][5] - The company aims to address the fuel supply gap in Nevada, which currently imports about 86% of its refined fuel, by enhancing local production capabilities [2][8] - Sky Quarry is exploring digital asset strategies to improve transparency and efficiency in capital raising, viewing its revenue-linked crowdfunding as a potential model for future blockchain applications [3][4] Company Overview - Sky Quarry Inc. focuses on oil production, refining, and environmental remediation, particularly in recycling waste asphalt shingles [7] - Foreland Refining Corporation operates the Eagle Springs refinery in Nevada, producing essential petroleum products and serving various sectors across the Western U.S. [8] Crowdfunding Details - The proceeds from the crowdfunding will be used for refinery upgrades, operational efficiency improvements, and integration of recycled heavy oil from asphalt shingle recycling [5] - The crowdfunding offering is conducted under Regulation Crowdfunding through PicMii Crowdfunding [6]

Core Viewpoint - Sky Quarry Inc. is initiating a strategic plan to establish a digital asset treasury as part of its capital allocation strategy, aiming to enhance its business model and shareholder value [1][2]. Group 1: Digital Asset Strategy - The company recognizes the increasing institutional acceptance of digital assets and is exploring how a targeted digital asset strategy can complement its existing operations [2]. - The initiative is expected to improve transparency, enhance capital efficiency, and build long-term confidence in the company's financial foundation [2]. - Sky Quarry is in early discussions to create a diversified portfolio of digital assets, including digital currencies and stablecoins, supported by an internal working group and industry advisors [3]. Group 2: Energy Transition and Market Positioning - By leveraging digital technologies, Sky Quarry aims to position itself at the forefront of the energy transition, bridging traditional and renewable energy sectors through a digital marketplace [4]. - The company plans to expand its digital asset model across the entire energy spectrum as tokenization of real-world assets gains momentum [4]. Group 3: Leadership Perspective - The Executive Vice President and Co-Founder of Sky Quarry highlighted the shift in the conversation around digital assets from skepticism to institutional engagement, emphasizing the company's unique position to bring transparency and governance to blockchain innovations [5]. - The company anticipates that public companies could represent 10 to 20 percent of total digital asset market capitalization, which is crucial for driving adoption and unlocking capital in sectors like energy [7]. Group 4: Partnership Opportunities - Sky Quarry is inviting interested parties, including foundations and asset managers, to connect and collaborate on its vision for integrating traditional public markets with digital assets [7]. Group 5: Company Overview - Sky Quarry Inc. focuses on sustainable resource recovery, particularly in oil production and environmental remediation, with a mission to recycle waste asphalt shingles and reduce environmental impact [9].

Summary of Sky Quarry (SKYQ) Update / Briefing June 26, 2025 Company Overview - **Company**: Sky Quarry (SKYQ) - **Industry**: Renewable Energy, Waste Management, Oil Extraction Key Points and Arguments 1. **Strategic Vision**: Sky Quarry aims to redefine waste as an opportunity by creating a vertically integrated platform focused on waste recycling and sustainable fuel production, particularly from asphalt shingles [8][9][51] 2. **Modular Facilities**: The company plans to deploy modular units designed for rapid expansion into high-opportunity markets across the USA, which will reduce waste volume and produce sellable products [12][13] 3. **Revenue Streams**: Sky Quarry intends to generate income from tipping fees and byproduct sales while supporting landfill diversion mandates, creating local jobs, and lowering transportation costs [13][20] 4. **Partnerships**: The company has established strategic relationships with key players in the industry, such as R and R Solutions in New Mexico, to enhance its operational capabilities and market presence [14][15] 5. **Integrated Energy Facility**: The launch of an integrated energy facility in Utah is crucial for the company, allowing it to operate a combined oil sands extraction and asphalt recycling facility, targeting a recovery of over 10 million barrels of oil over 15 years [19][20] 6. **Operational Efficiency**: Sky Quarry has contracted with TAR 360 to enhance operational efficiency, aiming to double annual production to 800,000 barrels through phased increases [22] 7. **Market Dynamics**: The company is well-positioned to capitalize on the declining refining capacity in California, which is affecting fuel supply in Nevada, where Sky Quarry operates the only refinery [25][26][28] 8. **Crowdfunding Initiative**: A new crowdfunding initiative will offer preferred shares tied to the refinery, providing a 10% coupon and a royalty based on production, aimed at raising capital without diluting common stock [32][34] 9. **Trading Activity**: Recent trading activity saw over 50 million shares traded, attributed to market makers adjusting positions and interest in low float oil stocks amid rising domestic oil production concerns [39][40][45] 10. **Future Outlook**: The company is focused on building a national waste energy infrastructure, with a goal of creating a sustainable energy portfolio that maximizes environmental and economic impact [53][54] Additional Important Content - **Environmental Responsibility**: Sky Quarry emphasizes its commitment to environmental stewardship and sustainable innovation as part of its business model [51] - **Profitability Metrics**: The company looks at profitability on multiple levels, including per barrel and overall enterprise metrics, with a focus on generating revenue from waste materials [73] - **Permit Process**: The company is actively working on obtaining necessary permits for its operations, with timelines for approval ranging from three to six months [67][68] - **Long-term Goals**: Sky Quarry aims to create a national network for waste collection and processing, positioning itself as a leader in the recycling and renewable energy sectors [74][81]

Core Viewpoint - Sky Quarry Inc. is hosting a live investor webinar to discuss recent milestones and growth strategies in the waste asphalt shingle recycling industry [1][2] Group 1: Webinar Details - The webinar is scheduled for June 26 at 11:00 a.m. PDT / 2:00 p.m. EDT and will feature executives David Sealock and Marcus Laun [1][2] - Attendees can submit questions in advance via email, and registration is open to all investors, industry partners, and media [3] Group 2: Company Overview - Sky Quarry Inc. focuses on oil production, refining, and environmental remediation, specifically in recycling waste asphalt shingles and remediating oil-saturated sands and soils [4] - The company's mission is to repurpose millions of tons of asphalt shingle waste, contributing to improved waste management and reduced environmental impact [4] Group 3: Strategic Initiatives - The company is advancing its PR Spring site application to commercialize its waste-to-energy strategy [6] - Non-binding letters of intent with partners like Southwind RAS and Right Way Roofing are aimed at securing regional feedstock [6] - Plans to increase throughput at the Foreland Refinery could enhance regional fuel supply and create future revenue opportunities [6] - Tightening fuel supplies in California are generating strong demand signals for the company's clean fuel strategy [6]

Core Insights - Sky Quarry Inc. has filed a Waste Management Recycling Permit application to operate a combined oil sands extraction and waste asphalt shingle recycling facility in Utah, which aims to unlock new commercial pathways and expand revenue-generating operations [1][4] Group 1: Permit Application and Operational Initiatives - The permit application includes a request for a combined permit structure from the School and Institutional Trust Lands Administration (SITLA), allowing consolidation of shingle processing, heavy oil extraction, and asphaltic sand production [2] - If approved, the facility is projected to recover approximately 10 million barrels over a 15-year period, based on an operating capacity of 2,000 barrels per day [3] Group 2: Strategic Vision and Environmental Impact - The permit application is a critical step in scaling the company's waste-to-energy platform, creating multiple revenue streams from a single operational footprint [4] - The initiative aligns with Utah's economic and environmental priorities, contributing to improved waste management and resource efficiency [4][5] Group 3: Financial and Operational Benefits - The company anticipates early-stage cash flow from asphaltic sand and oil sales, which will strengthen its ESG and sustainability profile [8] - The deployment of the ECOSolv process is expected to support on-site heavy oil extraction and advance recycled product development through R&D [7]

Core Insights - Sky Quarry Inc. has announced a strategic roadmap for its subsidiary, Foreland Refining Corporation, aiming to scale operations to a production rate of up to 800,000 barrels annually through targeted investments and steady operations [1][2][3] Production Capacity and Milestones - Foreland is currently operating at a capacity of up to 3,600 barrels per day, with plans to reach production milestones of 45,000, 60,000, 80,000, and 100,000 barrels per month, particularly during high seasonal demand [3] - The roadmap anticipates reaching an annualized peak production rate of 800,000 barrels, with actual output expected to vary seasonally [3] Strategic Growth Plan - The strategic growth plan includes proactive maintenance, risk management, infrastructure upgrades, and crude supply contracts to ensure safe and uninterrupted operations [5] - Key components of the plan focus on operational efficiency, workforce expansion, stronger supply and customer relationships, and revenue growth potential [7] Sustainability and Community Impact - The refinery plans to expand its capabilities to include recycled heavy oil from waste materials, supporting Sky Quarry's mission for a sustainable energy future [6] - The company aims to contribute to improved waste management and resource efficiency while reducing environmental impact [8]

Core Insights - Sky Quarry Inc. reported financial and operational results for Q1 2025, highlighting ongoing challenges and strategic initiatives in the waste asphalt shingle recycling industry [1][8]. Financial Performance - Total revenues for Q1 2025 were approximately $6.3 million, a decrease from $11.0 million in Q1 2024, primarily due to supply chain disruptions and lower commodity prices [8][11]. - Gross profit for the quarter was negative $726,000, compared to a gross profit of $569,000 in the prior-year period [9]. - The company reported a net loss of $3.3 million for Q1 2025, compared to a net loss of $2.5 million in the same period last year [11][19]. Operational Highlights - The company experienced a 50% increase in revenue from Q4 2024 to Q1 2025, driven by operational improvements at the Foreland Refinery [5][10]. - Engagement with TAR360 aims to optimize operations at Foreland, with a goal to increase throughput from 20,000 barrels per month to as much as 100,000 barrels [6]. - The company signed non-binding Letters of Intent with Southwind RAS and R & R Solutions to explore partnerships that could expand its geographic footprint and access over 1.5 million tons of asphalt shingle supply annually [4][10]. Strategic Initiatives - The company is focused on executing its waste-to-energy strategy, converting recycled asphalt shingles into sustainable fuels and valuable materials [3][4]. - Asset upgrades at PR Spring are nearing completion, which will enable commercial-scale output and activate a fully integrated production model [3]. - The company is positioned to meet growing fuel demand in the Western U.S., particularly as California's refining capacity is expected to decline by 21% due to facility closures [7].