Financial Performance - Net sales for Q1 2025 were $6,332,967, a decrease of $4,619,363 (42.2%) compared to $10,952,330 in Q1 2024[149] - Cost of goods sold for Q1 2025 was $7,059,059, down $3,323,822 (32.0%) from $10,382,881 in Q1 2024[154] - Gross margin for Q1 2025 was negative $726,092, a decline of $1,295,541 compared to a positive gross profit of $569,449 in Q1 2024[152] - Operating expenses increased to $1,937,485 in Q1 2025, up $328,129 (20.4%) from $1,609,356 in Q1 2024[150] - Net loss for Q1 2025 was $3,333,694, compared to a net loss of $2,462,545 in Q1 2024, representing an increase in loss of $871,149 (35.4%)[150] - Cost of goods sold as a percentage of net sales was 112% in Q1 2025, compared to 95% in Q1 2024, indicating increased costs relative to sales[155] - General and administrative expenses rose to $1,935,457 in Q1 2025, an increase of $327,573 (20.3%) from $1,607,884 in Q1 2024[156] - Other expenses decreased to $670,117 in Q1 2025, down $752,521 (52.8%) from $1,422,638 in Q1 2024[157] - The company reported a net loss of $3,333,694 or $0.16 per share for the three months ended March 31, 2025, compared to a net loss of $2,462,545 or $0.15 per share for the same period in 2024[160] Cash Flow and Assets - Cash on hand as of March 31, 2025, was $213,000, reflecting a decrease of $172,116 from $385,116 as of December 31, 2024[162] - Total current assets decreased by $281,408 to $4,715,965 as of March 31, 2025, primarily due to a decrease in inventory of $1,045,857[162] - The company had negative operating cash flows of $1,963,224 for the three months ended March 31, 2025, compared to $1,224,548 for the same period in 2024[168] - Cash flow used in investing activities decreased by $111,456 to $316,210 for the three months ended March 31, 2025[169] - Net cash provided by financing activities was $(24,050) for the three months ended March 31, 2025, a decrease of $1,731,805 compared to $1,707,755 for the same period in 2024[171] - Total assets decreased by $2,356,630 to $24,590,613 as of March 31, 2025, due to changes in current assets and decreases in restricted cash and property, plant, and equipment[164] Future Outlook and Strategy - The company aims to increase revenues by securing greater volumes of crude oil for its Foreland refinery to enhance contribution margin[146] - The company anticipates ongoing capital expenditures related to the Foreland Refinery acquisition and PR Spring facility retrofit program, leading to long-term cash needs[161] - The company is evaluating its capital structure to optimize costs and enhance financial stability, considering refinancing options and alternative capital sources[161] - Management remains committed to securing necessary resources to meet financial obligations and execute long-term objectives[167] - The company has incurred accumulated net losses of $27,301,783 from inception through March 31, 2025[146]

Core Viewpoint - Sky Quarry Inc. has signed a non-binding Letter of Intent with R & R Solutions Inc. to expand its waste-to-energy facilities and enhance revenue opportunities in the Southwest [1][4] Group 1: Partnership and Strategic Expansion - The partnership will focus on deploying Sky Quarry's proprietary equipment and processes at R & R Solutions' site in Albuquerque, New Mexico [2] - This collaboration aims to produce high-value byproducts such as asphalt-coated limestone, sand, granules, bitumen, and structural-grade ground shingles for various applications [2][3] - The partnership is seen as a strategic step for both companies, with R & R Solutions leveraging its experience in responsible recycling practices [4] Group 2: Revenue Generation and Processing Capacity - Sky Quarry expects to generate revenue from both accepting asphalt shingle waste and selling recovered byproducts [3] - The New Mexico site is estimated to process approximately 100,000 tons of asphalt shingle waste annually, potentially generating significant revenue from collection fees and sales of recycled materials [3] - The feedstock could yield up to 150,000 barrels of oil when fully refined, representing additional revenue potential [3] Group 3: Operational Efficiency and Market Position - The Albuquerque region is strategically located near Sky Quarry's PR Spring facility in Utah, which will serve as a hub for hydrocarbon extraction [4] - The integration of operations across both sites is expected to accelerate deployment, reduce capital intensity, and improve supply chain logistics for recovered oil products [4] - This collaboration is anticipated to drive stronger margins and long-term value for both companies [4]

Core Insights - Sky Quarry Inc. is positioning itself to meet rising regional demand by engaging Kevin Arrington of TAR360 as a strategic consultant to enhance growth and optimize internal processes [1][4] - The consulting engagement will focus on scaling production at the Foreland Refinery, aiming to increase output by up to 125% initially and ultimately by up to 300% [2][3] - The company is enhancing refining efficiency by improving distillation and refracturing processes, which will help convert recycled liquid asphalt into sustainable fuels and high-value materials [3][5] Company Strategy - The engagement with TAR360 aims to create a practical operating framework that aligns daily activities with broader business goals, ensuring measurable performance and resource allocation [4] - Kevin Arrington's expertise will help evaluate and upgrade internal reporting systems, providing better access to decision-ready information for strategic oversight [4][5] Industry Context - Sky Quarry's initiatives are particularly relevant as California faces fuel supply constraints due to refinery closures and tightening environmental regulations, positioning the company as a next-generation energy provider [3][6] - The company's waste-to-energy mission focuses on recycling millions of tons of asphalt shingle waste, contributing to improved waste management and resource efficiency [6]

Core Viewpoint - Sky Quarry Inc. is hosting a live investor webinar to discuss its innovative approach to waste asphalt shingle recycling and the broader implications for the energy sector [1][2]. Group 1: Webinar Details - The webinar is scheduled for April 24th at 11:00 a.m. PDT / 2:00 p.m. EDT, featuring company founders David Sealock and Marcus Laun, moderated by Lloyd MacNeil [1]. - Attendees can submit questions in advance via email, and registration is open to all investors, industry partners, and media [2]. Group 2: Company Overview - Sky Quarry Inc. operates in oil production, refining, and environmental remediation, focusing on recycling waste asphalt shingles and remediating oil-saturated sands and soils [3]. - The company's mission is to repurpose millions of tons of asphalt shingle waste, aiming to improve waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact [3]. Group 3: Industry Context - The webinar will address the scale and urgency of the asphalt shingle waste problem and its significance [5]. - It will also cover Sky Quarry's proprietary technology and revenue model, as well as the impact of California's tightening fuel supply on regional refining solutions [5]. - Additionally, the discussion will include regulatory tailwinds and the national blueprint for growth through modular waste-to-energy units [5].

Core Viewpoint - Sky Quarry Inc. has entered into a non-binding Letter of Intent with Southwind RAS to explore a strategic collaboration aimed at advancing asphalt shingle recycling in Illinois, supporting its national expansion strategy and waste-to-energy mission [1][3]. Group 1: Collaboration Details - The collaboration will evaluate the technical and logistical feasibility of implementing Sky Quarry's proprietary recycling technologies at Southwind's nine facilities in the greater Chicago area, focusing on operational modeling, site assessments, and financial structures [2]. - The goal is to develop a scalable, modular approach to shingle recycling that creates mutual value and environmental impact [2]. Group 2: Environmental and Economic Impact - Sky Quarry estimates that approximately 1.2 million tons of asphalt shingle waste are generated annually in the region, which, if fully recycled, could yield the equivalent of 1.5 million barrels of oil, highlighting both environmental urgency and economic opportunity [4]. - The proposed collaboration is expected to generate high-value byproducts such as asphalt-coated limestone, sand, granules, glass fibers, bitumen, and ground asphalt shingles, which can be repurposed for various applications [3]. Group 3: Company Background - Southwind RAS, founded in 2009, is a leader in the recycling of residential tear-off asphalt shingles, operating nine locations in the greater Chicago area and focusing on sustainable waste management [5]. - Sky Quarry Inc. is an integrated energy solutions company focused on recycling waste asphalt shingles and environmental remediation, aiming to repurpose millions of tons of waste and reduce environmental impact [6].

Core Insights - Sky Quarry Inc. reported significant milestones in 2024, including a NASDAQ listing, steady revenue at its Foreland Refinery, and a capital investment program to advance its Asphalt Shingle Recycling (ASR) initiatives [3][4] - The company anticipates growth in production and revenue through strategic partnerships and expansion projects, particularly in refining capacity and sustainable asphalt shingle recycling [3][4] Financial Highlights - For the fiscal year ended December 31, 2024, Sky Quarry reported revenues of $23.3 million, a decrease of 54% from $50.7 million in 2023, primarily due to lower WTI oil prices and refinery refurbishment [11][12] - The company experienced a gross loss of $1.4 million, resulting in a gross margin of (6.0)%, compared to a gross profit of $2.3 million (4.6% margin) in the previous year [12][17] - Total operating expenses rose to $6.1 million in 2024, up from $3.7 million in 2023, leading to a net loss of $14.7 million, compared to a net loss of $4.4 million in 2023 [12][18] Operational Developments - The company is set to complete its first ASR facility in the 2025 fiscal year, designed to recover valuable components from waste asphalt shingles [6][8] - Sky Quarry plans to begin refining blended sustainable oil in 2025 at its Foreland Refinery, which has a processing capacity of up to 5,000 barrels per day [9][10] - A pivotal Letter of Intent (LOI) was signed with RB Residential Roofing to secure a steady supply of post-consumer shingles, enhancing the company's recycling operations and national expansion [5][7] Strategic Initiatives - The company aims to optimize its asset base through the completion of its 2024 capital expenditure program and refurbishment of its Foreland Refinery [4][10] - Sky Quarry is focused on expanding its national footprint with the rollout of modular ASR facilities, starting with the first facility deployment in 2025 [4][6] - The addition of finance leader Leo Womack and energy veteran Todd Palin to the Board of Directors is expected to strengthen the leadership team as the company enters its next growth phase [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-42296 SKY QUARRY INC. (Exact name of registrant as specified in its charter) Delaware 84-1803091 Woods Cross, UT 84087 (Address of Principal Executive Offices) (Zip Code) (424) 394-1090 (R ...

Company Prepares to Ramp Up Production to Help Keep Nevada FueledWOODS CROSS, Utah, March 12, 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, is forecasting a potential fuel shortage in Nevada. Sky Quarry reached this conclusion after conducting research prompted by the surge of inquiries to secure long term fuel supply from Nevada market participants. Sk ...

Core Viewpoint - Sky Quarry Inc. has appointed Todd Palin to its Board of Directors, bringing significant expertise in energy production and operational oversight to advance the company's waste-to-energy mission and strategic growth [1][7]. Group 1: Todd Palin's Background and Experience - Todd Palin has nearly two decades of experience in energy production and operational oversight, including 15 years with BP in Alaska's North Slope oil fields [2][3]. - His role as a facility production operator involved all phases of production, ensuring crude oil met specifications before transfer to the Trans-Alaska Pipeline System [3]. - Palin's background as a fourth-generation commercial fisherman reflects his commitment to sustainable practices and resource management in Alaska [4]. Group 2: Strategic Importance of Appointment - The appointment of Todd Palin is timely as California faces refinery disruptions that threaten fuel supply stability, making his expertise crucial for Sky Quarry's operations [7]. - His knowledge of energy markets and production infrastructure, particularly on the West Coast, will support the ramp-up of production at Sky Quarry's Nevada refinery in 2025 [7]. - Palin's commitment to operational efficiency and regulatory compliance is expected to enhance the company's mission of transitioning to sustainable energy solutions and improving national energy security [7]. Group 3: Company Overview and Mission - Sky Quarry Inc. is focused on revolutionizing the waste asphalt shingle recycling industry and aims to repurpose millions of tons of asphalt shingle waste, diverting it from landfills [8]. - The company is involved in oil production, refining, and environmental remediation, utilizing technologies to improve waste management and reduce environmental impact [8].

Core Perspective - RB Residential, Inc. has signed a Letter of Intent (LOI) with Sky Quarry, Inc. to enhance sustainable practices in the roofing industry through a strategic alliance [1][2] Group 1: Partnership Details - The LOI initiates a collaboration focused on integrating eco-friendly solutions into roofing services, emphasizing environmental stewardship and community support [2] - The partnership aims to leverage Sky Quarry's innovative recycling technology to repurpose waste asphalt shingles into valuable products, thereby reducing waste [4][6] Group 2: Company Profiles - RB Residential specializes in comprehensive roofing services, including inspections, repairs, and storm damage restoration, with a commitment to quality and sustainability [3][7] - Sky Quarry is dedicated to transforming waste asphalt shingles into eco-friendly commercial products, contributing to improved waste management and resource efficiency [8] Group 3: Leadership Insights - Leadership from both companies expresses enthusiasm for the partnership, highlighting the alignment of their missions to promote sustainability and innovation in the roofing industry [5]