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]
Sky Quarry Inc.(SKYQ) - 2025 Q1 - Quarterly Report