Financial Performance - Net sales for the three months ended September 30, 2025, were $1,336,963, a decrease of 72.5% compared to $4,846,795 for the same period in 2024[187]. - For the nine months ended September 30, 2025, net sales were $12,211,402, down 36.4% from $19,174,369 in 2024[189]. - Net sales for the three months ended September 30, 2025, were $1,336,963, a decrease of 84% compared to $4,846,795 for the same period in 2024[192]. - Year-to-date net sales for the nine months ended September 30, 2025, were $12,211,402, down 36% from $19,174,369 in the prior year[192]. Cost and Expenses - Cost of goods sold for the three months ended September 30, 2025, was $2,387,726, compared to $4,750,839 for the same period in 2024, reflecting a decrease of 49.8%[189]. - Cost of goods sold for the three months ended September 30, 2025, was $2,387,726, a decrease of 50% from $4,750,839 in the same period in 2024[194]. - Operating expenses increased to $1,502,038 for the three months ended September 30, 2025, up 17.2% from $1,281,108 in 2024[190]. - Other expense for the three months ended September 30, 2025, was $1,237,883, a decrease of 62% from $3,260,108 in the same period in 2024[198]. - The cost of goods sold as a percentage of net sales was 179% for the three months ended September 30, 2025, compared to 98% for the same period in 2024[196]. Net Loss and Financial Health - The company reported a net loss of $3,790,684 for the three months ended September 30, 2025, compared to a net loss of $4,445,260 for the same period in 2024, representing a 14.7% improvement[191]. - The accumulated net losses from inception through September 30, 2025, totaled $33,301,117, raising concerns about the company's ability to continue as a going concern[184]. - Net loss for the three months ended September 30, 2025, was $3,790,684, or a loss of $0.17 per share, compared to a net loss of $4,445,260, or $0.25 per share, for the same period in 2024[201]. - The net loss for the nine months ended September 30, 2025, was $9,333,028, with favorable working capital changes of $4,551,167[210]. Assets and Liabilities - Total current assets decreased by $2,344,920 to $2,652,453 as of September 30, 2025, primarily due to a decrease in inventory and accounts receivable[203]. - Total assets decreased by $6,095,340 to $20,851,903 as of September 30, 2025, driven by reductions in current assets and property, plant, and equipment[204]. - As of September 30, 2025, current liabilities increased by $156,490, while total liabilities decreased by $57,764, primarily due to an increase in accounts payable of $387,630 and notes payable of $835,260[205]. - The increase in liabilities and decrease in cash and assets are attributed to operational losses, necessitating significant capital raising efforts[206]. Cash Flow and Financing - Cash on hand as of September 30, 2025, was $362,517, with ongoing operational and capital needs requiring additional cash[209]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $1,982,648, compared to $4,616,746 for the same period in 2024, reflecting a decrease in cash used[210]. - Cash flow used in investing activities for the nine months ended September 30, 2025, was $124,859, a decrease of $1,774,353 from $1,899,212 in 2024[211]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $316,230, down from $5,023,764 in 2024, indicating a significant decrease in financing[212]. - The company launched a Regulation Crowdfunding offering to raise up to $1.235 million, but as of September 30, 2025, no commitments had been raised[208]. - The company anticipates satisfying cash flow needs through debt issuance or equity sales until operational cash flows improve[209]. - The company is committed to securing necessary resources to meet financial obligations and execute long-term objectives[209]. Strategic Initiatives - The company aims to increase revenues by securing greater volumes of crude oil for its Foreland refinery to enhance contribution margins[184]. - The company plans to retrofit the PR Spring Facility to recycle waste asphalt shingles and produce oil and asphalt paving aggregate[180]. - The acquisition of Foreland Refining Corporation is expected to be strategically beneficial, providing a strong base for growth and vertical integration in oil production and refining[183]. - The company expects production to resume in January 2026 after disruptions due to crude supplier issues and maintenance delays[193].
Sky Quarry Inc.(SKYQ) - 2025 Q3 - Quarterly Report