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].

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].