Core Viewpoint - Sky Quarry Inc. is advancing its digital asset treasury (DAT) strategy to enhance its balance sheet and facilitate the tokenization of real-world assets for business growth [1][3]. Group 1: Digital Asset Strategy - The company has been researching digital asset markets and engaging with various investors, indicating a shift from speculative trading to generating yield through creative asset utilization [2][5]. - Sky Quarry's management believes future investors will seek digital strategies that support operating businesses and create measurable shareholder value [3][5]. - The Board has authorized management to seek up to $100 million for a staged investment in the digital asset treasury strategy while maintaining sufficient working capital for operations [3][4]. Group 2: Market Positioning - The company aims to be an early mover in the evolving digital asset landscape, anticipating that many public companies will adopt crypto on their balance sheets [5]. - Tokenization could enable Sky Quarry to use digital tokens as collateral with suppliers, reducing cash burdens and streamlining accounting processes [6]. Group 3: Future Steps - Sky Quarry plans to continue discussions with selected partners and will provide updates as significant milestones in tokenization initiatives are reached [7].

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].