Sky Quarry Reports 2nd Quarter 2025 Financial Results
WOODS CROSS, Utah, Aug. 15, 2025 (GLOBE NEWSWIRE) — Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or the “Company”), an integrated energy solutions company focused on sustainable resource recovery, today reported its financial and operational results for the second quarter ended June 30, 2025.
Key Financial and Operational Highlights
- Generated $4.54 million in Q2 revenue, a 35% increase from Q2 2024, driven by regained supply volumes and ongoing operational improvements.
- 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, positioning the Company to meet growing regional fuel demand.
- Submitted an application for a recycling permit to develop an integrated energy facility in Utah that will recover valuable oil from waste asphalt shingles, supporting a fully integrated supply chain for the Company’s operations.
- Launched a strategic digital asset initiative to explore the tokenization of real-world energy commodities, with the goal of opening new market channels and building a long-term digital treasury.
2nd Quarter 2025 Financial Results
Revenues were $4.54 million for the three months ended June 30, 2025, compared to $3.38 million for the comparable period in 2024, representing an increase of 35%. For the six months ended June 30, 2025, revenues were $10.87 million, compared to $14.33 million in the prior year period, a decrease of 24%.
Gross profit for the three months ended June 30, 2025 was a loss of $117,529, compared to a loss of $485,589 in Q2 2024, an improvement of $368,060. For the six months ended June 30, 2025, gross profit was a loss of $843,060, compared to a profit of $83,860 in the prior year period, a decrease of $926,920.
Total operating expenses were $1.62 million for the three months ended June 30, 2025, compared to $0.97 million in Q2 2024. For the six months ended June 30, 2025, operating expenses totaled $3.56 million, up from $2.58 million in the prior year period.
Net loss was $2.21 million for the three months ended June 30, 2025, compared to $3.56 million for the same period in 2024. For the six months ended June 30, 2025, net loss was $5.54 million compared to $6.03 million in the prior year period.
Net cash used in operating activities for the six months ended June 30, 2025 was $0.73 million, compared to $2.60 million in the prior year period.
About Sky Quarry Inc.
Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit www.skyquarry.com.
Forward-Looking Statements
This press release may include ”forward-looking statements.” All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in the Company’s Form 10-K as filed with the SEC on March 31, 2025, as well as the Company’s Form 10-Q as filed with the SEC on May 15, 2025. Forward-looking statements speak only as of the date of the document in which they are contained.
Investor Relations
Jennifer Standley
Director of Investor Relations
Ir@skyquarry.com
Company Website
www.skyquarry.com
| Sky Quarry Inc. Condensed Consolidated Balance Sheets As of June 30, 2025 and December 31, 2024 (Unaudited) | ||||||
| June 30, 2025 | December 31, 2024 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $173,795 | $385,116 | ||||
| Accounts receivables | 622,521 | 1,123,897 | ||||
| Prepaid expenses and other assets | 403,665 | 339,124 | ||||
| Inventory | 1,999,351 | 3,149,236 | ||||
| Total current assets | 3,199,332 | 4,997,373 | ||||
| Property, plant, and equipment | 5,635,527 | 6,160,318 | ||||
| Oil and gas properties | 8,887,940 | 8,534,967 | ||||
| Restricted cash | 801,816 | 2,929,797 | ||||
| Right-of-use asset | 1,066,943 | 1,115,785 | ||||
| Goodwill | 3,209,003 | 3,209,003 | ||||
| Total assets | $22,800,561 | $26,947,243 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued expenses | $4,245,605 | $4,046,319 | ||||
| Current portion of operating lease liability | 77,824 | 38,422 | ||||
| Current portion of finance lease liability | 16,964 | 16,120 | ||||
| Warrant liability | 358,441 | 459,067 | ||||
| Lines of credit | 1,133,633 | 1,260,727 | ||||
| Current maturities of notes payable | 5,890,981 | 6,578,017 | ||||
| Total current liabilities | 11,723,448 | 12,398,672 | ||||
| Notes payable, less current maturities, net of debt issuance costs | 2,244,970 | 2,000,560 | ||||
| Operating lease liability, net of current portion | – | 77,824 | ||||
| Finance lease Liability, net of current portion | 966,661 | 971,690 | ||||
| Total Liabilities | 14,935,079 | 15,448,746 | ||||
| Commitments and contingencies | ||||||
| Shareholders’ Equity: | ||||||
| Common stock $0.0001 par value: 100,000,000 shares authorized: 22,110,161 and 19,027,208 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 2,211 | 1,903 | ||||
| Additional paid in capital | 37,585,087 | 35,674,391 | ||||
| Accumulated other comprehensive loss | (211,383) | (209,708) | ||||
| Accumulated deficit | (29,510,433) | (23,968,089) | ||||
| Total shareholders’ equity | 7,865,482 | 11,498,497 | ||||
| Total liabilities and shareholders’ equity | $22,800,561 | $26,947,243 | ||||
| Sky Quarry Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For 6 months Ended June 30, 2025 and 2024 | |||||||||||
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | ||||||||
| Net sales | $4,541,472 | $3,375,244 | $10,874,439 | $14,327,574 | |||||||
| Cost of goods sold | 4,658,440 | 3,860,833 | 11,717,499 | 14,243,714 | |||||||
| Gross margin | (116,968) | (485,589) | (843,060) | 83,860 | |||||||
| Operating expenses: | |||||||||||
| General and administrative | 1,620,696 | 971,378 | 3,554,426 | 2,579,262 | |||||||
| Depreciation and amortization | 2,916 | 1,473 | 4,944 | 2,945 | |||||||
| Total operating expenses | 1,623,612 | 972,851 | 3,559,370 | 2,582,207 | |||||||
| Loss from operations | (1,740,580) | (1,458,440) | (4,402,430) | (2,498,347) | |||||||
| Other income (expense): | |||||||||||
| Interest expense | (318,708) | (2,105,821) | (1,191,176) | (3,414,266) | |||||||
| Gain (loss) on extinguishment of debt | 29,093 | – | (56,660) | (108,887) | |||||||
| Gain (loss) on warrant valuation | (174,354) | – | 100,626 | – | |||||||
| Other income (expense) | (4,101) | 26,858 | 3,376 | 21,552 | |||||||
| Gain (loss) on sale of assets | – | (25,075) | 3,920 | (25,075) | |||||||
| Other expense, net | (468,070) | (2,104,038) | (1,139,914) | (3,526,676) | |||||||
| Loss before provision for income taxes | (2,208,650) | (3,562,478) | (5,542,344) | (6,025,023) | |||||||
| Provision for income taxes | – | – | – | – | |||||||
| Net loss | (2,208,650) | (3,562,478) | (5,542,344) | (6,025,023) | |||||||
| Other comprehensive loss | |||||||||||
| Exchange loss on translation of foreign operations | (2,097) | – | (1,675) | (8,134) | |||||||
| Net loss and comprehensive loss | $(2,210,747) | $(3,562,478) | $(5,544,019) | $(6,033,157) | |||||||
| Loss per common share | |||||||||||
| Basic and diluted | $(0.10) | $(0.22) | $(0.27) | $(0.37) | |||||||
| Weighted average shares outstanding | |||||||||||
| Basic and diluted | 21,589,413 | 16,347,767 | 20,422,497 | 16,426,722 | |||||||
| Sky Quarry Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) For 6 months Ended June 30, 2025 and 2024 | ||||||
| 2025 | 2024 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net loss | $(5,542,344) | $(6,025,023) | ||||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||
| Share based compensation | 309,354 | 459,968 | ||||
| Depreciation and amortization | 557,454 | 369,521 | ||||
| Amortization of debt issuance costs | 807,636 | 1,540,875 | ||||
| Amortization of right-of-use asset | 48,842 | 34,528 | ||||
| Gain on revaluation of warrant liabilities | (100,626) | – | ||||
| Loss on extinguishment of debt | 56,660 | 108,887 | ||||
| Loss (gain) on sale of assets | (3,920) | 25,075 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 501,376 | 2,683,467 | ||||
| Prepaid expenses and other assets | (64,541) | (265,732) | ||||
| Inventory | 1,149,885 | (771,672) | ||||
| Accounts payable and accrued expenses | 1,589,955 | (728,797) | ||||
| Operating lease liability | (39,132) | (33,472) | ||||
| Net cash used in operating activities | (729,401) | (2,602,375) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Proceeds from sale of assets | 14,060 | – | ||||
| Purchase of exploration and evaluation assets | (352,973) | (656,964) | ||||
| Purchase of property, plant, and equipment | (42,383) | (714,752) | ||||
| Net cash used in investing activities | (381,296) | (1,371,716) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds on lines of credit | 8,338,455 | 16,377,043 | ||||
| Payments on lines of credit | (8,465,550) | (18,426,517) | ||||
| Proceeds from note payable | 574,380 | 15,054,104 | ||||
| Payments on note payable | (1,670,741) | (8,847,174) | ||||
| Payment of debt issuance costs | – | (1,043,187) | ||||
| Payments on finance lease | (3,474) | – | ||||
| Proceeds on issuance of preferred Stock | – | 307,921 | ||||
| Preferred stock offering costs | (40,874) | |||||
| Proceeds on issuance of common stock | – | 1,138,077 | ||||
| Common stock offering costs | – | (340,885) | ||||
| Net cash provided by (used in) financing activities | (1,226,930) | 4,178,508 | ||||
| Effect of exchange rate on cash | (1,675) | (8,134) | ||||
| Increase (decrease) in cash and restricted cash | (2,339,302) | 196,283 | ||||
| Cash and restricted cash, beginning of the period | 3,314,913 | 4,680,836 | ||||
| Cash and restricted cash, end of the period | $975,611 | $4,877,119 | ||||
