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Sky Quarry Reports 4th Quarter and Fiscal Year 2024 Financial Results

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Sky Quarry (NASDAQ: SKYQ) reported its Q4 and fiscal year 2024 results, with annual revenue of $23.3 million, marking a 54% decrease from $50.7 million in 2023. The company posted a net loss of $14.7 million in 2024, compared to a $4.4 million loss in 2023.

Key developments include signing an LOI with RB Residential Roofing for nationwide expansion, completing the 2024 capital expenditure program at PR Spring, and planning a national rollout of modular extraction facilities. The company appointed Leo Womack and Todd Palin to its Board of Directors.

The company's Foreland Refinery, with a 5,000 barrels per day capacity, is preparing for increased production in 2025. Sky Quarry plans to deploy its first Asphalt Shingle Recycling Facility in 2025, designed to recover valuable components including bitumen, granules, aggregate, limestone, and fiberglass.

Sky Quarry (NASDAQ: SKYQ) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, con un fatturato annuale di 23,3 milioni di dollari, segnando una diminuzione del 54% rispetto ai 50,7 milioni di dollari del 2023. L'azienda ha registrato una perdita netta di 14,7 milioni di dollari nel 2024, rispetto a una perdita di 4,4 milioni di dollari nel 2023.

Sviluppi chiave includono la firma di una LOI con RB Residential Roofing per l'espansione a livello nazionale, il completamento del programma di spesa in conto capitale 2024 presso PR Spring e la pianificazione di un lancio nazionale di impianti di estrazione modulari. L'azienda ha nominato Leo Womack e Todd Palin nel suo Consiglio di Amministrazione.

Il raffineria Foreland dell'azienda, con una capacità di 5.000 barili al giorno, si sta preparando per un aumento della produzione nel 2025. Sky Quarry prevede di avviare il suo primo impianto di riciclaggio di tegole bituminose nel 2025, progettato per recuperare componenti preziosi tra cui bitume, granuli, aggregati, calcare e fibra di vetro.

Sky Quarry (NASDAQ: SKYQ) informó sus resultados del cuarto trimestre y del año fiscal 2024, con ingresos anuales de 23,3 millones de dólares, lo que representa una disminución del 54% en comparación con los 50,7 millones de dólares en 2023. La compañía registró una pérdida neta de 14,7 millones de dólares en 2024, en comparación con una pérdida de 4,4 millones de dólares en 2023.

Los desarrollos clave incluyen la firma de una LOI con RB Residential Roofing para la expansión a nivel nacional, la finalización del programa de gastos de capital 2024 en PR Spring y la planificación de un lanzamiento nacional de instalaciones de extracción modular. La empresa nombró a Leo Womack y Todd Palin en su Junta Directiva.

La refinería Foreland de la compañía, con una capacidad de 5,000 barriles por día, se está preparando para un aumento en la producción en 2025. Sky Quarry planea implementar su primera Instalación de Reciclaje de Tejas Asfálticas en 2025, diseñada para recuperar componentes valiosos, incluyendo betún, gránulos, agregado, piedra caliza y fibra de vidrio.

Sky Quarry (NASDAQ: SKYQ)는 2024년 4분기 및 회계연도 결과를 발표했으며, 연간 수익은 2,330만 달러로 2023년의 5,070만 달러에 비해 54% 감소했습니다. 회사는 2024년에 1,470만 달러의 순손실을 기록했으며, 이는 2023년의 440만 달러 손실과 비교됩니다.

주요 개발 사항으로는 RB Residential Roofing과의 국가적 확장을 위한 LOI 서명, PR Spring에서 2024년 자본 지출 프로그램 완료, 모듈형 추출 시설의 국가적 롤아웃 계획이 포함됩니다. 회사는 Leo Womack과 Todd Palin을 이사회에 임명했습니다.

회사의 Foreland 정유소는 하루 5,000 배럴의 생산 능력을 가지고 있으며, 2025년 생산 증가를 준비하고 있습니다. Sky Quarry는 2025년에 첫 번째 아스팔트 슁글 재활용 시설을 배치할 계획이며, 이 시설은 비트멘, 과립, 골재, 석회석 및 유리 섬유를 포함한 귀중한 구성 요소를 회수하도록 설계되었습니다.

Sky Quarry (NASDAQ: SKYQ) a annoncé ses résultats du quatrième trimestre et de l'exercice 2024, avec un chiffre d'affaires annuel de 23,3 millions de dollars, marquant une baisse de 54 % par rapport aux 50,7 millions de dollars en 2023. L'entreprise a affiché une perte nette de 14,7 millions de dollars en 2024, contre une perte de 4,4 millions de dollars en 2023.

Les développements clés incluent la signature d'une LOI avec RB Residential Roofing pour une expansion nationale, l'achèvement du programme de dépenses en capital 2024 à PR Spring et la planification d'un déploiement national d'installations d'extraction modulaires. L'entreprise a nommé Leo Womack et Todd Palin à son conseil d'administration.

La raffinerie Foreland de l'entreprise, avec une capacité de 5 000 barils par jour, se prépare à une augmentation de la production en 2025. Sky Quarry prévoit de déployer sa première installation de recyclage de bardeaux d'asphalte en 2025, conçue pour récupérer des composants précieux tels que le bitume, les granulés, les granulats, le calcaire et la fibre de verre.

Sky Quarry (NASDAQ: SKYQ) hat seine Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 veröffentlicht, mit einem Jahresumsatz von 23,3 Millionen Dollar, was einem Rückgang von 54% im Vergleich zu 50,7 Millionen Dollar im Jahr 2023 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 14,7 Millionen Dollar im Jahr 2024, verglichen mit einem Verlust von 4,4 Millionen Dollar im Jahr 2023.

Wichtige Entwicklungen umfassen die Unterzeichnung eines LOI mit RB Residential Roofing für die landesweite Expansion, den Abschluss des Investitionsprogramms 2024 bei PR Spring und die Planung eines nationalen Rollouts modularer Extraktionsanlagen. Das Unternehmen ernannte Leo Womack und Todd Palin in seinen Vorstand.

Die Raffinerie Foreland des Unternehmens, mit einer Kapazität von 5.000 Barrel pro Tag, bereitet sich auf eine Produktionssteigerung im Jahr 2025 vor. Sky Quarry plant, 2025 seine erste Asphalt-Schindel-Recycling-Anlage einzuführen, die darauf ausgelegt ist, wertvolle Komponenten wie Bitumen, Granulate, Aggregate, Kalkstein und Glasfaser zurückzugewinnen.

Positive
  • Secured LOI with RB Residential Roofing for nationwide expansion
  • Completed 2024 capital expenditure program at PR Spring facility
  • Foreland Refinery positioned for increased capacity of 5,000 barrels per day in 2025
  • First ASR facility deployment planned for 2025 with multiple revenue streams
Negative
  • 54% revenue decrease to $23.3M in 2024 from $50.7M in 2023
  • Net loss widened to $14.7M in 2024 from $4.4M in 2023
  • Gross profit turned negative with -6.0% margin in 2024
  • Operating expenses increased by $2.4M to $6.1M in 2024

Insights

Sky Quarry's FY2024 results reveal significant financial deterioration across all key metrics. Revenue plummeted 54% to $23.3 million, while gross margin turned negative at -6.0% from a positive 4.6% in 2023. Operating expenses surged by 65% to $6.1 million, culminating in a net loss of $14.7 million—more than triple the previous year's $4.4 million loss.

The company attributes this decline to lower oil prices and temporary refurbishment of its Foreland Refinery. However, this substantial underperformance raises serious concerns about operational efficiency and market positioning, particularly as expenses continue to rise despite falling revenue.

Management has outlined several strategic initiatives for 2025, including expanding refining capacity at Foreland, deploying modular asphalt shingle recycling facilities, and potentially partnering with RB Residential Roofing. While these could eventually generate new revenue streams through tipping fees and recycled material sales, the company faces a critical near-term challenge: funding these capital-intensive projects amid deepening losses.

The absence of any discussion regarding cash position, financing strategies, or profitability timelines is particularly concerning given the ambitious expansion plans. With revenue down by more than half and losses tripling year-over-year, Sky Quarry's financial trajectory raises substantial questions about its ability to execute its growth strategy without significant additional funding.

WOODS CROSS, Utah, April 01, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, has reported its financial and operational results for the fourth quarter and fiscal year ended December 31, 2024.

Key Financial and Operational Highlights

  • Q4 2024 Revenue of $4.2 million and $23.3 million for the year ended December 31, 2024.

  • Announced the signing of pivotal LOI with RB Residential Roofing, marking the start of a collaboration that targets integrating eco-friendly solutions into roofing services and helping Sky Quarry scale operations nationwide through the roofing company’s multiple locations.

  • Announced appointment of respected finance leader Leo Womack to the Company’s Board of Directors. He will also serve on the Audit and Nominating Committee and chair the Compensation Committee.

  • Announced the completion of its 2024 capital expenditure program for its flagship hydrocarbon extraction site, PR Spring.

  • Announced a national rollout plan for modular extraction facilities to expand the reach and scalability of the Company’s proprietary technology.

  • Announced the appointment of energy industry veteran Todd Palin to the Company’s Board of Directors.

David Sealock, Chairman & Chief Executive Officer of Sky Quarry, reflected on a transformative year for the company:

“2024 was a significant year for our company. Sky Quarry achieved several key milestones in 2024, including our NASDAQ listing for our shareholders, continued and steady revenue at our Foreland Refinery, and a stepwise capital investment program to keep our PR Spring and Asphalt Shingle Recycling (ASR) portfolios moving forward,” he said. “We believe that we are positioned to grow production and increase revenues with our portfolio expansion projects. These portfolio expansion opportunities focus on capitalizing on market shifts, strategic partnerships, and resource optimization. The primary opportunities are in the expansion of refining capacity, partnerships for sustainable asphalt shingle recycling, and the potential for strategic growth to aggressively increase our revenue.

Looking ahead, we remain laser-focused on optimizing our asset base with the successful completion of our 2024 capital expenditure program at PR Spring and the recent refurbishment of our Foreland Refinery in anticipation of increased capacity in 2025. We are actively working towards expanding our national footprint through our recent LOI with RB Residential Roofing and advancing the national rollout of our Asphalt Shingle Recycling (“ASR”) modular extraction facilities, beginning with the deployment of our first facility in the 2025 fiscal year. Together, we believe that these initiatives set the stage for meaningful revenue growth, broader market reach, and long-term value creation for our shareholders.

This quarter, we entered into a pivotal LOI with RB Residential Roofing with the goal of entering into an agreement to secure a steady supply of post-consumer shingles, ensuring a steady supply of feedstock for our recycling operations. We believe that a partnership with RB Residential Roofing will generate consistent tipping fee revenue and accelerate Sky Quarry’s national expansion by leveraging RB’s extensive network of locations. By transforming waste into recycled content for new products, we believe entering into an agreement with RB Residential Roofing will not only support our mission to build a circular economy but also position Sky Quarry at the forefront of sustainable innovation in the roofing industry, helping to drive broader industry adoption.

In the 2025 fiscal year, we anticipate completing the build-out of our first Asphalt Shingle Recycling (“ASR”) Facility. Designed as a modular, scalable system, the facility will recover valuable components such as bitumen, granules, aggregate, limestone, and fiberglass. The first front-end module has already been fabricated, with two additional modules planned for deployment later in the year. We are currently evaluating two potential sites for the initial rollout, based on waste volume and proximity to industry partners. These facilities are expected to generate multiple revenue streams from tipping fees, recycled material sales, and byproduct recovery, contributing to meaningful top-line growth as deployment accelerates.

Operationally, we expect to begin refining blended sustainable oil in 2025, with plans to ramp up production at our Nevada-based Foreland Refinery, which has a processing capacity of up to 5,000 barrels per day. This comes at a critical time, as we anticipate a growing fuel supply crisis in the Western U.S., driven by California refinery shutdowns, tightening regulations, and potential import tariffs that threaten supply stability.

Foreland has served as a strategic energy asset in Nevada for over two decades, and we believe it is well-positioned to enhance regional fuel security. Once heavy oil sourced from our Utah-based PR Spring facility, produced from recycled asphalt shingles, is integrated at the Foreland refinery, we can not only expand our sustainable product offerings but also reinforce our presence in the energy sector. With broadened capabilities and strategic positioning, we anticipate stronger revenue and improved cash flow in the coming quarters.

In conclusion, we recently welcomed Leo Womack and Todd Palin to our Board of Directors. Mr. Womack brings significant strategic, business, and financial expertise, while Mr. Palin’s operational experience will be instrumental as Sky Quarry ramps up production at our Nevada refinery. Both additions strengthen our leadership team as we enter our next phase of growth in 2025.”

Fourth Quarter and Fiscal Year 2024 Financial Results

Revenues for the year ended December 31, 2024, totaled $23.3 million, a decrease of 54% compared to $50.7 million in 2023. This decline was primarily driven by a combination of lower WTI oil prices and the refurbishment of the Company’s Foreland Refinery.

Gross profit for the year was a loss of $1.4 million, representing a gross margin of (6.0)%, compared to a gross profit of $2.3 million, or 4.6% of revenues, in the prior year.

Total operating expenses increased to $6.1 million in 2024, up from $3.7 million in 2023, reflecting an increase of $2.4 million year-over-year.

As a result, the Company reported a net loss of $14.7 million for the year ended December 31, 2024, compared to a net loss of $4.4 million in 2023.

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 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. 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.
Consolidated Balance Sheets
As of December 31, 2024 and December 31, 2023
 
  2024   2023 
    
ASSETS   
    
Current assets:   
Cash and cash equivalents$                385,116  $                326,822 
Accounts receivables                 1,123,897                   3,517,469 
Prepaid expenses and other assets                 339,124                   114,387 
Inventory                 3,149,236                   2,437,181 
Total current assets                 4,997,373                   6,395,859 
    
Property, plant, and equipment, net                 6,160,318                   6,287,351 
Oil and gas properties                 8,534,967                   7,745,205 
Restricted cash and cash equivalents                 2,929,797                   4,354,014 
Right-of-use asset                 1,115,785                   184,548 
Goodwill                 3,209,003                   3,209,003 
    
Total assets$                26,947,243  $                28,175,980 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
    
Current liabilities:   
Accounts payable and accrued expenses$                4,046,319  $                4,904,121 
Current portion of operating lease liability                 38,422                   69,777 
Current portion of finance lease liability                 16,120                   - 
Warrant liability                 459,067                   - 
Lines of credit                 1,260,727                   3,061,698 
Current maturities of notes payable                 6,578,017                   4,835,567 
Total current liabilities                 12,398,672                   12,871,163 
    
Notes payable, less current maturities, net of debt issuance costs                 2,000,560                   2,100,514 
Operating lease liability, net of current portion                 77,824                   116,246 
Finance lease liability, net of current portion                 971,690                   - 
Total liabilities                 15,448,746                   15,087,923 
    
Commitments and contingencies   
    
Shareholders’ Equity:   
Preferred stock $0.001 par value: 25,000,000 shares authorized; 0 and 246,000 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively                 -                   246 
Common stock $0.0001 par value: 100,000,000 shares authorized: 19,027,208 and 16,323,091 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively                 1,903                   1,630 
Additional paid in capital                 35,674,391                   22,527,264 
Accumulated other comprehensive loss                 (209,708)                  (201,505)
Accumulated deficit                 (23,968,089)                  (9,239,578)
Total shareholders’ equity                 11,498,497                   13,088,057 
    
Total liabilities and shareholders’ equity$                26,947,243  $                28,175,980 


  
Sky Quarry Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended December 31, 2024 and 2023
  
  2024
   2023
 
Net sales$                23,364,188  $                50,731,889 
    
Cost of goods sold                 24,759,530                   48,391,724 
Gross profit (loss)                 (1,395,342)                  2,340,165 
    
Operating expenses:   
General and administrative                 6,121,955                   3,702,743 
Depreciation and amortization                 5,889                   5,303 
Total operating expenses                 6,127,844                   3,708,046 
    
Loss from operations                 (7,523,186)                  (1,367,881)
    
Other income (expense):   
Gain on warrant valuation                 1,477,870                   - 
Other income                 35,637                   26,008 
Gain (loss) on sale of assets                 (25,075)                  564,811 
Loss on extinguishment of debt                 (241,311)                  (205,425)
Loss on issuance of private placement warrants                 (1,935,934)                  - 
Interest expense                 (6,516,512)                  (3,639,520)
Other expense, net                 (7,205,325)                  (3,254,126)
    
Loss before benefit from income taxes                 (14,728,511)                  (4,622,007)
    
Provision for income tax benefit                 -                   185,535 
    
Net loss                 (14,728,511)                  (4,436,472)
    
Other comprehensive loss   
    
Foreign currency translation adjustment   
                  (8,203)                  (24,185)
    
Comprehensive loss$                (14,736,714) $                (4,460,657)
    
Loss per common share   
Basic and diluted$                (0.77) $                (0.27)
Weighted average shares outstanding   
Basic and diluted                 19,027,208                   16,323,103 


 
Sky Quarry Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2024 and 2023
 
  2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net loss$                (14,728,511) $                (4,436,472)
Adjustments to reconcile net loss to cash and restricted cash and cash equivalents used in operating activities:   
Share based compensation                 632,205                   634,783 
Depreciation and amortization                 793,449                   564,639 
Amortization of debt issuance costs                 4,465,636                   2,568,523 
Amortization of right-of-use asset                 90,990                   37,925 
Loss on issuance of warrants                 1,936,937                   - 
Gain on revaluation of warrant liabilities                 (1,477,870)                  - 
Loss on extinguishment of debt                 241,311                   205,425 
Loss (gain) on sale of assets                 25,075                   (564,811)
Changes in operating assets and liabilities:   
Accounts receivable                 2,393,572                   719,595 
Prepaid expenses and other assets                 (224,738)                  155,114 
Inventory                 (712,055)                  1,004,383 
Accounts payable and accrued expenses                 (857,802)                  (1,040,860)
Operating lease liability                 (69,777)                  (36,450)
Deferred tax benefit                 -                   (187,856)
Net cash and restricted cash and cash equivalents used in operating activities                 (7,491,578)                  (376,062)
    
CASH FLOWS FROM INVESTING ACTIVITIES   
    
Proceeds from sale of assets                 -                   961,400 
Purchase of property, plant, and equipment                 (691,491)                  (1,028,781)
Purchase of oil and gas development assets                 (789,762)                  (664,556)
Net cash and restricted cash and cash equivalents used in investing activities                 (1,481,253)                  (731,937)
    
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds on lines of credit                 36,645,980                   61,499,106 
Payments on lines of credit                 (38,446,951)                  (58,437,408)
Proceeds from note payable                 19,483,052                   17,721,772 
Payments on note payable                 (17,032,995)                  (12,905,339)
Debt discount on note payable                 (2,546,660)                  (3,588,539)
Payments on finance leases                 (34,417)                  - 
Proceeds on issuance of preferred stock                 308,000                   614,804 
Preferred stock offering costs                 (40,874)                  (474,681)
Proceeds on issuance of common stock                 11,341,641                   28,739 
Common stock offering costs                 (2,061,665)                  - 
Net cash and restricted cash and cash equivalents generated by financing activities                 7,615,111                   4,458,454 
    
Effect of exchange rate on cash                 (8,203)                  (24,185)
    
Increase (decrease) in cash and restricted cash and cash equivalents                 (1,365,923)                  3,326,270 
Cash and cash equivalents and restricted cash, beginning of the period                 4,680,836                   1,354,566 
    
Cash and restricted cash and cash equivalents, end of the period$                3,314,913  $                4,680,836 

FAQ

What caused SKYQ's revenue decline in fiscal year 2024?

SKYQ's revenue declined 54% due to lower WTI oil prices and the refurbishment of the Foreland Refinery.

What is the processing capacity of SKYQ's Foreland Refinery?

The Foreland Refinery has a processing capacity of up to 5,000 barrels per day.

What are the key components of SKYQ's planned Asphalt Shingle Recycling Facility?

The facility will recover bitumen, granules, aggregate, limestone, and fiberglass from recycled shingles.

How will the RB Residential Roofing partnership benefit SKYQ?

The partnership aims to secure steady post-consumer shingle supply, generate tipping fee revenue, and accelerate national expansion through RB's network.

What were SKYQ's gross profit margins for 2024?

SKYQ reported a gross loss of $1.4 million, representing a negative gross margin of 6.0%.
Sky Quarry Inc

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