Sky Quarry Reports 4th Quarter and Fiscal Year 2024 Financial Results
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.
- 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
- 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
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
Gross profit for the year was a loss of
Total operating expenses increased to
As a result, the Company reported a net loss of
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 | - | 246 | |||||
Common stock | 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 |
