Sky Quarry Reports 4th Quarter and Fiscal Year 2024 Financial Results
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
------------------ --------------------------- -------------------
(MORE TO FOLLOW) Dow Jones Newswires
April 01, 2025 10:02 ET (14:02 GMT)
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