In This Story
Sky Quarry Inc. (SKYQ-2.94%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $4,846,795 from $14,397,648 in the same quarter the previous year. The decrease is attributed to a combination of reduced WTI pricing and refurbishment of the Foreland refinery.
Cost of goods sold for the quarter was $4,532,565, representing 94% of net sales, compared to 81% in the same quarter of the previous year. This increase in cost ratio is due to reduced operating production volumes.
The company reported a gross profit of $314,230 for the quarter, compared to $2,750,513 in the previous year, with the decline attributed to reduced production.
General and administrative expenses increased slightly to $1,205,032 from $1,173,593, primarily due to costs associated with the company's Reg A Offering and listing on the Nasdaq Capital Market (NDAQ-1.24%).
Net loss for the quarter was $4,445,260, compared to a net loss of $597,527 in the previous year. The increase in net loss is primarily driven by reduced net sales and higher interest expense.
Cash used in operating activities was $4,616,746, while cash used in investing and financing activities was $1,899,212 and $5,023,763, respectively.
Sky Quarry had a working capital of $4,801,943 as of September 30, 2024. The company acknowledges its dependence on raising additional capital to meet future obligations.
The filing also details various financial agreements, including an Invoice Purchase and Security Agreement with Alterna Capital Solutions, LLC.
Sky Quarry continues to focus on increasing production capacity at the Foreland refinery and exploring opportunities to refinance existing obligations.
The company identified a material weakness in its internal controls over financial reporting and is actively developing a plan to address this issue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sky Quarry Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.