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Sky Quarry Inc. (SKYQ+3.17%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing outlines Sky Quarry's operations as an oil production, refining, and environmental remediation company, focusing on recycling waste asphalt shingles and remediating oil-saturated sands.
Sky Quarry reported a net loss of $14,728,511 for the year ended December 31, 2024, compared to a net loss of $4,436,472 for the previous year. The increase in net loss is attributed to a decrease in net sales and increased operating expenses.
Net sales decreased by 53.9% to $23,364,188 for the year ended December 31, 2024, from $50,731,889 for the year ended December 31, 2023. The decrease in sales was due to refinery shutdowns for repairs and refurbishment and lower pricing for refined products.
Cost of goods sold decreased by 48.8% to $24,759,530 in 2024 from $48,391,724 in 2023, correlating with the decrease in sales and production volumes.
Sky Quarry's general and administrative expenses increased by 65.3% to $6,121,955 in 2024, primarily due to increased personnel, insurance, and maintenance costs.
The company is in the process of retrofitting its PR Spring Facility to utilize its ECOSolv technology for recycling waste asphalt shingles. The retrofit is expected to be completed in fiscal 2025.
Sky Quarry's cash and cash equivalents as of December 31, 2024, were $385,116, with a monthly cash flow burn rate of $624,298. The company anticipates the need for additional capital through debt or equity offerings.
The company has identified a material weakness in its internal controls over financial reporting due to a shortage of resources in the accounting department, which it plans to address through a remediation plan.
Sky Quarry's management is focused on increasing revenues by securing greater volumes of crude oil for its refinery and completing the retrofit of the PR Spring Facility to enhance production capacity.
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. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.