Sky Quarry Inc. reported a significant decline in financial performance for the first quarter of 2026, with net sales plummeting to $383 compared to $6.3 million in the same period of 2025. The drastic drop in revenue is attributed to operational challenges at the Eagle Springs refinery, which experienced outages due to maintenance and supplier disruptions. The cost of goods sold also decreased to $389,601 from $7.1 million year-over-year, reflecting the reduced production capacity. The company recorded a net loss of $2.3 million, or $(0.65) per share, an improvement from a net loss of $3.3 million, or $(1.25) per share, in the prior year.
In terms of operational metrics, Sky Quarry's total assets increased slightly to $19.3 million as of March 31, 2026, from $19.2 million at the end of 2025. However, total liabilities rose to $17.3 million, primarily due to increased accounts payable and related-party payables. The company’s cash position improved, with cash and cash equivalents rising to $66,828 from $35,370 at the end of the previous year. The company’s employee headcount and customer statistics were not disclosed in the filing.
Strategically, Sky Quarry has been focusing on its development-stage environmental remediation project, the PR Spring facility, which aims to recycle waste asphalt shingles and remediate oil-saturated soils. The company is also pursuing an exclusivity agreement for a potential acquisition of digital infrastructure assets, although no definitive terms have been established. Additionally, the company has initiated an At-the-Market (ATM) program to raise up to $12.6 million, with $747,975 already generated from the sale of common stock.
Looking ahead, Sky Quarry's management has expressed concerns regarding its ability to continue as a going concern, citing the need for additional capital to meet operational and capital requirements. The company plans to enhance revenue by securing more crude oil for its refinery and is exploring refinancing options to reduce debt service costs. However, there is no assurance that these efforts will be successful, and the company remains under pressure to improve its financial stability and operational performance.
About Sky Quarry Inc.
Sky Quarry Inc. specializes in recycling waste asphalt shingles and oil sands remediation using proprietary ECOSolv technology. The company produces crude oil, asphalt, and construction materials from recycled and mined resources. Serving the asphalt, roofing, and oil industries, it aims to reduce landfill waste and dependence on virgin crude. Its integrated process offers environmentally sustainable solutions with scalable facilities and strategic partnerships.
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