SKY QUARRY Advances Modular Recycling Facility Plans

Introduction

SKY QUARRY INC (NASDAQ: SKYQ) is a Woods Cross, Utah–based integrated energy solutions company focused on recycling waste asphalt roofing shingles and extracting hydrocarbons from oil sands. The company operates two primary facilities: a hydrocarbon extraction site at PR Spring and the Foreland refinery in Nevada, which has a daily processing capacity of 4,500 to 5,000 barrels. As of June 16, 2025, SKYQ shares traded at $1.7998, reflecting a 138.64 percent increase on a trading volume of 9,361,191 shares.

Corporate Structure and Management

Founded in 2019, SKY QUARRY employs between 11 and 50 staff members. Its executive team includes:

• David Sealock, Chief Executive Officer, responsible for day-to-day operations and strategic initiatives.
• Thomas Zickell, with over 40 years in the roofing and recycling sectors, holds multiple patents for shingle-recycling technology.
• Jennifer Standley, Vice President of Marketing and Business Development, has over 15 years of experience in startup operations and direct-to-consumer marketing.
• Cyla Apache, CPA, EA, serves as Corporate Controller, overseeing finance, tax compliance, and operational workflows.
• Darryl Delwo, Chief Financial Officer, has more than 25 years of experience in finance, mergers and acquisitions, and joint ventures.

Recent Developments and News

On November 14, 2024, SKY QUARRY announced that its first Waste Asphalt Shingle Modular Facility was 80 percent complete, with operations expected to commence in 2025, pending project financing. This facility is designed to process up to 100,000 tons of shingles annually and supply the Utah extraction facility.

In a letter dated January 9, 2025, management recommended that shareholders consider transferring their holdings from margin to cash accounts to prevent shares from being lent to short sellers.

On April 21, 2025, the company filed an amended annual report (Form 10-K/A) with the SEC, updating disclosures for the fiscal year ended December 31, 2024.

On April 28, 2025, a Schedule 13G filing disclosed that Allegheny Manufacturing, LLC holds 1,184,593 shares, or approximately 5.9 percent of SKYQ’s outstanding common stock, with sole voting and dispositive power.

On May 15, 2025, SKY QUARRY filed its Quarterly Report (Form 10-Q) for the period ended March 31, 2025.

Financial and Strategic Analysis

According to trailing twelve-month data (per Yahoo Finance), SKY QUARRY reported $18.74 million in revenue and a net loss of $15.6 million, resulting in a profit margin of –83.22 percent and diluted EPS of –$0.78. The company’s market capitalization is approximately $37.8 million, with a price/sales ratio of 0.80 and a price/book ratio of 1.69. Balance sheet data indicate $213,000 in cash and a total debt/equity ratio of 121.02 percent.

Strategically, SKY QUARRY is implementing a modular build-out of shingle-processing units to intercept feedstock regionally and transport recycled materials to its Utah and Nevada facilities. The Foreland refinery generated over $50 million in revenue in 2023, and management has outlined a growth plan to scale production to 800,000 barrels per year through expanded capacity, targeted investments, and partnerships, including a letter of intent with R & R Solutions for Southwest operations.

Market Position and Industry Context

Each year, approximately six million U.S. homes are reroofed, generating about 15 million tons of asphalt shingles that could yield 20–22 million barrels of oil and 9–11 million tons of aggregate if recycled. SKY QUARRY utilizes proprietary ECOsolve technology in a closed-loop process to separate clean oil from shingles and recover construction solids. Regulatory requirements in areas such as Pitkin County, Colorado (which mandates 100 percent reuse) and Austin, Texas (which requires 50 percent of construction waste to be recycled) reflect increasing demand for sustainable waste-to-energy solutions. SKYQ competes with traditional recyclers and emerging waste-oil processors, positioning itself as both an environmental remediation and energy production company.

tl;dr

On January 9, 2025, SKY QUARRY recommended shareholders transfer shares into cash accounts to reduce short-selling pressure. By May 15, 2025, the company reported Q1 filings indicating a net loss of $15.6 million on $18.7 million in revenue, with a market cap near $38 million. Construction of its first modular recycling unit is scheduled for 2025 startup, while the Foreland refinery aims to scale production to 800,000 barrels annually. A 5.9 percent stake held by Allegheny Manufacturing and strategic partnerships indicate potential growth in the waste-to-energy sector.