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Globe and Mail
2 days ago
- Business
- Globe and Mail
Sky Quarry Reports 2nd Quarter 2025 Financial Results
WOODS CROSS, Utah, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or the "Company"), an integrated energy solutions company focused on sustainable resource recovery, today reported its financial and operational results for the second quarter ended June 30, 2025. Key Financial and Operational Highlights Generated $4.54 million in Q2 revenue, a 35% increase from Q2 2024, driven by regained supply volumes and ongoing operational improvements. Unveiled a strategic growth plan to ramp operations at the Foreland Refinery to its full permitted production capacity of up to 800,000 barrels per year, positioning the Company to meet growing regional fuel demand. Submitted an application for a recycling permit to develop an integrated energy facility in Utah that will recover valuable oil from waste asphalt shingles, supporting a fully integrated supply chain for the Company's operations. Launched a strategic digital asset initiative to explore the tokenization of real-world energy commodities, with the goal of opening new market channels and building a long-term digital treasury. 2nd Quarter 2025 Financial Results Revenues were $4.54 million for the three months ended June 30, 2025, compared to $3.38 million for the comparable period in 2024, representing an increase of 35%. For the six months ended June 30, 2025, revenues were $10.87 million, compared to $14.33 million in the prior year period, a decrease of 24%. Gross profit for the three months ended June 30, 2025 was a loss of $117,529, compared to a loss of $485,589 in Q2 2024, an improvement of $368,060. For the six months ended June 30, 2025, gross profit was a loss of $843,060, compared to a profit of $83,860 in the prior year period, a decrease of $926,920. Total operating expenses were $1.62 million for the three months ended June 30, 2025, compared to $0.97 million in Q2 2024. For the six months ended June 30, 2025, operating expenses totaled $3.56 million, up from $2.58 million in the prior year period. Net loss was $2.21 million for the three months ended June 30, 2025, compared to $3.56 million for the same period in 2024. For the six months ended June 30, 2025, net loss was $5.54 million compared to $6.03 million in the prior year period. Net cash used in operating activities for the six months ended June 30, 2025 was $0.73 million, compared to $2.60 million in the prior year period. 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 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, as well as the Company's Form 10-Q as filed with the SEC on May 15, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. June 30, 2025 December 31, 2024 ASSETS Current assets: Cash $173,795 $385,116 Accounts receivables 622,521 1,123,897 Prepaid expenses and other assets 403,665 339,124 Inventory 1,999,351 3,149,236 Total current assets 3,199,332 4,997,373 Property, plant, and equipment 5,635,527 6,160,318 Oil and gas properties 8,887,940 8,534,967 Restricted cash 801,816 2,929,797 Right-of-use asset 1,066,943 1,115,785 Goodwill 3,209,003 3,209,003 Total assets $22,800,561 $26,947,243 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $4,245,605 $4,046,319 Current portion of operating lease liability 77,824 38,422 Current portion of finance lease liability 16,964 16,120 Warrant liability 358,441 459,067 Lines of credit 1,133,633 1,260,727 Current maturities of notes payable 5,890,981 6,578,017 Total current liabilities 11,723,448 12,398,672 Notes payable, less current maturities, net of debt issuance costs 2,244,970 2,000,560 Operating lease liability, net of current portion - 77,824 Finance lease Liability, net of current portion 966,661 971,690 Total Liabilities 14,935,079 15,448,746 Commitments and contingencies Shareholders' Equity: Additional paid in capital 37,585,087 35,674,391 Accumulated deficit (29,510,433) (23,968,089) Total shareholders' equity 7,865,482 11,498,497 Total liabilities and shareholders' equity $22,800,561 $26,947,243 Sky Quarry Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For 6 months Ended June 30, 2025 and 2024 Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Net sales $4,541,472 $3,375,244 $10,874,439 $14,327,574 Cost of goods sold 4,658,440 3,860,833 11,717,499 14,243,714 Gross margin (116,968) (485,589) (843,060) 83,860 Operating expenses: General and administrative 1,620,696 971,378 3,554,426 2,579,262 Depreciation and amortization 2,916 1,473 4,944 2,945 Total operating expenses 1,623,612 972,851 3,559,370 2,582,207 Loss from operations (1,740,580) (1,458,440) (4,402,430) (2,498,347) Other income (expense): Interest expense (318,708) (2,105,821) (1,191,176) (3,414,266) Gain (loss) on extinguishment of debt 29,093 - (56,660) (108,887) Gain (loss) on warrant valuation (174,354) - 100,626 - Other income (expense) (4,101) 26,858 3,376 21,552 Gain (loss) on sale of assets - (25,075) 3,920 (25,075) Other expense, net (468,070) (2,104,038) (1,139,914) (3,526,676) Loss before provision for income taxes (2,208,650) (3,562,478) (5,542,344) (6,025,023) Provision for income taxes - - - - Net loss (2,208,650) (3,562,478) (5,542,344) (6,025,023) Other comprehensive loss Exchange loss on translation of foreign operations (2,097) - (1,675) (8,134) Net loss and comprehensive loss $(2,210,747) $(3,562,478) $(5,544,019) $(6,033,157) Loss per common share Basic and diluted $(0.10) $(0.22) $(0.27) $(0.37) Weighted average shares outstanding Basic and diluted 21,589,413 16,347,767 20,422,497 16,426,722 Sky Quarry Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) For 6 months Ended June 30, 2025 and 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(5,542,344) $(6,025,023) Adjustments to reconcile net loss to cash used in operating activities: Share based compensation 309,354 459,968 Depreciation and amortization 557,454 369,521 Amortization of debt issuance costs 807,636 1,540,875 Amortization of right-of-use asset 48,842 34,528 Gain on revaluation of warrant liabilities (100,626) - Loss on extinguishment of debt 56,660 108,887 Loss (gain) on sale of assets (3,920) 25,075 Changes in operating assets and liabilities: Accounts receivable 501,376 2,683,467 Prepaid expenses and other assets (64,541) (265,732) Inventory 1,149,885 (771,672) Accounts payable and accrued expenses 1,589,955 (728,797) Operating lease liability (39,132) (33,472) Net cash used in operating activities (729,401) (2,602,375) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of assets 14,060 - Purchase of exploration and evaluation assets (352,973) (656,964) Purchase of property, plant, and equipment (42,383) (714,752) Net cash used in investing activities (381,296) (1,371,716) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on lines of credit 8,338,455 16,377,043 Payments on lines of credit (8,465,550) (18,426,517) Proceeds from note payable 574,380 15,054,104 Payments on note payable (1,670,741) (8,847,174) Payment of debt issuance costs - (1,043,187) Payments on finance lease (3,474) - Proceeds on issuance of preferred Stock - 307,921 Preferred stock offering costs (40,874) Proceeds on issuance of common stock - 1,138,077 Common stock offering costs - (340,885) Net cash provided by (used in) financing activities (1,226,930) 4,178,508 Effect of exchange rate on cash (1,675) (8,134) Increase (decrease) in cash and restricted cash (2,339,302) 196,283 Cash and restricted cash, beginning of the period 3,314,913 4,680,836 Cash and restricted cash, end of the period $975,611 $4,877,119
National Post
06-06-2025
- Business
- National Post
Li-Cycle Receives Cease Trade Order from Ontario Securities Commission
Article content TORONTO — Li-Cycle Holdings Corp. (OTC Pink Markets: LICYQ) ('Li-Cycle' or the 'Company'), a leading global lithium-ion battery resource recovery company, announced that, after close of markets on June 5, 2025, the Company received a cease trade order ('CTO') issued by the Ontario Securities Commission ('OSC') as a result of the Company's failure to file periodic disclosures required by Ontario securities legislation. Article content These disclosures include the interim financial statements, and management's discussion and analysis relating to such interim financial statements, for the period ended March 31, 2025, and certification of the foregoing filings as required by National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings. Article content Article content The CTO prohibits any person or company from trading, directly or indirectly, in any security of the Company in Ontario and each other jurisdiction of Canada that has a statutory reciprocal order provision, except in accordance with the conditions that are contained in the CTO, for as long as the CTO remains in effect. Article content A beneficial security holder of Li-Cycle who is not, and was not an insider or control person of the Company at the date of the CTO may sell securities of Li-Cycle acquired before the date of the CTO, if both of the following apply: Article content the sale is made through a 'foreign organized regulated market' (or 'FORM'), as defined in section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization; and the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. Article content Li-Cycle's common shares are currently quoted on the OTC Pink Markets, which generally does not meet the FORM criteria. Article content As previously disclosed, on May 14, 2025, Li-Cycle and its subsidiaries in North America sought and obtained from the Ontario Superior Court of Justice (the 'Court') an order (the 'Initial Order') providing them with creditor protection pursuant to Canada's Companies' Creditors Arrangement Act (the 'CCAA'). On May 15, 2025, the CCAA proceedings were recognized, and immediate stays of proceedings entered, by the United States Bankruptcy Court for the Southern District of New York pursuant to Chapter 15 of the United States Bankruptcy Code. Article content Given the ongoing CCAA proceedings and the Initial Order, as amended and restated on May 22, 2025, Li-Cycle has determined that it does not currently intend to devote additional time or financial resources towards its public disclosure obligations in Canada and the United States. Article content The Company's common shares are expected to remain qualified to trade on the OTC Pink Markets for 180 days from the period end date of its most recently filed Annual Report on Form 10-K, which was for the period ended December 31, 2024. As Li-Cycle does not currently intend to file disclosures required by the U.S. Securities and Exchange Commission ('SEC'), the Company expects it will be moved from the OTC Pink Markets to the OTC Expert Markets on or around June 30, 2025, pursuant to SEC Rule 15c2-11. Article content Holders of Li-Cycle securities are urged to consult with their own investment advisors or legal counsel regarding the implications of the CTO. Article content A copy of the CTO can be found on SEDAR+ at Additional information regarding the CCAA proceedings is available on the website of Alvarez & Marsal Canada Inc., the Court-appointed monitor of the Company during the CCAA proceedings, at About Li-Cycle Holdings Corp. Article content Li-Cycle (OTC Pink Markets: LICYQ) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle's mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. For more information, visit Article content Forward-Looking Statements Article content Certain statements contained in this press release may be considered 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as 'believe', 'may', 'will', 'continue', 'anticipate', 'intend', 'expect', 'should', 'would', 'could', 'plan', 'potential', 'future', 'target' or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: the Company's expectation that its common shares will remain qualified to trade on the OTC Pink Markets for 180 days following December 31, 2024, and that its common shares will be moved from the OTC Pink Markets to the OTC Expert Markets on or around June 30, 2025 pursuant to SEC Rule 15c2-11. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the Company's current and future liquidity and financial resources and the Company's CCAA process. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. Article content These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Article content Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the risks and uncertainties related to Li-Cycle's business are described in greater detail in the section titled 'Part I – Item 1A. Risk Factors' and 'Part II – Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation' in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement. Article content Article content Article content Article content Article content Contacts Article content Investors & Media Article content Article content Investors: Article content Article content Article content
National Post
12-05-2025
- Business
- National Post
Li-Cycle Receives Further Waiver Extensions from Convertible Note Holders
Article content Article content TORONTO — Li-Cycle Holdings Corp. (OTCQX: LICYF) ('Li-Cycle' or the 'Company'), a leading global lithium-ion battery resource recovery company, today announced that it has received further waiver extensions from the holders of its convertible notes, Glencore Canada Corporation ('Glencore') and Wood River Capital, LLC ('Wood River Capital' and together with Glencore, the 'Convertible Note Holders') to permit the Company's common shares to continue to trade on the OTCQX ® Best Market ('OTCQX') as an eligible market under the terms of the convertible notes until 11:59 p.m. ET on Tuesday, May 13, 2025. Article content Li-Cycle had previously disclosed that it had received waiver extensions from the Convertible Note Holders to trade on the OTCQX as an eligible market under the terms of the convertible notes until 11:59 p.m. ET on Friday, May 9, 2025. Article content Regardless of the extended waivers, as previously disclosed and considering the Company's current circumstances, Li-Cycle will need to significantly modify or terminate its operations and may need to dissolve and liquidate its assets under applicable insolvency laws or otherwise file for insolvency protection. Article content Li-Cycle has retained Alvarez & Marsal Corporate Finance, and certain of its affiliates, to assist in seeking buyers for its business or its assets, including the Company as a whole or any part. No assurances can be made as to whether any such buyers will be found, or as to the terms of any resulting transactions. Article content Li-Cycle (OTCQX: LICYF) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle's mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. For more information, visit Article content Certain statements contained in this press release may be considered 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as 'believe', 'may', 'will', 'continue', 'anticipate', 'intend', 'expect', 'should', 'would', 'could', 'plan', 'potential', 'future', 'target' or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: the need to significantly modify or terminate Li-Cycle's operations, dissolve or liquidate assets under applicable insolvency laws or otherwise file for insolvency protection; the efforts to seek buyers for Li-Cycle's business or its assets, including Li-Cycle as a whole or in any part; and the terms of any resulting transactions with any such buyers of Li-Cycle's business or its assets. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding Li-Cycle's funds and sources of liquidity; the timing and scope of any significant modifications or terminations to Li-Cycle's operations; the purchase value of Li-Cycle's projects, facilities and other assets; the feasibility and actionability of various financial and strategic alternatives for Li-Cycle; the timing, scope and cost of any dissolution, liquidation or insolvency; general economic conditions; currency exchange and interest rates; and inflation. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. Article content These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Article content Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle's inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle's inability to develop the Rochester Hub and other future projects as anticipated or at all in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle's history of losses and expected significant expenses for the foreseeable future as well as additional funds required to meet Li-Cycle's liquidity needs and capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle's ability to negotiate a strategic transaction with Glencore on acceptable terms, or at all; Li-Cycle's estimated total addressable market; risk and uncertainties related to Li-Cycle's ability to continue as a going concern; uncertainty related to the success of Li-Cycle's cash preservation plan and related past and any possible further workforce reductions; Li-Cycle's inability to attract, train and retain top talent who possess specialized knowledge and technical skills; Li-Cycle's failure to oversee and supervise capital projects and obtain financing and other strategic alternatives; Li-Cycle's ability to service its debt and the restrictive nature of the terms of its debt; Li-Cycle's potential engagement in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle's current or future facilities becoming inoperative, capacity constrained or disrupted, or lacking sufficient feed streams to remain in operation; the potential impact of the pause in construction of the Rochester Hub on the authorizations and permits granted to Li-Cycle for the operation of the Rochester Hub and the Spokes on pause; the risk that the New York state and municipal authorities determine that the permits granted to Li-Cycle for the production of metal sulphates at the Rochester Hub will be impacted by the change to MHP and the reduction in scope for the project; Li-Cycle's failure to materially increase recycling capacity and efficiency; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle's operations; Li-Cycle's inability to maintain and increase feedstock supply commitments as well as secure new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for 'green' energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle's products; changes in the volume or composition of feedstock materials processed at Li-Cycle's facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle's expected revenues for the Rochester Hub are expected to be derived significantly from a limited number of customers; Li-Cycle's reliance on the experience and expertise of senior management and key personnel; the potential for Li-Cycle's directors and officers who hold Company common shares to have interest that may differ from, or be in conflict with, the interests of other shareholders; Li-Cycle's insurance may not cover all liabilities and damages; Li-Cycle's reliance on limited number of commercial partners to generate revenue; customer demand for recycled materials; an active, liquid trading market for our common shares may not be sustained; Li-Cycle's inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle's intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle may be subject to cybersecurity attacks, including, but not limited to, ransomware; Li-Cycle's failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or its failure to develop and maintain a proper and effective internal control over financial reporting; the risk that Li-Cycle may lose access to funding under the DOE loan facility; risk of litigation or regulatory proceedings that could materially adversely impact Li-Cycle's financial results; and the terms of the warrants. These and other risks and uncertainties related to Li-Cycle's business are described in greater detail in the section titled 'Part I – Item 1A. Risk Factors' and 'Part II – Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation' in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement. Article content Article content Article content Article content Article content
