Investment Thesis
Sky Quarry faces imminent bankruptcy risk with critical liquidity failure (current ratio 0.09x) and only $35.4K cash against $16M liabilities. Operating cash flow is deeply negative at -$3.3M while the company burns through remaining capital, making debt service and operational continuity unsustainable.
Strengths
- Operating in regulated hazardous waste management sector with barriers to entry
- Tangible asset base of $19.2M provides some liquidation value
- Recent financial data (2025-12-31) enables current assessment
Risks
- Liquidity crisis: current ratio 0.09x indicates inability to meet short-term obligations
- Cash depletion risk: only $35.4K remaining with -$3.3M operating cash burn
- Unsustainable capital structure: 1.91x debt/equity with persistent operating losses
- Negative revenue generation with ROE of -382.8% destroying shareholder value
- Covenant violation and forced restructuring/bankruptcy risk within months
Key Metrics to Watch
- Cash balance and runway until insolvency
- Operating cash flow trend and path to profitability
- Debt covenant compliance and refinancing prospects
- Revenue stabilization and return to positive operations
Financial Metrics
Revenue
-3.2M
Net Income
-12.2M
EPS (Diluted)
$0.00
Free Cash Flow
-3.4M
Total Assets
19.2M
Cash
35.4K
Profitability Ratios
Gross Margin
98.0%
Operating Margin
292.4%
Net Margin
385.7%
ROE
-382.8%
ROA
-63.5%
FCF Margin
107.7%
Balance Sheet & Liquidity
Current Ratio
0.09x
Quick Ratio
0.04x
Debt/Equity
1.91x
Debt/Assets
83.4%
Interest Coverage
N/A
Long-term Debt
6.1M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-16T00:15:24.011198 |
Data as of: 2025-12-31 |
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