Investment Thesis
Sky Quarry Inc. is in severe financial distress with negative revenue (-334K), recurring annual net losses (-2.3M), and critical liquidity crisis (cash of 66.8K, current ratio 0.08x). The company burns cash operationally (-588.6K), maintains 3.0x debt-to-equity leverage, and shows no improvement year-over-year, creating imminent going-concern risk.
Strengths
- Total assets of 19.3M provide some liquidation value
- Hazardous waste management sector may benefit from regulatory compliance tailwinds
- Data is relatively recent (as of 2026-03-31)
Risks
- Going concern uncertainty due to critical liquidity position and 66.8K cash balance
- Negative revenue and persistent net losses with zero YoY improvement
- Severe leverage (3.0x debt-to-equity) with minimal equity cushion (2.0M stockholders equity)
- Negative operating cash flow (-588.6K) while simultaneously spending on capex (443.4K)
- Current ratio of 0.08x indicates inability to meet short-term obligations
- No insider activity (zero Form 4 filings) suggests lack of management confidence
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive to survive
- Revenue return to positive - currently negative revenue is unsustainable
- Cash position depletion rate - critical liquidity watch
- Quarterly loss reduction trends - need evidence of operational improvement
- Debt refinancing or restructuring announcements - likely necessary for survival
Financial Metrics
Revenue
-334.0K
Net Income
-2.3M
EPS (Diluted)
$0.00
Free Cash Flow
-1.0M
Total Assets
19.3M
Cash
66.8K
Profitability Ratios
Gross Margin
116.5%
Operating Margin
480.5%
Net Margin
694.7%
ROE
-116.1%
ROA
-12.0%
FCF Margin
309.0%
Balance Sheet & Liquidity
Current Ratio
0.08x
Quick Ratio
0.04x
Debt/Equity
3.00x
Debt/Assets
89.7%
Interest Coverage
N/A
Long-term Debt
6.0M
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: 2026-05-23T09:22:14.338362 |
Data as of: 2026-03-31 |
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