Sky Quarry Inc.

Sky Quarry Inc. reported a net loss of $6.38 million for the first half of 2026, an increase from $5.54 million in the prior year, alongside a going concern warning due to an accumulated deficit and negative operating cash flows. The company's net sales significantly dropped to $383 from $10.87 million in H1 2025, as its Foreland Refinery operations have not yet restarted. Despite these challenges, Sky Quarry successfully raised $12.54 million net proceeds from common stock issuance, leading to a substantial increase in its cash balance to $7.23 million and shareholders' equity to $11.76 million.

Sky Quarry Inc. announced a Special Meeting of Stockholders on September 18, 2026, to vote on two separate reverse stock splits. Each proposed split would have a ratio between 1-for-2 and 1-for-25, with the Board having discretion over the exact ratio and timing, primarily to maintain the company's Nasdaq listing by increasing its per-share price. Stockholders will also consider approving the 2026 Omnibus Incentive Plan and potential meeting adjournments.

Sky Quarry Inc. successfully completed its at-the-market (ATM) equity offering program between April and June 2026, selling the full aggregate offering amount of its common stock. The company issued approximately 4,408,137 shares, resulting in aggregate net proceeds of about $13,528,940. Sales were conducted through Cantor Fitzgerald & Co. and later Muriel Siebert & Co., LLC, following an amended sales agreement that increased the program's capacity.

Sky Quarry Inc. announced that its Board of Directors approved a one-time discretionary cash award of $100,000 to Marcus Laun. This Executive Supplemental Award recognizes his service as President, interim Chief Executive Officer, and interim Chief Financial Officer, as well as his leadership in the company's growth initiatives. The payment is a lump-sum and is separate from the company's annual incentive compensation program.

Sky Quarry Inc., along with its subsidiaries, entered into a Conversion and Exchange Agreement with Libertas Funding LLC to restructure $3,985,000 in outstanding merchant cash advance obligations. These obligations were converted into a new promissory note for the same principal amount, bearing an 8% non-compounding interest rate with a principal-first repayment schedule. The company's Interim CEO, Marcus Laun, provided a personal guarantee for the note, for which the company has agreed to indemnify him.

Sky Quarry Inc. announced it is entering the production phase at its Eagle Springs Refinery in Nevada, with operations expected to commence in July 2026. Repairs are complete and preparation work is in its final stages. The company currently has approximately 10,000 barrels of inventory on-site and over 100,000 barrels of storage capacity, marking a significant transition for the company's corporate evolution.

Sky Quarry Inc. reported a significant decline in net sales to $383 for Q1 2026, down from $6.33 million in Q1 2025, while reducing its net loss to $(2.32) million from $(3.33) million year-over-year. The company faces a going concern uncertainty due to an accumulated deficit of $38.49 million and negative operating cash flows. Additionally, a lawsuit was filed by KF Business Ventures, LP seeking repayment of approximately $2.2 million in principal under promissory notes.

Sky Quarry Inc. announced an amendment to its "at-the-market" (ATM) sales agreement, replacing Cantor Fitzgerald & Co. with Muriel Siebert & Co., LLC as the principal and/or sole designated sales agent. The A&R Sales Agreement maintains the original terms and conditions, with Siebert earning a 3.0% commission on gross proceeds from common stock sales. The company retains the flexibility to suspend or terminate the ATM program at any time.

Sky Quarry Inc. entered into an exclusivity agreement in March 2026 to evaluate a potential acquisition of digital infrastructure assets. Discussions with the counterparty are ongoing, but no definitive terms have been agreed upon, and no definitive agreement has been executed. The counterparty is also permitted to consider alternative parties for the potential transaction.