Sky Quarry's Business Segments

The registrant operates primarily in the oil refining and fuels production industry and has operated the Eagle Springs Refinery since September 30, 2022. Its business activities include oil sands exploration, asphalt shingle recycling and reclamation, and the production of petroleum-based fuels such as diesel and gasoline. The company relies on several significant customers and principal suppliers for crude oil. Its operations are subject to risks including fluctuating prices for end-products, environmental and regulatory compliance costs, and operational challenges in oil refining. The registrant employs ECOSolv Technology in its asphalt shingle recycling operations, though the effectiveness of this technology is uncertain. Additional risks include limited operating history, recurring losses, outstanding debt, and dependence on key personnel. Market demand for petroleum fuels may be influenced by shifts toward alternative fuels and regulatory changes, including potential rollbacks of vehicle emissions and fuel economy standards. The company also faces risks from economic conditions, inflation, cyber-attacks, and potential conflicts of interest arising from related party transactions. Furthermore, the registrant may incur substantial and unknown decommissioning costs and encounter challenges in marketing recycled products. These operational, financial, market, and regulatory risks could materially affect the registrant’s results of operations and financial condition.

The registrant operates as a single integrated business with one operating and reportable segment. The Chief Operating Decision Maker reviews consolidated financial results in aggregate, without separate evaluations for different business lines or geographic regions.