MeritValue

Sky Quarry Inc.

SKYQdata completeness 75%3 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'totalDebt'; no data for concept 'epsDiluted'; no data for concept 'pretaxIncome'

The thesis, from the filings

Sky Quarry Inc. earns about -182% on equity, and has bought back 80% of its shares over 3 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue———
Net income−$4.44M1−$14.7M2−$12.2M2
Operating cash flow−$376,0623−$7.49M4−$3.27M4
Capital expenditure$664,5565$691,4916$133,6366
Free cash flow (derived)−$1.04M3−$8.18M4−$3.41M4
Total debt———
Cash & equivalents$4.68M7$3.31M7$805,7057
Diluted shares16.3M2.4M3.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$9.86
your share of equity
Profit it earned you last year
−$37.73
Free cash flow it threw off
−$10.54
Debt you’d be carrying
—

10 shares is a claim on $9.86 of net worth that earned you −$37.73 and generated −$10.54 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-182% avg · 3y
FY23 -34%FY24 -128%FY25 -383%

It earned an average -182% on equity over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−80% shares · 3y

Share count is down 80% over 3 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K/A · period ending 2023-12-31 · accession 0001096906-25-001422 (NetIncomeLoss)
  2. 10-K · period ending 2024-12-31 · accession 0001096906-26-000438 (NetIncomeLoss)
  3. 10-K/A · period ending 2023-12-31 · accession 0001096906-25-001422 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-12-31 · accession 0001096906-26-000438 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K/A · period ending 2023-12-31 · accession 0001096906-25-001422 (PaymentsToAcquirePropertyPlantAndEquipment)
  6. 10-K · period ending 2024-12-31 · accession 0001096906-26-000438 (PaymentsToAcquirePropertyPlantAndEquipment)
  7. 10-K · period ending 2023-12-31 · accession 0001096906-26-000438 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)