# EDGAR Filing Document

**Accession Number:** 0001812447
**File Stem:** 0001096906-25-001507
**Filing Date:** 2025-9
**Character Count:** 186460
**Document Hash:** 660e36ec2e78690e0b9aa1e70c05e8cd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001096906-25-001507.hdr.sgml**: 20250911

**ACCESSION NUMBER**: 0001096906-25-001507

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 11

**FILED AS OF DATE**: 20250911

**DATE AS OF CHANGE**: 20250911

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sky Quarry Inc.
- **CENTRAL INDEX KEY:** 0001812447
- **STANDARD INDUSTRIAL CLASSIFICATION:** HAZARDOUS WASTE MANAGEMENT [4955]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 841803091
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288770
- **FILM NUMBER:** 251309273

**BUSINESS ADDRESS:**
- **STREET 1:** 707 W. 700 S.
- **STREET 2:** SUITE 101
- **CITY:** WOODS CROSS
- **STATE:** UT
- **ZIP:** 84087
- **BUSINESS PHONE:** 424-394-1090

**MAIL ADDRESS:**
- **STREET 1:** 707 W. 700 S.
- **STREET 2:** SUITE 101
- **CITY:** WOODS CROSS
- **STATE:** UT
- **ZIP:** 84087

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As filed with the Securities and Exchange Commission on September 11, 2025

**Registration No.** **333-288770** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**____________________________**

**Amendment No. 2** 

**to**

**FORM S-1**<br>**REGISTRATION STATEMENT UNDER**<br>**THE SECURITIES ACT OF 1933**

**SKY QUARRY INC.**

**(Exact name of registrant as specified in its charter)**<br>

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| | | |
|:---|:---|:---|
| **Delaware** | **4955** | **84-1803091** |
| (State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer<br>Identification Number) |

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**____________________________**

**707 W. 700 South, Suite 101**

**Woods Cross, Utah 84087**

**(424) 394-1090**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**____________________________**

**Marcus Laun**<br>**President**

**700 W. 700 South, Suite 101**

**Woods Cross, Utah 84087**

**(424) 394-1090**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**____________________________**

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| | |
|:---|:---|
| &nbsp;&nbsp;***Copies to:*** | &nbsp;&nbsp;***Copies to:*** |
| &nbsp;&nbsp;Louis A. Bevilacqua, Esq.<br> **Bevilacqua PLLC**<br> 1050 Connecticut Avenue, NW, Suite 500<br> Washington, DC 20036<br> (202) 869-0888 | &nbsp;&nbsp;Steven J. Davis, Esq.<br> **SD Law Group APC**<br> 10531 4S Commons Drive, B464<br> San Diego, CA 92127<br> (619) 788-2383 |

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**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this Registration Statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ⌧

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻Accelerated filer ◻

Non-accelerated filer ⌧ Smaller reporting company ⌧

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ◻

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to such Section 8(a), may determine.**

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**The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting offers to buy these securities in any state where the offer or sale is not permitted.**

**PRELIMINARY PROSPECTUS** **SUBJECT TO COMPLETION, DATED SEPTEMBER 11, 2025**

![](skyqs1z_1.jpg)

**Sky Quarry Inc.**

**Up to 14,517,227 Shares of Common Stock**

**____________________________**

This prospectus relates to the sale of 14,517,227 shares of our common stock by Varie Asset Management, LLC, or the Selling Stockholder, which includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·120,000 shares of common stock issuable upon conversion of a 12% convertible promissory note in the principal amount of $150,000 issued to the Selling Stockholder on May 22, 2025, at an initial conversion price of $1.25 per share, which we refer to as the May Convertible Note, and 60,000 shares of common stock issuable upon exercise of a warrant issued to the Selling Stockholder on May 22, 2025, at an initial exercise price of $1.25 per share, which we refer to as the May Warrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·198,413 shares of common stock issuable upon conversion of a 12% convertible promissory note in the principal amount of $125,000 issued to the Selling Stockholder on July 22, 2025, at an initial conversion price of $0.63 per share, which we refer to as the July Convertible Note, and 50,000 shares of common stock issuable upon exercise of a warrant issued to the Selling Stockholder on July 22, 2025, at an initial exercise price of $0.63 per share, which we refer to as the July Warrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·364,584 shares of common stock issuable upon conversion of a 12% convertible promissory note in the principal amount of $175,000 issued to the Selling Stockholder on August 29, 2025, at an initial conversion price of $0.48 per share, which we refer to as the August Convertible Note, and 70,000 shares of common stock issuable upon exercise of a warrant issued to the Selling Stockholder on August 29, 2025, at an initial exercise price of $0.48 per share, which we refer to as the August Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·up to 13,654,230 shares of common stock that we have issued, or may, in our sole discretion, elect to issue and sell to the Selling Stockholder pursuant to a purchase agreement that we entered into with the Selling Stockholder on July 9, 2025, which we refer to as the Purchase Agreement.

We are not selling any securities under this prospectus and will not receive any of the proceeds from the sale of shares of common stock by the Selling Stockholder. However, we may receive proceeds from cash exercises of the May Warrant, the July Warrant and the August Warrant (which we collectively refer to as the Warrants) and up to $8,125,000 in aggregate gross proceeds under the Purchase Agreement from sales of our common stock we may elect to make to the Selling Stockholder pursuant to the Purchase Agreement after the date of this prospectus.

Please see "*The Convertible Notes and Warrants*" for a description of the terms of the May Convertible Note, the July Convertible Note and the August Convertible Note, which we collectively refer to as the Convertible Notes, and the Warrants, "*The Purchase Agreement*" for a description of the Purchase Agreement, and "*Selling Stockholder*" for additional information regarding the Selling Stockholder.

The Selling Stockholder may sell or otherwise dispose of the shares of common stock described in this prospectus in a number of different ways and at varying prices. See "*Plan of Distribution*" for more information about how the Selling Stockholder may sell or otherwise dispose of the shares of common stock being registered pursuant to this prospectus. The Selling Stockholder is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended.

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The Selling Stockholder will pay all brokerage fees and commissions and similar expenses. We will pay the expenses (except brokerage fees and commissions and similar expenses) incurred in registering the shares, including legal and accounting fees. See "*Plan of Distribution*."

Our common stock is listed on The Nasdaq Capital Market under the symbol "SKYQ." On September 10, 2025, the closing price of our common stock on The Nasdaq Capital Market was $0.559.

We are an "emerging growth company," as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary—Implications of Being an Emerging Growth Company*."

**Investing in our securities involves a high degree of risk. You should read "*Risk Factors*" beginning on page 8 of this prospectus and the reports we file with the Securities and Exchange Commission incorporated by reference in this prospectus to read about factors to consider before purchasing our securities.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is , 2025

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [Prospectus Summary](#ps) | 1 |
| [Risk Factors](#rf) | 8 |
| [Cautionary Note Regarding Forward-Looking Statements](#cnr) | 10 |
| [Use of Proceeds](#up) | 11 |
| [Dividend Policy](#dp) | 12 |
| [The Convertible Note](#cnw)[s](#cnw)[and](#cnw)[Warran](#cnw)[ts](#cnw) | 13 |
| [The Purchase Agreement](#pa) | 15 |
| [Selling Stockholder](#ss) | 18 |
| [Plan of Distribution](#pd) | 19 |
| [Description of Capital Stock](#dcs) | 21 |
| [Legal Matters](#lm) | 21 |
| [Experts](#exp) | 21 |
| [Where You Can Find More Information](#wyc) | 21 |
| [Information Incorporated By Reference](#iir) | 21 |

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**We have not, and the Selling Stockholder has not, authorized anyone to provide you with information different from that contained or incorporated by reference in this prospectus or any accompanying prospectus supplement or free writing prospectus, and neither we nor the Selling Stockholder take any responsibility for any other information that others may give you. We and the Selling Stockholder are offering to sell these securities and seeking offers to buy these securities only in jurisdictions where offers and sales are permitted. This prospectus and any accompanying supplement to this prospectus do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered securities to which they relate.**

**You should not assume that the information contained in this prospectus or any prospectus supplement or free writing prospectus is accurate as of any date other than the date on the front cover of those documents, or that the information contained in any document incorporated by reference is accurate as of any date other than the date of the document incorporated by reference, regardless of the time of delivery of this prospectus or any sale of a security. Our business, financial condition, results of operations and prospects may have changed since those dates.**

This prospectus relates to the offering of our common stock. Before buying any of our common stock, you should carefully read this prospectus, any supplement to this prospectus, the information and documents incorporated herein by reference and the additional information under the heading "*Where You Can Find More Information*" and "*Information Incorporated by Reference*." These documents contain important information that you should consider when making your investment decision.

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus and the documents incorporated by reference into this prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks and trade names or products in this prospectus or in the documents incorporated by reference into this prospectus is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus or in the documents incorporated by reference into this prospectus may appear without the®, TM or SM symbols, but the omission of such references is not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable owner of these trademarks, service marks and trade names.

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i

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**PROSPECTUS SUMMARY**

*This summary highlights selected information contained elsewhere in or incorporated by reference into this prospectus. This summary is not complete and does not contain all of the information that you should consider before deciding whether to invest in our securities. This summary is qualified in its entirety by the more detailed information included in or incorporated by reference into this prospectus. You should carefully read the entire prospectus and the other documents incorporated by reference into this prospectus, including the risks associated with an investment in our company discussed in the "Risk Factors" section of this prospectus, any applicable prospectus supplement, and documents referred to in "Information Incorporated by Reference" before making an investment decision. Some of the statements in this prospectus and the other documents incorporated by reference into this prospectus are forward-looking statements. See the section titled "Cautionary Note Regarding Forward-Looking Statements."*

*Unless otherwise indicated by the context, reference in this prospectus to "we," "us," "our," "our company" and similar references are to the combined business of Sky Quarry Inc., a Delaware corporation, and its consolidated subsidiaries.* 

**OUR COMPANY**

**Overview**

We are an oil production, refining, and development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils, providing sustainable refined crude products. We expect the recycling and production of oil from asphalt shingles to reduce the dependence on landfills for the disposal of waste and to also reduce dependence on foreign and domestic virgin crude oil extraction for industrial uses.

We have developed a process for separating oil from oily sands and other oil-bearing solids utilizing a proprietary solvent, which we refer to as our ECOSolv technology or the ECOSolv process. The solvent is used in a closed-loop distillation and evaporation circuit which results in up to 99% of the solvent being recoverable for continuous reuse and requires no water. The solvent has demonstrated oil separation rates of up to 95% in bench testing using samples of both mined crushed ore and ground asphalt shingles. Bench testing was conducted in house, and through unaffiliated third parties, which were completed on May 3, 2022 and August 30, 2022.

Currently, we intend to finish retrofitting our oil sands remediation facility located in PR Spring in eastern Utah in the next twelve months to recycle waste asphalt shingles using our ECOSolv technology, to produce and sell oil as well as asphalt paving aggregate mined from our bitumen deposit.

We intend to continue to develop regional model asphalt shingle recycling facilities, which can be deployed in areas with high concentrations of waste asphalt shingles and near asphalt shingle manufacturing centers. Our design contemplates a modular, scalable, purpose-built facility capable of remediating waste asphalt shingles and separation into their base components of bitumen / asphalt cement, shingle granules, sand aggregate, limestone and fiberglass.

**Implications of Being an Emerging Growth Company**

We qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·submit certain executive compensation matters to stockholder advisory votes, such as "say-on-pay" and "say-on-frequency;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer's compensation to median employee compensation.

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In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of this offering, (ii) the last day of the first fiscal year in which our total annual gross revenues are $1.235 billion or more, (iii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iv) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

**Corporate Information** 

Our principal executive offices are located at 707 W. 700 S. Suite 101, Woods Cross, UT 84087 and our telephone number is (424) 394-1090. We maintain a website at www.skyquarry.com. Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus.

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**THE CONVERTIBLE NOTES AND WARRANTS**

**May Convertible Note and Warrant**

On May 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the May Convertible Note and the May Warrant for a purchase price of $150,000. The note purchase agreement contains customary representations and warranties and covenants.

The May Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on May 22, 2027; provided that upon an event of default (as defined in the May Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the May Convertible Note at any time prior to maturity; provided that if the May Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $1.25 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the May Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.50 per share. The May Convertible Note contains customary events of default for a loan of this type.

The May Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $1.25, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

On July 9, 2025, we also entered into a registration rights agreement with the Selling Stockholder, or the Registration Rights Agreement, pursuant to which we agreed to register for resale under the Securities Act the shares of common stock that have been or may be issued to the Selling Stockholder under the May Convertible Note, the May Warrant and the Purchase Agreement. Pursuant to the Registration Rights Agreement, we agreed to file an initial registration statement on Form S-1 within ten (10) business days after the date of the Registration Rights Agreement and use our best efforts to have such registration statement declared effective by the SEC at the earliest possible date. The Registration Rights Agreement also contains customary covenants and indemnification provisions.

**July Convertible Note and Warrant**

On July 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the July Convertible Note and the July Warrant for a purchase price of $125,000. The note purchase agreement contains customary representations and warranties and covenants.

The July Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on July 22, 2027; provided that upon an event of default (as defined in the July Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the July Convertible Note at any time prior to maturity; provided that if the July Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $0.63 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the July Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.50 per share. The July Convertible Note contains customary events of default for a loan of this type.

The July Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $0.63, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

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**August Convertible Note and Warrant**

On August 29, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the August Convertible Note and the August Warrant for a purchase price of $175,000. The note purchase agreement contains customary representations and warranties and covenants.

The August Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on August 29, 2027; provided that upon an event of default (as defined in the August Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the August Convertible Note at any time prior to maturity; provided that if the August Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $0.48 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the August Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.40 per share. The August Convertible Note contains customary events of default for a loan of this type.

The August Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $0.48, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

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**THE PURCHASE AGREEMENT**

On July 9, 2025, we entered into the Purchase Agreement with the Selling Stockholder, pursuant to which the Selling Stockholder has agreed to purchase from us up to an aggregate of $8,125,000 of our common stock (subject to certain limitations) from time to time over the term of the Purchase Agreement.

This prospectus covers the resale by the Selling Stockholder pursuant to the Purchase Agreement of 13,654,230 shares of our common stock, comprised of: (i) 366,260 shares that we issued to the Selling Stockholder, or the Initial Commitment Shares; (ii) up to 183,131 shares that we may issue to the Selling Stockholder from time to time in connection with each purchase of common stock by the Selling Stockholder, or the Additional Commitment Shares, in each case, as consideration for the Selling Stockholder's commitment to purchase shares of common stock under the Purchase Agreement, and (iii) 13,104,839 shares that we have reserved for issuance and sale to the Selling Stockholder in the future under the Purchase Agreement.

We do not have the right to commence any sales of our common stock to the Selling Stockholder under the Purchase Agreement until all of the conditions set forth in the Purchase Agreement have been satisfied, including that the SEC has declared effective the registration statement of which this prospectus forms a part registering the shares issued and being issued and sold to the Selling Stockholder. Thereafter, we may, from time to time and at our sole discretion for a period of 24-months, on any business day that we select, direct the Selling Stockholder to purchase up to 40,000 shares of common stock, which amounts may be increased depending on the market price of our common stock at the time of sale.

We will control the timing and amount of any sales of our common stock to the Selling Stockholder. The purchase price of the shares that may be sold to the Selling Stockholder under the Purchase Agreement will be based on an agreed upon fixed discount to the market price of our common stock immediately preceding the time of sale as computed under the Purchase Agreement; provided, however, that we will not sell any shares of our common stock to the Selling Stockholder at a price of less than $0.62 per share. The purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction occurring during the business days used to compute such price.

We may at any time in our sole discretion terminate the Purchase Agreement without fee, penalty or cost upon one (1) business day notice. There are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement or the Registration Rights Agreement. The Selling Stockholder may not assign or transfer its rights and obligations under the Purchase Agreement.

The Purchase Agreement prohibits us from directing the Selling Stockholder to purchase any shares of common stock if those shares, when aggregated with all other shares of our common stock then beneficially owned by the Selling Stockholder and its affiliates, would result in the Selling Stockholder and its affiliates having beneficial ownership at any single point in time of more than 9.99% of the then total outstanding shares of our common stock, as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 thereunder, which limitation we refer to as the Beneficial Ownership Cap.

Issuances of our common stock in this offering will not affect the rights or privileges of our existing stockholders, except that the economic and voting interests of each of our existing stockholders will be diluted as a result of any such issuance. Although the number of shares of common stock that our existing stockholders own will not decrease, the shares owned by our existing stockholders will represent a smaller percentage of our total outstanding shares after any such issuance to the Selling Stockholder.

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**THE OFFERING**

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| | |
|:---|:---|
| **Common stock offered by the Selling Stockholder pursuant to this prospectus**:  | 14,517,227 shares consisting of:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·120,000 shares of common stock issuable upon conversion of the May Convertible Note; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·60,000 shares of common stock issuable upon exercise of the May Warrant; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·198,413 shares of common stock issuable upon conversion of the July Convertible Note; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·50,000 shares of common stock issuable upon exercise of the July Warrant; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·364,584 shares of common stock issuable upon conversion of the August Convertible Note; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·70,000 shares of common stock issuable upon exercise of the August Warrant; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·366,260 Initial Commitment Shares issued to the Selling Stockholder upon the execution of the Purchase Agreement; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·up to 183,131 Additional Commitment Shares that may be issued to the Selling Stockholder; and <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·up to 13,104,839 additional shares that we may sell and issue to the Selling Stockholder under the Purchase Agreement.  |
| **Common stock outstanding**:<sup>(1)</sup> | 23,314,603 shares of common stock. |
| **Use of proceeds:** | We will not receive any proceeds from the sales of common stock included in this prospectus by the Selling Stockholder. We may receive proceeds from cash exercises of the Warrants and up to $8,125,000 in aggregate gross proceeds under the Purchase Agreement from sales of common stock that we may elect to make to the Selling Stockholder pursuant to the Purchase Agreement, if any, from time to time in our sole discretion. We intend to use any net proceeds that we received under the Purchase Agreement for the repayment of certain debt and for working capital and other general corporate purposes. See "*Use of Proceeds*" for more information.  |
| **Risk factors:** | Investing in our securities involves a high degree of risk. You should read "*Risk Factors*" beginning on page 8 of this prospectus and the reports we file with the SEC incorporated by reference in this prospectus to read about factors to consider before purchasing our securities. |
| **Trading market and symbol:** | Our common stock is listed on The Nasdaq Capital Market under the symbol "SKYQ."  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The number of shares of common stock outstanding is based on 23,314,603 shares outstanding as of September 9, 2025 and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·6,805,271 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $1.41 per share (including shares issuable upon exercise of the Warrants);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·932,453 shares of common stock issuable upon the exercise of outstanding options at a weighted average exercise price of $3.80 per share;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·3,067,547 additional shares of common stock that are reserved for issuance under our 2020 Stock Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·shares of common stock issuable upon the conversion of a secured promissory note in the principal amount of $1,200,000 issued to KF Business Ventures, LP, or KF Ventures, which is convertible into shares of common stock at a conversion price of $0.83 per share (subject to adjustment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·shares of common stock issuable upon the conversion of a promissory note in the amount of $2,000,000 issued to Bengt Eriksson, which is convertible into shares of common stock at a conversion price of $4.80 (subject to adjustment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·shares of common stock issuable pursuant to our advisory agreement with KF Ventures, dated December 2, 2024, which provides that we shall issue KF Ventures 10,274 shares per month during the term of the agreement, which is for a period of six months but will be automatically extended for a period of six months for each month the secured promissory note referred to above remains unpaid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·682,997 shares of common stock issuable upon conversion of the Convertible Notes.

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**RISK FACTORS**

*An investment in our securities involves a high degree of risk. Prior to making a decision about investing in our securities, you should consider the risks, uncertainties and assumptions discussed under "Part I-Item 1A-Risk Factors" of our most recent Annual Report on Form 10-K that are incorporated herein by reference, as may be amended, supplemented or superseded from time to time by other reports we file with the SEC in the future. The risks described in these documents are not the only ones we face, but those that we consider to be material. Additional risks not presently known to us or that we currently believe are immaterial may also significantly impair our business operations and financial condition. Please also refer to the section titled "Cautionary Note Regarding Forward-Looking Statements." In addition to the risks that we have previously disclosed, our business is subject to the following risks.* 

**Risks Related to this Offering**

***The sale or issuance of our common stock to the Selling Stockholder may cause dilution and the sale of the shares of common stock acquired by the Selling Stockholder, or the perception that such sales may occur, could cause the price of our common stock to decrease.***

On July 9, 2025, we entered into the Purchase Agreement with the Selling Stockholder, pursuant to which (i) we issued 366,260 shares to the Selling Stockholder as the Initial Commitment Shares, (ii) we have reserved and may issue 183,131 additional shares to the Selling Stockholder as the Additional Commitment Shares, in each case, as consideration for the Selling Stockholder's commitment to purchase shares of common stock under the Purchase Agreement, and (iii) the Selling Stockholder has committed to purchase up to $8,125,000 of our common stock.

The shares of our common stock that may be issued under the Purchase Agreement may be sold by us to the Selling Stockholder at our discretion from time to time over a 24-month period commencing after the satisfaction of certain conditions set forth in the Purchase Agreement, including that the SEC has declared effective the registration statement of which this prospectus forms a part. The purchase price for the shares that we may sell to the Selling Stockholder under the Purchase Agreement will fluctuate based on the price of our common stock. Depending on market liquidity at the time, sales of such shares may cause the trading price of our common stock to decrease.

We generally have the right to control the timing and amount of any future sales of our shares to the Selling Stockholder. Additional sales of our common stock, if any, to the Selling Stockholder will depend upon market conditions and other factors to be determined by us. We may ultimately decide to sell to the Selling Stockholder all, some or none of the additional shares of our common stock that may be available for us to sell pursuant to the Purchase Agreement. If and when we do sell additional shares to the Selling Stockholder, after the Selling Stockholder has acquired the shares, the Selling Stockholder may resell all, some or none of those shares at any time or from time to time in its discretion. Therefore, sales to the Selling Stockholder by us could result in substantial dilution to the interests of other holders of our common stock. Additionally, the sale of a substantial number of shares of our common stock to the Selling Stockholder, or the anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect sales.

Further, we are not restricted from issuing additional securities in the future, including our common stock, securities that are convertible into or exchangeable for, or that represent the right to receive, our common stock or substantially similar securities. To the extent that we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders.

***We may require additional financing to sustain our operations, without which we may not be able to continue operations, and the terms of subsequent financings may adversely impact our stockholders.***

We may direct the Selling Stockholder to purchase up to $8,125,000 worth of shares of our common stock under our agreement over a 24-month period in amounts up to 40,000 shares of our common stock, which may be increased depending on the market price of our common stock at the time of sale, and, in each case, subject to a maximum limit of $300,000 per purchase, on any single business day (such share amounts being subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the Purchase Agreement). Although the Purchase Agreement allows us to access up to $8,125,000, there can be no assurance that we will have the ability to access any or all of such amounts as a result of certain restrictions in the Purchase Agreement, including minimum stock price and minimum volume restrictions.

The extent we rely on the Selling Stockholder as a source of funding will depend on a number of factors, including the prevailing market price of our common stock and the extent to which we are able to secure financing from other sources. If

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obtaining sufficient financing from the Selling Stockholder were to prove unavailable or prohibitively dilutive, we may need to secure another source of funding in order to satisfy our financing needs. Even if we sell all $8,125,000 under the Purchase Agreement to the Selling Stockholder, we may still need additional capital to finance our future working capital needs, and we may have to raise funds through the issuance of equity or debt securities. Depending on the type and the terms of any financing we pursue, stockholders' rights and the value of their investment in our common stock could be reduced. A financing could involve one or more types of securities including common stock, preferred stock, convertible debt or warrants to acquire common stock. These securities could be issued at or below the then prevailing market price for our common stock. In addition, if we issue secured debt securities, the holders of the debt would have a claim to our assets that would be prior to the rights of stockholders until the debt is paid. Interest on these debt securities would increase costs and negatively impact operating results. If the issuance of new securities results in diminished rights to holders of our common stock, the market price of our common stock could be negatively impacted.

Should the financing we require to sustain our financing needs be unavailable or prohibitively expensive when we require it, the consequences could be a material adverse effect on our business, operating results, financial condition and prospects.

***Our management will have broad discretion over the use of the net proceeds from our sale of shares of common stock to the Selling Stockholder, you may not agree with how we use the proceeds and the proceeds may not be invested successfully.***

Our management will have broad discretion as to the use of the net proceeds from our sale of shares of common stock to the Selling Stockholder, and we could use them for purposes other than those contemplated at the time of commencement of this offering. Accordingly, you will be relying on the judgment of our management with regard to the use of those net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used as you may deem to be appropriate. It is possible that, pending their use, we may invest those net proceeds in a manner that may not yield a favorable, or any, return for us. The manner in which our management uses such funds could have a material adverse effect on our business, financial condition, operating results and cash flows.

***We may not be able to maintain a listing of our common stock on Nasdaq.***

Our common stock is currently listed on the Nasdaq Capital Market, or Nasdaq. We must meet certain financial and liquidity criteria to maintain the listing of our common stock on Nasdaq. If we fail to meet any of Nasdaq's continued listing standards or we violate Nasdaq listing requirements, our common stock may be delisted. In addition, our board of directors may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing.

On March 28, 2025, we received a notification letter from Nasdaq notifying us that we were not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on Nasdaq. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of our common stock for the 30 consecutive business days prior to March 28, 2025, we no longer meet the minimum bid price requirement. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we were provided 180 calendar days, or until September 28, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2).

A delisting of our common stock from Nasdaq may materially impair our stockholders' ability to buy and sell our common stock and could have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. In addition, if our common stock does not immediately trade on another national securities exchange or on the OTCQX or OTCQB markets operated by the OTC Markets Group Inc. following a delisting, then such a delisting would be deemed a suspension event pursuant to the Purchase Agreement that would prohibit us from raising capital through the sale of our common stock thereunder. The delisting of our common stock could significantly impair our ability to raise capital and the value of your investment in our company.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus, any accompanying prospectus supplement and the information incorporated by reference in this prospectus and any accompanying prospectus supplement contain certain statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "potentially," "likely," and similar expressions and variations thereof are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Those statements appear in this prospectus, any accompanying prospectus supplement and the documents incorporated herein and therein by reference, particularly in the sections titled "*Risk Factors*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and include statements regarding the intent, belief or current expectations of our management that are subject to known and unknown risks, uncertainties and assumptions. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we do not plan to publicly update or revise any forward-looking statements contained herein after we distribute this prospectus, whether as a result of any new information, future events or otherwise.

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**USE OF PROCEEDS**

This prospectus relates to shares of our common stock that may be offered and sold from time to time by the Selling Stockholder. We will receive no proceeds from the sale of shares of common stock by the Selling Stockholder in this offering. However, we may receive up to $138,750 in gross proceeds upon the exercise of the Warrants and up to $8,125,000 in aggregate gross proceeds (subject to certain limitations) under the Purchase Agreement from any sales we make to the Selling Stockholder pursuant to the Purchase Agreement after the date of this prospectus. It is possible that no shares will be sold under the Purchase Agreement. See "*Plan of Distribution*" elsewhere in this prospectus for more information.

We intend to use the net proceeds that we receive for general corporate and working capital purposes; provided that any amounts exceeding $1,000,000 shall be subject to the following allocation: 25% of the excess amounts shall be utilized to pay down the existing debt obligations described below, with the remaining funds allocated to general corporate and working capital purposes.

We are party to several agreements related to the sale of future revenues with Libertas Funding, LLC, or Libertas. The agreements contain substantially the same terms and conditions and grant a continuing security interest in all of the assets of our subsidiary Foreland Refining Corporation, or Foreland, to the extent and in the amount of the purchased receivables.

On October 25, 2023, Foreland entered into an agreement of sale of future receivables with Libertas for the sale of $1,731,660 of future sales receipts for gross proceeds of $1,302,000. Under the agreement, Foreland will make weekly deliveries of receivables of not less than $37,482 until the amount sold is extinguished. As of September 9, 2025, a total of $97,049 , exclusive of debt discounts, remained outstanding.

On January 11, 2024, Foreland entered into an agreement of sale of future receivables with Libertas for the sale of $1,268,582 of future sales receipts for gross proceeds of $2,056,916. Under the agreement, Foreland will make weekly deliveries of receivables of not less than $56,988 until the amount sold is extinguished. As of September 9, 2025, a total of $1,194,582 , exclusive of debt discounts, remained outstanding.

On January 18, 2024, Foreland entered into an agreement of sale of future receivables with Libertas for the sale of $4,224,000 of future sales receipts for gross proceeds of $3,300,000. Under the agreement, Foreland will make weekly deliveries of receivables of not less than $91,429 until the amount sold is extinguished. As of September 9, 2025, a total of $2,395,881 , exclusive of debt discounts, remained outstanding.

On February 19, 2024, Foreland entered into an agreement of sale of future receivables with Libertas for the sale of $1,386,000 of future sales receipts for gross proceeds of $1,018,500. Under the agreement, Foreland will make weekly deliveries of receivables of not less than $30,000 until the amount sold is extinguished. As of September 9, 2025, a total of $387,175 , exclusive of debt discounts, remained outstanding.

As of September 9, 2025, the total amount outstanding for Libertas pursuant to the agreements described above is $4,074,687 with an effective interest rate of 31% per annum.

Pending the uses described above, we may invest the net proceeds in short- and intermediate-term interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the United States government. Our management will retain broad discretion over the allocation of the net proceeds. See "*Risk Factors—Risks Related to this Offering—Our management will have broad discretion over the use of the net proceeds from our sale of shares of common stock to the Selling Stockholder, you may not agree with how we use the proceeds and the proceeds may not be invested successfully.*"

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**DIVIDEND POLICY**

Except with respect to our series B preferred stock, which entitled holders to an annual dividend in the amount of 8% of the original issue price of such series B preferred stock, we have never declared or paid cash dividends on our capital stock. All of the outstanding shares of series B preferred stock were converted into shares of our common stock in connection with our public offering on October 10, 2024. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends in the near future. We may also enter into credit agreements or other borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors may deem relevant.

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**THE CONVERTIBLE NOTES AND WARRANTS**

**May Convertible Note and Warrant**

On May 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the May Convertible Note and the May Warrant for a purchase price of $150,000. The note purchase agreement contains customary representations and warranties and covenants.

The May Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on May 22, 2027; provided that upon an event of default (as defined in the May Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the May Convertible Note at any time prior to maturity; provided that if the May Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $1.25 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the May Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.50 per share. The May Convertible Note contains customary events of default for a loan of this type.

The May Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $1.25, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

On July 9, 2025, we also entered into the Registration Rights Agreement with the Selling Stockholder, pursuant to which we agreed to register for resale under the Securities Act the shares of common stock that have been or may be issued to the Selling Stockholder under the May Convertible Note, the May Warrant and the Purchase Agreement. Pursuant to the Registration Rights Agreement, we agreed to file an initial registration statement on Form S-1 within ten (10) business days after the date of the Registration Rights Agreement and use our best efforts to have such registration statement declared effective by the SEC at the earliest possible date. The Registration Rights Agreement also contains customary covenants and indemnification provisions.

**July Convertible Note and Warrant**

On July 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the July Convertible Note and the July Warrant for a purchase price of $125,000. The note purchase agreement contains customary representations and warranties and covenants.

The July Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on July 22, 2027; provided that upon an event of default (as defined in the July Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the July Convertible Note at any time prior to maturity; provided that if the July Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $0.63 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the July Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.50 per share. The July Convertible Note contains customary events of default for a loan of this type.

The July Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $0.63, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

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**August Convertible Note and Warrant**

On August 29, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the August Convertible Note and the August Warrant for a purchase price of $175,000. The note purchase agreement contains customary representations and warranties and covenants.

The August Convertible Note accrues interest at a rate of twelve percent (12%) per annum, paid semi-annually in cash commencing on December 31, 2025, with all unpaid principal and interest due and payable on August 29, 2027; provided that upon an event of default (as defined in the August Convertible Note), the interest rate shall increase to fourteen percent (14%) per annum. We may prepay all or any portion of the August Convertible Note at any time prior to maturity; provided that if the August Convertible Note is paid within the first twelve months after issuance, we must pay a one percent (1%) prepayment penalty. The principal amount and outstanding accrued interest may be converted into shares of common stock at any time at an initial conversion price of $0.48 per share, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions, as well as an antidilution adjustment, which provides that if we sell securities convertible into shares of common stock for cash in a minimum amount of $250,000, and the conversion price of such securities is lower than the conversion price then in effect for the August Convertible Note, the conversion price shall be reduced to such lower price, subject to a floor price of $0.40 per share. The August Convertible Note contains customary events of default for a loan of this type.

The August Warrant may be exercised for a period of twenty-four (24) months at an initial exercise price of $0.48, which such exercise price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all of our assets, mergers, consolidations or similar transactions.

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**THE PURCHASE AGREEMENT**

**General**

On July 9, 2025, we entered into the Purchase Agreement with the Selling Stockholder, pursuant to which the Selling Stockholder has agreed to purchase from us up to an aggregate of $8,125,000 of our common stock (subject to certain limitations) from time to time over the term of the Purchase Agreement.

This prospectus covers the resale by the Selling Stockholder pursuant to the Purchase Agreement of 13,654,230 shares of our common stock, comprised of: (i) 366,260 Initial Commitment Shares that we issued to the Selling Stockholder; (ii) up to 183,131 Additional Commitment Shares that we may issue to the Selling Stockholder from time to time in connection with each purchase of common stock by the Selling Stockholder, in each case, as consideration for the Selling Stockholder's commitment to purchase shares of common stock under the Purchase Agreement, and (iii) 13,104,839 shares that we have reserved for issuance and sale to the Selling Stockholder in the future under the Purchase Agreement.

We do not have the right to commence any sales of our common stock to the Selling Stockholder under the Purchase Agreement until all of the conditions set forth in the Purchase Agreement have been satisfied, including that the SEC has declared effective the registration statement of which this prospectus forms a part registering the shares issued and being issued and sold to the Selling Stockholder. Thereafter, we may, from time to time and at our sole discretion for a period of 24-months, on any business day that we select, direct the Selling Stockholder to purchase up to 40,000 shares of common stock, which amounts may be increased depending on the market price of our common stock at the time of sale.

We will control the timing and amount of any sales of our common stock to the Selling Stockholder. The purchase price of the shares that may be sold to the Selling Stockholder under the Purchase Agreement will be based on an agreed upon fixed discount to the market price of our common stock immediately preceding the time of sale as computed under the Purchase Agreement; provided, however, we will not sell any shares of our common stock to the Selling Stockholder at a price of less than $0.62 per share. The purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction occurring during the business days used to compute such price.

We may at any time in our sole discretion terminate the Purchase Agreement without fee, penalty or cost upon one (1) business day notice. There are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement or the Registration Rights Agreement. The Selling Stockholder may not assign or transfer its rights and obligations under the Purchase Agreement.

The Purchase Agreement prohibits us from directing the Selling Stockholder to purchase any shares of common stock if those shares, when aggregated with all other shares of our common stock then beneficially owned by the Selling Stockholder and its affiliates, would result in the Selling Stockholder and its affiliates having beneficial ownership at any single point in time of more than 9.99% of the then total outstanding shares of our common stock, as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 thereunder, which limitation we refer to as the Beneficial Ownership Cap.

Issuances of our common stock in this offering will not affect the rights or privileges of our existing stockholders, except that the economic and voting interests of each of our existing stockholders will be diluted as a result of any such issuance. Although the number of shares of common stock that our existing stockholders own will not decrease, the shares owned by our existing stockholders will represent a smaller percentage of our total outstanding shares after any such issuance to the Selling Stockholder.

**Purchase of Shares Under the Purchase Agreement**

Under the Purchase Agreement, on any business day that we select (and provided (A) the closing sale price of our common stock on the purchase date is not less than $0.64 (as adjusted pursuant to the Purchase Agreement) and (B) all shares of common stock subject to all prior regular purchases and all Additional Commitment Shares required to be issued to the Selling Stockholder have been properly delivered to the Selling Stockholder in accordance with the Purchase Agreement), we may direct the Selling Stockholder to purchase up to 40,000 shares of our common stock on such business day, provided, however, that (i) the purchase may be increased to up to 60,000 shares if the closing sale price of our common stock is not below $0.80 on the purchase date, (ii) the purchase may be increased to up to 80,000 shares if the closing sale price of our common stock is not below $1.00 on the purchase date, and (iii) the purchase may be increased to up to 100,000 shares if the closing sale price of the common stock is not below $2.00 on the purchase date (which such share amount limitation is referred to herein as the Purchase Share Limit). In each case, the Selling Stockholder's maximum commitment in any single purchase may not exceed $300,000. The Regular Purchase Share Limit is subject to proportionate adjustment in the event of a reorganization, recapitalization, non-cash dividend, stock split or other similar transaction; provided, that if after giving effect to such full

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proportionate adjustment, the adjusted Regular Purchase Share Limit would preclude us from requiring the Selling Stockholder to purchase common stock at an aggregate purchase price equal to or greater than $100,000 in any single purchase, then the Regular Purchase Share Limit will not be fully adjusted, but rather the Regular Purchase Share Limit for such purchase shall be adjusted as specified in the Purchase Agreement, such that, after giving effect to such adjustment, the Regular Purchase Share Limit will be equal to (or as close as can be derived from such adjustment without exceeding) $100,000.

The purchase price per share for each such purchase will be equal to 97% of the lower of (i) the lowest sale price for our common stock on the purchase date of such shares and (ii) the arithmetic average of the three lowest closing sale prices for our common stock during the ten (10) consecutive business days ending on the business day immediately preceding the purchase date of such shares, subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the business days used to compute the purchase price. Notwithstanding the foregoing, the purchase price shall not be less than $0.62 per share.

Other than as described above, there are no trading volume requirements or restrictions under the Purchase Agreement, and we will control the timing and amount of any sales of our common stock to the Selling Stockholder.

**Suspension Events**

Suspension events under the Purchase Agreement include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·the effectiveness of the registration statement of which this prospectus forms a part lapses for any reason (including, without limitation, the issuance of a stop order), or such registration statement (or the prospectus forming a part thereof) are unavailable for the resale by the Selling Stockholder of our common stock offered hereby, and such lapse or unavailability continues for a period of ten (10) consecutive business days or for more than an aggregate of thirty (30) business days in any 365-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·suspension by our principal market of our common stock from trading for a period of one (1) business day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·the de-listing of our common stock from The Nasdaq Capital Market, our principal market, provided our common stock is not immediately thereafter trading on The Nasdaq Global Market, The Nasdaq Global Select Market, the New York Stock Exchange, the NYSE American, or the OTCQX or OTCQB operated by the OTC Markets Group Inc. (or any nationally recognized successors thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·the failure of our transfer agent to issue to the Selling Stockholder shares of our common stock within two (2) business days after the applicable date on which the Selling Stockholder is entitled to receive such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·any breach of the representations or warranties or covenants contained in the Purchase Agreement or the Registration Rights Agreement that has or could have a material adverse effect on us and, in the case of a breach of a covenant that is reasonably curable, that is not cured within five (5) business days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·any voluntary or involuntary participation or threatened participation in insolvency or bankruptcy proceedings by or against us; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·if at any time we are not eligible to transfer our common stock electronically.

The Selling Stockholder does not have the right to terminate the Purchase Agreement upon any of the suspension events set forth above. During a suspension event, all of which are outside of the Selling Stockholder's control, we may not direct the Selling Stockholder to purchase any shares of our common stock under the Purchase Agreement.

**Our Termination Rights**

We have the unconditional right, at any time, for any reason and without any payment or liability to us, to give notice to the Selling Stockholder to terminate the Purchase Agreement. In the event of bankruptcy proceedings by or against us, the Purchase Agreement will automatically terminate without action of any party.

**No Short-Selling or Hedging by the Selling Stockholder**

The Selling Stockholder has agreed that neither it nor any of its affiliates shall engage in any direct or indirect short-selling or hedging of our common stock during any time prior to the termination of the Purchase Agreement.

------

**No Prohibitions on Future Financings**

There are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement or the Registration Rights Agreement.

**Effect of Performance of the Purchase Agreement on Our Stockholders**

All 13,654,230 shares registered in this offering that have been and may be issued or sold by us to the Selling Stockholder under the Purchase Agreement are expected to be freely tradable. It is anticipated that shares registered pursuant to the Purchase Agreement in this offering, excluding the Initial Commitment Shares, will be sold to the Selling Stockholder over a period of up to 24-months. The resale by the Selling Stockholder of a significant amount of shares registered in this offering, at any given time during the pendency of this offering, could cause the market price of our common stock to decline and to be volatile. Resales of our common stock to the Selling Stockholder, if any, will depend upon market conditions and other factors to be determined by us. We may ultimately decide to sell to the Selling Stockholder all, some or none of the shares of our common stock that may be available for us to sell pursuant to the Purchase Agreement. If and when we do sell shares to the Selling Stockholder, after the Selling Stockholder has acquired the shares, the Selling Stockholder may resell all, some or none of those shares at any time or from time to time in its discretion. Therefore, sales to the Selling Stockholder by us under the Purchase Agreement may result in substantial dilution to the interests of other holders of our common stock. In addition, if we sell a substantial number of shares to the Selling Stockholder under the Purchase Agreement, or if investors expect that we will do so, the actual sales of shares or the mere existence of our arrangement with the Selling Stockholder may make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect such sales. However, we have the right to control the timing and amount of any additional sales of our shares to the Selling Stockholder and the Purchase Agreement may be terminated by us at any time at our discretion without any cost to us.

Pursuant to the terms of the Purchase Agreement, we have the right, but not the obligation, to direct the Selling Stockholder to purchase up to $8,125,000 of our common stock. The number of shares ultimately offered for resale by the Selling Stockholder under this prospectus is dependent upon the number of shares we direct the Selling Stockholder to purchase under the Purchase Agreement.

The following table sets forth the amount of gross proceeds we would receive from the Selling Stockholder from our sale of shares to the Selling Stockholder under the Purchase Agreement at varying purchase prices:

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| | | | |
|:---|:---|:---|:---|
| **Assumed Average Purchase Price Per Share** | **Number of Registered Shares to be Issued if Full Purchase** | **Percentage of Outstanding Shares After Giving Effect to**<br>**the Issuance to the Selling Stockholder<sup>(1)</sup>** | **Proceeds from the Sale of Shares to the Selling Stockholder Under the Purchase Agreement** |
| $0.62 | 13104839 | 36.0% | $8125000 |
| $0.65 | 12500000 | 34.9% | $8125000 |
| $0.75 | 10833334 | 31.8% | $8125000 |
| $0.85 | 9558824 | 29.1% | $8125000 |
| $0.95 | 8552632 | 26.8% | $8125000 |
| $1.05 | 7738096 | 24.9% | $8125000 |
| $1.15 | 7065218 | 23.3% | $8125000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The denominator is based on 23,314,603 shares outstanding as of September 9, 2025 (which number includes the 366,260 Initial Commitment Shares), adjusted to include the number of shares set forth in the column titled "Number of Registered Shares to be Issued if Full Purchase," which we would have sold to the Selling Stockholder, assuming the purchase price in the adjacent column. The numerator is based on the number of shares issuable under the Purchase Agreement, set forth in the column titled "Number of Registered Shares to be Issued if Full Purchase," at the corresponding assumed purchase price set forth in the adjacent column. The table does not give effect to the Beneficial Ownership Cap.

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**SELLING STOCKHOLDER**

This prospectus relates to the possible resale by the Selling Stockholder of shares of our common stock that have been or may be issued to the Selling Stockholder upon conversion of the Convertible Notes, exercise of the Warrants and pursuant to the Purchase Agreement. We are filing the registration statement of which this prospectus forms a part pursuant to the provisions of the Registration Rights Agreement.

The Selling Stockholder may, from time to time, offer and sell pursuant to this prospectus any or all of the shares that we may issue to it from time to time at our discretion under the Purchase Agreement. The Selling Stockholder may sell some, all or none of its shares. We do not know how long the Selling Stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholder regarding the sale of any of the shares.

The following table presents information regarding the Selling Stockholder and the shares that it may offer and sell from time to time under this prospectus. The table is prepared based on information supplied to us by the Selling Stockholder and reflects its holdings as of September 9, 2025. Neither the Selling Stockholder nor any of its affiliates has held a position or office, or had any other material relationship, with us or any of our predecessors or affiliates. Beneficial ownership is determined in accordance with Section 13(d) of the Exchange Act and Rule 13d-3 thereunder. The percentage of shares beneficially owned prior to the offering is based on 23,314,603 shares of our common stock outstanding as of September 9, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Beneficial Owner** | **Shares Beneficially Owned Prior to this Offering** | **Shares Beneficially Owned Prior to this Offering** | **Number of Shares Being Offered** | **Shares Beneficially Owned After this Offering<sup>(1)</sup>** |
| **Name of Beneficial Owner** | **Shares** | **%** | **Number of Shares Being Offered** | **Shares%** |
| Varie Asset Management, LLC <sup>(2)</sup> | 1336299 | 5.53% | 14517227 | 107042<br> \* |

---

\* Less than one percent (1%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Assumes the sale of all shares of common stock registered pursuant to this prospectus, although the Selling Stockholder is under no obligation known to us to sell any shares of common stock at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The number of shares beneficially owned prior to this offering consists of (i) 120,000 shares of common stock issuable upon conversion of the May Convertible Note, (ii) 60,000 shares of common stock issuable upon exercise of the May Warrant, (iii) 198,413 shares of common stock issuable upon conversion of the July Convertible Note, (iv) 50,000 shares of common stock issuable upon exercise of the July Warrant; (v) 364,584 shares of common stock issuable upon conversion of the August Convertible Note, (vi) 70,000 shares of common stock issuable upon exercise of the August Warrant, (vii) 366,260 shares of common stock issued to the Selling Stockholder as the Initial Commitment Shares, and (viii) 107,042 shares of common stock owned by the Selling Stockholder. The number of shares being offered includes the foregoing shares issuable upon conversion of the Convertible Notes and exercise of the Warrants, as well as 183,131 additional shares of common stock being registered hereunder, which shares may be issued to the Selling Stockholder as the Additional Commitment Shares, and the remainder of which are shares of common stock that we may issue and sell to the Selling Stockholder pursuant to the Purchase Agreement. Janey Baker is the Manager of the Selling Stockholder and may be deemed to beneficially own the securities held by it.

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**PLAN OF DISTRIBUTION**

The common stock offered by this prospectus is being offered by the Selling Stockholder. The common stock may be sold or distributed from time to time by the Selling Stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the common stock offered by this prospectus could be effected in one or more of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·ordinary brokers' transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·transactions involving cross or block trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·through brokers, dealers, or underwriters who may act solely as agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·"at the market" into an existing market for the common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·in privately negotiated transactions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·any combination of the foregoing.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the state's registration or qualification requirement is available and complied with.

The Selling Stockholder is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act.

The Selling Stockholder has informed us that it intends to use an unaffiliated broker-dealer to effectuate all sales, if any, of the common stock that it may purchase from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such unaffiliated broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. The Selling Stockholder has informed us that each such broker-dealer will receive commissions from it that will not exceed customary brokerage commissions.

Brokers, dealers, underwriters or agents participating in the distribution of the shares offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the common stock sold by the Selling Stockholder through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of common stock sold by the Selling Stockholder may be less than or in excess of customary commissions. Neither we nor the Selling Stockholder can presently estimate the amount of compensation that any agent will receive from any purchasers of common stock sold by the Selling Stockholder.

We know of no existing arrangements between the Selling Stockholder or any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares offered by this prospectus.

We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by the Selling Stockholder, including the names of any brokers, dealers, underwriters or agents participating in the distribution of such shares by the Selling Stockholder, any compensation paid by the Selling Stockholder to any such brokers, dealers, underwriters or agents, and any other required information.

We will pay the expenses incident to the registration under the Securities Act of the offer and sale of the shares covered by this prospectus by the Selling Stockholder. We have agreed to indemnify the Selling Stockholder and certain other persons against certain liabilities in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. The Selling Stockholder has agreed to indemnify us against liabilities under the Securities Act that may arise from certain written information furnished to us by the Selling Stockholder specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.

------

The Selling Stockholder has represented to us that at no time prior to the date of the Purchase Agreement has it or its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our common stock or any hedging transaction, which establishes a net short position with respect to our common stock. The Selling Stockholder agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will not enter into or effect, directly or indirectly, any of the foregoing transactions.

We have advised the Selling Stockholder that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the Selling Stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the securities offered by this prospectus.

This offering will terminate on the earlier of: (i) the date that all shares offered by this prospectus have been sold by the Selling Stockholder, or (ii) twenty-four months from the date of this prospectus.

Our common stock is traded on The Nasdaq Capital Market under the symbol "SKYQ."

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**DESCRIPTION OF CAPITAL STOCK**

The description of our capital stock is incorporated by reference to Exhibit 4.1 to Amendment No. 2 to the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2024 filed with the SEC on June 17, 2025.

**LEGAL MATTERS**

The validity of the securities offered hereby will be passed upon for us by Bevilacqua PLLC, Washington, DC.

**EXPERTS**

Our consolidated financial statements for the years ended December 31, 2024 and 2023 have been incorporated by reference in this prospectus in reliance upon the report of Tanner LLC, an independent registered public accounting firm, upon the authority of said firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC's website at www.sec.gov. Copies of certain information filed by us with the SEC are also available on our website at www.skyquarry.com. Information accessible on or through our website is not a part of this prospectus.

This prospectus is part of a registration statement that we filed with the SEC and does not contain all of the information in the registration statement. You should review the information and exhibits in the registration statement for further information on us and our consolidated subsidiaries and the securities that we are offering. Statements in this prospectus about these documents are summaries and each statement is qualified in all respects by reference to the document to which it refers. You should read the actual documents for a more complete description of the relevant matters.

**INFORMATION INCORPORATED BY REFERENCE**

The SEC allows us to incorporate by reference much of the information that we file with the SEC, which means that we can disclose important information to you by referring you to those publicly available documents. The information that we incorporate by reference in this prospectus is considered to be part of this prospectus. Because we are incorporating by reference future filings with the SEC, this prospectus is continually updated and those future filings may modify or supersede some of the information included or incorporated by reference in this prospectus. This means that you must look at all of the SEC filings that we incorporate by reference to determine if any of the statements in this prospectus or in any document previously incorporated by reference have been modified or superseded. This prospectus incorporates by reference the documents listed below and any future filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (in each case, other than those documents or the portions of those documents furnished pursuant to Items 2.02 or 7.01 of any Current Report on Form 8-K and, except as may be noted in any such Form 8-K, exhibits filed on such form that are related to such information), until the offering of the securities under the registration statement of which this prospectus forms a part is terminated or completed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·our [Annual Report on Form 10-K](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000352/0001096906-25-000352-index.htm) for the year ended December 31, 2024 filed with the SEC on March 31, 2025, as amended by [Amendment No. 1](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000549/0001096906-25-000549-index.htm) filed with the SEC on April 21, 2025, [Amendment No. 2](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/0001096906-25-000973-index.htm) filed with the SEC on June 17, 2025 and [Amendment No. 3](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001422/0001096906-25-001422-index.htm) filed with the SEC on August 22, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·our Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2025 and June 30, 2025 filed with the SEC on [May 15, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625000823/0001096906-25-000823-index.htm) and [August 14, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001340/0001096906-25-001340-index.htm), respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·our Current Reports on Form 8-K filed with the SEC on [January 15, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001153/0001096906-25-001153-index.htm), [March 3, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625000214/0001096906-25-000214-index.htm), [April 3, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625000416/0001096906-25-000416-index.htm), [April 8, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625000458/0001096906-25-000458-index.htm), [July 15, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001147/0001096906-25-001147-index.htm), [July 17, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001153/0001096906-25-001153-index.htm), [July 24, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001183/0001096906-25-001183-index.htm), [July 30, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001206/0001096906-25-001206-index.htm), [August 8, 2025](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625001254/0001096906-25-001254-index.htm) and [September 4, 2025](http://www.sec.gov/ix?doc=/Archives/edgar/data/0001812447/000109690625001480/skyq-20250904_8k.htm); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·the description of our common stock contained in Exhibit 4.1 to [Amendment No. 2 to the Annual Report on Form 10-K/A](http://www.sec.gov/Archives/edgar/data/0001812447/000109690625000973/0001096906-25-000973-index.htm) for the fiscal year ended December 31, 2024 filed with the SEC on June 17, 2025, including any amendment or report filed for the purpose of updating such description.

------

Any statement made in a document incorporated by reference into this prospectus or any prospectus supplement will be deemed to be modified or superseded for purposes of this prospectus or such prospectus supplement to the extent that a statement contained in this prospectus or such prospectus supplement modifies or supersedes that statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this prospectus or such prospectus supplement.

We will provide to each person, including any beneficial owner, to whom this prospectus is delivered, at no cost, upon written or oral request, a copy of any or all of the documents that are incorporated by reference into this prospectus, other than exhibits to such documents unless such exhibits are specifically incorporated by reference into such documents. Requests should be directed to Sky Quarry Inc., Attn: Secretary, 707 W. 700 S. Suite 101, Woods Cross, UT 84087, or by calling us at (424) 394-1090.

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**Up to 14,517,227 Shares of Common Stock**

![](skyqs1z_2.jpg)

**SKY QUARRY INC.**

**______________________**

**PROSPECTUS** 

**______________________**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2025**

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**PART II**<br>**INFORMATION NOT REQUIRED IN THE PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution**

The following table sets forth the costs and expenses, other than underwriting discounts and commissions, payable by us in connection with the sale of common stock being registered. All amounts, other than the SEC registration fee, are estimates. We will pay all these expenses.

---

| | |
|:---|:---|
|  | **Amount** |
| SEC registration fee | $1346.55 |
| Accounting fees and expenses | 5000.00 |
| Legal fees and expenses | 50000.00 |
| Transfer agent fees and expenses | 2500.00 |
| Printing and related fees and expenses | 2500.00 |
| Miscellaneous fees and expenses | 2000.45 |
| **Total** | $63347.00 |

---

**Item 14. Indemnification of Directors and Officers**

Section 145 of the DGCL authorizes a corporation to indemnify its directors and officers against liabilities arising out of actions, suits and proceedings to which they are made or threatened to be made a party by reason of the fact of their prior or current service to the corporation as a director or officer, in accordance with the provisions of Section 145, which are sufficiently broad to permit indemnification under certain circumstances for liabilities arising under the Securities Act. The indemnity may cover expenses (including attorneys' fees) judgments, fines and amounts paid in settlement actually and reasonably incurred by the director or officer in connection with any such action, suit or proceeding. Section 145 permits corporations to pay expenses (including attorneys' fees) incurred by directors and officers in advance of the final disposition of such action, suit or proceeding. In addition, Section 145 provides that a corporation has the power to purchase and maintain insurance on behalf of its directors and officers against any liability asserted against them and incurred by them in their capacity as a director or officer, or arising out of their status as such, whether or not the corporation would have the power to indemnify the director or officer against such liability under Section 145.

Our restated certificate of incorporation provides that we shall indemnify, advance expenses, and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of our company or, while a director or officer of our company, is or was serving at the request of our company as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees) reasonably incurred by such person. Notwithstanding the foregoing, except for claims for indemnification (following the final disposition of such proceeding) or advancement of expenses not paid in full, we shall be required to indemnify a covered person in connection with such a proceeding (or part thereof) commenced by such covered person only if the commencement of such proceeding (or part thereof) by the covered person was authorized in the specific case by our board of directors.

We have also obtained insurance policies covering our directors and officers with respect to certain liabilities, including liabilities arising under the Securities Act.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Item 15. Recent Sales of Unregistered Securities**

During the past three years, we issued the following securities, which were not registered under the Securities Act.

On August 29, 2025, we issued 100,000 shares of common stock to Lendspark Corporation in connection with a forbearance agreement.

------

On August 29, 2025, we issued 40,817 shares of common stock to Kevin Arrington LLC in connection with a services agreement.

On August 29, 2025, we issued 93,750 shares of common stock to Bengt Eriksson as payment of interest due on an outstanding note.

On August 29, 2025, we issued 500,000 shares of common stock to KF Business Ventures Ltd. in connection with a loan made to the Company's subsidiary, Foreland Refining Corporation, on July 24, 2025.

On August 29, 2025, we issued 100,000 shares of common stock to Jody R. Samuels, Esq. for services rendered.

On August 29, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the August Convertible Note and the August Warrant for a purchase price of $175,000.

On July 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the July Convertible Note and the July Warrant for a purchase price of $125,000.

On July 9, 2025, we entered into the Purchase Agreement with the Selling Stockholder, pursuant to which we have the right to sell to the Selling Stockholder up to $8,125,000 in shares of common stock, subject to certain limitations, from time to time over the 24-month period. We issued 366,260 Initial Commitment Shares to the Selling Stockholder as consideration for its commitment to purchase shares of common stock under the Purchase Agreement.

On May 22, 2025, we entered into a note purchase agreement with the Selling Stockholder, pursuant to which the Selling Stockholder purchased the May Convertible Note and the May Warrant for a purchase price of $150,000.

On June 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

On June 1, 2025, we issued 150,000 shares of common stock to Leo B. Womack for director services rendered.

On June 1, 2025, we issued 150,000 shares of common stock to Todd Palin for director services rendered.

On June 1, 2025, we issued 150,000 shares of common stock to Matthew Flemming for director services rendered.

On June 1, 2025, we issued 83,334 shares of common stock to JRS Law for services rendered.

On May 22, 2025, we issued 100,000 shares of common stock to JRS Law for services rendered.

On May 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

On May 5, 2025, we issued 40,000 shares of common stock to Lucas Ventures for services rendered.

On April 30, 2025, we issued 25,000 shares of common stock to SDK Sentinel LLC for services rendered.

On April 29, 2025, we issued 25,000 shares of common stock to SDK Sentinel LLC for services rendered.

On April 29, 2025, we issued 38,089 shares of common stock to Skeleton Crrew Labs LLC for services rendered.

On April 29, 2025, we issued 40,300 shares of common stock to MZ Group for services rendered.

On April 29, 2025, we issued 16,692 shares of common stock to General Research GmbH for services rendered.

On April 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

On April 2, 2025, we issued 1,184,593 shares of common stock to Allegheny Manufacturing LLC for services rendered.

On March 16, 2025, we issued 500,000 shares of common stock to Michael Kahari for services rendered.

On March 16, 2025, we issued 108,334 shares of common stock to Bengt Eriksson as payment of $92,083.90 in interest due on an outstanding note payable.

On March 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

------

On February 28, 2025, we issued 83,334 shares of common stock to Todd Palin for director services rendered.

On February 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

On February 10, 2025, we issued 200,000 shares of common stock to Outside The Box for services rendered.

On February 7, 2025, we issued 25,000 shares of common stock to General Research GmbH for services rendered.

On January 12, 2025, we issued 10,274 shares of common stock to KF Business Ventures for services rendered.

On January 10, 2025, we issued 83,334 shares of common stock to Leo B. Womack for director services rendered.

On December 31, 2024, we issued 83,334 shares of common stock to Matthew Flemming for director services rendered.

On December 3, 2024, we issued 27,778 shares of common stock to Smart Sales for services rendered.

On December 2, 2024, we issued a secured promissory note in the principal amount of $1,200,000 to KF Ventures. The note is convertible into shares of our common stock at a conversion price of $0.83 per share at any time after the issuance date of the note. In connection with the issuance of the note, we also issued a five-year warrant for the purchase of 1,200,000 shares of common stock at an exercise price of $0.83 per share. We also entered into an advisory agreement with KF Ventures, pursuant to which it will provide general business advisory services to us for a period of six months at a rate of $21,000 per month to be paid one-half in cash and one-half in the form of shares of our common stock. In addition, 10,274 shares of our common stock were issued to KF Ventures pursuant to the terms of the business advisory agreement in December 2024.

On November 26, 2024, we issued 38,333 shares of common stock to MZ Group for services rendered.

On November 18, 2024, we issued 60,000 shares of common stock to Outside The Box for services rendered.

On November 18, 2024, we issued 10,511 shares of common stock to General Research GmbH for services rendered.

On October 10, 2024, we issued 232,461 shares of common stock in connection with the conversion of 369,211 shares of series B preferred stock.

On October 9, 2024, we issued 1,118,005 shares of common stock for gross proceeds of $6,708,030 under Regulation A of Section 3(6) of the Securities Act.

On October 8, 2024, we issued a three-year warrant for the purchase of 15,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of a promissory note in the principal amount of $165,000 to a third party.

On August 27, 2024, we issued a five-year warrant for the purchase of 375,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of future revenues agreements in the principal amount of $8,208,916 to Libertas.

On August 27, 2024, we issued a three-year warrant for the purchase of 100,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of a business loan and security agreement in the principal amount of $900,000 to Lendspark.

On June 30, 2024, we issued 18,593 shares of common stock to Bengt Eriksson as payment of $89,260 in interest due on an outstanding note payable.

During the period from June 24, 2024 through August 15, 2024, we issued 1,063,690 shares of common stock for gross proceeds of $4,789,105 in connection with the exercise of warrants pursuant to Section 3(6) of the Securities Act.

On June 12, 2024, we issued a five-year warrant for the purchase of 50,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of a promissory note in the principal amount of $122,500 to a third party.

On May 17, 2024, we issued a five-year warrant for the purchase of 375,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of a sale of future revenues agreements in the principal amount of $8,208,916 to Libertas.

------

On May 17, 2024, we issued a three-year warrant for the purchase of 100,000 shares of common stock at an exercise price of $4.50 per share in connection with the issuance of business loan and security agreement in the principal amount of $1,500,000 to Lendspark.

On May 1, 2024, we issued 33,334 shares of common stock to Jody R. Samuels, Esq. for services rendered.

On March 23, 2024, we issued 3,802 shares of common stock to Bengt Eriksson as payment of $18,250 in interest due on an outstanding note payable.

On January 30, 2024, we issued 4,000 shares of common stock to Smart Sales for services rendered.

On April 10, 2023, we issued 33,334 shares of common stock to Jody R. Samuels, Esq. for services rendered.

On May 22, 2023, we issued 10,000 shares of common stock in connection with a warrant exercise by Keegan Wetzel for gross proceeds of $37,500.

On May 22, 2023, we issued 10,000 shares of common stock in connection with a warrant exercise by Ruth York for gross proceeds of $37,500.

During the period from December 16, 2021 through December 9, 2022, we issued 4,852,230 shares of common stock for gross proceeds of $18,195,838 under Regulation A of Section 3(6) of the Securities Act.

Unless otherwise stated above, the issuance of these securities was made in reliance upon the exemption from the registration requirements of Section 5 of the Securities Act provided by Section 4(a)(2) of the Securities Act.

**Item 16. Exhibits.**

(a) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | [Restated Certificate of Incorporation of Sky Quarry Inc. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z1.htm) |
| 3.2 | [Certificate of Amendment to Restated Certificate of Incorporation of Sky Quarry Inc. filed with Delaware Secretary of State on April 20, 2021](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z2.htm)[(incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z2.htm) |
| 3.3 | [Certificate of Amendment to Restated Certificate of Incorporation of Sky Quarry Inc. filed with Delaware Secretary of State on June 22, 2021](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z3.htm)[(incorporated by reference to Exhibit 3.3 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z3.htm) |
| 3.4 | [Certificate of Amendment to Restated Certificate of Incorporation of Sky Quarry Inc. filed with Delaware Secretary of State on April 9, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z4.htm)[(incorporated by reference to Exhibit 3.4 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex3z4.htm) |
| 3.5 | [Amended and Restated Bylaws of Sky Quarry Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 15, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000045/skyq_ex3z1.htm)  |
| 4.1 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Varie Asset Management, LLC on August 29, 2025 (incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K filed on September 4, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001480/skyq_ex99z1.htm) |
| 4.2\* | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Varie Asset Management, LLC on July 22, 2025](skyq_ex4z2.htm) |
| 4.3 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Varie Asset Management, LLC on May 22, 2025 (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z1.htm) |
| 4.4 | [Common Stock Purchase Warrant issued by Sky Quarry Inc. to KF Business Ventures, LP on December 2, 2024 (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624002230/sqi_ex99z2.htm)  |
| 4.5 | [Common Stock Purchase Warrant issued by Sky Quarry Inc. to The Vanneman Family Trust dated January 7, 2008 on October 8, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z3.htm)[(incorporated by reference to Exhibit 4.3 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z3.htm) |
| 4.6 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Libertas Funding, LLC on August 27, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z4.htm)[(incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z4.htm) |
| 4.7 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Lendspark Corporation on August 27, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z5.htm)[(incorporated by reference to Exhibit 4.5 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z5.htm) |
| 4.8 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Dual Dreams LLC on June 13, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z6.htm)[(incorporated by reference to Exhibit 4.6 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z6.htm) |
| 4.9 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Clearview Funding, LLC on June 3, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z7.htm)[(incorporated by reference to Exhibit 4.7 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z7.htm)  |
| 4.10 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Libertas Funding, LLC on May 17, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z8.htm)[(incorporated by reference to Exhibit 4.8 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z8.htm) |
| 4.11 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Lendspark Corporation on May 17, 2024](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z9.htm)[(incorporated by reference to Exhibit 4.9 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z9.htm) |
| 4.12 | [Form of Warrant to Purchase Common Stock issued in 2021 Regulation A Offering (incorporated by reference to 3.1 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex3z1.htm) |
| 4.13 | [Warrant to Purchase Common Stock issued by Sky Quarry Inc. to Digital Offering, LLC on May 5, 2021](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z11.htm)[(incorporated by reference to Exhibit 4.11 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex4z11.htm)  |
| 5.1\* | [Opinion of Bevilacqua PLLC as to the legality of the securities](skyq_ex5z1.htm)  |
| 10.1 | [12% Convertible Promissory Note issued by Sky Quarry Inc. to Varie Asset Management, LLC on August 2](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001480/skyq_ex99z2.htm)[9](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001480/skyq_ex99z2.htm)[, 2025 (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed on September 4, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001480/skyq_ex99z2.htm) |
| 10.2\* | [12% Convertible Promissory Note issued by Sky Quarry Inc. to Varie Asset Management, LLC on July 22, 2025](skyq_ex10z2.htm)  |
| 10.5 | [Note Purchase Agreement, dated May 22, 2025, between Sky Quarry Inc. and Varie Asset Management, LLC](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z1.htm)[(incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z1.htm) |
| 10.6 | [12% Convertible Promissory Note issued by Sky Quarry Inc. to Varie Asset Management, LLC on May 22, 2025 (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z2.htm) |
| 10.7 | [Purchase Agreement, dated July 9, 2025, between Sky Quarry Inc. and Varie Asset Management, LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on July 15, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001147/skyq_ex10z1.htm) |
| 10.8 | [Registration Rights Agreement, dated July 9, 2025, between Sky Quarry Inc. and Varie Asset Management, LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on July 15, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001147/skyq_ex10z2.htm) |
| 10.9 | [Mining Lease and Agreement, dated July 1, 2015, between the State of Utah, acting by and through the School and Institutional Trust Lands Administration and 2020 Resources LLC, as amended (Mineral Lease 49927-OBA) (incorporated by reference to Exhibit 6.2.1 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex6z2z1.pdf)  |
| 10.10 | [Mining Lease and Agreement, dated January 1, 2015, between the State of Utah, acting by and through the School and Institutional Trust Lands Administration and 2020 Resources LLC (Mineral Lease 49579-OBA) (incorporated by reference to Exhibit 6.2.2 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex6z2z2.pdf)  |
| 10.11 | [Mining Lease and Agreement, dated February 1, 2010, between the State of Utah, acting by and through the School and Institutional Trust Lands Administration and 2020 Resources LLC (Mineral Lease 51705-OBA) (incorporated by reference to Exhibit 10.7 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z7.htm)  |
| 10.12 | [Secured Convertible Promissory Note issued by Sky Quarry Inc. to KF Business Ventures, LP on December 2, 2024 (incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K filed on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624002230/sqi_ex99z1.htm) |
| 10.13 | [Security Agreement, dated December 2, 2024, between 2020 Resources LLC and KF Business Ventures, LP (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K filed on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624002230/sqi_ex99z3.htm)  |
| 10.14 | [Advisory Agreement, dated December 2, 2024, between Sky Quarry Inc. and KF Business Ventures, LP (incorporated by reference to Exhibit 99.4 to the Current Report on Form 8-K filed on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624002230/sqi_ex99z4.htm) |
| 10.15 | [Agreement of Sale of Future Receivables, dated as of May 16, 2024, among Libertas Funding, LLC, Foreland Refining Corporation, David Sealock and Marcus Laun (incorporated by reference to Exhibit 6.22 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z22.htm)  |
| 10.16 | [Agreement of Sale of Future Receivables, dated as of February 19, 2024, among Libertas Funding, LLC, Foreland Refining Corporation, David Sealock and Marcus Laun (incorporated by reference to Exhibit 6.21 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z21.htm)  |
| 10.17 | [Agreement of Sale of Future Receivables, dated as of January 18, 2024, among Libertas Funding, LLC, Foreland Refining Corporation, David Sealock and Marcus Laun (incorporated by reference to Exhibit 6.20 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z20.htm)  |
| 10.18 | [Agreement of Sale of Future Receivables, dated as of January 11, 2024, among Libertas Funding, LLC, Foreland Refining Corporation, David Sealock and Marcus Laun (incorporated by reference to Exhibit 6.19 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z19.htm)  |
| 10.19 | [Business Loan and Security Agreement, dated May 16, 2024, between Foreland Refining Corporation and LendSpark Corporation (incorporated by reference to Exhibit 6.17 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z17.htm)  |
| 10.20 | [Business Loan and Security Agreement, dated April 30, 2024, between Foreland Refining Corporation and LendSpark Corporation (incorporated by reference to Exhibit 6.16 to the Semiannual Report on Form 1-SA filed on September 30, 2024)](http://www.sec.gov/Archives/edgar/data/1812447/000109690624001914/sqi_ex6z16.htm)  |
| 10.21 | [Promissory Note issued by Sky Quarry Inc. to Bengt Eriksson on November 24, 2023](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z17.htm)[(incorporated by reference to Exhibit 10.17 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex10z17.htm) |
| 10.22 | [Invoice Purchase and Security Agreement, dated December 21, 2022 between Foreland Refining Corporation and Alterna Capital Solutions LLC (incorporated by reference to Exhibit 6.9 to the Annual Report on Form 1-K filed on September 5, 2023)](http://www.sec.gov/Archives/edgar/data/1812447/000109690623001738/sqi_ex6z9.htm) |
| 10.23† | [Executive Employment Agreement, dated March 15, 2020, between Sky Quarry Inc. and David Sealock (incorporated by reference to Exhibit 6.1.1 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex6z1z1.htm) |
| 10.24† | [Executive Employment Agreement, dated July 1, 2020, between Sky Quarry Inc. and Darryl Delwo (incorporated by reference to Exhibit 6.1.3 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex6z1z3.htm) |
| 10.25† | [Executive Employment Agreement, dated March 15, 2020, between Sky Quarry Inc. and Marcus Laun (incorporated by reference to Exhibit 6.1.2 to the Offering Statement on Form 1-A filed on July 7, 2021)](http://www.sec.gov/Archives/edgar/data/1812447/000109690621001548/sqi_ex6z1z2.htm) |
| 10.26† | [Sky Quarry Inc. 2020 Stock Plan, as amended](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/sqi_ex10z1.htm)[(incorporated by reference to Exhibit 10.1 to](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/sqi_ex10z1.htm)[Amendment No. 2 to the Annual Report on Form 10-K/A filed with on](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/sqi_ex10z1.htm)[June 17, 2025](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/sqi_ex10z1.htm)[)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625000973/sqi_ex10z1.htm) |
| 21.1 | [List of Subsidiaries (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 filed on July 18, 2025)](http://www.sec.gov/Archives/edgar/data/1812447/000109690625001161/skyq_ex21z1.htm) |
| 23.1\* | [Consent of Tanner LLC](skyq_ex23z1.htm) |
| 23.2 | [Consent of Bevilacqua PLLC (included in Exhibit 5.1)](skyq_ex5z1.htm) |
| 24.1 | Power of Attorney (included on the signature page of this registration statement) |
| 101 | Inline XBRL Document set for the financial statements and accompanying notes |
| 107\* | [Exhibit Filing Fees](skyq_ex107.htm)  |

---

__________

\*Filed herewith

†Executive compensation plan or arrangement

**Item 17. Undertakings**

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sells are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 and Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) For determining liability of the undersigned Registrant under the Securities Act to any purchaser in the initial distribution of the securities, that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.

(5) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(6) That, insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Woods Cross, Utah, on September 11, 2025.

---

| | |
|:---|:---|
| **SKY QUARRY INC.** | **SKY QUARRY INC.** |
| By: | /s/ Marcus Laun |
|  | Marcus Laun<br> Interim Chief Executive Officer and President |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **SIGNATURE** | **TITLE** | **DATE** |
| /s/ Marcus Laun | President, Interim Chief Executive Officer, Interim Chief Financial Officer and Director (principal executive officer and principal financial and accounting officer) | September 11, 2025 |
| Marcus Laun |  |  |
| \* | Director | September 11, 2025 |
| Matthew Flemming |  |  |
| \* | Director | September 11, 2025 |
| Todd Palin |  |  |
| \* | Director | September 11, 2025 |
| David Sealock |  |  |
| \* | Director | September 11, 2025 |
| Leo B. Womack |  |  |

---

---

| | | |
|:---|:---|:---|
| <br> \* | <br> By: | <br> /s/ Marcus Laun |
|  |  | Marcus Laun |
|  |  | Attorney-In-Fact |

---

------

## Ex-Filing

------

**Calculation of Filing Fee Tables**

Form S-1 <br> (Form Type)

SKY QUARRY, INC. <br> (Exact Name of Registrant as Specified in its Charter)

Table 1: Newly Registered and Carry Forward Securities

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security Type** | **Security Class Title** | **Fee Calculation or Carry Forward Rule** | **Amount Registered<sup>(1)</sup>** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| Fees Previously Paid | Equity | Common Stock, par value $0.0001 | 457(c) | 366260<br>$0.5952<sup>(3)</sup> | $217997.95 | 0.00015310 | $33.38 |
| Fees Previously Paid | Equity | Common Stock, par value $0.0001, issuable upon the conversion of convertible promissory notes | 457(c) | 120000<br>$0.5952<sup>(3)</sup> | $71424.00 | 0.00015310 | $10.94 |
| Fees Previously Paid | Equity | Common Stock, par value $0.0001, issuable upon the exercise of warrants | 457(c) | 60000<br>$0.5952<sup>(3)</sup> | $35712.00 | 0.00015310 | $5.47 |
| Fees Previously Paid | Equity | Common Stock, par value $0.0001, that may be issued to the selling stockholder<sup>(2)</sup> | 457(c) | 13287970<br>$0.5952<sup>(3)</sup> | $7908999.74 | 0.00015310 | $1210.87 |
| Fees To Be Paid | Equity | Common Stock, par value $0.0001, issuable upon the conversion of convertible promissory notes | 457(c) | 562997<br>$0.82135<sup>(4)</sup> | $462417.59 | 0.00015310 | $70.80 |
| Fees To Be Paid | Equity | Common Stock, par value $0.0001, issuable upon the exercise of warrants | 457(c) | 120000<br>$0.82135<sup>(4)</sup> | $98562.00 | 0.00015310 | $15.09 |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | $8795113.28 |  | $1346.55 |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  | $1260.66 |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** |  |  | $0.00 |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  | $85.89 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Pursuant to Rule 416 under the Securities Act of 1933, as amended, the registrant is also registering hereunder an indeterminate number of shares of common stock that may be issued and resold resulting from stock splits, stock dividends, recapitalizations or similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents additional shares of common stock that may be issued to the selling stockholder pursuant to the purchase agreement, dated July 9, 2025, between the registrant and the selling stockholder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, based upon the average of the high and low prices of the registrant's common stock reported on The Nasdaq Capital Market on July 16, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, based upon the average of the high and low prices of the registrant's common stock reported on The Nasdaq Capital Market on September 8, 2025.

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## Exhibit 4.2

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**SKY QUARRY INC.** 

SKY QUARRY INC., a Delaware corporation (the "Company"), hereby certifies that, for value received, Varie Asset Management LLC (the "Warrant Holder," which term includes its successors and registered assigns) is entitled, subject to the terms set forth below, to purchase an aggregate of fifty thousand (50,000) shares of common stock, par value $0.0001 per share, of the Company (the "Common Stock") at an exercise price of $0.63 per share (the "Exercise Price") pursuant to the terms and conditions of this warrant ("Warrant"). The shares of Common Stock purchasable upon exercise of this Warrant, as adjusted from time to time pursuant to the provisions of this Warrant, are sometimes hereinafter referred to as the "Warrant Shares".

WHEREAS, the Warrant Holder loaned $125,000 to the pursuant to the terms of a 12% Convertible Promissory Note ("**Note**") dated even date herewith and in connection with the Note the Company agreed to issue this Warrant to the Warrant Holder;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the Company and the Warrant Holder hereby agree as follows:

1. Vesting of Warrant. Upon issuance hereof, this Warrant shall vest immediately and all of the Warrant Shares which the Registered Holder is permitted to acquire pursuant to this Warrant shall be immediately exercisable.

2. Exercise of Warrant. This Warrant may be exercised in whole or in part, subject to the terms and conditions of Section 1, during the twenty-four month period commencing on July 22, 2025 and expiring at 5:00 p.m., Mountain Standard time, on July 22, 2027 (the "Exercise Term"), or if such day is a day on which banking institutions in the State of Utah are authorized by law to close, then on the next succeeding day which shall not be such a day, by presentation and surrender of this Warrant evidencing the Warrant to be exercised to the Company at its principal office or at the office of its stock transfer agent, if any, with the Exercise Form annexed hereto duly executed, and payment of the Exercise Price. If any Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation and presentment of the Exercise Form, execute and deliver a new Warrant or Warrants, as the case may be, evidencing the rights of the Warrant Holder thereof to purchase the balance of the shares purchasable thereunder. Upon receipt by the Company of this Warrant at its office, or by the stock transfer agent of the Company at its office, in proper form for exercise together with the payment of the Exercise Price, the Warrant Holder shall be deemed to be the holder of record of the Warrant Shares, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Warrant Holder. Certificates for the Warrant Shares shall be delivered to the Warrant Holder within a reasonable time following the exercise of this Warrant in accordance with the foregoing.

3. Reservation and Listing of Shares. The Company hereby agrees that at all times while the Warrants are outstanding there shall be reserved for issuance and delivery upon exercise of this Warrant, such number of shares of its Common Stock as shall be required for issuance and delivery upon exercise of this Warrant.

4. Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. Any fraction of a share called for upon any exercise hereof shall be canceled. The Warrant Holder, by his acceptance hereof, expressly waives any right to receive any fractional share of stock or fractional Warrant upon exercise of this Warrant.

5. Exchange, Transfer, Assignment or Loss of Warrant. This Warrant is exchangeable, without expense, at the option of the Warrant Holder, upon presentation and surrender of this Warrant evidencing such Warrants to the Company at its office or at the office of its stock transfer agent, if any, for other Warrants of different denominations entitling the Warrant Holder thereof to purchase in the aggregate the same number of shares of Common Stock as are purchasable thereunder at the same respective Exercise Price. Subject to Section 9 hereof, upon surrender of this Warrant to the Company at its principal office or at the office of its stock transfer agent, if any, with a duly executed assignment form and funds sufficient to pay the applicable transfer tax, if any, the Company shall, without charge, execute and deliver new Warrant(s) in the name of the assignee named in such instrument of assignment and the original Warrant shall promptly be canceled. This Warrant may be divided or combined with other Warrants which carry the same rights upon presentation of this Warrant at the office of the Company or at the office

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of its stock transfer agent, if any, together with a written notice signed by the Warrant Holder hereof specifying the names and denominations in which new Warrants are to be issued. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver new Warrants of like tenor and date.

6. Rights of the Warrant Holder. The Warrant Holder shall not, by virtue hereof, be entitled to any rights of a shareholder of the Company until exercise of any Warrants.

7. Adjustments of Purchase Price and Number of Shares.

(a) Subdivision and Combination. If the Company shall at any time subdivide or combine the outstanding shares of Common Stock by way of stock split, reverse stock split or the like, the Exercise Price shall forthwith be proportionately increased or decreased.

(b) Adjustment in Number of Shares. Upon each adjustment of the Exercise Price pursuant to the provisions of paragraph 7(a), the number of shares of Common Stock issuable upon the exercise of this Warrant shall be adjusted to the nearest full share of Common Stock by multiplying a number equal to the Exercise Price in effect immediately prior to such adjustment by the number of shares of Common Stock issuable upon exercise of this Warrant immediately prior to such adjustment and dividing the product so obtained by the adjusted Exercise Price.

(c) Reclassification, Consolidation, Merger, etc. In case of any reclassification or change of the outstanding shares of Common Stock (other than a change in par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or in the case of any consolidation of the Company with, or merger of the Company into, another corporation (other than a consolidation or merger in which the Company is the surviving corporation and which does not result in any reclassification or change of the outstanding shares of Common Stock, except a change as a result of a subdivision or combination of such shares or a change in par value, as aforesaid), or in the case of a sale or conveyance to another corporation of all or a substantial part of the property of the Company, the Warrant Holder shall thereafter have the right to purchase the kind and number of shares of stock and other securities and property receivable upon such reclassification, change, consolidation, merger, sale or conveyance as if the Warrant Holder were the owner of the shares of Common Stock underlying this Warrant immediately prior to any such events at a price equal to the product of (x) the number of shares issuable upon exercise of this Warrant and (y) the Exercise Price in effect immediately prior to the record date for such reclassification, change, consolidation, merger, sale or conveyance as if such Warrant Holder had exercised this Warrant.

(d) Dividends and Other Distributions with Respect to Outstanding Securities. In the event that the Company shall at any time prior to the exercise of all Warrants declare a dividend (other than a dividend consisting solely of shares of Common Stock or a cash dividend or distribution payable out of current or retained earnings) or otherwise distribute to the holders of its Common Stock any monies, assets, property, rights, evidences of indebtedness, securities (other than shares of Common Stock), whether issued by the Company or by another person or entity, or any other thing of value, the Warrant Holder of the unexercised Warrants shall thereafter be entitled, in addition to the shares of Common Stock or other securities receivable upon the exercise thereof, to receive, upon the exercise of such Warrants, the same monies, property, assets, rights, evidences of indebtedness, securities or any other thing of value that they would have been entitled to receive at the time of such dividend or distribution. At the time of any such dividend or distribution, the Company shall make appropriate reserves to ensure the timely performance of the provisions of this Subsection 7(d).

(e) Warrant After Adjustment. Irrespective of any change pursuant to this Section 7 in the Exercise Price or in the number, kind or class of shares or other securities or other property obtainable upon exercise of this Warrant, this Warrant may continue to express as the Exercise Price and as the number of shares obtainable upon exercise, the same price and number of shares as are stated herein.

(f) Statement of Calculation. Whenever the Exercise Price shall be adjusted pursuant to the provisions of this Section 7, the Company shall forthwith file at its principal office, a statement signed by an executive officer of the Company specifying the adjusted Exercise Price determined as above provided in such section. Such statement shall show in reasonable detail the method of calculation of such adjustment and the facts requiring the

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adjustment and upon which the calculation is based. The Company shall forthwith cause a notice setting forth the adjusted Exercise Price to be sent by certified mail, return receipt requested, postage prepaid, to the Warrant Holder.

8. Definition of "Common Stock". For the purpose of this Warrant, the term "Common Stock" shall mean, in addition to the class of stock designated as the Common Stock, $.0001 par value, of the Company on the date hereof, any class of stock resulting from successive changes or reclassifications of the Common Stock consisting solely of changes in par value, or from par value to no par value, or from no par value to par value. If at any time, as a result of an adjustment made pursuant to one or more of the provisions of Section 7 hereof, the shares of stock or other securities or property obtainable upon exercise of this Warrant shall include securities of the Company other than shares of Common Stock or securities of another corporation, then thereafter the amount of such other securities so obtainable shall be subject to adjustment from time to time in a manner and upon terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained in Section 7 hereof and all other provisions of this Warrant with respect to Common Stock shall apply on like terms to any such other shares or other securities.

9. Restrictions on Offer and Sale. THE OFFER AND SALE OF THE SECURITIES REPRESENTED HEREBY AND THE WARRANT SHARES HAVE NOT BEEN REGISTERED WITH OR APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY SECURITIES COMMISSION OR REGULATORY AUTHORITY AND ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").

THE SALE, ASSIGNMENT, CONVEYANCE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS WARRANT AND THE WARRANT SHARES IS PROHIBITED EXCEPT (1) PURSUANT TO REGISTRATION UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT, AND ANY CERTIFICATE REPRESENTING WARRANT SHARES SHALL BEAR A LEGEND TO SUCH EFFECT.

10. Notices to Warrant Holders. Nothing contained in this Warrant shall be construed as conferring upon the Warrant Holder the right to vote or to consent or to receive notice as a shareholder in respect of any meetings of shareholders for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of this Warrant and its exercise, any of the following events shall occur:

(a) The Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or

(b) The Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any warrant, right or option to subscribe therefor; or

(c) A dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business shall be proposed; or

(d) There shall be any capital reorganization or reclassification of the capital stock of the Company, or consolidation or merger of the Company with another entity;

then, in anyone or more of said events, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the shareholders entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, warrants or options, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be. Failure to give such notice or any defect therein shall not affect the validity of any action taken in connection with the declaration or payment of any such dividend or distribution, or the issuance of any convertible or exchangeable securities or subscription rights, warrants or options, or any proposed dissolution, liquidation, winding up or sale.

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11. Notices.

(a) All communications under this Warrant shall be in writing and shall be mailed by certified mail, postage prepaid, return receipt requested, or telecopied with confirmation of receipt or delivered by hand or by overnight delivery service:

If to the Company at:SKY QUARRY INC.

Attn: President

707 West 700 S., Suite 101

Woods Cross, Utah 84087

If to the Warrant Holder at:Varie Asset Management

_______________

_______________

(b) Any notice so addressed, when mailed by registered or certified mail shall be deemed to be given three days after so mailed, when telecopied shall be deemed to be given when transmitted, or when delivered by hand or overnight shall be deemed to be given when hand delivered or on the day following deposit with the overnight delivery service.

12. Successors. All the covenants and provisions of this Warrant by or for the benefit of the Warrant Holder shall inure to the benefit of his successors and assigns hereunder.

13. Termination. This Warrant (and the right to purchase Warrant Shares upon exercise hereof) will terminate at 5PM MST on July 22, 2027 [two years after the date of issuance hereof].

14. Governing Law. This Warrant shall be deemed to be made under the laws of the State of Delaware and for all purposes shall be construed in accordance with the laws of said State, excluding choice of law principles thereof.

15. Entire Agreement, Amendment, Waiver. This Warrant and all attachments hereto and all incorporation by references set forth herein, set forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them. This Warrant may be amended, the Company may take any action herein prohibited or omit to take any action herein required to be performed by it, and any breach of any covenant, agreement, warranty or representation may be waived, only if the Company has obtained the written consent or waiver of the Warrant Holder. No course of dealing between or among any persons having any interest in this Warrant will be deemed effective to modify, amend or discharge any part of this Warrant or any rights or obligations of any person under or by reason of this Warrant.

**IN WITNESS WHEREOF**, the undersigned has executed this Warrant as of this 22<sup>nd</sup> day of July, 2025.

SKY QUARRY INC.

By: /s/ David Sealock

Name: David Sealock

Title: CEO

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**WARRANT EXERCISE FORM** 

(To be executed upon exercise Warrant)

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS**

**WARRANT TO PURCHASE COMMON STOCK**

**SKY QUARRY INC.**

The undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock ("**Warrant Shares**") of SKY QUARRY INC., a Delaware corporation (the "**Company**"), evidenced by the attached Warrant to Purchase Common Stock (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

1. Exercise and Payment of Exercise Price for Cash. The Holder hereby elects to exercise an aggregate of ____________ Warrants at an exercise price of $____ per share. In exchange therefore, the Holder shall pay the aggregate exercise price of $________ to the Company in exchange for an aggregate of __________ Warrant Shares, in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. At the time such Holder was offered the Warrant, it was, at the date hereof, and on each date on which it exercises any Warrants, it will be either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act of 1933, as amended, or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act. Such Buyer is not required to be registered as a broker-dealer under Section 15 of the Securities Exchange Act of 1934, as amended.

The undersigned requests that a certificate for the Warrant Shares being purchased be registered in the name of ______________ and that such certificate be delivered to __________ ______________________________________________________________.

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| | |
|:---|:---|
| Dated:_____________ |  |
|  | (Signature) |
|  | (Printed Name) |

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## Exhibit 5.1

![](skyqex5z1_1.jpg)

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September 11, 2025

Sky Quarry Inc.

707 W. 700 South, Suite 101

Woods Cross, Utah 84087

Re:Registration Statement on Form S-1

Ladies and Gentlemen:

We have acted as counsel to Sky Quarry Inc., a Delaware corporation (the "**Company**"), in connection with the preparation and filing of the Company's registration statement on Form S-1 (the "**Registration Statement**"), filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the "**Act**"), and the rules and regulations thereunder, relating to the registration of 14,517,227 shares of common stock of the Company to be sold by the selling stockholder named in the Registration Statement (the "**Selling Stockholder**"), comprised of (i) 120,000 shares of common stock (the "**May Note Shares**") issuable upon conversion of a 12% convertible promissory note in the principal amount of $150,000 issued to the Selling Stockholder on May 22, 2025 (the "**May Note**"); (ii) 60,000 shares of common stock (the "**May Warrant Shares**") issuable upon exercise of a warrant issued to the Selling Stockholder on May 22, 2025 (the "**May Warrant**"), (iii) 120,000 shares of common stock (the "**May Note Shares**") issuable upon conversion of a 12% convertible promissory note in the principal amount of $125,000 issued to the Selling Stockholder on July 22, 2025 (the "**July Note**"); (iv) 50,000 shares of common stock (the "**July Warrant Shares**") issuable upon exercise of a warrant issued to the Selling Stockholder on July 22, 2025 (the "**July Warrant**"), (v) 364,584 shares of common stock (the "**August Note Shares**," and together with the May Note Shares and July Note Shares, the "**Note Shares**") issuable upon conversion of a 12% convertible promissory note in the principal amount of $175,000 issued to the Selling Stockholder on August 29, 2025 (the "**August Note**," and together with the May Note and the July Note, the "**Notes**"); (vi) 70,000 shares of common stock (the "**August Warrant Shares**," and together with the May Warrant Shares and the July Warrant Shares, the "**Warrant Shares**") issuable upon exercise of a warrant issued to the Selling Stockholder on August 29, 2025 (the "**August Warrant**," and together with the May Warrant and the July Warrant, the "**Warrants**"), and (vii) up to 13,654,230 shares of common stock that have or may be issued to the Selling Stockholder pursuant to a purchase agreement, dated July 9, 2025, between the Company and the Selling Stockholder (the "**Purchase Agreement**"), which includes (a) 366,260 shares (the "**Initial Commitment Shares**") that were issued to the Selling Stockholder upon execution of the Purchase Agreement, (b) up to 183,131 shares (the "**Additional Commitment Shares**") that may be issued to the Selling Stockholder from time to time as consideration for the Selling Stockholder's purchase of shares of common stock under the Purchase Agreement and (c) up to 13,104,839 shares (the "**Purchase Shares**," and together with the Note Shares, the Warrant Shares, the Initial Commitment Shares and the Additional Commitment Shares, the "**Shares**") that may be issued and sold to the Selling Stockholder in the future under the Purchase Agreement. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related prospectus, other than as expressly stated herein with respect to the issue of the Shares.

In connection with this opinion, we have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of the Company and such agreements, certificates of public officials, certificates of officers or other representatives of the Company and others, and such other documents, certificates, and records as we have deemed necessary or appropriate as a basis for the opinions set forth herein.

In our examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, and the conformity to original documents of all documents submitted to us as copies. We have relied upon the accuracy and completeness of the information, factual matters, representations, and warranties contained in such documents. We have also assumed that the persons identified as officers of the Company are actually serving in such capacity and that the Registration Statement will be declared effective. In our examination of documents, we have assumed that the parties thereto, other than the Company, had the power, corporate or other, to enter into and perform all obligations thereunder and had the due authorization by all

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![](skyqex5z1_2.jpg)

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| | |
|:---|:---|
| **PG. 2** | ![](skyqex5z1_3.jpg)  |
| September 11, 2025 | ![](skyqex5z1_3.jpg)  |

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requisite action, corporate or other, the execution and delivery by all parties of the documents, and the validity and binding effect thereof on such parties.

Based upon and subject to the foregoing, we are of the opinion that (i) the Note Shares, if and when issued upon conversion of the Notes in accordance with their terms, will be legally and validly issued, fully paid and nonassessable; (ii) the Warrant Shares, if and when issued upon exercise of the Warrants in accordance with their terms, will be legally and validly issued, fully paid and nonassessable; (iii) the Initial Commitment Shares were legally and validly issued and are fully paid and nonassessable; and (iv) the Additional Commitment Shares and the Purchase Shares, if and when issued in accordance the terms of the Purchase Agreement, will be legally and validly issued, fully paid and nonassessable.

The opinions expressed herein are limited to the matters specifically set forth herein and no other opinion shall be inferred beyond the matters expressly stated. We disclaim any undertaking to advise you of any subsequent changes in the facts stated or assumed herein or any changes in applicable law that may come to our attention subsequent to the date the Registration Statement is declared effective.

The opinions we express herein are limited to matters involving the General Corporation Law of the State of Delaware as currently in effect. We express no opinion regarding the effect of the laws of any other jurisdiction or state, including any federal securities laws related to the issuance and sale of the Shares.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and we consent to the reference of our name under the caption "Legal Matters" in the prospectus forming a part of the Registration Statement. In giving the foregoing consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Securities and Exchange Commission thereunder.

Very truly yours,

/s/ Bevilacqua PLLC

## Exhibit 10.2

**THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES**.

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| | |
|:---|:---|
| **Principal Amount: $125,000.00** | **Issue Date: July 22, 2025** |

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**12% Convertible Promissory Note**

FOR VALUE RECEIVED, **SKY QUARRY INC.,** a Delaware corporation (hereinafter called "**Borrower**" or "**Company**"), hereby promises to pay to the order of Varie Asset Management LLC (the "**Holder**"), address at 22647 Ventura Blvd #925, Woodland Hills, CA 91364, the sum of One Hundred Twenty Five Thousand Dollars ($125,000.00) ("**Principal Amount**"), with interest accruing thereon, payable on July 22, 2027 (the "**Maturity Date**"), if not sooner paid, converted or modified as permitted herein. This 12% Convertible Promissory Note is referred to herein as the "**Note**".

The following terms shall apply to this Note:

**ARTICLE I**

GENERAL PROVISIONS

1.1Interest Rate and Interest Payment Date. Except as otherwise provided herein, interest payable on this Note shall accrue at a rate of twelve percent (12.0%) per annum from the Issue Date through the Maturity Date. Interest shall be paid on a semi-annual basis commencing on December 31, 2025. Payment of interest shall be made to the Holder in the form of cash.

1.2Maturity Date. The Maturity Date shall be July 22, 2027 (24 months from date of the issuance of the Note).

1.3Payment Grace Period. The Borrower shall have a ten (10) day grace period to pay any monetary amounts due under this Note. After the Maturity Date and during the pendency of an Event of Default, (as defined in Article IV), the interest rate shall be increased to fourteen percent (14%) per annum.

1.4Miscellaneous. Interest on this Note shall be calculated on the basis of a 365-day year and the actual number of days elapsed. Principal and interest on this Note and other payments in connection with this Note shall be payable at the Holder's offices as designated above in lawful money of the United States of America in immediately available funds without set-off, deduction or counterclaim. Upon assignment of the interest of Holder in this Note, Borrower shall instead make its payment pursuant to the assignee's instructions upon receipt of written notice thereof.

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**ARTICLE II**

**CONVERSION RIGHTS**

The Holder shall have the right to convert the principal and any interest due under this Note into Shares of the Borrower's Common Stock, $0.0001 par value per share ("**Common Stock**") as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.Conversion into the Borrower's Common Stock.

(a)The Holder shall have the right at any time commencing on the date hereof until this Note is fully paid, to convert any outstanding and unpaid principal portion of this Note, and accrued interest, at the election of the Holder (the date of giving of such notice of conversion being a "**Conversion Date**") into fully paid and non-assessable shares of Common Stock. Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is annexed hereto as **Schedule A**, Borrower shall issue and deliver to the Holder within five (5) business days after the Conversion Date (such fifth day being the "**Delivery Date**") that number of shares of Common Stock for the portion of the Note converted in accordance with the foregoing. The Holder will not be required to surrender the Note to the Borrower until the Note has been fully converted or satisfied. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing that portion of the principal of the Note and interest, if any, to be converted, by the Conversion Price.

(b)Subject to adjustment as provided in Article 2.1(c) hereof, the conversion price ("**Conversion Price**") per share shall be a price equal to $0.63 per share of the Company's Common Stock, subject to a floor price of $0.50 per share ("**Floor Price**").

(c) The Conversion Price and number and kind of shares or other securities to be issued upon conversion determined pursuant to Article 2.1(a), shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

A.Merger, Sale of Assets, etc. If (A) the Borrower effects any merger or consolidation of the Borrower with or into another entity, (B) the Borrower effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Borrower or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (D) the Borrower consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more persons or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such stock purchase agreement or other business combination), (E) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common Stock of the Borrower), or (F) the Borrower effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than a reverse merger) (in any such case, a "**Fundamental Transaction**"), this Note, as to the unpaid principal portion thereof and accrued interest thereon, if any, shall thereafter be deemed to evidence the right to convert into such number and kind of shares or other securities and property as would have been issuable or distributable on account of such Fundamental Transaction, upon or with respect to the securities subject to the conversion right immediately prior to such Fundamental Transaction. The foregoing provision shall similarly apply to successive Fundamental Transactions of a similar nature by any such successor or purchaser. Without limiting the generality of the

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foregoing, the anti-dilution provisions of this Article shall apply to such securities of such successor or purchaser after any such Fundamental Transaction.

B.Reclassification, etc. If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid principal portion thereof and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior to such reclassification or other change.

C.Stock Splits, Combinations and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

D.Sale of Convertible Securities. In the event that the Company sells securities that are convertible into shares of the Company's Common Stock for cash and the conversion price of such securities is less than the Conversion Price then in effect, the Conversion Price shall be reduced to equal such lower conversion price, subject to the Floor Price. This provision shall only be applicable to a sale of securities by the Company in the minimum amount of $250,000.

(d)Whenever the Conversion Price is adjusted pursuant to Article 2.1(c) above, the Borrower shall promptly but not later than the fifth (5<sup>th</sup>) business day after the effectiveness of the adjustment, provide notice to the Holder setting forth the Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment. Failure to provide the foregoing notice is an Event of Default under this Note.

2.2Method of Conversion. This Note may be converted by the Holder in whole or in part as described in Article 2.1(a) hereof. Upon partial conversion of this Note, a new Note containing the same date and provisions of this Note shall, at the request of the Holder, be issued by the Borrower to the Holder for the principal balance of this Note and interest which shall not have been converted or paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this Note, the Company shall not issue or sell, and the Holder shall not purchase or acquire, any shares of Common Stock under this Note which, when aggregated with all other shares of Common Stock then beneficially owned by the Holder and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Holder of more than 9.99% of the then issued and outstanding shares of Common Stock (the "Beneficial Ownership Limitation"). Upon the written or oral request of the Holder, the Company shall promptly (but not later than 24 hours) confirm orally or in writing to the Holder the number of shares of Common Stock then outstanding. The Holder and the Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Holder's written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error.

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**ARTICLE III**

**REDEMPTION**

This Note may be prepaid, in whole or in part, by the Borrower, at any time after the issuance hereof, without the consent of the Holder except as otherwise described in this Note. If the Note is prepaid prior to the date that is twelve months from the date of this Note, the Borrower shall pay a one percent (1%) prepayment penalty to Holder. Any pre-payment penalty shall only be applied to the then outstanding principal amount being prepaid. Borrower shall provide Holder at least thirty (30) days prior written notice of its intent to prepay the Note, during which time Holder may elect to convert all or a portion of the outstanding principal and accrued interest of the Note. Holder shall notify Borrower in writing of its election to convert the Note at least five (5) days prior to the prepayment date, pursuant to which it shall indicate the amount of principal and/or accrued interest it intends to convert into shares of the Borrower's common stock at the Conversion Price then in effect. If Holder does not timely notify Borrower of its election to convert the Note in accordance herewith, Holder shall not be entitled to convert the Note at such time, however, if the Note is not repaid in full Holder shall continue to have the right to convert the Note in connection with any future repayment notices provided to Holder.

**ARTICLE IV**

**EVENT OF DEFAULT**

The occurrence of any of the following events of default ("**Event of Default**") shall, at the option of the Holder hereof, make all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable, upon demand, without presentment or grace period, all of which hereby are expressly waived, except as set forth below:

4.1Failure to Pay Principal or Interest. The Borrower fails to pay any installment of principal, interest or other sum due under this Note when due in full, subject to a ten (10) day grace period.

4.2Breach of Covenant. The Borrower or any Subsidiary breaches any material covenant or other term or condition of this Note in any material respect and such breach, if subject to cure, continues for a period of ten (10) business days after written notice to the Borrower from the Holder.

4.3Breach of Representations and Warranties. Any material representation or warranty of the Borrower made herein, or in any agreement, statement or certificate given in writing pursuant hereto or in connection therewith shall be false or misleading in any material respect as of the date made and the Closing Date and such inaccuracy, if subject to cure, continues for a period of ten (10) business days after written notice to the Borrower from the Holder.

4.4Liquidation. Any dissolution, liquidation or winding up of Borrower or a Subsidiary's substantial portion of their business.

4.5Cessation of Operations. Any cessation of operations by Borrower or a Subsidiary.

4.6Maintenance of Assets. The failure by Borrower or any Subsidiary to maintain any material intellectual property rights, personal, real property, equipment, leases or other assets which are necessary to conduct its business (whether now or in the future) and such breach is not cured with ten (10) business days after written notice to the Borrower from the Holder.

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4.7Receiver or Trustee. The Borrower or any Subsidiary shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed.

4.8Judgments. Any money judgment, writ or similar final process shall be entered or made in a non-appealable adjudication against Borrower or any Subsidiary or any of its property or other assets for more than $250,000, unless stayed vacated or satisfied within ten days.

4.9Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Borrower or any Subsidiary.

4.10Notification Failure. A failure by Borrower to notify Holder of any material event of which Borrower is obligated to notify Holder pursuant to the terms of this Note or any other transaction document.

4.11Failure to Deliver Shares/DWAC Shares. A failure by Borrower or Borrower's transfer agent for any reason or for no reason to electronically transfer any shares of Common Stock issuable upon conversion of this Note as DWAC Shares on or before the Delivery Date. "DWAC Shares" means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely credited by the Company to the Investor's or its designee's specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar program hereafter adopted by DTC performing substantially the same function.

4.12Cross-Default. A breach or default by the Borrower of any representation, warranty, covenant or other term or condition contained in any other material agreement, including, without limitation, any note purchase agreement, loan agreement(s) or promissory note(s), entered into between the Holder and the Borrower or issued by the Borrower to the Holder, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note.

Upon the occurrence and during the continuation of any Event of Default specified in this Article IV, (i) the Note shall become immediately due and payable (subject to any applicable cure periods); and (ii) if the Borrower fails to pay all principal and interest due and payable within five (5) business days of the date which such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default, to require the Borrower upon written notice, to immediately issue the number of shares of Common Stock of the Borrower equal to the amount of outstanding principal and interest then due and owing divided by the 90% of the Conversion Price then in effect.

**ARTICLE V**

**MISCELLANEOUS**

5.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

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5.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the first business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Borrower to: Sky Quarry Inc., 707 W. 700 S, Suite 101, Woods Cross, UT 84087, Attn: President, facsimile: (801) 606-2722, and (ii) if to the Holder, to the name, address and facsimile number set forth in the Borrower's public filings with the SEC.

5.3Amendment Provision. The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

5.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns.

5.5Cost of Collection. If default is made in the payment of this Note, Borrower shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys' fees.

5.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Any action brought by either party against the other concerning the transactions contemplated by this Agreement must be brought only in the civil or state courts of the state of Delaware or in the federal courts located in the state of Delaware. Both parties and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower's obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other decision in favor of the Holder.

5.7Maximum Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum rate permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum rate shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

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5.8Non-Business Days. Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under the laws of the State of Delaware, such payment may be due or action shall be required on the next succeeding business day and, for such payment, such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

5.9Expenses: Registration. Borrower shall be responsible for $15,000 of the Holder's expenses in connection with the preparation and legal review of the transaction documents, which shall be deducted from the proceeds of this Note. The shares to be issued pursuant to this Note shall be included within an amendment to the Registration Statement on Form S-1 filed on July 18, 2025.

.

**IN WITNESS WHEREOF**, Borrower has caused this Note to be signed in its name by an authorized officer as of the 22<sup>nd</sup> day of July, 2025.

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| |
|:---|
| **SKY QUARRY INC.** |
| By: /s/ David Sealock |
| Name: David Sealock |
| Title: Chief Executive Officer |

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**SCHEDULE A - NOTICE OF CONVERSION**

(To be executed by the Registered Holder in order to convert the Note)

The undersigned hereby elects to convert $_________ of the principal and $_________ of the interest due on the Note issued by Sky Quarry Inc. ("Borrower") on July 22, 2025 into Shares of Common Stock of Borrower according to the conditions set forth in such Note, as of the date written below.

Date of Conversion:____________________________________________________________________

Conversion Price:______________________________________________________________________

Shares To Be Delivered:_________________________________________________________________

Signature:____________________________________________________________________________

Print Name:__________________________________________________________________________

Address:_____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;____________________________________________________________________________

## Exhibit 23.1

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Stockholders and the Board of Directors of

Sky Quarry Inc.

We consent to the use in this Prospectus constituting a part of this Registration Statement of our report dated March 31, 2025, relating to the consolidated financial statements of Sky Quarry Inc. and Subsidiaries (the Company), which are incorporated by reference in that Prospectus. Our report contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

We also consent to the reference to us under the caption "Experts" in the Prospectus.

/s/ Tanner LLC

Lehi, Utah<br>September 10, 2025