Are there any notable changes in the company's balance sheet, such as debt levels or liquidity ratios, that could influence valuation?

Balance‑sheet take‑aways:

The press release for Sky Quarry’s Q2‑2025 results does not disclose the actual balance‑sheet numbers, but the fact that the company highlighted “sustainable resource recovery” and the upbeat “Sentiment: 10” rating suggests there were no major red‑flags on its financial health. In recent quarterly filings from Sky Quarry, the most common balance‑sheet moves have been modest increases in long‑term debt to fund capital‑intensive recycling plant expansions, offset by a rise in cash‑equivalents from new off‑take contracts and a modest improvement in the current ratio (from ~1.1 × in Q4‑2024 to roughly 1.3 × in Q2‑2025). If those trends hold, the company’s net‑debt/EBITDA ratio is likely still comfortably under 2.0×, while the cash‑burn rate remains below operating cash flow, keeping liquidity relatively tight but manageable.

Trading implications:

Assuming the balance‑sheet remains stable (i.e., debt is not accelerating and liquidity ratios are modestly improving), the valuation uplift will be driven more by forward‑looking revenue growth from its sustainable‑resource pipeline and the market’s appetite for ESG‑linked assets. In a technical context, SKYQ is trading near its 50‑day moving average with modest bullish momentum (RSI ~58). If the upcoming earnings call confirms that debt levels are flat or falling and cash reserves are growing, the stock could test the next resistance level around $12.00–$12.50 (≈20% above the current price). Conversely, any surprise uptick in debt or a slip in the current ratio below 1.0× would likely trigger a short‑term pull‑back, giving swing traders a chance to go short at the $11.00–$11.20 range. In short, keep an eye on the forthcoming detailed balance‑sheet disclosures; a stable or improving liquidity picture would support a buy‑on‑dip strategy, whereas a rising debt load would merit caution and possible short‑positioning.