Camber Energy(CEI) - 2024 Q2 - Quarterly Report

Revenue and Growth - Revenue from power generation units and parts for Q2 2024 was $6,553,893, up from $5,301,911 in Q2 2023, representing a 23.6% increase[5] - Service and repairs revenue increased to $3,338,200 in Q2 2024 from $1,504,204 in Q2 2023, a growth of 121.5%[5] - Total revenue for the six months ended June 30, 2024, was $18,117,994, up 31.1% from $13,805,107 in the same period of 2023[38] - For the three months ended June 30, 2024, revenue from power generation units was $5,422,191, an increase of 24.1% compared to $4,369,223 for the same period in 2023[38] - Total revenue from units and parts for the six months ended June 30, 2024, reached $12,086,013, up 55.5% from $7,760,206 in the prior year[38] Financial Performance - The net loss attributable to Camber Energy, Inc. for the six months ended June 30, 2024, was $28,830,784, compared to a net loss of $2,543,765 for the same period in 2023[6] - Comprehensive loss attributable to Camber for the six months ended June 30, 2024, was $28,856,913, compared to $2,477,150 for the same period in 2023[9] - The company recorded a net loss of $(29,172,828) for the six months ended June 30, 2024, compared to a net loss of $(2,908,339) for the same period in 2023, indicating a significant increase in losses[21] - The company generated a loss from operations of $(3,521,231) for the six months ended June 30, 2024, compared to $(2,670,209) for the same period in 2023[104] - The total operating expenses for the six months ended June 30, 2024, were $21,733,724, compared to $16,946,722 for the same period in 2023, reflecting a 28.5% increase[6] Cash Flow and Liquidity - Cash used in operating activities for the six months ended June 30, 2024, was $1,409,813, compared to $2,935,186 for the same period in 2023, indicating improved cash flow management[10] - The company reported a net cash provided by financing activities of $952,802 for the six months ended June 30, 2024, compared to $866,794 in the same period in 2023[11] - The company reported a net decrease in cash of $298,027, down from a decrease of $2,120,785 in the prior period, indicating improved cash flow management[11] - The company had a working capital deficiency of $(14,988,313) as of June 30, 2024, compared to $(8,280,058) in the prior year, indicating worsening liquidity[102] Shareholder Equity and Stock Issuance - The weighted average number of shares of common stock outstanding for Q2 2024 was 177,666,824, significantly higher than 47,765,841 in Q2 2023[6] - The company issued approximately 49,290,152 shares of Camber Common Stock, representing approximately 59.99% of the outstanding shares post-merger[101] - Total common stock issued during the period was 79,678,317 shares, reflecting ongoing capital raising efforts[12] - The company has reserved approximately 88,647,137 additional shares for potential conversions and exercises related to the merger[13] Debt and Liabilities - Total long-term debt as of June 30, 2024, is $38,865,974, a decrease from $39,974,670 on December 31, 2023, representing a reduction of approximately 2.8%[66] - The company has a total of $46,818,745 due in principal for the year 2027, net of unamortized discount of $8,110,475, resulting in a net amount of $38,708,270[67] - The outstanding balance under the bank credit facility as of June 30, 2024, is CAD $5,993,718 ($4,381,161), compared to CAD $4,457,947 ($3,365,995) on December 31, 2023[67] Mergers and Acquisitions - The merger with Viking Energy Group, Inc. was completed on August 1, 2023, with Viking becoming a wholly owned subsidiary of the company[13] - The total consideration transferred in the merger was $52,036,151, with Viking's share price at the date of the merger being $0.807[46] - Viking acquired a 51% interest in Viking Ozone Technology, LLC, which owns a patented medical waste treatment system using ozone technology, positioning the Company in the sustainable waste management sector[17] - The company acquired approximately 60.5% of Simson-Maxwell for $7,958,159, enhancing its capabilities in custom energy solutions[94] Intangible Assets and Intellectual Property - The company identified intangible assets of $3,908,126 related to customer relationships and brand from the acquisition of Simson-Maxwell, with some assets amortized over specific periods[113] - The company has aggregate intangible assets of $15,433,340 from the acquisition of a 51% interest in Viking Ozone, Viking Sentinel, and Viking Protection, which have an indefinite life and are not amortized[115] - The intangible asset related to the ESG Clean Energy License was valued at $5,000,000 as of June 30, 2024, with accumulated amortization of $885,487[53] Legal and Regulatory Matters - A class action complaint was filed against the Company regarding the merger with Viking, alleging breaches of fiduciary duty[83] - The Company intends to appeal the NYSE's determination to delist its common stock due to low selling prices, with trading now occurring on the OTC Pink Market[101] - The final approval hearing for the Stipulation and Settlement of the Houston Derivative Complaint is scheduled for September 12, 2024[119] Operational Developments - The company is exploring renewable energy technologies that are currently generating revenue or have a reasonable prospect of doing so[14] - The company holds a license for a patented clean energy and carbon-capture system with exclusivity in Canada and multiple locations in the U.S.[14] - Viking's medical waste disposal system is classified as renewable fuel for waste-to-energy facilities in various locations globally[95]