Camber Energy(CEI) - 2022 Q2 - Quarterly Report

Financial Performance - Oil and gas sales for the three months ended June 30, 2022, were $171,651, an increase of 76.3% compared to $97,238 for the same period in 2021[13] - Net income attributable to common stockholders for the three months ended June 30, 2022, was $4,595,035, compared to a loss of $63,560,442 for the same period in 2021[13] - The company reported a basic and diluted loss per share of $0.18 for the six months ended June 30, 2022, compared to a gain of $0.28 for the same period in 2021[13] - The Company reported a net loss of $(63,560,442) for the period, highlighting ongoing financial challenges[18] - In Q2 2022, the company reported a net income of $4,595,035, compared to a net income of $62,838,113 in Q2 2021, reflecting a significant decrease[181] Assets and Liabilities - Total assets decreased from $46,404,080 as of December 31, 2021, to $44,816,344 as of June 30, 2022, representing a decline of approximately 3.4%[9] - Current liabilities decreased from $96,664,577 as of December 31, 2021, to $40,899,578 as of June 30, 2022, a reduction of approximately 57.6%[9] - Long-term debt increased from $21,500,000 as of December 31, 2021, to $32,305,737 as of June 30, 2022, an increase of approximately 50.5%[9] - The company had cash of $2,199,578 as of June 30, 2022, down from $5,854,382 as of December 31, 2021, a decrease of approximately 62.5%[9] - As of June 30, 2022, the Company had a stockholders' deficit of $28,444,596 and total long-term debt of $32,305,737, net of debt discount[44] Cash Flow - Net cash used in operating activities was $(2,132,504), compared to $(1,315,474) in the previous period, indicating a significant increase in cash outflow[15] - Net cash used in investing activities totaled $(3,922,300), with no cash inflows reported during the period[15] - Net cash provided in financing activities was $2,400,000, compared to $2,500,000 in the previous period, reflecting a slight decrease[15] - The company reported a net cash decrease of $(3,654,804) for the six months ended June 30, 2022, compared to an increase of $1,184,526 for the same period in 2021[15] Derivative Liabilities - The company reported a significant gain on derivative liability of $7,407,750 for the three months ended June 30, 2022, compared to a gain of $70,767,848 for the same period in 2021[13] - The derivative liability decreased from $93,108,568 at the beginning of 2022 to $37,069,290 at the end of the same period, reflecting a change in fair value of $57,602,973[119] - The change in fair value of derivative liability was $57,602,973, indicating significant fluctuations in financial instruments[15] Stock and Equity - The weighted average number of common shares outstanding for the three months ended June 30, 2022, was 395,207,537, compared to 52,911,280 for the same period in 2021[13] - The Company has a 63% ownership interest in Viking Energy Group, reflecting its strategic investment in the energy sector[20] - The Company issued Series C preferred stock as an investment in Viking for $18,900,000, indicating ongoing investment strategies[15] - The Company recorded a carrying amount of $36,299,592 for its investment in Viking as of June 30, 2022, down from $15,830,538 at the beginning of the period[95] Operational Expenses - Total operating expenses for the six months ended June 30, 2022, were $2,294,835, down 29.3% from $3,248,031 for the same period in 2021[13] - The company incurred stock-based compensation of $123,754 during the period, which is a part of its operational expenses[15] - The company incurred interest expenses of $(804,857) for the three months ended June 30, 2022, compared to $(498,875) for the same period in 2021, reflecting a 61% increase[13] Shareholder Matters - The Company is currently facing two pending shareholder derivative complaints related to fiduciary duty and unjust enrichment claims[12] - The Company satisfied the Reserve Requirement by the required deadline but failed to meet the Filing Requirement, which could lead to defaults under various agreements[153][156] - The Company aims to obtain an exception to any shareholder approval requirement from NYSE American regarding the issuance of Conversion Shares and Warrant Shares[185]