Camber Energy(CEI) - 2023 Q1 - Quarterly Report

Financial Performance - As of March 31, 2023, the company reported gross revenues of $93,471, a decrease of 31.5% from $136,407 in the same period of 2022[21] - The company experienced a net loss of $2,346,076 for the three months ended March 31, 2023, compared to a net loss of $68,155,477 for the same period in 2022, indicating a significant reduction in losses[32] - The company reported a loss from operations of $(1,371,650) for the three months ended March 31, 2023, compared to a loss of $(1,017,569) in the same period of 2022[34] - Oil and gas sales for the three months ended March 31, 2023, were $93,471, compared to $136,407 for the same period in 2022, indicating a decrease of about 31.4%[70] - The company reported a gain on derivative and warrant liability of $1,281,706 for Q1 2023, contrasting with a loss of $(65,010,723) in Q1 2022[70] - The loss for Q1 2023 included non-cash items totaling a net impact of $612,336, which comprised a gain on derivative and warrant liability of $1,281,706 and a loss in earnings of unconsolidated entities of $1,097,839[129] Operating Expenses - Operating expenses increased to $1,465,121 for the three-month period ended March 31, 2023, up from $1,153,976 in the prior year, reflecting a rise of approximately 27%[45] - Total operating expenses increased to $1,465,121 for Q1 2023, up from $1,153,976 in Q1 2022, reflecting an increase of approximately 27.0%[70] - The company’s general and administrative expenses rose to $1,419,213 in Q1 2023, compared to $977,990 in Q1 2022, an increase of about 45.1%[70] Cash and Liquidity - Cash holdings decreased to $574,977 as of March 31, 2023, down from $1,166,596 at the end of 2022[20] - Cash and cash equivalents decreased from $1,166,596 to $574,977, a reduction of approximately 50.8%[69] - The company ended the period with cash of $574,977, down from $4,207,018 at the end of Q1 2022[1] - As of March 31, 2023, the Company had cash in excess of federally insured limits amounting to $324,977, down from $916,596 as of December 31, 2022[138] Debt and Liabilities - The company had a stockholders' deficit of $19,469,710 and total long-term debt of $34,721,141 as of March 31, 2023[19] - Total current liabilities as of March 31, 2023, amounted to $17,529,207, including accounts payable of $1,076,824 and accrued expenses of $4,244,166[91] - The company reported a total liabilities of $542,313,356 as of March 31, 2023[91] - Total long-term debt, net, as of the reporting date is $34,721,141, a slight increase from $33,927,760 in the previous period[187] Investments and Acquisitions - The company aims to expand its operations in the energy sector, focusing on oil and gas wells in Texas and Louisiana, and providing custom energy solutions through its investment in Viking[28] - The company acquired a 51% interest in Viking Energy Group, Inc. for a total consideration of $10,900,000 in cash and cancellation of $9,200,000 in promissory notes[75] - Camber's investment in Viking resulted in owning approximately 60.9% of Viking's outstanding common shares by March 31, 2023[74] - The company has entered into various agreements to acquire additional shares of Viking, indicating ongoing market expansion efforts[96][103] Strategic Initiatives - The merger agreement with Viking, signed on February 15, 2021, was amended on April 18, 2023, allowing Viking to become a wholly owned subsidiary of Camber[79] - The merger agreement includes restrictions on soliciting alternative acquisition proposals until the merger is completed[83] - The company is required to hold stockholder meetings to approve the merger and share issuances related to the merger[84] - The merger agreement with Viking includes provisions for the conversion of shares and the appointment of a combined company's CEO, indicating strategic consolidation efforts[100][101] Market Conditions - The company anticipates that geopolitical conditions and the COVID-19 pandemic may continue to negatively impact its financial position and operations[43] - The company is facing potential negative impacts from oil and gas price volatility due to geopolitical conditions and the COVID-19 pandemic, which could affect its financial position and operations[107] Shareholder Information - The number of common shares outstanding as of May 12, 2023, was 22,625,979[67] - The weighted average number of common shares outstanding increased to 19,718,868 in Q1 2023 from 6,199,798 in Q1 2022[1] Accounting and Valuation - The company has not made any changes to its significant accounting policies since December 31, 2022, which are expected to have a material impact on its financial position[109] - The Company maintains a fair value measurement hierarchy, with significant inputs for its derivative liability classified as Level 3 inputs[113] - The Company evaluates deferred tax assets based on projected future taxable income and tax planning strategies, adjusting the valuation allowance as necessary[148] - The Company has determined that there were no recently adopted accounting standards expected to have a material impact on its operations[154] Legal Matters - The company intends to defend itself against allegations from a Class Action Complaint filed in October 2021 related to violations of federal securities laws[197]