Camber Energy(US:CEI)2024-05-10 21:01Mergers and Acquisitions - Camber Energy, Inc. completed the merger with Viking Energy Group, Inc. on August 1, 2023, with Viking becoming a wholly owned subsidiary[145]. - The company acquired approximately 60.5% of Simson-Maxwell for $7,958,159, enhancing its custom energy solutions offerings[130]. - The company issued approximately 49,290,152 shares of Camber Common Stock in connection with the merger, representing approximately 59.99% of the outstanding Camber Common Stock post-issuance[146]. - The company reserved approximately 88,647,137 additional shares of Camber Common Stock for potential conversions and exercises related to the merger[146]. Financial Performance - The company recorded a net loss of $755,506 from the sale of oil and gas properties in Texas for gross proceeds of $205,000[140]. - In 2023, the company gained $854,465 from the sale of oil and gas assets in Kansas and Texas, with total proceeds of $751,450[142]. - The company reported a net loss of $(26,351,568) for the three months ended March 31, 2024, compared to a net loss of $(1,632,327) for the same period in 2023, representing an increase in loss of approximately 1,517%[147]. - Gross revenues increased by $1,048,343 or 14%, totaling $8,292,532 for the three months ended March 31, 2024, compared to $7,244,189 in the prior year[149]. - Operating expenses rose by $2,059,601 to $10,284,446 for the three months ended March 31, 2024, up from $8,224,845 in the same period in 2023[149]. - The loss from operations for the three months ended March 31, 2024, was $(1,991,914), compared to $(980,656) for the same period in 2023[149]. - The company had a working capital deficiency of $14,246,826 as of March 31, 2024, with current liabilities of $29,814,925 compared to current assets of $15,568,099[147]. - Net cash used in operating activities increased to $(1,185,014) for the three months ended March 31, 2024, compared to $(948,129) in the same period in 2023[149]. - The company generated net cash provided by investing activities of $162,596 during the three months ended March 31, 2024, compared to $(25,726) in the prior year[149]. - The company had long-term debt of $40,854,502 and stockholders' equity of $20,156,132 as of March 31, 2024[147]. Energy Solutions and Technology - The ESG Clean Energy System is designed to capture approximately 100% of CO2 emissions from internal combustion engines, utilizing waste heat for efficiency[136]. - Viking Ozone, acquired in January 2022, holds a patented medical waste treatment system using ozone technology, providing a sustainable alternative to incineration[137]. - The company holds licenses for patented electric transmission and distribution open conductor detection systems aimed at enhancing public safety[138]. - Simson-Maxwell has been operational for over 80 years, providing a range of energy solutions including combined heat and power systems[130]. - The company is exploring renewable energy opportunities that are currently generating or have the potential to generate revenue[130]. - The company has divested from all oil and gas properties as of March 31, 2024, focusing on energy technology and solutions[139]. Revenue Recognition - Oil and gas revenues are recognized when production is sold to customers, with performance obligations satisfied upon transfer of control, which includes delivery of oil, gas, or natural gas liquids[153]. - The company holds a 60.5% ownership in Simson-Maxwell, which manufactures and sells power generation products and services, recognizing revenue upon transfer of control to the customer[154]. Asset Management - Asset retirement obligations (ARO) represent the estimated present value of costs to plug, abandon, and remediate producing properties, calculated using significant assumptions including inflation and risk-adjusted interest rates[153].