Company Overview

Camber Energy provides custom energy and power systems to commercial clients in North America. It also has interests in technologies for medical waste disposal, open conductor detection systems, and a clean energy and carbon capture system. In August 2023, Camber completed a merger with Viking Energy Group.

Financial Performance

In the first quarter of 2024, Camber had revenue of $8.3 million, up 14% from $7.2 million in the same period last year. The increase was driven by higher sales of power generation units. However, Camber reported a large net loss of $26.4 million compared to a $1.6 million loss last year. The 2024 loss was impacted by non-cash expenses like changes in the value of derivatives and debt discounts.

Cash Flow

In the first quarter of 2024, Camber used $1.2 million in operating activities, spent $0.2 million on investing activities, and generated $0.5 million from financing activities. This compares to using $0.9 million in operations, $25 thousand in investing, and $0.3 million from financing in the first quarter 2023. The increased use of cash in operations relates to the larger net loss.

Financial Position

As of March 31, 2024, Camber had $20.2 million in shareholders’ equity. But it also had $40.9 million in long-term debt and was in a working capital deficit position of $14.2 million. The working capital deficit is attributed largely to credit facility borrowings, accrued interest, and derivative liabilities.

Going Concern

Camber’s financial statements were prepared on a going concern basis, which assumes the Company will continue operating. However, the Company is in a precarious financial position. Its ability to continue operating is dependent on generating profits, developing acquisition opportunities, and obtaining additional debt and equity financing.

Outlook

Camber merged with Viking Energy in order to diversify into more profitable operations in power generation and leverage Viking’s expertise to grow the business. However, the combined entity continues to face substantial challenges with debt obligations and operating losses. Improving the financial position will require substantially growing revenues from power generation and other business lines while also addressing the debt overhang.