30 unchanged sentences
Actively hedge mitigating commodity risk
−Removed: The following overview provides a background for the current strategy being implemented by management during the year ended December 31, 2021 and the nine months ended December 31, 2020.
+Added: The following overview provides a background for the current strategy being implemented by management during the years ended December 31, 2022 and 2021.
Going Concern Qualification
The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
−Removed: The Company generated a net loss of $169.7 million for the year ended December 31, 2021 (the “2021 Loss”) as compared to a net loss of $52.0 million for the nine-month period ended December 31, 2020.
+Added: The Company generated a net loss of $107.7 million for the year ended December 31, 2022 (the “2022 Loss”) as compared to a net loss of $169.7 million for the year ended December 31, 2021.
The 2022 Loss was comprised of certain non-cash items with a net impact of $99.1 million including:
3 unchanged sentences
As of December 31, 2022, the Company has a working capital deficiency of approximately $16.6 million.
−Removed: The largest components of current liabilities creating this working capital deficiency was a derivative liability associated with our Series C Preferred Stock of $93.1 million.
+Added: The largest components of current liabilities creating this working capital deficiency was a derivative liability associated with our Series C Preferred Stock of $7.6 million and a warrant liability of $5.9 million.
Management believes it will be able to continue to leverage the expertise and relationships of its operational and technical teams to enhance existing assets and identify new development, drilling and acquisition opportunities in order to improve the Company’s financial position.
8 unchanged sentences
These consolidated financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.
−Removed: During the year ended December 31, 2021 and the nine months ended December 31, 2020, the Company sold 1,575 and 630 shares, respectively, of Series C Preferred Stock pursuant to the terms of various Stock Purchase Agreements, for total cash proceeds of $15.0 and $6.0 million, respectively.
−Removed: During the year ended December 31, 2021, the Company sold 10,544 shares of Series G Preferred Stock for total proceeds of $5.0 million
+Added: During the years ended December 31, 2022 and 2021, the Company sold 0 and 1,575 shares, respectively, of Series C Preferred Stock pursuant to the terms of various Stock Purchase Agreements, for total cash proceeds of $0 and $15.0 million, respectively.
Although the Company has been successful in obtaining the financial resources in the past, these conditions continue to raise substantial doubt regarding the Company’s ability to continue as a going concern.
5 unchanged sentences
Negative impacts could include but are not limited to the Company’s ability to sell its oil and gas production, reduction in the selling price of the Company’s oil and gas, failure of a counterparty to make required payments, possible disruption of production as a result of worker illness or mandated production shutdowns or ‘stay-at-home’ orders, and access to new capital and financing.
−Removed: Our primary sources of cash for the year ended December 31, 2021 were from funds generated from the sale of preferred stock.
−Removed: The primary uses of cash were funds used in operations and funds invested in connection with the Viking Acquisition.
+Added: Our primary sources of cash for the year ended December 31, 2022 were from loan proceeds in the amount of $25 million, of which $18.9 million was used to redeem Series C preferred stock, $2.8 million was used to redeem Series G preferred stock, in addition to funds used in operations.
Pursuant to the December 31, 2019 Redemption Agreement, we entered into a new unsecured promissory note in the amount of $1,539,719 with Lineal, evidencing the repayment of the prior July 2019 Lineal Note, together with additional amounts loaned by Camber to Lineal through December 31, 2019;
7 unchanged sentences
The loans have been fully reserved as of December 31, 2022.
−Removed: On June 22, 2020, the Company and the Investor (as defined above) entered into a Stock Purchase Agreement pursuant to which the Investor purchased 630 shares of Series C Preferred Stock for $6 million (of which $4.2 million of such funds were subsequently loaned to Viking as discussed herein).
The following discussion of the consolidated financial condition and results of operation of the Company should be read in conjunction with the consolidated financial statements and the related Notes included elsewhere in this Report.
6 unchanged sentences
$ (90,728,973 )
−Removed: Nine Months Ended
Net Cash Used in Operating Activities
3 unchanged sentences
$ (2,472,300 )
+Added: $ (15,100,000 )
Net Cash Provided by Financing Activities
Increase (Decrease) in Cash during the Period
+Added: $ (4,687,786 )
Cash, end of Period
2 unchanged sentences
The Company had a working capital deficit of $16,607,613 of December 31, 2022, as compared to a working capital deficit of $90,728,973 as of December 31, 2021.
−Removed: Net cash used by operating activities increased to $3,414,166 during the year ended December 31, 2020, as compared to cash used by operating activities of $2,688,067 for the nine months ended December 31, 2020, as the operating period was for twelve months as compared to nine months.
−Removed: Net cash used by investing activities of $15,100,000 during the year ended December 31, 2021 as compared to cash used by investing activities of the same amount during the nine-month period ended December 31, 2020, representing investments in Viking.
−Removed: Net cash provided by financing activities increased to $23,500,000 during the year ended December 31, 2021, as compared to $18,000,000 for the nine-month period ended December 31, 2020.
−Removed: This increase is mainly due to issuance of the Series C and Series G Preferred stock to facilitate the acquisition of additional investments in Viking.
−Removed: The Company had gross revenues of $401,222 for the year ended December 31, 2021 as compared to $150,814 for the nine months ended December 31, 2020 primarily due to twelve months of revenues compared to nine months for the prior period.
−Removed: The Company’s operating expenses were $5,834,587 for the year ended December 31, 2021, as compared to $5,351,187 for the nine months ended December 31, 2020.
−Removed: General and administrative expenses decreased by $1,025,425, while share based compensation increased by $1,500,393 during the year ended December 31, 2021 which was partially offset by a $2.2 million charge to bad debt for the Lineal loan during the nine months ended December 31, 2020.
+Added: Net cash used by operating activities increased to $4,615,486 during the year ended December 31, 2022, as compared to cash used by operating activities of $3,414,166 for the year ended December 31, 2021.
+Added: Net cash used by investing activities of $2,472,300 during the year ended December 31, 2022 as compared to cash used by investing activities of $15,100,000 during the year ended December 31, 2021, representing investments in Viking.
+Added: Net cash provided by financing activities decreased to $2,400,000 during the year ended December 31, 2022, as compared to $23,500,000 for the year ended December 31, 2021.
+Added: This decrease is mainly due to the redemptions of the Series C and Series G Preferred stock.
+Added: The Company had gross revenues of $597,255 for the year ended December 31, 2022 as compared to $401,222 for the year ended December 31, 2021.
+Added: The Company’s operating expenses were $4,979,824 for the year ended December 31, 2022, as compared to $5,834,587 for the year ended December 31, 2021.
+Added: General and administrative expenses increased by $517,928, while share based compensation decreased by $1,413,141 during the year ended December 31, 2021.
Income (Loss) from Operations
−Removed: The Company generated a loss from operations of $5,433,365 for the year ended December 31, 2021, as compared to a loss from operations of $5,200,373 from operations for the nine months ended December 31, 2020, due primarily to those items listed above.
+Added: The Company generated a loss from operations of $4,382,569 for the year ended December 31, 2022, as compared to a loss from operations of $5,433,365 from operations for the year ended December 31, 2021.
Other income (expense)
−Removed: The Company had other income (expense) of $(164,241,804) for the year ended December 31, 2021, as compared to ($46,811,015) for the nine months ended December 31, 2020.
−Removed: The largest components of this change is the recognition of a change in the fair value of derivative liabilities of $(152,831,568) during the year ended December 31, 2021 as compared to $(41,878,821) for the nine months ended December 31, 2020, and equity in losses of unconsolidated affiliates of $(9,430,946) during the year ended December 31, 2021 as compared to $(5,401,540) for the nine months ended December 31, 2020, which was primarily the loss associated with the equity investment in Viking.
+Added: The Company had other income (expense) of $(103,359,396) for the year ended December 31, 2022, as compared to ($164,241,804) for the year ended December 31, 2021.
+Added: The largest components of this change is the recognition of a change in the fair value of derivative liabilities of $(89,523,091) during the year ended December 31, 2022 as compared to $(152,831,568) for the year ended December 31, 2021, interest expense of $(4,705,624) during the year ended December 31, 2022 as compared to $(1,979,290) for the year ended December 31, 2021 and equity in losses of unconsolidated affiliates of $(9,461,874) during the year ended December 31, 2022 as compared to $(9,430,946) for the year ended December 31, 2021, which was primarily the loss associated with the equity investment in Viking.
Off Balance Sheet Arrangements
15 unchanged sentences
To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense.
−Removed: No impairment expense was recorded for the year ended December 31, 2021 or the nine-month period ended December 31, 2020.
+Added: No impairment expense was recorded for the years ended December 31, 2022 and 2021.
Proved Reserves
47 unchanged sentences
Historically, our stock price has been extremely volatile and subject to large and sometimes unexplained price variations on a daily or weekly basis.
−Removed: In addition, the Company declared four reverse stock splits in 2018 and 2019 and the Company’s common stock generally trades at less than $1.00 per share.
+Added: In addition, the Company declared four reverse stock splits in 2018 and 2019, and one reverse split in 2022, and the Company’s common stock generally trades at less than $1.00 per share.
These factors have exacerbated daily volatility of our stock price.
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.