🧾 What This Document Is

This is Camber Energy's annual report (Form 10-K) for the fiscal year ended December 31, 2025. It's a comprehensive summary required by the SEC that details the company's business, financial condition, risks, and performance. For investors, it's the most important document to understand what the company owns, what it's doing, and the serious challenges it faces.

🏢 What The Company Does

👉 In simple terms, Camber Energy is now a holding company that owns majority stakes in several early-stage, patented technology businesses focused on clean energy and safety. It has no employees and generates no revenue itself.

The company's portfolio is managed through its subsidiary, Viking Energy Group, and includes:

• Medical Waste Treatment: A patented ozone-based system (Viking Ozone) designed as a sustainable alternative to incineration.
• Grid Safety Tech: Patented systems (Viking Sentinel/Protection/Distribution) that detect broken power lines and shut them off to prevent fires and electrocutions.
• Carbon Capture: A licensed technology (from ESG/Scuderi) aimed at capturing CO2 from power generation.
• Power Solutions: A 49% non-controlling interest in Simson-Maxwell Ltd., a Canadian company that sells custom power generation equipment. This is a major change from 2024.

💰 Financial Highlights (The Numbers Tell a Stark Story)

The financials reflect a company in a transitional and precarious position after deconsolidating its main revenue source.

Key 2025 Figures vs. 2024:

• Revenue: $6.2 million (down from $28.6 million). This only includes Simson-Maxwell results until April 1, 2025.
• Net Loss: ($5.3 million) (a significant improvement from the ($70.3 million) loss in 2024).
• Cash on Hand: $279,525 as of Dec 31, 2025.
• Working Capital Deficit: ($15.8 million) – The company's short-term liabilities exceed its short-term assets by a wide margin.
• Stockholders' Deficit: ($43.4 million) – Total liabilities exceed total assets.

👉 Why it matters: The massive drop in revenue and the persistent losses, combined with very little cash and significant debt, paint a picture of a company burning money while trying to commercialize unproven technologies. The "Going Concern" warning from the auditors is the biggest red flag.

🚀 Key Moves in 2025: The Great Retrenchment

The most significant event was a strategic retreat to conserve resources and focus on its tech patents.

1. Losing Control of Simson-Maxwell: On April 1, 2025, Camber's subsidiary Viking restructured the ownership of Simson-Maxwell. T&T Power Group became the majority (51%) owner, reducing Viking's stake to 49%. Camber lost control and stopped consolidating Simson-Maxwell's financials. This is why revenue and expenses plummeted.

• Viking has a "put option" to sell its remaining 49% stake for CAD $7.75 million (~$5.7 million) after April 2028.

2. Problems with Carbon Capture Partner: The company's licensed carbon-capture technology is in jeopardy. The original licensor, ESG Clean Energy, filed for Chapter 11 bankruptcy in July 2025 and has not commercialized the technology. While Scuderi Group assumed the license obligations, the future of this key asset is highly uncertain.

3. Continued Funding from Debt: The company remains heavily reliant on expensive debt from Discover Growth Fund, with over $43 million in long-term debt outstanding. It also issued a new $1.2 million convertible note to FK Venture in April 2025.

📦 Financial Position: A Debt-Laden Structure

The balance sheet is under severe stress.

• Long-Term Debt: $43.7 million (net of current portion). A large portion is owed to Discover Growth Fund.
• Accrued Interest: A massive $8.1 million in interest has accumulated on the Discover notes, which is a current liability.
• Stockholder Deficit: The ($43.4 million) deficit means the company owes more than it owns. It is technically insolvent on a book-value basis.

👉 Why it matters: The company is keeping itself alive through debt financing, which adds more interest burden. The debt is secured by all company assets, including its shares in Viking. Default is a constant risk.

💸 Cash Flow Story: Burning Cash and Borrowing to Survive

• Operating Activities: Used $2.3 million in cash (to fund losses and operations).
• Financing Activities: Provided $2.2 million, mainly from taking on more debt and advances from related parties.
• Result: Cash increased by only $164,877 over the year, ending with just $279,525.

👉 Why it matters: The company is not generating cash from operations. It is surviving by borrowing money, which is not a sustainable long-term strategy.

🔮 What's Next: A High-Stakes Gamble on Intellectual Property

The company's entire future hinges on successfully commercializing its patented technologies, especially the medical waste and grid safety systems.

• Near-Term Goal: Obtain formal French certification for its VKIN-300 medical waste treatment unit, which it expects but cannot guarantee.
• Strategy: Seek partners, licensees, or buyers for its technologies. The Simson-Maxwell put option could provide future cash.
• Overhanging Risk: The need for additional financing is constant and could lead to further dilution for existing shareholders.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Owns a portfolio of patented technologies in potentially high-growth areas (waste treatment, grid safety, carbon capture).
• The 2025 loss was significantly smaller than in 2024 due to the deconsolidation of Simson-Maxwell.

⚠️ Major Risks (Critical to Understand):

• Going Concern: The auditors have doubts about the company's ability to continue operating.
• No Revenue: It generates zero revenue from its own operations.
• Cash Crisis: Minimal cash and a heavy reliance on debt financing.
• Technology Commercialization Risk: Its technologies are not yet generating meaningful revenue. The carbon-capture asset is in limbo due to the licensor's bankruptcy.
• Dilution & Debt Overhang: Existing shareholders face risk from potential future equity raises and overwhelming debt obligations.

🧠 The Analogy

Camber Energy is like a inventor's workshop that has run out of money to build its prototypes. It owns the blueprints for several potentially brilliant inventions (the patents), but it has no factory, no sales team, and no products on the shelf. To keep the lights on, the inventor has taken out massive, high-interest loans. The workshop's only hope is to license these blueprints to a big manufacturer before the loans come due, but there's no guarantee anyone will buy them. The "Going Concern" warning is the bank saying it's unsure the inventor can survive.

📇 Key Contacts & People

• Principal Executive Offices: 12 Greenway Plaza, Suite 1100, Houston, Texas 77046
• Telephone: (281) 404-4387
• Website: http://www.camber.energy
• CEO and Director: James A. Doris
• CFO and Director: John B. McVicar
• Corporate Secretary: Mark A. McTomany

🧩 Final Takeaway

Camber Energy is a highly speculative, financially distressed company pivoting to become a patent-holding incubator. Its survival depends entirely on its ability to quickly monetize its unproven technologies while navigating severe debt and a critical cash shortage. The "going concern" qualification means there is substantial doubt about its ability to survive the next year.