Camber Energy: Non-reliance on previously published financial statements or related audit report or completed interim report (Form 8-K)


Failure to use previously published financial statements or related audit report or completed interim report.

On September 11, 2021, the Audit Committee of the Board of Directors (the “Audit Committee”) of Camber Energy, Inc. (the “Company”), after discussion with the management of the Company and its legal advisors, concluded that between August 2016 and April 2021, any sale of the Company’s Series C Convertible Preferred Shares (“Preferred Shares”) should have been classified in the Company’s financial statements outside of “”permanent equity‘. In April 2021, corrections and / or modifications to the Certificate of Designation (“COD”) of the preferred shares were executed by the Company and the holders of the preferred shares to remove the terms that supported the classification outside equity. permanent and add terms to support a classification in permanent equity. Details of these corrections and / or changes have been set out in the current report on Form 8K filed by the Company with the Securities and Exchange Commission on or about April 21, 2021.

Due to the incorrect classification of any applicable sale of preferred shares for the period between August 2016 and April 2021, the financial statements for the periods between the year ending March 31, 2017 and the quarter ending September 30 2020 (the ‘Deposits’) should no longer be invoked. Likewise, previously provided or filed reports, related earnings releases, investor presentations or similar communications from the Company describing the Company’s financial results for the Deposits concerned should no longer be relied upon.

The Company intends to file restated financial statements for the years ended March 31, 2019 and March 31, 2020 on Form 10-K / A and to file restated financial statements for the quarterly periods ended June 30, 2020 and September 30, 2020 on Form 10-Q / A, in each case to reflect the classification of preferred shares outside of permanent equity.

Management of the Company and the Audit Committee have discussed the matters disclosed in this Section 4.02 with the Company’s independent registered public accounting firm, Marcum LLP.

Disclaimer

Camber Energy Inc. published this content on September 16, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 16, 2021 12:41:02 PM UTC.


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