10-K: Camber Energy Narrows Loss, Faces Going Concern Doubt

Sentiment:

Annual Report


Camber Energy reported a significantly reduced net loss for 2025, driven by a gain on subsidiary disposal, but continues to face substantial doubt about its ability to continue as a going concern amidst operational challenges and material weaknesses in internal controls.

Delay expectedFormal attestation of conformity for the VKIN-300 medical waste unit is expected to be issued once the French decree is updated to reference French Standard NFX 30-503 and LNE's certification framework is amended accordingly.There is significant uncertainty as to whether ESG and/or Scuderi will be able to fully complete and commercialize the ESG Clean Energy System, which is necessary for the company to market the technology, due to ESG's bankruptcy filing.
Capital raiseThe company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities.Management believes the company may be able to obtain additional funds through debt and/or equity financings to facilitate its business strategy, but there is no assurance of additional funding being available.The company has outstanding indebtedness and may incur additional indebtedness in the future to make acquisitions or develop properties.Nevada law and the company's Articles of Incorporation authorize the issuance of a large number of additional shares of common and preferred stock without stockholder approval, which could be used for financing but would cause substantial dilution.
Worse than expectedThe company reported a net loss of $5.3 million for 2025, indicating continued unprofitability.A working capital deficiency of $15.8 million and a stockholders' deficit of $43.4 million as of December 31, 2025, highlight severe financial distress.The company's ability to continue as a going concern is in substantial doubt.Revenue declined significantly from $28.6 million in 2024 to $6.2 million in 2025, primarily due to the deconsolidation of a key subsidiary.Material weaknesses in disclosure controls and internal control over financial reporting were identified, indicating deficiencies in financial oversight.

Summary

  • Camber Energy reported a net loss of $5,326,618 for the year ended December 31, 2025, a substantial improvement from the $70,259,894 net loss in 2024.
  • Revenue decreased significantly to $6,229,335 in 2025 from $28,610,567 in 2024, primarily due to the deconsolidation of Simson-Maxwell Ltd. effective April 1, 2025.
  • Operating expenses also decreased to $14,176,204 in 2025 from $39,793,711 in 2024, largely due to the deconsolidation of Simson-Maxwell.
  • The company recorded a gain of $6,169,824 on the partial disposal of its interest in Simson-Maxwell in 2025.
  • An impairment charge of $3,728,011 was recognized for the ESG Clean Energy license in 2025 due to uncertainty regarding its commercialization.
  • As of December 31, 2025, the company had a stockholders' deficit of $43,368,722, long-term debt (net of current) of $43,698,407, and a working capital deficiency of $15,845,860.
  • Cash and cash equivalents stood at $279,525 at year-end 2025, up from $114,648 in 2024.
  • Net cash used in operating activities increased to $2,325,462 in 2025 from $1,468,439 in 2024.
  • The VKIN-300 medical and bio-hazardous waste pre-treatment unit passed acceptance review for French Standard NFX 30-503 certification in November 2025, with formal attestation expected.
  • Viking acquired a 51% interest in Viking Distribution Solutions, LLC on August 1, 2025, expanding its broken conductor protection technologies portfolio.
  • The company has no full-time employees and relies on outside consultants for operations, including the CEO and CFO.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing with a highly negative sentiment due to the persistent going concern doubt, significant financial deficits, substantial revenue decline, and critical internal control weaknesses, despite a reduced net loss. The bankruptcy of a key technology licensor further compounds the operational uncertainty.

Positives

  • Net loss significantly decreased to $5.3 million in 2025 from $70.3 million in 2024, primarily due to a gain on the partial disposal of Simson-Maxwell and reduced operating expenses.
  • The VKIN-300 medical and bio-hazardous waste pre-treatment unit passed acceptance review for French certification, indicating progress towards commercialization in a stringent regulatory environment.
  • The company expanded its portfolio of broken conductor protection technologies by acquiring a majority interest in Viking Distribution Solutions, LLC.
  • A merger-related class action lawsuit against the company and its CEO was dismissed with prejudice on March 31, 2025, resolving a significant legal overhang.

Negatives

  • The company continues to operate at a net loss of $5.3 million for 2025, indicating ongoing unprofitability.
  • Revenue declined substantially from $28.6 million in 2024 to $6.2 million in 2025, largely due to the deconsolidation of Simson-Maxwell, which previously contributed significant revenue.
  • A working capital deficiency of $15.8 million and a stockholders' deficit of $43.4 million as of December 31, 2025, raise substantial doubt about the company's ability to continue as a going concern.
  • The licensor for the ESG Clean Energy System, ESG Clean Energy, LLC, filed for Chapter 11 bankruptcy in July 2025, creating significant uncertainty regarding the commercialization of this technology.
  • Material weaknesses in disclosure controls and procedures and internal control over financial reporting were identified as of December 31, 2025, which could lead to material misstatements and impact financial reliability.
  • The company has no full-time employees and relies on outside consultants, which may pose risks to operational stability and control.
  • An SEC enforcement action recommendation against Viking, its CEO, and former CFO for alleged securities law violations from 2014-2016 remains a potential drain on resources and management attention.

Risks

  • The company faces unique difficulties and uncertainties inherent in technology development, with no guarantee of successful commercialization at scale or at an attractive cost.
  • Other companies may claim infringement of their intellectual property, leading to costly litigation or licensing requirements that could reduce profitability.
  • Profitability of renewable and/or clean energy investments may depend on government subsidies, tax credits, or other incentives, which are not guaranteed to be available in the future.
  • Material weaknesses in disclosure controls and procedures and internal control over financial reporting could result in material misstatements and failure to meet reporting obligations.
  • Managing growth may be difficult due to the company's small size and strain on financial, technical, operational, and management resources.
  • The company has limited funds and may require additional financing, which may not be available on acceptable terms, limiting operations.
  • There is no assurance of success or profitability, and the market price of common stock may not increase.
  • The loss of services of the Chief Executive Officer, James Doris, could disrupt operations and harm the business, as there is no long-term employment agreement.
  • Cybersecurity breaches or business system disruptions could interrupt operations, lead to unplanned expenditures, unauthorized data release, litigation, and reputational damage.
  • Increasing legal and regulatory focus on data privacy and security issues could expose the company to increased liability and operational costs.
  • The company is required to indemnify its officers and directors, which could result in substantial expenditures and discourage lawsuits against them.
  • Dependence on outside advisors, who may be affiliates, could lead to conflicts of interest or lack of continuous fiduciary obligation.
  • An SEC enforcement action against Viking, its CEO, and former CFO could divert resources, management attention, and result in penalties or fines.
  • Outstanding indebtedness and potential for additional debt could reduce financial flexibility, increase interest expense, and increase the risk of default.
  • The market for the company's common stock is highly volatile and may remain so, affected by various factors unrelated to operating performance.
  • A prolonged decline in the market price of common stock could hinder the ability to obtain additional financing.
  • Future issuances of common or preferred stock could cause substantial dilution to existing stockholders, especially given the Board's authority to issue a large number of shares without stockholder approval.
  • Short sales of common stock, including those related to outstanding warrants and convertible securities, could depress the market price.
  • Significant costs are incurred as a fully reporting publicly traded company, and management must devote substantial time to compliance initiatives.
  • Lack of securities analyst coverage or negative coverage could negatively impact the common stock's market price.

Future Outlook

The company is exploring other energy-related opportunities and/or technologies that are currently generating revenue or have a reasonable prospect of generating revenue within a reasonable period. Management believes it may be able to continue developing new opportunities and obtain additional funds through debt and/or equity financings to facilitate its business strategy, though there is no assurance of additional funding. The formal attestation of conformity for the VKIN-300 unit with French Standard NFX 30-503 is expected once the decree is updated and LNE's certification framework is amended. However, there is significant uncertainty regarding the full completion and commercialization of the ESG Clean Energy System due to the licensor's bankruptcy.

Management Comments

  • Management believes the company has adequate defenses and intends to vigorously defend any enforcement action that may be initiated by the SEC regarding alleged securities law violations by Viking, its CEO, and former CFO.
  • Management believes the company may be able to continue to develop new opportunities and may be able to obtain additional funds through debt and / or equity financings to facilitate its business strategy; however, there is no assurance of additional funding being available.

Industry Context

StockSavvy.ai notes that Camber Energy's strategy to diversify into innovative technologies like medical waste treatment and broken conductor protection, alongside its clean energy interests, aligns with broader industry trends towards sustainability and grid modernization. However, the challenges in commercializing these technologies, particularly the ESG Clean Energy System due to its licensor's bankruptcy, highlight the inherent risks in early-stage technology investments. The deconsolidation of Simson-Maxwell, a custom energy solutions provider, reflects a shift in the company's operational focus and revenue generation, moving away from direct power generation services towards a more asset-light, intellectual property-centric model. The company's reliance on external consultants for core functions is unusual for a public entity and could impact its competitive positioning against more integrated industry players.

Comparison to Industry Standards

  • The significant net loss of $5.3 million, despite being an improvement, still places Camber Energy far from profitability compared to established companies in the diversified energy or technology sectors.
  • The substantial working capital deficiency of $15.8 million and stockholders' deficit of $43.4 million are well below industry averages for healthy public companies, indicating severe financial distress.
  • The reliance on external consultants for all operational roles, including CEO and CFO, is atypical for a publicly traded company and contrasts sharply with the robust internal management structures of industry leaders like General Electric (in power generation) or Waste Management (in waste services).
  • The material weaknesses in internal controls over financial reporting are a significant governance concern, falling short of the standards expected from publicly traded entities and potentially impacting investor confidence, unlike well-governed peers such as Siemens Energy or Waste Connections.
  • The uncertainty surrounding the commercialization of the ESG Clean Energy System due to the licensor's bankruptcy contrasts with the more predictable development pipelines of larger clean energy technology firms like NextEra Energy or Bloom Energy, which often have stronger financial backing and established partnerships.
  • The market capitalization of approximately $7.9 million for non-affiliates is extremely low for a publicly traded company, suggesting a micro-cap status with limited institutional investor interest compared to larger, more liquid companies in its target industries.

Management Changes

RolePrevious PersonNew PersonEffective DateReason
Chief Financial OfficerNAJohn McVicar2023-09-01Appointment to the role.

Corporate Governance

Change TypeDescriptionEffective DateImpact Assessment
Policy AdoptionAdopted a Compensation Recovery Policy, effective December 1, 2023, to implement incentive-based compensation recovery provisions of the Dodd-Frank Act.2023-12-01Enhances accountability for executive officers by requiring recovery of incentive-based compensation in the event of an accounting restatement.
Internal Control WeaknessesIdentified material weaknesses in disclosure controls and procedures and internal control over financial reporting, including insufficient staff for segregation of duties, lack of internal resources for complex accounting issues, and inadequate review/approval of financial information by senior management.2025-12-31Raises significant concerns about the reliability of financial reporting and the company's ability to prevent or detect material misstatements, potentially impacting investor confidence and regulatory compliance.
Board IndependenceThe Board determined that 75% of its members (Mr. Zeidman, Mr. Green, Mr. Herskovits) are independent based on applicable SEC independence standards.2025-12-31Indicates a majority independent board, which generally supports stronger oversight and shareholder protection, although the overall effectiveness is challenged by internal control weaknesses.

Legal Proceedings

  • A putative Class Action Complaint filed on February 9, 2024, against the company and its CEO alleging breaches of fiduciary duty in connection with the merger between Viking and the company, was dismissed with prejudice on March 31, 2025. The appeal deadline expired on April 30, 2025.
  • The Maranatha Oil Matter, a lawsuit filed in November 2015, remains ongoing, with the plaintiff seeking approximately $100,000 plus interest for alleged breach of contract, failure to pay royalties, non-payment of working interest, fraud, and other claims related to oil and gas leases.

Related Party Transactions

  • James A. Doris, CEO and Director, receives $600,000 annually in professional services fees through his affiliate, AGD Advisory Group, Inc. As of December 31, 2025, $1,545,000 was due to AGD Advisory Group, Inc.
  • James A. Doris also provided advances to the company totaling $1,338,330 as of December 31, 2025, which are non-interest bearing with no fixed repayment terms.
  • John McVicar, CFO, receives $360,000 annually in professional services fees through his affiliate, 1508586 Alberta Ltd. As of December 31, 2025, $105,000 was due to 1508586 Alberta Ltd.
  • Directors received $160,000 in Directors Fees for the year ended December 31, 2025, with $160,000 due as of that date.
  • A note receivable from Simson-Maxwell Ltd. (a related party after deconsolidation) had an outstanding balance of CAD $469,701 ($342,974) as of December 31, 2025, which was paid in full on February 27, 2026.

Stakeholder Impact

  • Shareholders face significant dilution risk from potential future equity raises and the conversion of outstanding preferred stock and warrants, as well as the ongoing volatility of the common stock price.
  • Creditors, particularly holders of the $48.2 million in long-term debt, face elevated risk due to the company's substantial working capital deficiency, stockholders' deficit, and going concern doubt.
  • Employees (consultants) may experience uncertainty given the company's financial condition and reliance on external advisors, with no full-time employees.
  • Customers of Viking Ozone and broken conductor protection technologies may benefit from the continued development and certification of these innovative systems, but commercialization delays could impact availability.
  • Customers of Simson-Maxwell are now primarily served by T&T Power Group Inc., with Camber retaining a minority, non-controlling interest, potentially altering service dynamics.

Next Steps

  • Obtain formal attestation of conformity for the VKIN-300 medical waste unit from LNE in France once regulatory updates are complete.
  • Address and remediate identified material weaknesses in disclosure controls and procedures and internal control over financial reporting.
  • Continue efforts to develop new opportunities and secure additional financing to address going concern issues and meet obligations.
  • Monitor the bankruptcy proceedings of ESG Clean Energy, LLC and assess its impact on the commercialization of the ESG Clean Energy System.
  • Vigorously defend against any SEC enforcement action that may be initiated against Viking, its CEO, and former CFO.

Key Dates

DateDescription
2010-04Maranatha Oil Co. alleged assignment of oil and gas leases to the company.
2010-03-11Certificate of Amendment to Articles of Incorporation filed (Exhibit 3.4).
2011-01-11Certificate of Amendment to Articles of Incorporation filed (Exhibit 3.5).
2012Lucas Energy, Inc. 2012 Stock Incentive Plan expired.
2013-04Company sold certain oil and gas properties to Nordic Oil USA, related to Maranatha Oil Matter.
2014James A. Doris became an officer and director of Viking Energy Group, Inc.
2014Period from early 2014 through late 2016 for alleged violations of securities laws by Viking, its CEO, and former CFO.
2014Camber Energy, Inc. Amended and Restated 2014 Stock Incentive Plan expired.
2014-12Fred Zeidman appointed Chairman of Gordian Group LLC.
2015-07-02Certificate of Amendment to Articles of Incorporation filed (1-for-25 Reverse Stock Split) (Exhibit 3.6).
2015-11Randy L. Robinson, d/b/a Maranatha Oil Co. sued the company in Gonzales County, Texas.
2016-03-29Amended and Restated Bylaws became effective (Exhibit 3.26).
2016-11-29Board of Directors approved and adopted an amended and restated Code of Business and Ethical Conduct.
2017-01-03Certificate of Amendment to the Articles of Incorporation, amending the company's name to Camber Energy, Inc., filed.
2017-09-30Approximate date since which disclosure controls and procedures have not been deemed effective.
2018-01-10Certificate of Amendment to Articles of Incorporation to increase authorized common stock to 500,000,000 shares filed.
2018-01-11Fred Zeidman first elected/appointed as Director.
2018-03-01Certificate of Amendment to Articles of Incorporation filed (1-for-25 Reverse Stock Split), effective March 5, 2018.
2018-10-24File date for U.S. Patent No.: 10,774,733, Titled: 'Bottoming Cycle Power System.'
2018-12-20Certificate of Change Pursuant to Nevada Revised Statutes Section 78.209 filed, effective October 29, 2019.
2019-04SEC's Division of Enforcement staff notified Viking of preliminary determination to recommend enforcement action.
2019-04-10Certificate of Amendment to Articles of Incorporation to increase authorized common stock to 250,000,000 shares filed.
2019-07-03Certificate of Amendment to Articles of Incorporation filed (1-for-25 Reverse Stock Split), effective July 8, 2019.
2019-07-08Agreement and Plan of Merger by and between Camber Energy, Inc., Camber Energy Merger Sub 2, Inc., Lineal Star Holdings, LLC, and the Members party thereto dated.
2019-07-08Camber Energy, Inc. Amended and Restated Certificate of Designations of Preferences, Powers, Rights and Limitations of Series C Redeemable Convertible Preferred Stock filed.
2019-07-09State of Delaware Certificate of Merger of Domestic Corporation Into Domestic Limited Liability Company filed, effective July 9, 2019.
2019-04BSEE issued a decommissioning order to Petrodome.
2019Petrodome filed an appeal with the IBLA.
2020-04-16Certificate of Amendment to Articles of Incorporation (Increase in Authorized Common Stock to 25 Million Shares) filed, effective April 16, 2020.
2020-05-15Certificates of Withdrawal of Certificate of Designation for Series A, B, D, E, and F Convertible Preferred Stock filed.
2020-09-15Issue date for U.S. Patent No.: 10,774,733, Titled: 'Bottoming Cycle Power System.'
2020-12-11Promissory Note in the original amount of $6,000,000 executed and delivered to Discover Growth Fund, LLC.
2020-12-22Promissory Note in the original amount of $12,000,000 executed and delivered to Discover Growth Fund, LLC.
2020-12-23James A. Doris and Robert Green first elected/appointed as Officer or Director.
2020-12-24Amendments signed for Outstanding Notes, adjusting interest rate to 3.25%.
2021-04-23Promissory Note in the original amount of $2,500,000 executed and delivered to Discover Growth Fund, LLC.
2021-08Viking entered into an Exclusive Intellectual Property License Agreement (IPLA) with ESG Clean Energy, LLC.
2021-08-06Viking acquired approximately 60.5% of Simson-Maxwell Ltd. for $7,958,159 in cash.
2021-11-08Camber filed the Fifth Amended and Restated Certificate of Designations of Preferences, Powers, Rights and Limitations of Series C Redeemable Convertible Preferred Stock.
2021-12-09Promissory Note in the original amount of $1,000,000 executed and delivered to Discover Growth Fund, LLC.
2021-12-24Promissory Note with a face value of $26,315,789 executed and delivered to Discover Growth Fund, LLC.
2021-12-30Camber filed a Certificate of Designations of Preferences, Powers, Rights and Limitations of Series G Redeemable Convertible Preferred Stock.
2022-01-03$25,000,000 funded for the December 24, 2021 Investor Note.
2022-01-04December 9, 2021 Investor Note paid in full.
2022-01Viking acquired a 51% interest in Viking Ozone Technology, LLC.
2022-01-18Viking purchased 51 units of Viking Ozone from Choppy Group LLC.
2022-01-31Viking Sentinel and Viking Protection were formed.
2022-02Viking acquired a 51% interest in Viking Sentinel and Viking Protection.
2022-02-09Viking purchased 51 units of Viking Sentinel from Virga Systems LLC.
2022-02-09Viking purchased 51 units of Viking Protection from Jedda Holdings LLC.
2022-03-29Issue Date for U.S. Patent No.: 11286832, Titled: 'Bottoming Cycle Power System.'
2022-08-16Issue Date for U.S. Patent No.: 11415052, Titled: 'Systems and Methods Associated With Bottoming Cycle Power Systems for Generating Power and Capturing Carbon Dioxide.'
2022-10-28Amendment to the Series C COD (Series C Amendment) dated.
2022-10-31Camber filed the Series C Amendment with the Secretary of State of Nevada.
2022-12-21Reverse stock split occurred, affecting Series C Preferred Stock conversion price.
2022-12-30Measuring Metric for Series C Preferred Stock conversion rate changed to volume weighted average trading price.
2023-04-11Issue Date for U.S. Patent No.: 11624307, Titled: 'Systems and Methods Associated With Bottoming Cycle Power Systems for Generating Power and Capturing Carbon Dioxide.'
2023-04-12Issue Date for European Patent No.: EP3728891, Titled: 'Bottoming Cycle Power System.'
2023-05-02Issue Date for U.S. Patent No.: 11639677, Titled: 'System And Method For Capturing Carbon Dioxide From A Flow Of Exhaust Gas From A Combustion Process.'
2023-08-01Camber filed Certificate of Designations of Preferences, Powers, Rights and Limitations of Series A Convertible Preferred Stock.
2023-08-01Camber filed Certificate of Designations of Preferences, Powers, Rights and Limitations of Series H Convertible Preferred Stock.
2023-08-09200 shares of Series H Preferred Stock converted into 3,333,333 shares of common stock.
2023-09-01John McVicar named CFO of Camber.
2023-12-01Company adopted a Compensation Recovery Policy.
2023-12-07David Herskovits first elected/appointed as Director.
2024-02-09Plaintiff Lawrence Rowe filed a putative Class Action Complaint against the company and its CEO.
2024-02-15Agreement between Camber and Antilles signed, leading to a second amendment to the Series C COD.
2024-02-21Camber filed a second amendment to the Series C COD with the Secretary of State of Nevada.
2024-04-26Defendants filed a motion to dismiss (MTD) the class action lawsuit.
2024-08-30MTD hearing held for the class action lawsuit.
2024Company disposed of its remaining oil and gas assets.
2025-01-01Company adopted ASU 2023-09 for the fiscal year beginning January 1, 2025.
2025-01-01Amendments in ASU 2023-05 are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.
2025-03-31U.S. District Court for the Southern District of Texas, Houston Division, granted motion to dismiss class action complaint with prejudice.
2025-04-01Viking entered into a Share Subscription Agreement (SSA) with T&T Power Group Inc., Remora EQ LP, Simmax Corp., and Simson-Maxwell, resulting in deconsolidation of Simson-Maxwell.
2025-04-01Viking entered into a Unanimous Shareholders Agreement (USA) with T&T and Simson-Maxwell.
2025-04-07Company issued a convertible promissory note to FK Venture, LLC in the amount of $1,200,000.
2025-04-30Deadline for Plaintiff to appeal the Court's decision on the class action lawsuit expired.
2025-07ESG Clean Energy, LLC filed a voluntary bankruptcy petition under Chapter 11.
2025-08-01Viking acquired a 51% interest in Viking Distribution Solutions, LLC.
2025-08-13Viking, ESG, and Scuderi Group, Inc. signed an Amendment to the IPLA, adding Scuderi as an additional licensor.
2025-11Viking Ozone was advised that its flagship VKIN-300 medical and bio-hazardous waste pre-treatment unit passed acceptance review by LNE in France.
2025-11-07LNE confirmed Viking Ozone's application for a certificate of conformity for the VKIN 300 pretreatment unit is complete, satisfactory, and compliant.
2025-12-01First promissory note from Simson-Maxwell to Viking paid at maturity.
2025-12-31Fiscal year ended.
2026-02-27Remaining promissory note from Simson-Maxwell to Viking paid in full.
2026-03-30Date of filing of this Annual Report on Form 10-K.
2026-09-30Maturity date for convertible promissory note to FK Venture, LLC.
2026-12-15Effective date for ASU 2024-03 for annual reporting periods.
2027-01-01Maturity date for several outstanding promissory notes to Discover Growth Fund, LLC.
2027-12-15Effective date for ASU 2024-03 for interim reporting periods.
2050-07-28Maturity date for loan from U.S. Small Business Administration.

Recommendation

strong sell

The company faces severe financial distress, evidenced by a substantial working capital deficiency, a significant stockholders' deficit, and explicit 'going concern' doubt from its auditors. While the net loss improved, it remains unprofitable, and revenue declined sharply due to deconsolidation of a key asset. Material weaknesses in internal controls indicate fundamental governance issues. The commercialization of its core technologies is uncertain, with a key licensor in bankruptcy. The stock is highly speculative, carries substantial dilution risk, and has an ongoing SEC enforcement recommendation against its subsidiary and CEO. These factors collectively present an extremely high-risk profile with limited clear upside, making it an unsuitable investment for seasoned investors or institutions.

Keywords

Camber Energy, SEC Filing, 10-K, Financial Results, Net Loss, Revenue, Working Capital, Going Concern, Preferred Stock, Common Stock, Warrants, Medical Waste Treatment, Ozone Technology, Broken Conductor Protection, Electric Transmission, Clean Energy, Carbon Capture, ESG Clean Energy, Simson-Maxwell, Corporate Governance, Risk Factors, Internal Controls, Dilution, SEC Enforcement, Intellectual Property, Energy Solutions

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