Note 14 - Variable Interest Entity

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Variable Interest Entity Disclosure [Text Block]

Note 14—Variable Interest Entity

Citizens Choice Energy, LLC (“CCE”) is a REP that resells electricity and natural gas to residential and small business customers in the State of New York. From 2011 to April 2025, the Company did not own any interest in CCE. Since 2011, the Company has provided CCE with substantially all of the cash required to fund its operations. The Company determined that it had the power to direct the activities of CCE that most significantly impact its economic performance and it had the obligation to absorb losses of CCE that could potentially be significant to CCE on a stand-alone basis. The Company therefore determined that it was the primary beneficiary of CCE, and as a result, the Company consolidates CCE within its GRE segment. The net income or loss incurred by CCE was attributed to noncontrolling interests in the accompanying condensed consolidated statements of operations.

In April 2025, the Company signed an Equity Purchase Agreement with Tari Corporation to acquire 100% interest in CCE for $1.0 and the forgiveness of all intercompany balances of CCE with the Company, subject to approval from the Federal Energy Regulatory Commission, which is pending as of June 30, 2025.

Net loss related to CCE and aggregate net funding provided by the Company were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024			2025		2024
	(in thousands)					(in thousands)
Net income (loss)	$	230	$	(132	)	$	8	$	(158	)
Aggregate (funding provided by) distributions paid to the Company, net	$	373	$	(21	)	$	133	$	71

Summarized combined balance sheet amounts related to CCE were as follows:

	June 30,			December 31,
	2025			2024
	(in thousands)
Assets
Cash, cash equivalents and restricted cash	$	395		$	313
Trade accounts receivable		190			250
Prepaid expenses and other current assets		4			318
Other assets		364			363
Total assets	$	953		$	1,244
Liabilities and noncontrolling interests
Current liabilities	$	479		$	645
Due to IDT Energy		4,489			4,622
Noncontrolling interests		(4,015	)		(4,023	)
Total liabilities and noncontrolling interests	$	953		$	1,244

The assets of CCE may only be used to settle obligations of CCE, and may not be used for other consolidated entities. The liabilities of CCE were non-recourse to the general credit of the Company’s other consolidated entities.