Note 13—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. The Company does 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 has the power to direct the activities of CCE that most significantly impact its economic performance and it has 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 is 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 consolidated statements of operations.

The Company had the option to purchase 100% of the issued and outstanding limited liability company interests of CCE for one dollar plus the forgiveness of $0.5 million that the Company loaned to CCE in October 2015. The option expired on October 22, 2023 without being exercised by the Company.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
	(in thousands)						(in thousands)
Net loss	$	(148	)	$	(336	)	$	(167	)	$	(700	)
Aggregate funding (provided by) paid to the Company, net	$	(12	)	$	(191	)	$	22		$	(268	)

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

	September 30, 2023			December 31, 2022
	(in thousands)
Assets
Cash, cash equivalents and restricted cash	$	261		$	295
Trade accounts receivable		226			549
Prepaid expenses and other current assets		386			363
Other assets		360			359
Total assets	$	1,233		$	1,566
Liabilities and noncontrolling interests
Current liabilities	$	598		$	700
Due to IDT Energy		5,975			5,997
Noncontrolling interests		(5,340	)		(5,131	)
Total liabilities and noncontrolling interests	$	1,233		$	1,566

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 are non-recourse to the general credit of the Company’s other consolidated entities.