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Retail Supplier Reports, "Material Weaknesses In The Company’s Internal Control Over Financial Reporting"; Prior Errors Led To Understatements Of Income
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Genie Energy Ltd. in an 8-K reported that certain prior financial statements included, "errors related to its accounting for the liability associated with its captive insurance subsidiary," which resulted in understatements of Income from Operations and Net Income for the relevant periods
See background on the captive insurance subsidiary here
Specifically, Genie Energy Ltd. reported in the 8-K:
"On March 9, 2026, the Audit Committee of the Board of Directors of Genie Energy Ltd. (the 'Company') in consultation with the Company’s management concluded that the Company’s previously issued financial statements for the years ended December 31, 2024 and December 31, 2023 contained in the Company’s Annual Report on Form 10-K, and in the Company’s previously issued unaudited condensed consolidated financial statements for each of the quarterly and year-to-date periods in 2024 and 2025 that were included in Forms 10-Q that were filed for the periods ended March 31, 2025, June 30, 2025 and September 30, 2025 (collectively, the 'Prior Periods'), should not be relied upon and require restatement ('Restatement') because of errors related to its accounting for the liability associated with its captive insurance subsidiary recorded in the Prior Periods that resulted in material misstatements of cash and cash equivalents, restricted cash—short-term and long-term, deferred income tax assets, net, income taxes payable and current and noncurrent captive insurance liabilities on the balance sheets, and provision for captive insurance liability and provision for income taxes on the statements of operations (resulting in understatements of Income from Operations and Net Income), included in the financial statements for the Prior Periods. Additionally, the Company’s earnings and press releases and similar communications should no longer be relied upon to the extent that they relate to its financial statements for the Prior Periods and the Report of our prior Independent Registered Public Accounting Firm on the financial statements and internal control over financial reporting for 2023 and 2024 should not be relied upon.
"The need for the Restatement was discovered during the course of the audits of the Company’s consolidated financial statements for the years ended December 31, 2023, 2024 and 2025. The Company was required to undertake a re-audit of its financial statements for 2023 and 2024 because the registration of its prior independent registered public accounting firm, Zwick CPA, PLLC, who had conducted the audits of those periods and issued reports thereon, was revoked by the Public Company Accounting Oversight Board (the 'PCAOB').
"The Company intends to restate the audited financial statements for the years ended December 31, 2024 and 2023 that will be included in its upcoming Annual Report on Form 10-K for the fiscal year ended December 31 2025 (the 'Comprehensive 10-K'). The Comprehensive 10-K will also include restated unaudited financial information for the affected quarterly and year to date periods. Accordingly, the Company does not intend to file separate amended annual or quarterly reports for these periods.
"Based on management’s preliminary analysis, the Company currently estimates that the restated financial statements will: (i) increase 2023 Income from Operations, Provision for Income Taxes and Net Income by approximately $45.1 million, $12.4 million and $32.7 million from the as reported figures, respectively; and (ii) increase 2024 Income from Operations, Provision for Income Taxes and Net Income by approximately $33.6 million, $10.7 million and $22.9 million respectively. The Company’s review is ongoing and their preliminary estimates are subject to change.
"In connection with the Restatement, management has identified material weaknesses in the Company’s internal control over financial reporting resulting in the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 31, 2025. Management has taken and is taking additional steps to remediate the material weaknesses in our internal control over financial reporting. Additional details regarding the material weaknesses will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
"The Company expects to file a Form 12b-25 with the SEC no later than March 16, 2026 to extend by fifteen calendar days the time period in which it has to timely file the Comprehensive 10-K. The Company’s review of the financial statements and evaluation of its internal controls over financial reporting is ongoing and the Company may identify additional errors, which may lead to further delays."
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March 13, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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