GENIE ENERGY LTD. The following information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, and the audited consolidated financial statements and the notes thereto and our Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year endedDecember 31, 2022 , as filed with theU.S. Securities and Exchange Commission (orSEC ).
As used below, unless the context otherwise requires, the terms "the Company,"
"Genie," "we," "us," and "our" refer to
Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words "believes," "anticipates," "expects," "plans," "intends," and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those discussed below under Part II, Item IA and under Item 1A to Part I "Risk Factors" in our Annual Report on Form 10-K for the year endedDecember 31, 2022 . The forward-looking statements are made as of the date of this report and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with theSEC pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our Annual Report on Form 10-K for the year endedDecember 31, 2022 . Overview We are comprised ofGenie Retail Energy ("GRE") and Genie Renewables. In the third quarter of 2022, we discontinued the operations of Lumo Finland andSweden as discussed below. Following this discontinuance of operations,Genie Retail Energy International ("GRE International ") ceased to be a segment and the remaining assets and liabilities and results of any continuing operations ofGRE International were combined with corporate. GRE owns and operates retail energy providers ("REPs"), includingIDT Energy , Residents Energy, Town Square Energy ("TSE"),Southern Federal and Mirabito Natural Gas . GRE's REPs' businesses resell electricity and natural gas primarily to residential and small business customers, with the majority of the customers in the Eastern and Midwestern United States andTexas . Genie Renewables holds a 95.5% interest inGenie Solar , a solar energy company, a 92.8% interest in CityCom Solar, a marketer of community solar energy solutions, a 96.0% interest in Diversegy, a broker for commercial customers, and a 60.0% interest in Prism Solar Solar Technology ("Prism"), a solar solutions company that is engaged in manufacturing of solar panels, solar installation design and solar energy project management. As part of our ongoing business development efforts, we seek out new opportunities, which may include complementary operations or businesses that reflect horizontal or vertical expansion from our current operations. Some of these potential opportunities are considered briefly and others are examined in further depth. In particular, we seek out acquisitions to expand the geographic scope and size of our REP businesses.
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Discontinued Operations in
As a result of continued volatility in the energy market inEurope , in the third quarter of 2022, we decided to discontinue the operations of Lumo Energia Oyj ("Lumo Finland") andLumo Energi AB ("Lumo Sweden"). FromJuly 13, 2022 toJuly 19, 2022 , the Company entered into a series of transactions to sell most of the electricity swap instruments held by Lumo Sweden for a gross aggregate amount of €41.1 million (equivalent to approximately$41.4 million at the dates of the transactions) before fees and other costs. The sale price is to be settled monthly based on the monthly commodity volume specified in the instruments fromSeptember 2022 toMarch 2025 . The net book value of the instruments sold was €34.2 million (equivalent to$35.8 million ). InJuly 2022 , Lumo Sweden entered into a transaction to transfer, effectiveAugust 5, 2022 , its customers to a third party for nominal consideration. InAugust 2022 Lumo Finland entered in a transaction to transfer its variable rate customers to a third party for €$1.9 million (equivalent to$2.0 million ), and transferred the fixed rate customers to other utilities with no considerations. We determined that exitingFinland andSweden markets represented a strategic shift that would have a major effect on our operations and accordingly, presented the results of operations and related cash flows as discontinued operations for all periods presented. The assets and liabilities of the discontinued operations have been presented separately, and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as ofMarch 31, 2023 andDecember 31, 2022 . Lumo Finland and Lumo Sweden will continue to liquidate their remaining receivables and settle any remaining liabilities. InNovember 2022 , Lumo Finland declared bankruptcy and the administration of Lumo Finland was transferred to an administrator (the "Lumo Administrator"). All assets and liabilities of Lumo Finland remain with Lumo Finland, in which Genie retains its interest, however, the management and control of Lumo Finland were transferred to the Lumo Administrator. Since the Company lost control of the management of Lumo Finland in favor of the Lumo Administrator, the accounts of Lumo Finland were deconsolidated effectiveNovember 9, 2022 . OnNovember 3, 2022 , we acquired additional minority interests in Lumo Finland and Lumo Sweden from an employee for 132,302 of our restricted Class B common stock, which will vest ratably fromNovember 2022 toMay 2025 . We increased our interest in Lumo Finland from 91.6% to 96.6% and increased from 97.1% to 100% in Lumo Sweden. Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was$0.2 million and$1.9 million for the three months endedMarch 31, 2023 and 2022, respectively. Following the discontinuance of operations of Lumo Finland and Lumo Sweden,GRE International ceased to be a segment and the remaining assets and liabilities and results of continuing operations ofGRE International were combined with corporate.
Discontinued Operations in
In 2021, the natural gas and energy market in theUnited Kingdom deteriorated which prompted us to suspend the then contemplated spin-off of our international operations and start the process of orderly withdrawal from theU.K. market. InOctober 2021 , as part of the orderly exit process from theU.K. market,Orbit Energy Limited ("Orbit"), a REP that used to operate in theU.K. , andShell U.K. Limited ("Shell") agreed to terminate the exclusive supply contract between them. As part of the termination agreement, Orbit was required to unwind all physical forward hedges with Shell which resulted in net cash proceeds after settlement of all related liabilities with Shell. A portion of the net cash proceeds was transferred to us (see Note 5, Discontinued Operations and Divestiture, to our financial statements included elsewhere in this Quarterly Report on Form 10-Q). Following the termination of the contract between Orbit and Shell, we filed a petition with theHigh Court of Justice Business and Property of England andWales (the "Court") to declare Orbit insolvent based on the Insolvency Act of 1986. OnNovember 29, 2021 , the Court declared Orbit insolvent based on the Insolvency Act of 1986, revoked Orbit's license to supply electricity and natural gas in theUnited Kingdom , ordered that Orbit's current customers be transferred to a "supplier of last resort" and transferred the administration of Orbit to Administrators effectiveDecember 1, 2021 . All of the customers of Orbit were transferred to a third-party supplier effectiveDecember 1, 2021 as ordered by the Court. All assets and liabilities of Orbit, including cash and receivables remain with Orbit, the management and control of which was transferred to Administrators. We determined that exiting theUnited Kingdom represented a strategic shift that would have a major effect on our operations and accordingly, presented the results of operations and related cash flows as discontinued operations for all periods presented. The assets and liabilities of the discontinued operations have been presented separately, and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as ofMarch 31, 2023 andDecember 31, 2022 .
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Coronavirus Disease (COVID-19)
Starting in the first quarter 2020, the world and
The COVID-19 pandemic has impacted our business, however, as we progressed through 2022 and have entered 2023, our service territories have reopened, and we expect the impacts of the pandemic will be less severe than in prior years. This was the case in the three months period endedMarch 31, 2023 . COVID-19 pandemic has affected and may continue to affect our results of operations, financial conditions and cash flows in the future. There are many uncertainties regarding the impact of the COVID-19 pandemic, and we are closely monitoring those impacts on all aspects of our business, including how it will impact our customers, employees, suppliers, vendors and business partners.Genie Retail Energy GRE operates REPs that resell electricity and/or natural gas to residential and small business customers inConnecticut ,Delaware ,Florida ,Georgia ,Illinois ,Indiana ,Maine ,Maryland ,Massachusetts ,Michigan ,New Hampshire ,New Jersey , NewYork, Ohio ,Pennsylvania ,Texas ,Rhode Island , andWashington, D.C. GRE's revenues represented approximately 96.3% and 97.6% of our consolidated revenues in the three months endedMarch 31, 2023 and 2022, respectively. .
Seasonality and Weather; Climate Change and Volatility in Pricing
The weather and the seasons, among other things, affect GRE's REPs' revenues. Weather conditions have a significant impact on the demand for natural gas used for heating and electricity used for heating and cooling. Typically, colder winters increase demand for natural gas and electricity, and hotter summers increase demand for electricity. Milder winters and/or summers have the opposite effects. Unseasonable temperatures in other periods may also impact demand levels. Potential changes in global climate may produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in unusual weather conditions, more intense, frequent and extreme weather events and other natural disasters. Some climatologists believe that these extreme weather events will become more common and more extreme, which will have a greater impact on our operations. Natural gas revenues typically increase in the first quarter due to increased heating demands and electricity revenues typically increase in the third quarter due to increased air conditioning use. Approximately 39.7% and 44.5% of GRE's natural gas revenues for the relevant years were generated in the first quarter of 2022 and 2021 respectively, when demand for heating was highest. Although the demand for electricity is not as seasonal as natural gas (due, in part, to usage of electricity for both heating and cooling), approximately 30.5% and 30.3% of GRE's electricity revenues for 2022 and 2021 respectively, were generated in the third quarters of those years. GRE's REP's revenues and operating income are subject to material seasonal variations, and the interim financial results are not necessarily indicative of the estimated financial results for the full year. In addition to the direct physical impact that climate change may have on our business, financial condition and results of operations because of the effect on pricing, demand for our offerings and/or the energy supply markets, we may also be adversely impacted by other environmental factors, including: (i) technological advances designed to promote energy efficiency and limit environmental impact; (ii) increased competition from alternative energy sources; (iii) regulatory responses aimed at decreasing greenhouse gas emissions; and (iv) litigation or regulatory actions that address the environmental impact of our energy products and services.
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Purchase of Receivables and Concentration of Credit Risk
Utility companies offer purchase of receivable, or POR, programs in most of the service territories in which GRE operates. GRE's REPs reduce their customer credit risk by participating in POR programs for a majority of their receivables. In addition to providing billing and collection services, utility companies purchase those REPs' receivables and assume all credit risk without recourse to those REPs. GRE's REPs' primary credit risk is therefore nonpayment by the utility companies. In the three months endedMarch 31, 2023 the associated cost was approximately 0.9% of GRE revenue. AtMarch 31, 2023 , 83.8% of GRE's net accounts receivable were under a POR program. Certain of the utility companies represent significant portions of our consolidated revenues and consolidated gross trade accounts receivable balance during certain periods, and such concentrations increase our risk associated with nonpayment by those utility companies. The following table summarizes the percentage of consolidated trade receivable by customers that equal or exceed 10.0% of consolidated net trade receivables atMarch 31, 2023 andDecember 31, 2022 (no other single customer accounted for 10.0% or greater of our consolidated net trade receivable as ofMarch 31, 2023 orDecember 31, 2022 ). March 31, 2023 December 31, 2022 Customer A 10.9 % 10.2 % Customer B 11.0 na
na-less than 10.0% of consolidated net trade receivables
The following table summarizes the percentage of revenues by customers that
equal or exceed 10.0% of consolidated revenues for the
Three Months Ended September 30
2023 2022
Customer A na % 10.4 %
na-less than 10.0% of consolidated revenue in the period
Legal Proceedings
Although GRE endeavors to maintain best sales and marketing practices, such practices have been the subject of class action lawsuits in the past.
See Note 18, Commitments and Contingencies, in this Quarterly Report on Form 10-Q, which is incorporated by reference.
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Agency and Regulatory Proceedings
From time to time, the Company responds to inquiries or requests for information or materials from public utility commissions or other governmental regulatory or law enforcement agencies related to investigations under statutory or regulatory schemes. The Company cannot predict whether any of those matters will lead to claims or enforcement actions or whether the Company and the regulatory parties will enter into settlements before a formal claim is made. See Notes 18, Commitments and Contingencies, in this Quarterly Report on Form 10-Q, which is incorporated by reference, for further detail on agency and regulatory proceedings.
Residents Energy
In August of 2020, Residents Energy began marketing retail energy services inConnecticut . For the year endedDecember 31, 2021 Residents Energy's gross revenues from sales inConnecticut was$0.2 million . During the fourth quarter of 2020, the enforcement division of theState of Connecticut Public Utilities Regulatory Authority ("PURA") contacted Residents Energy concerning customer complaints received in connection with alleged door-to-door marketing activities in violation of various rules and regulations. OnMarch 12, 2021 , the enforcement division filed a motion against Resident Energy with the adjudicating body of PURA, seeking the assessment of$1.5 million in penalties, along with a suspension of license for eighteen months, auditing of marketing practices upon reinstatement and an invitation for settlement discussions. InMay 2021 , the parties reached a settlement, pursuant to which Residents will pay$0.3 million . Residents Energy has also volunteered to withdraw from the market inConnecticut for a period of 36 months. Critical Accounting Policies Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted inthe United States of America , orU.S. GAAP. Our significant accounting policies are described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year endedDecember 31, 2022 . The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting policies are those that require the application of management's most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. Our critical accounting policies include those related to revenue recognition, allowance for doubtful accounts, acquisitions, goodwill, and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. For additional discussion of our critical accounting policies, see our Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year endedDecember 31, 2022 .
Recently Issued Accounting Standards
Information regarding new accounting pronouncements is included in Note 20-Recently Issued Accounting Standards, to the current period's consolidated financial statements.
Results of Operations We evaluate the performance of our operating business segments based primarily on income (loss) from operations. Accordingly, the income and expense line items below income (loss) from operations are only included in our discussion of the consolidated results of operations. 35
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Three Months EndedMarch 31, 2023 Compared to Three Months EndedMarch 31, 2022 Genie Retail Energy Segment Three months ended March 31, Change (amounts in thousands) 2023 2022 $ % Revenues: Electricity$ 74,487 $ 59,380 $ 15,107 25.4 % Natural gas 26,925 24,504 2,421 9.9 Total revenues 101,412 83,884 17,528 20.9 Cost of revenues 68,874 37,301 31,573 84.6 Gross profit 32,538 46,583 (14,045 ) (30.2 ) Selling, general and administrative expenses 16,093 16,407
(314 ) (1.9 )
Income from operations $ 16,445 $ 30,176 $(13,731 ) (45.5 )% Revenues. Electricity revenues increased by 25.4% in the three months endedMarch 31, 2023 compared to the same period in 2022. The increase was due to increases in electricity consumption and the average price per kilowatt hour charged to customers in the three months endedMarch 31, 2023 compared to the same period in 2022. Electricity consumption by GRE's REPs' customers increased by 4.5% in the three months endedMarch 31, 2023 , compared to the same period in 2022, reflecting a 16.2% increase in the average number of meters served partially offset by a 10.1% decrease in average consumption per meter. Electricity consumption per meter decreased in the three months endedMarch 31, 2023 due to milder weather conditions in our service areas compared to the same period in 2022. The increase in meters served was driven by a restart of customer acquisition efforts. The average rate per kilowatt hour sold increased 20.1% in the three months endedMarch 31, 2023 compared to the same period in 2022 due to increases in the average wholesale price of electricity. GRE's natural gas revenues increased by 9.9% in the three months endedMarch 31, 2023 compared to the same period in 2022. The increase in natural gas revenues in the three months endedMarch 31, 2023 compared to the same period in 2022 was a result of an increase in average revenue per therm sold partially offset by a slight decrease in natural gas consumption. The average revenue per therm sold increased by 10.8% in the three months endedMarch 31, 2023 , compared to the same period in 2022. Natural gas consumption by GRE's REPs' customers decreased by 0.8% in the three months endedMarch 31, 2023 compared to the same period in 2022, reflecting an 8.1% decrease in average consumption per meter partially offset by 7.9% increase in average meters served in the three months endedMarch 31, 2023 compared to the same period in 2022.
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The customer base for GRE's REPs as measured by meters served consisted of the
following:
March December 31, September 30,
(in thousands) 31, 2023 2022 2022 June 30, 2022 March 31, 2022
Meters at end of quarter:
Electricity customers 271 196 193 203 209
Natural gas customers 78 79 77 77 77
Total meters 349 275 270 280 286
Gross meter acquisitions in the three months ended March 31, 2023 , were
129,000 compared to 44,000 for the same period in 2022. The increase in the
gross meter acquisitions for the three months ended March 31, 2023 compared to
the same period in 2022 was due to a "strategic pause" on certain customer
acquisition channels that started in the fourth quarter 2021. In the first
quarter of 2023, we resumed customer acquisition activities using a variety of
new channels.
Meters served increased by 74,000 meters or 26.9% from December 31, 2022 to
March 31, 2023 . Meters served increased by 63,000 meters or 22.0% from March 31,
2022 to March 31, 2023 . The increases in the number of meters served at March
31, 2023 compared to December 31, 2022 and March 31, 2022 was due to the
resumption of customer acquisition activities as discussed above. In the three
months ended March 31, 2023 , average monthly churn increased to 4.4% compared to
4.5% for same period in 2022.
The average rates of annualized energy consumption, as measured by RCEs, are presented in the chart below. An RCE represents a natural gas customer with annual consumption of 100 mmbtu or an electricity customer with annual consumption of 10 MWh. Because different customers have different rates of energy consumption, RCEs are an industry standard metric for evaluating the consumption profile of a given retail customer base.
March December 31, September 30, June 30, March 31,
(in thousands) 31, 2023 2022 2022 2022 2022RCEs at end of quarter: Electricity customers 276 181 174 185 182 Natural gas customers 77 81 77 77 78 Total RCEs 353 262 251 262 260 37
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RCEs increased 35.8% at
Cost of Revenues and Gross Margin Percentage. GRE's cost of revenues and gross margin percentage were as follows:
Three Months Ended March 31, Change
(amounts in thousands) 2023 2022 $ %
Cost of revenues:
Electricity $ 45,766 $ 25,197 $ 20,569 81.6 %
Natural gas 23,108 12,104 11,004 90.9
Total cost of revenues $ 68,874 $ 37,301 $ 31,573 84.6 %
Three months ended March 31,
(amounts in thousands) 2023 2022 Change
Gross margin percentage:
Electricity 38.6 % 57.6 % (19.0 )%
Natural gas 14.2 50.6 (36.4 )
Total gross margin percentage 32.1 % 55.5 % (23.4 )%
Cost of revenues for electricity increased in the three months ended March 31,
2023 compared to the same period in 2022 primarily because of increases in
electricity consumption by GRE's REPs' customers and the average unit cost of
electricity. The average unit cost of electricity increased 73.9% in the three
months ended March 31, 2023 compared to the same period in 2022. The significant
increase is due to a rise in the wholesale price of electricity during the three
months ended March 31, 2023 compared to the same period in 2022. The
gross margin on electricity sales decreased in the three months ended March 31,
2023 compared to the same period in 2022 because the average rate charged to
customers increased less than the increase in the average unit cost of
electricity.
Cost of revenues for natural gas increased in the three months ended March 31,
2023 compared to the same period in 2022 primarily because of increases in
natural gas consumption by GRE's REPs' customers and in the average unit cost of
natural gas. The average unit cost of natural gas increased by 92.5% per therm
in the three months ended March 31, 2023 compared to the same period in 2022.
The significant increase is due to a rise in the wholesale price of natural gas
during the three months ended March 31, 2023 compared to the same period in
2022. Gross margin on natural gas sales decreased in the three months ended
March 31, 2023 compared to the same period in 2022 because the average rate
charged to customers increased less than the increase in the average unit cost
of natural gas.
Selling, General and Administrative. The decrease in selling, general and
administrative expenses in the three months ended March 31, 2023 compared to the
same period in 2022 was primarily due to decreases in employee-related costs and
POR program fees, partially offset by an increase in marketing and customer
acquisition cost. Employee-related expenses decreased by $0.5 million in
the three months ended March 31, 2023 compared to the same period
in 2022 primarily due to a decrease in accrued bonuses as a result of a decrease
in the income from operations of GRE. Marketing and customer acquisition
expenses increased by $0.3 million in the three months ended March 31, 2023
compared to the same period in 2022 as a result of an increase in the number of
meters acquired. POR program fees decreased by $0.1 million in the three months
ended March 31, 2023 compared to the same period in 2022 as a result of changes
in rates implemented by several utilities. As a percentage of GRE's total
revenues, selling, general and administrative expense increased from 19.6% in
the three months ended March 31, 2022 to 15.9% in the three months ended March
31, 2023 .
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Genie Renewables Segment
The Genie Renewables (formerly GES) segment is composed ofGenie Solar , CityCom Solar, Diversegy and Prism.Genie Solar is an integrated solar energy company. CityComm Solar is a marketer of community solar energy solutions. Diversegy provides energy brokerage and advisory services to commercial customers. Prism provides solar and manufacturing of solar panels, solar installation design and solar energy project management. Three Months Ended March 31, Change (amounts in thousands) 2023 2022 $ % Revenues $ 3,864$ 2,042 $ 1,822 89.2 % Cost of revenue 3,116 1,518 1,598 105.3 Gross profit 748 524 224 42.7 Selling, general and administrative 1,896 1,003 893 89.0 expenses Loss from operations$ (1,148 ) $ (479 ) $ 669 139.7 % Revenue. Genie Renewables' revenues increased in the three months endedMarch 31, 2023 compared to the same period in 2022. The increase in revenues was the result of increases in revenues from commissions from selling third-party products to customers by CityCom Solar and revenues from Diversegy that includes commissions, entry fees and other fees from our energy brokerage and marketing services businesses. Cost of Revenues. Cost of revenue increased in the three months endedMarch 31, 2023 compared to the same period in 2022. The increase in the cost of revenues reflects the increase in revenues of CityCom Solar and Diversegy.
Selling, General and Administrative. Selling, general and administrative
expenses increased in the three months ended
Corporate As discussed above, the remaining accounts ofGRE International were transferred to corporate starting in the third quarter of 2022. Entities under corporate do not generate any revenues, nor does it incur any cost of revenues. Corporate costs include unallocated compensation, consulting fees, legal fees, business development expense and other corporate-related general and administrative expenses. Three Months Ended March 31, Change (amounts in thousands) 2023 2022 $ % General and administrative expenses and loss from operations$ (4,022 ) $ (2,735 ) $ 1,287 47.1 % Corporate general and administrative expenses increased in the three months endedMarch 31, 2023 compared to the same period in 2022 primarily because of increase in employee related cost. As a percentage of our consolidated revenues, Corporate general and administrative expense increased to 3.8% in the three months endedMarch 31, 2023 from 3.2% in the three months endedMarch 31, 2022 . 39
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Consolidated Selling, general and administrative expenses. Stock-based compensation expense included in consolidated selling, general and administrative expense was$0.9 million in each of the three months endedMarch 31, 2023 and 2022. AtMarch 31, 2023 , the aggregate unrecognized compensation cost related to non-vested stock-based compensation was$4.1 million . The unrecognized compensation cost is recognized over the expected service period.
The following is a discussion of our consolidated income and expense line items below income from operations:
Three Months Ended
March 31, Change
(amounts in thousands) 2023 2022 $ %
Income from operations $ 11,275 $ 26,962 $ (15,687 ) (58.2 )%
Interest income 974 17 957 nm
Interest expense (19 ) (50 ) (31 ) (62.0 )
Other income (loss), net 3,246 (498 ) 3,744 nm
Loss on marketable equity securities (71 ) (652 ) (581 ) (89.1 )
and investments
Provision for benefit from income
taxes (4,068 ) (7,112 ) (3,044 ) (42.8 )
Net income from continuing
operations 11,337 18,667 (7,330 ) (39.3 )
Income (loss) from discontinued 3,055 (1,932 ) 4,987 258.1
operations, net of tax
Net income 14,392 16,735 (2,343 ) (14.0 )
Net loss attributable to
noncontrolling interests (39 ) (1,154 ) (1,115 ) (96.6 )
Net income attributable to Genie Energy Ltd.$ 14,431 $ 17,889 $ (3,458 ) (19.3 )% nm-not meaningful 40
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Interest income. Interest income increased in the three months endedMarch 31, 2023 , compared to the same period in 2022 primarily due to increases in average cash and cash equivalents during the period and significant increases in average effective interest rates on those balances. Other Income (Loss), net. Other income (loss), net in the three months endedMarch 31, 2023 consisted primarily of on-time tax credit related to payroll taxes incurred in prior years. Other income (loss), net in the three months endedMarch 31, 2023 also includes net equity in net income of equity methods investees. Other income (loss), net in the three months endedMarch 31, 2022 consisted primarily of foreign currency transactions and equity in net loss in equity method investees. Provision for Income Taxes. The change in the reported tax rate for the three months endedMarch 31, 2023 compared to the same periods in 2022, is the result of changes in the mix of jurisdiction in which taxable income was earned. Net Loss Attributable to Noncontrolling Interests. The decrease in net loss attributable to noncontrolling interests in the three months endedMarch 31, 2023 compared to the same periods in 2022 was primarily due to a decrease in the share of noncontrolling interest in the net income of Lumo Sweden and Lumo Finland as well as a decrease in losses incurred by Citizens Choice Energy. Loss onMarketable Equity Securities and Investments. The loss on marketable equity securities and investment for the three months endedMarch 31, 2023 pertains to the change in fair value of the Company's investments in common stock of Rafael Holdings, Inc. ("Rafael") which the Company acquired inDecember 2020 . As discussed above, we sold a large portion of our holdings in the common stock of Rafael in the first quarter of 2023. Income (Loss) from Discontinued Operations, net of tax. Income from discontinued operations, net of tax in the three months endedMarch 31, 2023 is mainly from an increase in the estimated value of our investments in Orbit and foreign exchange gain in Lumo Sweden. Loss from discontinued operations, net of tax in the three months endedMarch 31, 2022 is mainly due to results of operations of Lumo Finland and Lumo Sweden.
Liquidity and Capital Resources
General We currently expect that our cash flow from operations and the$105.2 million balance of unrestricted cash and cash equivalents that we held atMarch 31, 2023 will be sufficient to meet our currently anticipated cash requirements for at least the period toMay 9, 2024 .
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