Independent expert reviews 78% of 2CRSi revenue, leaves supplier-payment transactions unresolved
Key Facts
On October 29, 2CRSi published the main findings of a draft report by an independent expert appointed after a June 18, 2026 report by Grizzly Research, as the company prepares to complete its annual results audit. The company said the expert analyzed 78% of its consolidated revenue over the past three fiscal years. For transactions valued at €425 million, the report confirmed receipt of funds and consistency between commercial terms and invoices. But the findings do not provide a comprehensive resolution of all disputed transactions: the expert was unable to reach a conclusion on transactions in which the customer paid a 2CRSi supplier directly. The report also cited material reservations about the completeness of documentation, certain financing arrangements, and the equipment’s ultimate destination or ownership.
According to the company’s regulatory statement, the work addressed 22 of the 34 allegations listed by 2CRSi and covered the period from March 1, 2023, to June 30, 2026. The expert said the allegation that the company generated almost all its revenue through undisclosed related parties “has no basis” in the transactions reviewed. That finding remains limited to the scope of the review and does not resolve transactions in which customers paid suppliers directly. In assessing counterparties, a review of 11 customers and companies linked to Joseph Church did not allow the expert to confirm that they were formally related parties of the company, with the exception of NYGC. The expert, however, identified strong commercial and operational proximity to NYGC and Church, the statement said.
Among the most prominent transactions covered by the report was an order to resell 194 servers to a company registered in Germany, at a nominal price of €110 million. The expert confirmed that the order represented a contractual transaction with a company incorporated under German law. The report also said a third party paid the full value of the order before delivery, excluding transport and insurance. However, it cited a lack of accounting and financial documents supporting the resale. This reservation forms part of broader comments on the completeness of documents for certain transactions, their financing arrangements, and the determination of the equipment’s destination and ultimate ownership.
The expert described internal control deficiencies as significant, including weak end-to-end transaction documentation and insufficient knowledge of counterparties. The report also cited shortcomings in auditing resale arrangements and said the company had only partial visibility into the equipment’s ultimate destination and use. Chief Executive Alain Wilmot said the company was correcting previous communications that the report described as inaccurate and was working to strengthen internal control procedures. He added: “Today, we are correcting these communications and strengthening internal control procedures.” The report thus puts documentation and governance among the issues that will remain in focus as the financial review is completed.
In the context of the disclosures examined by the expert, the company said revenue for fiscal 2025-2026 was €416.2 million. The statement also said a project linked to an agreement worth $610 million was severely disrupted following regulatory changes in late 2024 and the withdrawal of investors in late 2025. Those developments nearly halted the project, it said, while the risk that the contract would not be executed remained high. 2CRSi shares fell 43% on June 18, 2026, after Grizzly Research announced it had bet on a decline in the stock. The final draft of the report was presented to the audit and risk committee, in the presence of the statutory auditor, on October 26, then submitted to the auditor as part of the audit of the financial statements for the year ended June 30, 2026.
2CRSi had postponed publication of its annual results and financial report for fiscal 2025-2026 from October 29 to after the market close on October 30 to allow time to complete audit procedures and include the expert’s conclusions. The company said publication was expected on October 30 after the market close. The independent report is among the audit materials submitted to the statutory auditor, after its presentation to the audit and risk committee. Wilmot said the company is correcting its previous communications and strengthening internal control procedures in response to the expert’s comments. Transactions involving direct payments to suppliers, along with reservations about documentation, financing and the equipment’s ultimate destination, remain among the key issues the report did not fully resolve.