Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 133

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 $327 

    Warrant Liability 
  
    Balance at April 19, 2024 
    $803 
  
    Change in fair value 
     (394)
  
    Balance at December 31, 2024 
    $409 
  
    Change in fair value 
     (409)
  
    Balance at March 31, 2025 
    $- 

10

As the Convertible Note issued
October 1, 2024 was paid out in four tranches, the Company grouped the first two tranches together and the last two trances together and
conducted two valuations. The Company measures the convertible loan and private placement warrants using a Monte Carlo simulation valuation
model using the following assumptions as of March 31, 2025:

    October 1 and October 21 Tranches 
    Convertible Loan Note  
    Warrant Liability 
  
    Risk-free rate 
     3.96% 
     3.96%
  
    Underlying stock price 
    $0.03  
    $0.03 
  
    Expected volatility 
     50% 
     50%
  
    Term 
     0.56 years  
     5.0 years 
  
    Dividend yield 
     0% 
     0%

The
following table presents changes of the convertible note and private placement warrants issued October 2024 with
significant unobservable inputs (Level 3) as of March 31, 2025, in thousands:

    Convertible Note 
  
    Balance at October 1, 2024 
    $1,659 
  
    Cash payment 
     (250)
  
    Conversions 
     (31)
  
    Change in fair value 
     (32)
  
    Balance at December 31, 2024 
    $1,346 
  
    Conversions 
     (2,058)
  
    Change in fair value 
     835 
  
    Balance at March 31, 2025 
    $123 

    Warrant Liability 
  
    Balance at October 1, 2024 
    $573 
  
    Change in fair value 
     (171)
  
    Balance at December 31, 2024 
    $402 
  
    Change in fair value 
     (402)
  
    Balance at March 31, 2025 
    $- 

The fair values of these Level