Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2020

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 6
Chunk 2020
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 occur. Management considers the carrying value of accounts receivable to be fully collectible. If amounts become
uncollectible, they are charged to operations in the period in which that determination is made.

The allowance for credit losses
was $0 thousand and $7 as of December 31, 2024 and 2023, respectively.

F-12

Concentration of Credit Risk

At times, the Company maintains
cash balances in financial institutions which may exceed federally insured limits. The Company maintains cash balances in all countries
in which it operates and in Ireland where the Company is headquartered. Government coverage for the Company’s cash balances are
as follows:

    ● European Union - $105,841 (€100,000) per account is covered for operations in Romania, Poland, Italy, and the Company’s headquarters in Ireland. 

    ● United States - $250,000 

While the company did not
have any cash accounts above the government insurance amounts as of December 31, 2024, it did at times have balances above the insurance
amount throughout the year. The Company has not experienced any losses relating to such accounts and believes it is not exposed to significant
credit risk on its cash and cash equivalents or restricted cash.

Economic Concentrations

The Company and its subsidiaries
own and operate solar generating facilities installed on buildings and land located across Europe and the United States. Future operations
could be affected by changes in the economy, other conditions in those geographic areas, or by changes in the demand for renewable energy.

Property and Equipment

Property and equipment are
stated at cost less accumulated depreciation, amortization, and impairment. The cost of an asset comprises its purchase price and any
directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is
computed on a straight-line basis over the estimated useful lives. The useful lives per asset class are as follows:

    ● Solar Energy Facilities carry a useful life of the lesser of 35 years from the original placed in-service date or the lease term of the land on which they are built. 

    ●
    Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life.

    ● Furniture and fixtures carry a useful life of 3 years. 

    ● Software and computer equipment carry a useful life of 3 and 5 years respectively. 

Expenditures for major renewals
and betterments which substantially extend the useful life of