Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 239

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 239
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 data.

Level 3 — Unobservable inputs
that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes
certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

On December 3, 2023,
the Company entered into an agreement with (i) Meteora Capital Partners, LP, (ii) Meteora Select Trading Opportunities Master,
LP, and (iii) Meteora Strategic Capital, LLC (collectively “Meteora”) for OTC Equity Prepaid Forward Transactions (the
“FPA”). The purpose of the FPA was to decrease the amount of redemptions in connection with the Company’s Special Meeting
and potentially increase the working capital available to the Company following the Business Combination.

F-23

Pursuant to the terms of
the FPA, Meteora purchased (the “Purchased Amount”) shares of common stock concurrently with the Business Combination
Closing pursuant to Meteora’s FPA Funding Amount PIPE Subscription Agreement, less the shares of common stock separately
purchased from third parties through a broker in the open market (“Recycled Shares”). Following the consummation of the Business
Combination, Meteora delivered a Pricing Date Notice dated December 10, 2023 which included Recycled Shares, additional
shares and total number of shares. The FPA provides for a prepayment shortfall in an amount in U.S. dollars equal to $.
Meteora in its sole discretion may sell Recycled Shares at any time following the Trade Date at prices (i) at or above $ during
the first three months following the Closing Date and (ii) at any sales price thereafter, without payment by Meteora of any Early
Termination Obligation until such time as the proceeds from such sales equal % of the Prepayment Shortfall The number of shares subject
to the Forward Purchase Agreement is subject to reduction following a termination of the FPA with respect to such shares as described
under “Optional Early Termination” in the FPA. The reset price is set at $. Commencing June 22, 2024 the reset price
will be subject to reduction upon the occurrence of a Dilutive Offering.

The Company holds various
financial instruments that are not required to be recorded at fair value. For cash, restricted cash, accounts receivable, accounts payable,
and short-term debt the carrying amounts approximate fair value due to the short maturity of these