Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 196

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 196
---
  Expired during the year   -    -    -   Outstanding – December 31, 2024   3,067,025    46.07    4.85   Exercisable – December 31, 2024   3,067,025    46.07    4.85  

F-47

    23.
    Segment and Geographic Information

Effective January 1, 2024,
the Company adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.
This update requires disclosure of significant segment expenses regularly provided to the Chief Operating Decision Maker (CODM) and enhances
qualitative disclosures about segment operations. The adoption of this ASU did not impact the Company’s consolidated financial position,
results of operations, or cash flows.

The Company has two reportable
segments that consist of PV operations by geographical region, United States Operations and European Operations. European operations represent
our most significant business. The Chief Operating Decision-Maker (CODM) is the CEO.

Historically, the European
Segment derives revenues from three sources, Country Renewable Programs, Green Certificates and Long-term Offtake Agreements. The United
States Segment revenues are derived from Long-term Offtake Agreements. As of December 31, 2024, the Company had no revenue from discontinued
operations as the operating parks in Poland, the Netherlands, and Romania were sold. Additionally, the Company had no revenue continuing
operations as the Lightwave operating parks were sold back to the parent company, AEG, as a result of the deconsolidation of Alternus
Energy Americas Inc. on November 5, 2024.

In evaluating financial performance,
the CODM uses both gross profit and EBITDA to assess segment performance and decide how to allocate resources. However, after the sale
of Solis and its Romanian subsidiaries and the deconsolidation of Alternus Energy Americas and its United States subsidiaries and AEG
MH 01 and its Irish subsidiaries, the CODM now uses EBITDA, a non-GAAP measure, as the main measure of a segment’s performance.
EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization. The Company uses EBITDA because
management believes that it can be a useful financial metric in understanding the Company’s earnings from operations. E