Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 154

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 period of the awards,
which is generally the awards’ vesting period. The Company accounts for forfeitures of awards in the period they occur.

Use of the Black-Scholes-Merton
option-pricing model requires the input of highly subjective assumptions, including (1) the expected terms of the option, (2) the expected
volatility of the price of the Company’s common stock, and (3) the expected dividend yield of our common stock. The assumptions
used in the option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application
of management’s judgments. If factors change and different assumptions are used, the Company’s stock-based compensation expense
could be materially different in the future. Additional inputs to the Black-Scholes-Merton option-pricing model include the risk-free
interest rate and the fair value of the Company’s common stock. The Company determines the risk-free interest rate by using the
United States Treasury Rates of the same period as the expected term of the stock-option.

Recently Issued Not Yet Effective Accounting
Standards

In March 2024, the FASB issued
ASU 2024-03, Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses, which
requires public business entities to disclose, on an annual and interim basis, specified expense captions (such as cost of sales, SG&A,
and R&D) disaggregated by their natural components (e.g., compensation, depreciation, amortization, and inventory/overhead costs).
The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December
15, 2027; early adoption is permitted. The Company is currently evaluating the impact of this guidance on its disclosures. Because the
ASU expands footnote requirements without affecting recognition or measurement, management does not expect the adoption to have a material
impact on the Company’s consolidated financial position, results of operations, or cash flows.

In January 2025, the FASB
issued ASU 2025-01 to clarify the effective dates of ASU 2024-03. The clarification confirms that the annual disclosures are required
for fiscal years beginning after December 15, 2026, and the interim disclosures are required for interim periods within fiscal years beginning
after December 15, 2027. Early adoption remains permitted. The Company’s evaluation of ASU 2024-03, as