Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 190

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 190
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 issued and outstanding
as of June 30, 2025.

The board of directors of
the Company has the authority to establish one or more series of preferred stock, fix the voting rights, if any, designations, powers,
preferences and any other rights, if any, of each such series and any qualifications, limitations and restrictions thereof.

Series A Super Voting Preferred Stock

Each share of the Series A
is entitled to have the right to vote in an amount equal to 10,000 votes per share, voting with the common stock on all matters as a single
class. Each share of Series A has a par value of $0.0001 per share. The Series A is not convertible into, or exchangeable for, shares
of any other class or series of stock or other securities of the Company. The Series A has no stated maturity and is not subject to any
sinking fund. The holders of Series A shall not be entitled to receive any distributions in the event of any liquidation, dissolution
or winding up of the Company.

Series A Super Voting Preferred Stock Issuance

On March 21, 2025 the Company
issued 10,000 shares of Series A Super Voting Preferred Stock to the Company’s CEO, Mr. Vincent Browne, which gave Mr. Browne controlling
voting rights over all Company matters requiring a shareholder vote. The Company recorded employee stock compensation expense of $60,000
representing the fair value of the shares issued to account for the control premium resulting from the issuance.

On April 24, 2025 the Company
issued an additional 50,000 shares of Series A Super Voting Preferred Stock to Mr. Browne. Because the Series A Super Voting Preferred
Stock i) ranks junior to all other classes or series of capital stock, including Common Stock, with respect to any asset or property
distributions upon liquidation or winding up of the Company, and ii) is not entitled to participate with holders of Common Stock in any
dividends paid by the Company, management previously concluded that there was no economic value inherent in Series A Preferred Stock (i.e.,
the value in the 10,000 shares issued in Q1 was solely related to the control premium or a hypothetical option on control of the Company).
In connection with the April issuance, there was no control premium implicit in the additional 50,000 shares because Mr. Browne maintained
voting control both before and after the issuance. As a result, no compensation