Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 597

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1B
Chunk 597
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 in its financial management information and believes this method better reflects the long-term stability of operations into
the future. Annual recurring revenues are defined as the estimated future revenue generated by operating solar parks based on the remaining
term by the price received per mega-watt hour (MWh) of energy produced multiplied by the estimated production from each solar park over
a full year of operation. It should be noted that the actual revenues reported by the Company in a particular year may be lower than the
annual recurring revenues because not all parks may be revenue generating for the full year in their first year of operation. The Company
must also account for the timing of acquisitions that take place throughout the financial year.

Impacts of the Ukraine/Russia conflict

The geopolitical situation in Eastern Europe intensified
on February 24, 2022 with Russia’s invasion of Ukraine. The war between the two countries continues to evolve as military activity
proceeds and additional sanctions are imposed. In addition to the human toll and impact of the events on entities that have operations
in Russia, Ukraine, or neighboring countries (e.g., Belarus, Poland, Romania) or that conduct business with their counterparties, the
war is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such
as rising inflation and global supply-chain disruption. These events have not impacted the physical operations of our facilities in Romania.
However, the Company has seen fluctuations in energy rates due to inflation, increased interest rates, and other macro-economic factors.

Known trends or Uncertainties

The Company has a working capital deficiency and
negative equity. Management has determined there is doubt about the Company’s ability to continue as a going concern if planned
financing and/or equity raises do not complete. Refer to Footnote 2 of the accompanying financial statements.

The Company is currently working on several processes
to address the going concern issue. We are working with multiple global banks and funds to secure the necessary corporate and project
level financing to execute our transatlantic business plan.

Competitive Strengths

The Company believes the following competitive
strengths have contributed and will continue to contribute to its success:

●Fully Integrated Clean Energy Provider Model:

We operate as a comprehensive energy provider,
managing the full renewable energy value chain across both utility scale and behind-the-meter microgrid markets. This “develop-to-own
or sell” strategy enables the Company to capture greater margin and retain control from early-stage development through to long-term
operations or strategic monetization, unlike peers focused solely