Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 154

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 $(2,699)
  
    Income/(Loss) before provision for income taxes 
    $(2,569)
  
    Net income/(loss) from discontinued operations 
    $(2,569)

15.
Sale of Spanish Subsidiaries

On March 25, 2025, one of
the Company’s subsidiaries, AEG MH02, entered into a Share Purchase Agreement with Alternus Energy Group Plc, a related party, for
the sale of the entire issued share capital of Alt Spain Holdco S.l.u., including all of its subsidiaries: ALT Spain 03, S.L.U., ALT Spain
04, S.L.U. and New Frog Projects SL, for a total consideration of €10. In accordance with ASC 360, the Company removed the net assets
of the disposal group and recognized a gain of $3.5 million upon closing the sale in March 2025, of which $0.6 million were costs associated
with the sale. The sale of the Company’s Spanish subsidiaries does not represent a discontinued operation because management continues
to pursue clean energy investment and development opportunities in Spain and Europe and does not view the sale as a strategic shift for
the Company.

22

The major classes of assets
and liabilities transferred on March 25, 2025 in the sale of the Company’s subsidiaries are shown below:

    As of March 25, 
  
    Spain 
    2025 

    (in thousands) 

    Assets: 

    Other current assets 
    $36 
  
    Total assets sold 
    $36 

    Liabilities: 

    Accounts payable 
    $196 
  
    Short secured debt 
     2,773 
  
    Operating leases, current liabilities 
     29 
  
    Other current liabilities 
     203 
  
    Operating leases, non-current liabilities 
     423 
  
    Total liabilities sold 
    $3,624 

    Net (gain)/loss on sale of net assets 
    $(3,588)

16.
Assets Held for Sale – (MH 02 & Subs)

During the first quarter of
2025, the Company engaged multiple parties to market its subsidiary, AEG MH 02 Limited (“MH02”) and all its subsidiaries to
potential buyers. As this sale is not considered an exit strategy of the Italian market, the assets were not classified as discontinued
operations in accordance with ASC 205-20. As of March 31, 2025