Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 29

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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06 as of January 1, 2023. This ASU removes the concepts of a beneficial conversion feature and cash conversion
feature from the ASC guidance. The Company recorded a loss on debt issuance of $0.9 million. As of December 31, 2024, the outstanding
principal was $0.4 million with fair value of $0.7 million at that date. The Company also recorded a $1.3 million gain on movement in
fair value in the year ended December 31, 2024 and a $0.6 million loss on movement in fair value for the six months ended June 30, 2025.

15

As of December 31, 2024, $1.9
million of this note (including principal plus accrued interest and late fees and penalties) had been converted into 5,131 shares leaving
$0.4 million of the note principal outstanding.

On April 28, 2025, the Company
entered into a Letter Agreement with the Investor, which modifies certain terms and conditions of the Senior Convertible Note issued April
19, 2024 and the Senior Convertible Note issued October 1, 2024, by the Company to the Investor, collectively (the “2024 Notes”).
The interest rate on the 2024 Notes is and will continue at a rate of 12% per annum. The conversion price of the 2024 Notes which remain
outstanding shall be adjusted to the lesser of i) $6.00 and ii) 55% of the Market Price. Market Price shall mean the average of the three
lowest traded prices of at least 100 shares during the twenty (20) Trading Days immediately prior to the Conversion Date. Unless mutually
agreed upon, the Conversion Price shall not be less than $0.02. The maturity date of the 2024 Notes shall be extended to December 31,
2025. Pursuant to the Letter Agreement, the Company agreed to issue the Investor a warrant (the “Warrant”) to purchase up
to 170,000 shares of the Company’s common stock, $0.0001 par value per share (the “Common Stock”), at an exercise price
of $6.00 per share (the “Exercise Price”). The Warrant is exercisable immediately and will expire on the date that is five
and one-half (5 1/2) years after its date of issuance.

There have been no conversions
in the six months