Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 41

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 41
---
    4.61   Exercisable – March 31, 2025   3,143,328   $44.96    4.61  

25

18. Segment and Geographic Information

Effective January 1, 2024,
the Company adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.
This update requires disclosure of significant segment expenses regularly provided to the Chief Operating Decision Maker (CODM) and enhances
qualitative disclosures about segment operations. The adoption of this ASU did not impact the Company’s consolidated financial position,
results of operations, or cash flows.

The Company has two reportable
segments that consist of PV operations by geographical region, United States Operations and European Operations. The Chief Operating Decision-Maker
(CODM) is the CEO.

Historically, the European
Segment had derived revenues from three sources, Country Renewable Programs, Green Certificates and Long-term Offtake Agreements. The
United States Segment revenues are expected to be derived from Long-term Offtake Agreements. As of December 31, 2024, the Company had
no revenue from discontinued operations as the operating parks in Poland, the Netherlands, and Romania were sold. Additionally, the Company
had no revenue continuing operations as the Lightwave operating parks were sold back to the parent company, AEG, as a result of the deconsolidation
of Alternus Energy Americas Inc. on November 5, 2024.

In evaluating financial performance,
the CODM uses both gross profit and EBITDA to assess segment performance and decide how to allocate resources. However, after the sale
of Solis and its Romanian subsidiaries and the deconsolidation of Alternus Energy Americas and its United States subsidiaries and AEG
MH 01 and its Irish subsidiaries, the CODM now uses EBITDA, a non-GAAP measure, as the main measure of a segment’s performance because
no revenues or gross profit remains after disposal of these entities. EBITDA is defined as earnings before interest expense, income tax
expense, depreciation and amortization. The Company uses EBITDA because management believes that it can be a useful financial metric in
understanding the Company’s earnings from operations. EBITDA is not a measure of the Company’s financial performance under
GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP