Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 261

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 261
---
 liabilities                      |     |                     |    312 |   |     |   |    207 |   |
| Total deferred tax assets              |     |                     |  5,984 |   |     |   |  3,404 |   |
| Deferred tax asset valuation allowance |     |                     | (5,693 | ) |     |   | (3,203 | ) |
| Net deferred tax assets                |     |                     |    291 |   |     |   |    201 |   |
| Deferred tax liabilities:              |     |                     |        |   |     |   |        |   |
| Other                                  |     |                     |      - |   |     |   |     (1 | ) |
| Right-of-use asset                     |     |                     |   (291 | ) |     |   |   (200 | ) |
| Total deferred tax liabilities         |     |                     |   (291 | ) |     |   |   (201 | ) |
| Net deferred taxes                     |     | $                   |      - |   |     | $ |      - |   |

The Company’s valuation
allowance increased during 2023 by $ million, primarily due to the generation of net operating losses. Future realization of the tax
benefits of existing temporary differences and net operating loss carryforwards ultimately depends on the existence of sufficient taxable
income within the carryforward period.

Deferred tax assets have not
been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in the Company and there are no
other tax planning opportunities or other evidence of recoverability in the near future. Pursuant to US Internal Revenue Code Section
382, the Company’s US net operating losses may be limited to a statutorily determined annual amount if the Company experienced
an ownership change. The Company is in the process of analyzing whether any changes to its capital structure resulted in an ownership
change, and whether US net operating losses would be restricted in use as a result thereof.

The Company also had foreign
net operating loss carryovers of $ million, which includes net operating loss carryovers of $ million and $ thousand in Ireland
and Luxembourg, respectively. The net operating loss carryover in Luxembourg $ thousand expires in 2040. The remaining foreign net
operating loss carryovers have unlimited carryforward periods. The Company is in the process of analyzing whether any changes to its
capital structure resulted in an ownership change, and whether US