Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 132

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 little or no market activity and that are significant to the fair value of the assets or liabilities. This includes
certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

9

As
of March 31, 2025, a summary of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows,
in thousands:

    Fair Value Measurement 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Convertible Notes 
    $        -  
    $        -  
    $450  
    $450 
  
    Warrant Liability 
     -  
     -  
     -  
     - 
  
    Total 
    $-  
    $-  
    $450  
    $450 

Valuation Techniques

●Convertible Note (fair value option): Valued using unobservable inputs that are not corroborated by
                                                                                market data (Level 3).

●Warrant Liability: Valued using unobservable inputs that are not corroborated by market data (Level
                                                                                3).

The Company measures the April
19, 2024 convertible note and private placement warrants using a Monte Carlo simulation valuation model and applying the following assumptions
as of March 31, 2025:

    Convertible Loan Note  
    Warrant Liability 
  
    Risk-free rate 
     3.94% 
     3.94%
  
    Underlying stock price 
    $0.03  
    $0.03 
  
    Expected volatility 
     50% 
     50%
  
    Term 
     0.05 years  
     4.6 years 
  
    Dividend yield 
     0% 
     0%

The
following table presents changes of the convertible note and private placement warrants issued April 2024 with
significant unobservable inputs (Level 3) as of March 31, 2025, in thousands:

    Convertible Note 
  
    Balance at April 19, 2024 
    $2,145 
  
    Conversions 
     (1,752)
  
    Change in fair value 
     (37)
  
    Balance at December 31, 2024 
    $356 
  
    Change in fair value 
     (29)
  
    Balance at March 31, 2025