Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 244

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 244
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, unusual or complex transactions, including the proper application of U.S. GAAP to such transactions. Specifically, the Company did not design and maintain controls to timely identify and account for warrant instruments related to certain promissory notes, forward purchase agreements, debt modifications, and impairment of discontinued operations.

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The Company
will have third party experts review non routine, unusual and complex transactions in order to have the required expertise to confirm
the proper accounting treatment.

    ●
    The Company did not design and maintain formal accounting policies, procedures and controls to achieve complete, accurate and timely financial accounting, reporting and disclosures, including controls over the period-end financial reporting process addressing areas including financial statement and footnote presentation and disclosures, account reconciliations and journal entries, including segregation of duties, assessing the reliability of reports and spreadsheets used in controls, and the timely identification and accounting for cut-off of expenditures.

The Company
is working with an external consultant to review and assess the Company’s current internal control structure to improve the overall
effectiveness of the control environment. In addition, the Company is investing in third party software to improve the accuracy, review,
and approval of account reconciliations and other accounting functions. Also, the Company is investing in third party software to improve
the process around the completion of the financial statements.

The Company
will have third party experts review non routine, unusual and complex transactions in order to have the required expertise to confirm
the proper accounting treatment.

The material weaknesses described above could
result in a material misstatement to substantially all of the Company’s accounts or disclosures. These material weaknesses leads
management to conclude that the Company’s disclosure controls and procedures are not effective to give reasonable assurance that
the information required to be disclosed in reports that the Company files under the Exchange Act is recorded, processed, summarized and
reported as and when required.

Management’s Report on Internal Control
over Financial Reporting

Management is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our
internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in