Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 349

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 349
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ness, without stockholder approval, in a number of circumstances.

Our issuance of additional
shares of common stock or other equity securities of equal or senior rank could, without limitation, have the following effects:

    ●
    our existing stockholders’ proportionate ownership interest in us will decrease;

    ●
    the amount of cash available per share, including for payment of dividends (if any) in the future, may decrease;

    ●
    the relative voting strength of each previously outstanding share of common stock may be diminished; and

    ●
    the market price of our shares of common stock may decline.

We identified material weaknesses in our
internal control over financial reporting which, if not remediated appropriately or timely, could result in the loss of investor confidence
and adversely impact our business operations and our stock price.

We are required to establish and maintain appropriate
internal controls over financial reporting. Failure to establish those controls, or any failure of those controls once established, could
adversely impact our public disclosures regarding our business, financial condition or results of operations. In addition, management’s
assessment of internal controls over financial reporting may identify weaknesses and conditions that need to be addressed in our internal
controls over financial reporting or other matters that may raise concerns for investors. Any actual or perceived weaknesses and conditions
that need to be addressed in our internal control over financial reporting, disclosure of management’s assessment of our internal
controls over financial reporting or disclosure of our public accounting firm’s attestation to or report on management’s assessment
of our internal controls over financial reporting may have an adverse impact on the price of our common stock.

A control system, no matter how well conceived
and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. In addition, the
design of a control system must reflect the fact that there are resource constraints and the benefit of controls must be relative to their
costs. Because of the inherent limitations in all control systems, no system of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within our Company have been detected. These inherent limitations include the realities that judgments
in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Further, controls can be circumvented
by individual acts of some persons, by collusion of two or more persons, or by management override of the controls. The design of any
system of controls is also based in part upon certain assumptions about the likelihood of