Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 142

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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 other similar transaction. On September 26, 2024 the Company’s shareholders approved the potential issuance of shares by
the Company of more than the Exchange Cap. The Company adopted ASU 2020-06 as of January 1, 2023. This ASU removes the concepts of a beneficial
conversion feature and cash conversion feature from the ASC guidance. The Company recorded a loss on debt issuance of $0.9 million. As
of December 31, 2024, the outstanding principal was $0.4 million with fair value of $0.7 million at that date. The Company also recorded
a $1.3 million gain on movement in fair value in the year ended December 31, 2024 and a $0.4 million gain on movement in fair value for
the three months ended March 31, 2025.

15

As of December 31, 2024, $1,877,323
worth of this note (including principal plus accrued interest and late fees and penalties) had been converted into 1,026,256 shares leaving
$0.4 million of the note principal outstanding. This note had a principal outstanding amount of $0.4 million as of March 31, 2025.

On October 1, 2024, the Company
entered into a Securities Purchase Agreement (the “Purchase Agreement”), by and between the Company and an institutional investor
(the “Investor”), pursuant to which the Company agreed to issue to the Investor a series of senior convertible notes up to
an aggregate principal amount of $2,500,000, issued with a twelve percent (12.0%) original issue discount (each a “Convertible Note”
and together, the “Convertible Notes”), and warrants (each a “Warrant” and together the “Warrants”)
to purchase shares of the Company’s common stock, $0.0001 par value per share (the “Common Stock”), equal to 50% of
the face value of the Convertible Note divided by the volume weighted average price, at an exercise price of $2.00 per share (the “Exercise
Price”). Pursuant to the Purchase Agreement, with the closing of the initial tranche of the Convertible Note and Warrant, the Company
issued a Warrant to purchase up to 212,784 shares of Common Stock and the Company received gross proceeds of $700,000, before fees and
other expenses associated with the transaction, accounting for the 12