Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 929

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1C
Chunk 929
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 loss contingency in the amount of approximately
$1.5 million, which represents the contractual amount allegedly owed. It is reasonably possible that the potential loss may exceed our
accrued liability due to costs, expenses, legal fees, interest and damages that are also alleged by SCAF as owed, but at the time of filing
this report, we are unable to determine an estimate of that possible additional loss in excess of the amount accrued. The parties are
currently in further settlement discussions.

On May 8, 2025, the Company,
Alternus Energy Group PLC (AEG) and one of AEG’s subsidiaries, Alternus Energy Americas Inc. (AEA), was served a Demand for Arbitration
through JAMS in Washington DC by Orrick, Herrington and Sutcliffe LLP (“Orrick”), claiming that approximately $1 million is
due and owed to Orrick pursuant to an engagement agreement entered into with AEA, plus interest. The Company intends to vigorously defend
itself in this matter and has filed a motion to dismiss itself from the arbitration as the Company was not a party to this engagement
agreement nor is AEA a subsidiary of the Company.

Commitments

On October 14, 2024, the Company
entered into a settlement agreement and release with Morgan Franklin Consulting LLC (“MF”) related to the settlement of payments
owed to MF for services rendered in the total amount of $276,796 through twelve equal monthly installments commencing in October of 2024.
As of December 31, 2024 and the date of this Report, the Company has not made any of these payments and is currently in default.

Contingencies

On August 7, 2024, the Company
entered into a ‘Heads of Terms’ (i.e., similar to a Letter of Intent) for Joint “Agreement”) with Hover Energy
LLC and its affiliates (“Hover”) to establish a joint venture (the “JV”) for the financing, development, management,
and operation of ‘Microgrid Projects’ utilizing Hover Wind-Powered Microgrid™ technology, as required. Pursuant to the
said JV, the Company and Hover have agreed to have a 51% interest and a 49% interest in the JV, for which the Company has issued 200,000
shares of restricted common stock to Hover valued at $10.00 per share and will issue and commit 140,000 additional shares of restricted
common stock, and Hover will contribute 100