Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1370

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1370
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2023, respectively. Debt issuance costs are
recorded as a debt discount and are amortized to interest expense over the life of the debt, upon the close of the related debt transaction,
in the Consolidated Balance Sheet.

Interest expense stemming
from amortization of debt discounts for continuing operations for the twelve-months ended December 31, 2024 and 2023 was $0.9 million
and $2.4 million, respectively.

Interest expense stemming
from amortization of debt discounts for discontinued operations for the twelve-months ended December 31, 2024 and 2023 was $0.2 million
and $2.5 million, respectively.

Senior secured debt:

In May 2022, AEG MH02 entered
into a loan agreement with a group of private lenders of approximately $10.8 million with an initial stated interest rate of 8% and a
maturity date of May 31, 2023. In February 2023, the loan agreement was amended stating a new interest rate of 16% retroactive to the
date of the first draw in June 2022. In May 2023, the loan was extended, and the interest rate was revised to 18% from June 1, 2023. In
July 2023, the loan agreement was further extended to October 31, 2023. In November 2023, the loan agreement further extended to May 31,
2024. On December 31, 2024, the loan agreement was further extended to September 30, 2025 while also stating any accrued interest up to
the date of the amendment was to be added to the principal loan balance. As a result of these amendments, $3.2 million of interest was
recognized during the period ended December 31, 2024, and $5.9 million of accrued interest was added to the existing loan balance. The
Company had principal outstanding of $16.0 million and $11.0 million as of December 31, 2024 and 2023, respectively.

In June 2022, Alt US 02, a
subsidiary of Alternus Energy Americas, and indirect wholly owned subsidiary of the Company, entered into an agreement as part of the
transaction with Lightwave Renewables, LLC to acquire rights to develop a solar park in Tennessee. The Company entered into a construction
promissory note of $5.9 million with a variable interest rate of