Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1775

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1775
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business operations.

Net Cash Used in Investing Activities

Net cash used in continuing investing activities
for the year ended December 31, 2024 compared to 2023 increased by $1.0 million. This was a result of the increase in costs for construction
parks in the US, the development and pursuit of potential projects in Italy, Spain, and the US, and the final payment made to complete
the last park for Lightwave in January 2024.

Net cash provided discontinued investing activities
for the year ended December 31, 2024 compared to 2024 increased by $23.2 million. This was a result of the disposal of the Romanian, Polish,
and Netherlands parks during the year.

65

Net Cash Provided by Financing Activities

Net cash provided by continuing financing activities
for the year ended December 31, 2024 compared to 2023 decreased by $19.9 million mainly driven by the net decrease of $13.8 million of
new debt and a $6.1 million net increase driven by intercompany transaction activity.

Net cash used in discontinued financing activities
for the year ended December 31, 2024 compared to 2023 increased by $120.6 million mainly driven by the $75.2 million payment made towards
the Solis Bond principal balance and $45.4 million of intercompany activity as part of the sale of Solis and its Romanian subsidiaries.

Critical Accounting Estimates 

The preparation of financial statements in conformity
with US GAAP requires the Company to make estimates and assumptions in certain circumstances that affect amounts reported in its consolidated
financial statements and related footnotes. In preparing these consolidated financial statements, the Company has made its best estimates
of certain amounts included in the consolidated financial statements. Application of accounting policies and estimates, however, involves
the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates.
In arriving at the Company’s critical accounting estimates, factors the Company considers include how accurate the estimate or assumptions
have been in the past, how much the estimate or assumptions have changed, and how reasonably likely such change may have a material impact.
The Company’s critical accounting policies are discussed below.

Business Combinations

The Company acquires assets which operate in nature
with existing revenue streams and assets which are constructed for the purpose of being sold. The Company applies the screen test per
ASC 805 to determine an asset acquisition versus business combination and accounts for business combinations by