Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1119

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1119
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27,050 
  
    Total for the period 
    $10,120  
    $30,517 

One customer represented 100%
of continuing operational revenues during the year ended December 31, 2024 compared to two customers that represented 86% for the year
ended December 31, 2023. The revenues from these customers accounted for $0.3 million and $3.0 million of revenue for the year ended December
31, 2024 and 2023, respectively.

Five customers represented
76% of the discontinued operational revenues during the year ended December 31, 2024 compared to four customers that represented 84% for
the year ended December 31, 2023. The revenues from these customers accounted for $7.7 million and $25.7 million of revenue for the year
ended December 31, 2024 and 2023, respectively.

Unbilled Energy Incentives Earned

The Company derives revenues
from the sale of green certificates for the Romania projects. The green certificates revenues are recognized in the month they are generated
by the solar project and registered with the local authority. The Company considers them unbilled at the end of the period if they have
not been invoiced to a third-party customer.

Cost of Revenues 

Cost of revenues primarily
consists of operations and maintenance expense, insurance premiums, property taxes, and other miscellaneous costs associated with the
operations of solar energy facilities. Costs are expensed as incurred.

F-16

Taxes Recoverable and Payable

The Company records taxes
recoverable when there has been an overpayment of taxes due to timing of the Value Added Tax (VAT) between vendors and customers. The
VAT tax can also be offset against a Country’s income taxes where the VAT was registered.

Capitalized Development Costs and Impairment
Policy

The Company capitalizes development
costs directly attributable to the design and construction of clean energy facilities, such as solar farms and battery storage systems,
in accordance with ASC 360, Property, Plant, and Equipment. These costs may include engineering and architectural fees, permitting expenses,
site preparation, and construction-related overhead. Capitalization commences when the project is deemed probable and continues until
the asset is substantially complete and ready for its intended use.

The Company evaluates the
recoverability of capitalized development costs whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. If such indicators are present, the