Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1810

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1810
---
 to losses in each period. The following table sets forth the outstanding potentially dilutive securities that
have been excluded in the calculation of diluted net loss per share because their inclusion would be anti-dilutive:

    Year Ended December 31, 

    2024  
    2023 
  
    Warrants 
     3,000,149  
     493,800 
  
    Total 
     3,000,149  
     493,800 

F-19

Foreign Currency Transactions and Other Comprehensive
Loss

Foreign currency transactions
are those transactions whose terms are denominated in a currency other than the currency of the primary economic environment in which
the Company operates, which is referred to as the functional currency. The functional currency of the Company’s foreign subsidiaries
is typically the applicable local currency which is the Romanian Lei (RON), the Polish Zloty (PLN), or the European Union Euro (EUR).
Transactions denominated in foreign currencies are remeasured to the functional currency using the exchange rate prevailing at the balance
sheet date for balance sheet accounts and using an average exchange rate during the period, which approximates the daily exchange rate,
for income statement accounts. Foreign currency gains or losses resulting from such remeasurement are included in the Consolidated Statement
of Operations and Comprehensive Income/(Loss) in the period in which they arise.

Transaction gains and losses
are recognized in the Company’s Consolidated Statement of Operations and Comprehensive Income/(Loss) based on the difference between
the foreign exchange rates on the transaction date and on the reporting date. The Company had an immaterial net foreign exchange loss
for the year ended December 31, 2024 and 2023.

The translation from functional
foreign currency to United States Dollars (USD) is performed for asset and liability accounts using current exchange rates in effect at
the balance sheet date and using an average exchange rate during the period, which approximates the daily exchange rate, for income statement
accounts. The effects of translating financial statements from functional currency to reporting currency are recorded in other comprehensive
income. For the years ended December 31, 2024 and 2023, the increase/(decrease) in comprehensive loss related to foreign currency translation
gains was ($1.7) million and $0.7 million, respectively.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued
Accounting Standards Update (ASU) No. 2016-13,