Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 159

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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iiON Battery
Storage Business to assist with the transition and integration into the Company’s business.

The Company and LiiON LLC
mutually agreed to rescind the Asset Purchase Agreement. The primary driver that led the Parties to discuss alternative plans was the
February 2025 Nasdaq notice that the Company’s equity had been delisted. Prior to receiving the notice, the Company expected Nasdaq
to provide an extension of time to correct the matters that resulted in delisting.  Although the acquisition Agreement permitted
the Company to issue restricted common stock (i.e., active listing was not necessary to fulfill the requirements), questions around the
timing of the Company’s ability to raise additional equity funding to support its integration plan, caused by the delisting, led
the Parties to discussions regarding the path forward which, ultimately, culminated with the Parties’ mutual decision to rescind
the Agreement.

Therefore, on May 1, 2025
the Company and its wholly owned subsidiary, BESS, LLC, entered into a Rescission and Release Agreement with LiiON (the “Rescission”)
resulting in the unwinding of all consideration transferred and legal ownership. The parties rescinded the Asset Purchase Agreement, as
well as the $2,000,000 promissory note issued to LiiON and the exclusive consulting agreement with one of LiiON’s affiliate companies,
and to release one another from any and all obligations and liabilities related thereto.

Upon the unwinding of the
remaining net book values of the promissory note and the net assets acquired of on the rescission date, the Company recognized a loss
of $33,700.

6. Prepaid Expenses and Other Current Assets

Prepaid and other current
expenses generally consist of amounts paid to vendors for services that have not yet been performed. Other receivable consist of the following
(in thousands):

    June 30,  
    December 31, 

    2025  
    2024 

    (in thousands) 
  
    Prepaid expenses and other current assets 
    $-  
    $131 

    Total 
    $-  
    $131 

7. Capitalized development cost and other long-term assets

Capitalized development costs
are amounts paid to vendors that are related to the purchase and construction of microgrid and solar energy facilities. Long-term prepaid
expenses and other receivables consist of amounts owed to the Company as well as amounts paid to