Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 157

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 157
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% 
     50%
  
    Term 
     0.9 years  
     5.4 years 
  
    Dividend yield 
     0% 
     0%

The
following table presents changes of the convertible note and private placement warrants issued October 2024 with
significant unobservable inputs (Level 3) as of December 31, 2024, in thousands:

    Convertible Note 
  
    Balance at October 1, 2024 
     1,659 
  
    Cash payment 
     (250)
  
    Conversions 
     (31)
  
    Change in fair value 
     (32)
  
    Balance at December 31, 2024 
    $1,346 

    Warrant Liability 
  
    Balance at October 1, 2024 
     573 
  
    Change in fair value 
     (171)
  
    Balance at December 31, 2024 
    $402 

F-25

The fair values of these Level 3 liabilities are
sensitive to unobservable inputs used in the Monte Carlo simulation valuation model, including discount rates, expected term, expected
volatility, path dependency parameters and estimates of various payout outcomes. Changes to these inputs could result in significantly
higher or lower fair value measurement.

Acquisition of LiiON LLC

On December 11, 2024, BESS LLC, a Delaware limited
liability company and wholly owned subsidiary of the Company entered into an asset purchase agreement (the “APA”) with LiiON
LLC (“LiiON”), a U.S.-based expert in advanced energy storage solutions, and closed on the acquisition of certain assets related
to LiiON’s Battery Storage Business. The assets purchased included customer relationships, customer service agreements and intellectual
property (IP). Also, in connection with the APA, the Company entered into an exclusive consulting agreement, with an initial term of 3
years, providing the Company with the right to receive consulting services of three key employees of the LiiON Battery Storage Business
to assist with the transition and integration into the Company’s business.

As consideration for the acquisition, the Company
issued a non-interest bearing promissory note (the “Note”) with a principal amount of $2,000,000 and having a fair value upon
issuance of approximately $1,537,000 and 250,000 shares of the Company’s restricted common stock with a fair