Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1389

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1389
---
 31, 2024 the JV had not yet closed and
the parties continue to operate under a strategic alliance agreement entered into on October 31, 2023.

On October 31, 2024, the Company
and Hover entered into an amendment to their strategic alliance agreement, whereby the Company will provide up to an additional $1,800,000
in development fees to Hover as and when development services are performed by Hover for specific Microgrid Projects. As of March 31,
2025, services had been performed by Hover for specific Microgrid Projects agreed upon by the Company and $1,750,000 is due to Hover.

F-38

CFGI LP and the Company entered
into a settlement agreement for a contractual amount owed for services rendered in the amount of $358,000, whereby the Company shall pay
CFGI approximately $10,000 per month commencing June 2, 2025 for a period of three years.

    17.
    Asset Retirement Obligations

The Company’s AROs mostly
relate to the retirement of solar park land or buildings. The discount rate used to estimate the present value of the expected future
cash flows for the year ended December 31, 2023 was 7.5%. On October 3, 2024, the Company sold its Romanian subsidiaries, reporting the
asset retirement obligations balance for the year ended December 31, 2023 as discontinued operations. See Footnote 19 for additional information.

    Activity 
  
    ARO Liability - Balance January 1, 2023 
    $397 
  
    Additional obligations incurred 
     - 
  
    Disposals 
     (235)
  
    Accretion expense 
     24 
  
    Foreign exchange gain/(loss) 
     11 
  
    ARO Liability -- December 31, 2023 
    $197 

    18.
    Development Cost

The Company depends heavily on government policies
that support our business and enhance the economic feasibility of developing and operating solar energy projects in regions in which we
operate or plan to develop and operate renewable energy facilities. The Company can decide to abandon a project if it becomes uneconomic
due to various factors, for example, a change in market conditions leading to higher costs of construction, lower energy rates, political
factors or otherwise where governments from time to time may review their laws and policies that support renewable energy and consider
actions that would make the laws and