Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 245

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 245
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conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management utilized the criteria established in
the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) to conduct an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2023. Based on
that evaluation, our Chief Executive Officer and Chief Financial Officer have identified the material weaknesses described above in our
internal controls over financial reporting and have therefore concluded that our internal controls over financial reporting are not effective
at the reasonable assurance level.

As stated above, a material weakness is a deficiency,
or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim consolidated financial statements will not be prevented or detected on a timely
basis.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal control
procedures over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our fiscal quarter ended
June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

59

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we
are subject to various legal proceedings and claims that arise in the ordinary course of our business activities. In connection with such
litigation, the Company may be subject to significant damages. We may also be subject to equitable remedies and penalties. Such litigation
could be costly and time-consuming and could divert or distract Company management and key personnel from its business operations. Although
the results of litigation and claims cannot be predicted with certainty, as of the date of this registration statement, we do not believe
we are party to any claim or litigation, the outcome of which, if determined adversely to us, would individually or in the aggregate be
reasonably expected to have a material adverse effect on our business. However, due to the uncertainty of litigation and depending on
the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect the Company’s business,
results of operations, financial position, or cash flows.

On October 15, 2024 Sunrise Development LLC (“Sunrise”)
requested a hearing be scheduled in binding arbitration against the Company, two of its former ind