Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 131

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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In December 2023, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):
Improvements to Income Tax Disclosures to enhance the transparency of income tax disclosures relating to the rate reconciliation, disclosure
of income taxes paid, and certain other disclosures. The ASU should be applied prospectively and is effective for annual periods beginning
after December 15, 2024, with early adoption permitted. The Company adopted the ASU on January 1, 2025 and the impact of adoption was
not material to the Company’s financial condition, results of operations or cash flows.

In November 2023, the FASB
issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve the disclosures about reportable
segments and include more detailed information about a reportable segment’s expenses. This ASU also requires that a public entity
with a single reportable segment, provide all of the disclosures required as part of the amendments and all existing disclosures required
by Topic 280. The ASU should be applied retrospectively to all prior periods presented in the financial statements and is effective for
fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption
is permitted. The Company is currently evaluating the impact on the financial statements and related disclosures.

4. Fair Value Measurements

Fair value is defined as the
exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure
fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable
inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 — Quoted prices in active
markets for identical assets or liabilities.

Level 2 — Observable inputs other
than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for
identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data.

Level 3 — Unobservable inputs
that are supported by