Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1514

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 4
Chunk 1514
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2023, the Company consummated the Business Combination on December 22, 2023. In accordance with the Business Combination Agreement,
Clean Earth issued 2,300,000 shares of common stock of Clean Earth, par value $0.0001 per share, to AEG, and AEG transferred to Clean
Earth, and Clean Earth received from AEG, all of the issued and outstanding equity interests in the Acquired Subsidiaries (as defined
in the Business Combination Agreement) (the “Equity Exchange,” and together with the other transactions contemplated by the
Business Combination Agreement, the “Business Combination”). In connection with the Closing, the Company changed its name
from Clean Earth Acquisition Corp. to Alternus Clean Energy, Inc.

46

The Company uses annual recurring revenues as
a key metric in its financial management information and believes this method better reflects the long-term stability of operations into
the future. Annual recurring revenues are defined as the estimated future revenue generated by operating solar parks based on the remaining
term by the price received per mega-watt hour (MWh) of energy produced multiplied by the estimated production from each solar park over
a full year of operation. It should be noted that the actual revenues reported by the Company in a particular year may be lower than the
annual recurring revenues because not all parks may be revenue generating for the full year in their first year of operation. The Company
must also account for the timing of acquisitions that take place throughout the financial year.

Impacts of the Ukraine/Russia conflict

The geopolitical situation in Eastern Europe intensified
on February 24, 2022 with Russia’s invasion of Ukraine. The war between the two countries continues to evolve as military activity
proceeds and additional sanctions are imposed. In addition to the human toll and impact of the events on entities that have operations
in Russia, Ukraine, or neighboring countries (e.g., Belarus, Poland, Romania) or that conduct business with their counterparties, the
war is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such
as rising inflation and global supply-chain disruption. These events have not impacted the physical operations of our facilities in Romania.
However, the Company has seen fluctuations in energy rates due to inflation, increased interest rates, and other macro-economic factors.

Known trends or Uncertainties

The Company has a working capital deficiency and
negative equity. Management has determined there is doubt about the Company’s ability to continue as a going concern if planned