Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 903

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1C
Chunk 903
---
”) shares of common stock concurrently with the Business Combination
Closing pursuant to Meteora’s FPA Funding Amount PIPE Subscription Agreement, less the 52,013 shares of common stock separately
purchased from third parties through a broker in the open market (“Recycled Shares”). Following the consummation of the Business
Combination, Meteora delivered a Pricing Date Notice dated December 10, 2023, which included 52,013 Recycled Shares, 59,849 additional
shares and 111,862 total number of shares. The FPA provides for a prepayment shortfall in an amount in US dollars equal to $500,000. Meteora
in its sole discretion may sell Recycled Shares at any time following the Trade Date at prices (i) at or above $250.00 during the
first three months following the Closing Date and (ii) at any sales price thereafter, without payment by Meteora of any Early Termination
Obligation until such time as the proceeds from such sales equal 100% of the Prepayment Shortfall. The number of shares subject to the
Forward Purchase Agreement is subject to reduction following a termination of the FPA with respect to such shares as described under “Optional
Early Termination” in the FPA. The reset price is set at $250.00. Commencing from June 22, 2024, the reset price is subject to reduction
upon the occurrence of a Dilutive Offering. 

The Company holds various
financial instruments that are not required to be recorded at fair value. For cash, restricted cash, accounts receivable, accounts payable,
and short-term debt, the carrying amounts approximate fair value due to the short maturity of these instruments.

The
fair value of the Company’s recorded forward purchase agreement (“FPA”) is determined based on unobservable inputs that
are not corroborated by market data, which require a Level 3 classification. The Company records the forward purchase agreement at fair
value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operation.

The
following table presents changes of the forward purchase agreement with significant unobservable inputs (Level 3) as of December 31, 2024,
in thousands:

    Forward Purchase Agreement 
  
    Balance at January 1, 2023 
    $- 
  
    Recognition of Forward Purchase Agreement Asset 
     17,125 
  
    Change in fair value 
     (16,642)