Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 13

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 vesting period. The Company accounts for forfeitures of awards in the period they occur.

Use of the Black-Scholes-Merton option-pricing
model requires the input of highly subjective assumptions, including (1) the expected terms of the option, (2) the expected volatility
of the price of the Company’s common stock, and (3) the expected dividend yield of our common stock. The assumptions used in the
option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of
management’s judgments. If factors change and different assumptions are used, the Company’s stock-based compensation expense
could be materially different in the future. Additional inputs to the Black-Scholes-Merton option-pricing model include the risk-free
interest rate and the fair value of the Company’s common stock. The Company determines the risk-free interest rate by using the
United States Treasury Rates of the same period as the expected term of the stock-option.

Recently Adopted Accounting Standards

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