Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 397

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part II, Item 1
Chunk 397
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AF”) , claiming that approximately
$1.5 million is due and owed to SCAF pursuant to a settlement agreement by and among the parties, plus costs, expenses, legal fees, interest
and damages, if proven. The Company has accrued a liability for this loss contingency in the amount of approximately $1.5 million, which
represents the contractual amount allegedly owed. It is reasonably possible that the potential loss may exceed our accrued liability due
to costs, expenses, legal fees, interest and damages that are also alleged by SCAF as owed. On June 17, 2025 SCAF filed a motion for summary
judgment. The parties are currently in further settlement discussions.

On May 8, 2025, the Company, Alternus Energy Group
PLC (AEG) and one of AEG’s subsidiaries, Alternus Energy Americas Inc. (AEA), was served a Demand for Arbitration through JAMS in
Washington DC by Orrick, Herrington and Sutcliffe LLP (“Orrick”), claiming that approximately $1 million is due and owed to
Orrick pursuant to an engagement agreement entered into with AEA, plus interest. The Company intends to vigorously defend itself in this
matter and has filed a motion to dismiss itself from the arbitration as the Company was not a party to this engagement agreement nor is
AEA a subsidiary of the Company.

Item 1A. Risk Factors

In addition to the other information set forth
in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2024
Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. There have been no material
changes during fiscal 2025 to the risk factors that were included in Form 10-K.

53

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

Sales of Unregistered Securities

On January 2, 2025,
a convertible promissory note holder converted $1,588,693 of the October Convertible Note into 2,118,262 shares of unrestricted common
stock valued at $0.75 per share.

On January 8, 2025, a convertible
promissory note holder converted $202,500 of the October Convertible Note into 270,000 shares of unrestricted common stock valued at $0.75
per share.

On January 23, 2025, the Company