Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1778

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1778
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 rates of various currencies against the U.S. dollar.

The Company manages its exposure to currency risk
by commercially transacting in the currencies in which the Company materially incurs operating expenses. The Company limits the extent
to which it incurs operating expenses in other currencies, wherever possible, thereby minimizing the realized and unrealized foreign exchange
gain/(loss). The currency of the Company’s borrowing is, in part, matched to the currencies expected to be generated from the Company’s
operations. Intercompany funding is typically undertaken in the functional currency of the operating entities or undertaken to ensure
offsetting currency exposures.

67

Interest Rate Risk

Fluctuations in interest rates can impact the
value of investments and financing activities, giving rise to interest rate risk. The debt of the Company is comprised of different instruments,
which bear interest at either fixed or floating interest rates. The ratio of fixed and floating rate instruments in the loan portfolio
is monitored and managed. Refer to Footnote 14 – Convertible and Non-convertible Promissory Notes for more information.

The Company believes that the interest rates on
all borrowings compare favorably with those rates available in the market.

Emerging Growth Company
Status

In April 2012, the Jumpstart Our Business Startups
Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an “emerging growth company,” or an EGC,
can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the
Securities Act, for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards
until those standards would otherwise apply to private companies. The Company has elected to use the extended transition period for new
or revised accounting standards during the period in which we remain an EGC.

We expect to remain an EGC until the earliest
to occur of: (1) the last day of the fiscal year in which we, as applicable, have more than $1.235 billion in annual revenue; (2) the
date we qualify as a “large accelerated filer,” with at least $700 million in market value of equity securities held by non-affiliates;
(3) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period; and
(4) the last day