Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1133

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1133
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17,125 
  
    Change in fair value 
     (16,642)
  
    Balance at December 31, 2023 
     483 
  
    Change in fair value 
     (483)
  
    Balance at December 31, 2024 
    $- 

The Company measures the April
19, 2024 convertible note and private placement warrants using a Monte Carlo simulation valuation model and applying the following assumptions
as of December 31, 2024:

    Convertible Loan Note  
    Warrant Liability 
  
    Risk-free rate 
     4.37% 
     4.37%
  
    Underlying stock price 
    $0.79  
    $0.79 
  
    Expected volatility 
     50% 
     50%
  
    Term 
     0.3 years  
     4.8 years 
  
    Dividend yield 
     0% 
     0%

F-24

The
following table presents changes of the convertible note and private placement warrants issued April 2024 with
significant unobservable inputs (Level 3) as of December 31, 2024, in thousands:

    Convertible Note 
  
    Balance at April 19, 2024 
     2,145 
  
    Conversions 
     (1,752)
  
    Change in fair value 
     (37)
  
    Balance at December 31, 2024 
    $356 

    Warrant Liability 
  
    Balance at April 19, 2024 
     803 
  
    Change in fair value 
     (394)
  
    Balance at December 31, 2024 
    $409 

As the Convertible Note issued
October 1, 2024 was paid out in four tranches, the Company grouped the first two tranches together and the last two trances together and
conducted two valuations. The Company measures the convertible loan and private placement warrants using a Monte Carlo simulation valuation
model using the following assumptions as of December 31, 2024:

    October 1 and October 21 Tranches 
    Convertible Loan Note  
    Warrant Liability 
  
    Risk-free rate 
     4.40% 
     4.40%
  
    Underlying stock price 
    $0.79  
    $0.79 
  
    Expected volatility 
     50%