Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1409

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1409
---
 (291)
  
    Total deferred tax liabilities 
     -  
     (291)
  
    Net deferred taxes 
    $-  
    $- 

F-52

The Company’s valuation
allowance decreased during 2024 by $213 thousand, primarily due to the loss of foreign income tax attributes after the disposal of foreign
subsidiaries in US, Poland, Netherland, Ireland and Romania

Deferred tax assets have not
been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in the Company and there are no
other tax planning opportunities or other evidence of recoverability in the near future.

Future realization of the
tax benefits of existing temporary differences and net operating loss carryforwards ultimately depends on the existence of sufficient
taxable income within the carryforward period. As of December 31, 2024, the Company performed an evaluation to determine whether a valuation
allowance was needed. The Company considered all available evidence, both positive and negative, which included the results of operations
for the current and preceding years. The Company determined that it was not possible to reasonably quantify future taxable income and
determined that it is more likely than not that all of it deferred tax assets will not be realized. Accordingly, the Company maintained
a full valuation allowance as of December 31, 2024.

As of December 31, 2024, the
Company had approximately $3.0 million of federal, $0.7 million of state, and $0.4 million of foreign net operating loss to offset future
taxable income. If not utilized, the state net operating loss will expire in 2044. The Luxembourg net operating loss of 17 thousand will
start to expire in 2040. The remaining foreign net operating loss carryovers have unlimited carryforward periods. The Company is in the
process of analyzing whether any changes to its capital structure resulted in an ownership change, and whether US net operating losses
would be restricted in use as a result thereof.

The Company recognizes interest
and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2024 and 2023, the total balance
of accrued interest and penalties related to uncertain tax positions was $590 thousand and $0, respectively. The following is a reconciliation
of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:

    Year Ended December 31, 

    2024