Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 33

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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49% interest, respectively, in the JV, for which the Company has
issued 200,000 shares of restricted common stock to Hover valued at $10.00 per share and will issue and commit 140,000 additional shares
of restricted common stock, and Hover will contribute 100% of its projects and project pipeline. As of March 31, 2025 the JV had not yet
closed and the parties continue to operate under a strategic alliance agreement entered into on October 31, 2023. The Company has not
consolidated Hover as of March 31, 2025 because the strategic alliance agreement does not render the Company a controlling financial interest
in Hover. Upon the closing of the JV, the Company will perform an analysis to determine if it has acquired a controlling financial interest
in the JV requiring consolidation pursuant to the requirements of ASC 810.

19

On October 31, 2024, the Company
and Hover entered into an amendment to their strategic alliance agreement, whereby the Company will provide up to an additional $1,800,000
in development fees to Hover as and when development services are performed by Hover for specific Microgrid Projects. As of March 31,
2025, services had been performed by Hover for specific Microgrid Projects agreed upon by the Company and $1,750,000 is due to Hover.

13. Development Cost

The Company depends heavily
on government policies that support our business and enhance the economic feasibility of developing and operating solar energy projects
in regions in which we operate or plan to develop and operate renewable energy facilities. The Company can decide to abandon a project
if it becomes uneconomic due to various factors, for example, a change in market conditions leading to higher costs of construction, lower
energy rates, political factors or otherwise where governments from time to time may review their laws and policies that support renewable
energy and consider actions that would make the laws and policies less conducive to the development and operation of renewable energy
facilities, or other factors that change the expected returns on the project. Any reductions or modifications to, or the elimination of,
governmental incentives or policies that support renewable energy or the imposition of additional taxes or other assessments on renewable
energy could result in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy
projects, our abandoning the development of renewable energy projects, a loss of our investments in the projects, and reduced project
returns, any of which could have a material adverse