Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 288

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 288
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, 2023. In accordance with the Business Combination Agreement,
Clean Earth issued 11,500 shares of common stock of Clean Earth, par value $0.0001 per share, to AEG, and AEG transferred to Clean Earth,
and Clean Earth received from AEG, all of the issued and outstanding equity interests in the Acquired Subsidiaries (as defined in the
Business Combination Agreement) (the “Equity Exchange,” and together with the other transactions contemplated by the Business
Combination Agreement, the “Business Combination”). In connection with the Closing, the Company changed its name from Clean
Earth Acquisition Corp. to Alternus Clean Energy, Inc.

The Company plans to use annual recurring revenues
(“ARR”) as a key metric in its financial management information and believes this method better reflects the long-term stability
of operations in the future. Annual recurring revenues are defined as the estimated future revenue generated by operating solar parks
based on the remaining term by the price received per mega-watt hour (MWh) of energy produced multiplied by the estimated production from
each solar park over a full year of operation. It should be noted that the actual revenues reported by the Company in a particular year
may be lower than the annual recurring revenues because not all parks may be revenue generating for the full year in their first year
of operation. The Company must also account for the timing of acquisitions that take place throughout the financial year.

37

Impacts of the Ukraine/Russia Conflict

The geopolitical situation in Eastern Europe intensified
on February 24, 2022, with Russia’s invasion of Ukraine. The war between the two countries continues to evolve as military activity
proceeds and additional sanctions are imposed. In addition to the human toll and impact of the events on entities that have operations
in Russia, Ukraine, or neighboring countries (e.g., Belarus, Poland, Romania) or that conduct business with their counterparties, the
war is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such
as rising inflation and global supply-chain disruption. Althought we no longer have physical facilities in Romania, the Company has seen
fluctuations in energy rates due to inflation, increased interest rates, and other macro-economic factors.

Known trends or Uncertainties

The Company has a working capital deficiency and
negative equity, and management has determined there is doubt about the Company’s ability to continue as a going concern, if planned
financing and/or equity raises do not occur and