Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1197

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1197
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 for cut-off of expenditures.

The Company is working with an external
consultant to review and assess the Company’s current internal control structure to improve the overall effectiveness of the control
environment. In addition, the Company is investing in third party software to improve the accuracy, review, and approval of account reconciliations
and other accounting functions. Also, the Company is investing in third party software to improve the process around the completion of
the financial statements.

The material weaknesses described
above could result in a material misstatement to substantially all of the Company’s accounts or disclosures. These material weaknesses
leads management to conclude that the Company’s disclosure controls and procedures are not effective to give reasonable assurance
that the information required to be disclosed in reports that the Company files under the Exchange Act is recorded, processed, summarized
and reported as and when required.

Management’s Report on Internal Control
over Financial Reporting.

Management is responsible
for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management utilized the criteria
established in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) to conduct an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024.
Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have identified the material weaknesses described above
in our internal controls over financial reporting and have therefore concluded that our internal controls over financial reporting are
not effective at the reasonable assurance level.

As stated above, a material
weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the Company’s annual or interim consolidated financial statements will not be prevented
or detected on a timely basis.

Changes in Internal Control Over Financial
Reporting

There were no changes in