Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 206

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 206
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).

On October 12, 2022, Clean Earth entered into
a Business Combination Agreement, as amended by that certain First Amendment to the Business Combination Agreement, dated as of April
12, 2023 (the “First BCA Amendment”) (as amended by the First BCA Amendment, the “Initial Business Combination Agreement”),
and as amended and restated by that certain Amended and Restated Business Combination Agreement, dated as of December 22, 2023 (the “A&R
BCA”) (the Initial Business Combination Agreement, as amended and restated by the A&R BCA, the “Business Combination Agreement”),
by and among Clean Earth, Alternus Energy Group Plc (“AEG”), and the Sponsor. Following the approval of the Initial Business
Combination Agreement and the transactions contemplated thereby at the special meeting of the stockholders of Clean Earth held on December
4, 2023, the Company consummated the Business Combination on December 22, 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