Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 233

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 233
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 term of their options. The
Company recognizes compensation costs using the straight-line method for equity compensation awards over the requisite service period
of the awards, which is generally the awards’ vesting period. The Company accounts for forfeitures of awards in the period they
occur.

Use of the Black-Scholes-Merton
option-pricing model requires the input of highly subjective assumptions, including (1) the expected terms of the option, (2) the expected
volatility of the price of the Company’s common stock, and (3) the expected dividend yield of our common stock. The assumptions
used in the option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the
application of management’s judgments. If factors change and different assumptions are used, the Company’s stock-based compensation
expense could be materially different in the future. Additional inputs to the Black-Scholes-Merton option-pricing model include the risk-free
interest rate and the fair value of the Company’s common stock. The Company determines the risk-free interest rate by using the
U.S. Treasury Rates of the same period as the expected term of the stock-option.

Net Loss Per Share

Net loss per share is computed
pursuant to ASC 260, Earnings per Share. Basic net loss per share attributable to common shareholders is computed by dividing
net loss attributable to common shareholders by the weighted average number of common stock outstanding for the period. Diluted net loss
per share attributable to common shareholders is computed by dividing net loss attributable to common shareholders by the weighted average
number of common stock outstanding for the period plus the number of common stock that would have been outstanding if all potentially
dilutive common stock had been issued, using the treasury stock method or if-converted method, as applicable. Potentially dilutive shares
related to stock options, warrants, and convertible notes were excluded from the calculation of diluted net loss per share due to their
anti-dilutive effect due to losses in each period.

|          |     | Year Ended December 31, |   2023 |     |     |   2022 |
|:---------|:----|:------------------------|-------:|:----|:----|-------:|
|          |     | -in thousands           |        |     |     |        |
| Warrants |     |                         | 12,345 |     |     | 11,945 |
| Total    |     |                         | 12,345 |