Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 123

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 123
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 the assets acquired. The allocation of the purchase price directly affects the following items in the Company consolidated financial statements:

| ● | The amount of purchase                                                                                                                 
 price allocated to the various tangible and intangible assets, liabilities and non-controlling interests on the Company balance sheet; |

| ● | The amounts allocated to                                                                                                         
 current assets or current liabilities are allocated at the acquisition value. The amounts allocated to long term tangible assets 
 and intangibles are amortized to depreciation or amortization expense, and                                                       |

| ● | The period over which tangible                                                                                                        
 and intangible assets and liabilities are depreciated or amortized varies, and thus, changes in the amounts allocated to these assets 
 and liabilities will have a direct impact on Company results of operations.                                                           |

82 Measurement of Level 3 Assets Financial assets where values are based on valuation techniques that require inputs that are both unobservable and are significant to the overall fair value measurement are classified as Level 3 under the fair value hierarchy established in applicable accounting standards. The fair value of these Level 3 financial assets is determined using a third party pricing service using Monte Carlo simulations or similar techniques for which the determination of fair value requires significant management judgment or estimation. The Level 3 gains and losses are valued quarterly and recorded in earnings. Impairment of Renewable Energy Facilities Renewable energy facilities that are held and used are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. An impairment loss is recognized if the total future estimated undiscounted cash flows expected from an asset are less than its carrying value. An impairment charge is measured as the difference between an asset’s carrying amount and its fair value. Fair values are determined by a variety of valuation methods, including appraisals, sales prices of similar assets and present value techniques. Quantitative and Qualitative Disclosures About Market Risk Market Risk The Company has no derivative financial instruments or derivative commodity instruments. Foreign Currency Risk The Company is exposed to foreign currency risk as a result of certain transactions and borrowings which are denominated in foreign currencies. The Company’s current asset portfolio generates revenue and incurs expenses in other currencies, including the Euro, the Polish Zloty the Romanian Lei and the Norwegian Krone. In addition, the Company is exposed to currency risk associated with translating its functional currency financial statements into its reporting currency, which is the U.S. dollar. As a result, the Company is exposed to movements in the exchange rates of various currencies against the U.S. dollar. The Company manages its exposure to currency