Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 150

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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 and has filed a motion to dismiss itself from the arbitration as the Company was not a party to this engagement
agreement nor is AEA a subsidiary of the Company.

Commitments

On October 14, 2024, the Company
entered into a settlement agreement and release with Morgan Franklin Consulting LLC (“MF”) related to the settlement of payments
owed to MF for services rendered in the total amount of $276,796 through twelve equal monthly installments commencing in October of 2024.
As of December 31, 2024 and the date of this Report, the Company has not made any of these payments and is currently in default.

CFGI LP and the Company entered
into a settlement agreement for a contractual amount owed for services rendered in the amount of $358,000, whereby the Company shall pay
to CFGI approximately $10,000 per month commencing June 2, 2025 for a period of three years.

Contingencies

On August 7, 2024, the Company
entered into a ‘Heads of Terms’ (i.e., similar to a Letter of Intent) for Joint “Agreement”) with Hover Energy
LLC and its affiliates (“Hover”) to establish a joint venture (the “JV”) for the financing, development, management,
and operation of ‘Microgrid Projects’ utilizing Hover Wind-Powered Microgrid™ technology, as required. Pursuant to the
said JV, the Company and Hover have agreed to have a 51% interest and a 49% interest, respectively, in the JV, for which the Company has
issued 200,000 shares of restricted common stock to Hover valued at $10.00 per share and will issue and commit 140,000 additional shares
of restricted common stock, and Hover will contribute 100% of its projects and project pipeline. As of March 31, 2025 the JV had not yet
closed and the parties continue to operate under a strategic alliance agreement entered into on October 31, 2023. The Company has not
consolidated Hover as of March 31, 2025 because the strategic alliance agreement does not render the Company a controlling financial interest
in Hover. Upon the closing of the JV, the Company will perform an analysis to determine if it has acquired a controlling financial interest
in the JV requiring consolidation pursuant to the requirements of ASC 810.

19

On October 31, 2024, the Company
and Hover entered into an amendment to their strategic