Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1590

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 4
Chunk 1590
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 accounts payable,
and short-term debt, the carrying amounts approximate fair value due to the short maturity of these instruments.

The
fair value of the Company’s recorded forward purchase agreement (“FPA”) is determined based on unobservable inputs that
are not corroborated by market data, which require a Level 3 classification. The Company records the forward purchase agreement at fair
value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operation.

The
following table presents changes of the forward purchase agreement with significant unobservable inputs (Level 3) as of December 31, 2024,
in thousands:

    Forward Purchase Agreement 
  
    Balance at January 1, 2023 
    $- 
  
    Recognition of Forward Purchase Agreement Asset 
     17,125 
  
    Change in fair value 
     (16,642)
  
    Balance at December 31, 2023 
     483 
  
    Change in fair value 
     (483)
  
    Balance at December 31, 2024 
    $- 

The Company measures the April
19, 2024 convertible note and private placement warrants using a Monte Carlo simulation valuation model and applying the following assumptions
as of December 31, 2024:

    Convertible Loan Note  
    Warrant Liability 
  
    Risk-free rate 
     4.37% 
     4.37%
  
    Underlying stock price 
    $0.79  
    $0.79 
  
    Expected volatility 
     50% 
     50%
  
    Term 
     0.3 years  
     4.8 years 
  
    Dividend yield 
     0% 
     0%

F-24

The
following table presents changes of the convertible note and private placement warrants issued April 2024 with
significant unobservable inputs (Level 3) as of December 31, 2024, in thousands:

    Convertible Note 
  
    Balance at April 19, 2024 
     2,145 
  
    Conversions 
     (1,752)
  
    Change in fair value 
     (37)
  
    Balance at December 31, 2024 
    $356 

    Warrant Liability 
  
    Balance at April 19, 2024 
     803 
  
    Change in fair value 
     (394)
  
    Balance at December 31