Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2310

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 7
Chunk 2310
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 analyzing whether any changes to its capital structure resulted in an ownership change, and whether US net operating losses
would be restricted in use as a result thereof.

The Company recognizes interest
and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2024 and 2023, the total balance
of accrued interest and penalties related to uncertain tax positions was $590 thousand and $0, respectively. The following is a reconciliation
of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:

    Year Ended December 31, 

    2024  
    2023 

    (in thousands) 
  
    Unrecognized tax benefits at beginning of year 
            -  
           - 
  
    Gross increases – tax positions in prior periods 
    $360  
    $- 
  
    Gross increases – tax positions in current period 
     230  
     - 
  
    Unrecognized tax benefits at end of year 
    $590  
    $- 

Unrecognized tax benefits
are not expected to significantly increase or decrease within the next 12 months.

F-53

    25.
    Related Party

Financial assets and financial
liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

AEG:

On October 12, 2022, AEG
entered into the Business Combination Agreement with the Company and Clean Earth Acquisition Sponsor LLC (the “Sponsor”)
which closed on December 22, 2023 (refer to Footnote 1). In conjunction with the Business Combination Agreement, AEG also entered into
an Investor Rights Agreement. The Investor Rights Agreement provides for certain governance requirements, registration rights and a lockup
agreement under which AEG is restricted from selling its shares in the Company for one year, or until December 22, 2024, other than 57,500
shares after March 22, 2024 and an additional 57,500 after June 22, 2024, provided the shares are registered under a registration statement
on SEC Form S-1. On July 31, 2024, these shares were registered. Alternus Energy Group Plc (“AEG”) was an 80% shareholder
of the Company as of December 31, 2023. As of December 31, 2024, AEG was a 48% shareholder of the Company.

In