Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1757

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1757
---
    (4,730)

    $
    (75)
    %
  
    Total for discontinued operations
     
    $
    1,564

    $
    6,294

    $
    (4,730)

    $
    (75)
    %
  
    Total for the period
     
    $
    13,548

    $
    11,228

    $
    2,320

    21
    %

Selling, general, and administrative expenses
for continuing operations increased by $7.1 million for the year ended December 31, 2024 compared to the same period in 2023 mainly driven
by an increase in audit, consulting, legal, and listing costs along with other costs relating to be listed on Nasdaq along with an increase
in insurance costs.

Selling, general and administrative expenses for
discontinued operations decreased by $4.7 million for the year ended December 31, 2024 compared to the same period in 2023 mainly driven
by a decrease in the Solis management fee to oversee operations for five parks in Romania for 2024 compared to the 23 parks in 2023 (5
in Romania, 1 in the Netherlands, 6 in Poland, and 11 in Italy).

Acquisition Costs

On December 11, 2024, BESS LLC, a Delaware limited
liability company and wholly owned subsidiary of the Company entered into an asset purchase agreement (the “APA”) with LiiON
LLC (“LiiON”), a U.S.-based expert in advanced energy storage solutions, and closed on the acquisition of certain assets related
to LiiON’s Battery Storage Business. The assets purchased included customer relationships, customer service agreements and intellectual
property (IP). The Company determined that the set of assets and activities acquired in connection with the APA and related agreements
constitute a business subject to the guidance in ASC 805 Business Combinations. Refer to Footnote 5 for more information.

Subsequent to December 31, 2024, the Company and
LiiON LLC mutually agreed to rescind the Asset Purchase Agreement (see Footnote 5). The rescission was driven by the discovery of certain
material issues not known at the time of closing including questions surrounding the perceived value of certain assets or relationships
acquired as well as NASDAQ’s delisting of the Company’s equity in February 2025. The agreement to rescind the transaction
was finalized