Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 203

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 203
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 the accuracy, review,
and approval of account reconciliations and other accounting functions. Also, the Company is investing in third party software to improve
the process around the completion of the financial statements.

The Company
will have third party experts review non routine, unusual and complex transactions in order to have the required expertise to confirm
the proper accounting treatment.

The material weaknesses described above could
result in a material misstatement to substantially all of the Company’s accounts or disclosures. These material weaknesses leads
management to conclude that the Company’s disclosure controls and procedures are not effective to give reasonable assurance that
the information required to be disclosed in reports that the Company files under the Exchange Act is recorded, processed, summarized and
reported as and when required.

51

Management’s Report on Internal Control
over Financial Reporting

Management is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our
internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management utilized the criteria established in
the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) to conduct an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2023. Based on
that evaluation, our Chief Executive Officer and Chief Financial Officer have identified the material weaknesses described above in our
internal controls over financial reporting and have therefore concluded that our internal controls over financial reporting are not effective
at the reasonable assurance level.

As stated above, a material weakness is a deficiency,
or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim consolidated financial statements will not be prevented or detected on a timely
basis.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal control
procedures over financial reporting (as defined in Rules 13a-15(f) and