Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 211

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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. Therefore, the Company expects first and fourth quarter solar revenue to be lower than in other quarters. As a result, on average,
each solar park generates approximately 15% of its annual revenues in Q1 every year, 35% in each of Q2 and Q3, and the remaining 15% in
Q4. The Company’s costs are relatively flat over the year, and so the Company will always report lower profits in Q1 and Q4 as compared
to the middle of the year.

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Interest Rates on Company Debt

Interest rates on the Company’s senior debt
are mostly variable for the full term of finance at interest rates ranging from 6% to 30%.

In addition to the project specific senior debt,
the Company uses a small number of promissory notes in order to reduce, and in some cases eliminate, the requirement for the Company to
provide equity in the acquisition of the projects.

Cash Distribution Restrictions

In certain cases, the Company, through its subsidiaries,
obtain project-level or other limited or non-recourse financing for Company renewable energy facilities which may limit these subsidiaries’
ability to distribute funds to the Company for corporate operational costs. These limitations typically require that the project-level
cash is used to meet debt obligations and fund operating reserves of the operating subsidiary. These financing arrangements also generally
limit the Company’s ability to distribute funds generated from the projects if defaults have occurred or would occur with the giving
of notice or the lapse of time, or both.

Renewable Energy Facility Acquisitions and Investments

The Company’s long-term growth strategy
is dependent on its ability to acquire additional renewable power generation assets. This growth is expected to be comprised of additional
acquisitions across the Company’s scope of operations both in its current focus countries and new countries. Our operating revenues
are insufficient to fund our operations and our assets already are pledged to secure our indebtedness to various third party secured creditors,
respectively. The unavailability of additional financing could require us to delay, scale back, or terminate our acquisition efforts as
well as our own business activities, which would have a material adverse effect on the Company and its viability and prospects.

Management believes renewable power has been one
of the fastest growing sources of electricity generation globally over the past decade. The Company expects the renewable energy generation
segment to continue to offer growth opportunities driven by:

●The continued reduction in
the cost of solar and other renewable energy technologies, which the Company believes will lead to grid parity in an increasing number
of