Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1300

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1300
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 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 on April 29,2025, resulting in the unwinding of all consideration transferred and legal ownership.

The Company has evaluated the rescission in accordance
with ASC 855, Subsequent Events, and determined it to be a non-recognized subsequent event, as the rescission did not change the condition
of “control” that existed as of the acquisition date or the reporting period end. As such, no adjustments have been made to
the financial statements for the period ended December 31, 2024. The rescission will be reflected in the Company’s financial statements
in the future accounting period in which the sale or disposal criteria are met (i.e., either the first or second quarterly period of the
year ending December 31, 2025).

Development Cost

The Company depends heavily on government policies
that support our business and enhance the