Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 134

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 134
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 accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of Consolidation 

The consolidated financial
statements include the financial statements of the Company and its subsidiaries. All intercompany accounts and transactions have been
eliminated in consolidation. The results of subsidiaries acquired or disposed of during the respective periods are included in the consolidated
financial statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Related Party Transactions

A Related Party transaction
is any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which (i) the
Company or any of its subsidiaries is or will be a participant, and (ii) any Related Party has or will have a direct or indirect interest.
A Related Party is any person who is or was (since the beginning of the last fiscal year even if such person does not presently serve
in that role) an executive officer or director of the Company, any shareholder owning more than 5% of any class of the Company’s
voting securities, or an immediate family member of any such person. Refer to Footnote 25 for more details.

Use of Estimates

The preparation of consolidated
financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses for the periods presented. Significant items subject to such estimates include, but
are not limited to, the assumptions utilized in the valuation of the assets acquired and liabilities assumed, determination of a business
combination or asset acquisition, impairment of long-lived assets, measurement of level 3 fair value assets, and recovery of capitalized
cost. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including
the current economic environment, and adjusts when facts and circumstances dictate. These estimates are based on information available
as of the date of financial statements; therefore, actual results could differ from these estimates.

Segments

The Company has two operating
segments, United States Operations and European Operations, and has identified the chief operating decision-making (“CODM”)
group as the CEO of the Company. The CEO regularly reviews the Reporting Packs that contain financial and operational results aggregated
by geography as well as consolidated income statement, balance sheet, and equity of the overall company.

F-11

Cash and Cash Equivalents

The Company considers cash
and highly liquid investments with