Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 246

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 246
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irect wholly owned subsidiaries,
ALT US 03 and ALT US 04, and a related party, Alternus Energy Group PLC (“AEG”), to be conducted in Minneapolis, MN in accordance
with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”), claiming that approximately
$5 million is due and owed to Sunrise pursuant to a settlement agreement by and among the parties, plus costs, expenses, legal fees and
interest. On or about February 6, 2025, the Company entered into a second set of settlement terms with Sunrise, pursuant to which the
Company agreed to make certain monthly payments to Sunrise, related to amounts allegedly owed by one of the Company’s former subsidiaries
pursuant to a share purchase agreement, and in exchange Sunrise dismissed its arbitration case against the Company. As of March 10, 2025,
the Company breached its payment obligations under the settlement terms, and on June 18, 2025 an arbitration award of $5.7 million was
granted to Sunrise. The Company has accrued a liability for this loss contingency in the amount of approximately $5.2 million in other
payables in the financial statements, which represents the amount allegedly owed less the value provided to Sunrise by way of share issuance
to reduce the amount due.

On March 11, 2025, the Company was served a complaint
filed in the Superior Court of the State of Delaware by SPAC Sponsor Capital Access (“SCAF”), claiming that approximately
$1.7 million is due and owed to SCAF pursuant to a settlement agreement by and among the parties, plus legal costs and accrued interest. The Company has accrued a liability for this loss contingency in the amount of approximately $1.5 million, which represents the contractual
amount allegedly owed. It is reasonably possible that the potential loss may exceed our accrued liability due to costs, expenses, legal
fees, interest and damages that are also alleged by SCAF as owed. Subsequently, on July 10, 2025 the Company was notified that the Superior
Court of the State of Delaware granted a motion of summary judgment for $1.5 million due under a settlement agreement, plus interest to
date in the amount of approximately $225,000, plus attorney’s fees of approximately $26,000. The parties are currently in further
settlement discussions.

On May 8, 2025, the Company, Alternus Energy Group
PLC (AEG), a related party, and