Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 155

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 clarified by ASU 2025-01,
is ongoing. The Company expects the standard to result in enhanced disaggregation of expense information within the notes to the financial
statements but does not anticipate a material effect on its consolidated financial statements.

In April 2024, the FASB issued
ASU 2024-04, Debt — Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments.
The ASU provides explicit guidance on how issuers should account for inducements offered to holders to convert convertible debt to equity
instruments, requiring the difference between the fair value of consideration transferred and the fair value of securities issuable under
the original conversion terms to be recognized as an expense at the inducement date. The ASU is effective for all entities for fiscal
years beginning after December 15, 2025, and interim periods within those fiscal years. The Company is assessing the impact of ASU 2024-04.
Because the Company has not historically entered into conversion inducements, management does not expect adoption to materially affect
its consolidated financial statements.

In March 2025, the FASB issued
ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer When the Legal Acquiree
Is a Variable Interest Entity. The amendment clarifies how an entity identifies the accounting acquirer in a business combination when
the legal acquiree is a VIE, aligning the guidance with the broader control and consolidation framework under ASC 810. The ASU is effective
for public business entities for fiscal years beginning after December 15, 2026, and interim periods within those years; early adoption
is permitted. The Company is currently evaluating the impact of this guidance. The adoption of ASU 2025-03 is not expected to have a material
impact on the Company’s consolidated financial statements but may affect future acquisition analyses and related disclosures.

9

4. Fair Value Measurements

Fair value is defined as the
exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure
fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable
inputs and minimize the use of unobservable inputs.