Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1843

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1843
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 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, and interest that are also alleged by Sunrise
as owed, but at the time of filing this report, we are unable to determine an estimate of that possible additional loss in excess of the
amount accrued.

F-37

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 $1.5 million is due and owed to SCAF pursuant to a settlement agreement by and among the parties, plus costs, expenses,
legal fees, interest and damages, if proven. 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, but at the time of filing
this report, we are unable to determine an estimate of that possible additional loss in excess of the amount accrued. The parties are
currently in further settlement discussions.

On May 8, 2025, the Company,
Alternus Energy Group PLC (AEG) and one of AEG’s subsidiaries, Alternus Energy Americas Inc. (AEA), was served a Demand for Arbitration
through JAMS in Washington DC by Orrick, Herrington and Sutcliffe LLP (“Orrick”), claiming that approximately $1 million is
due and owed to Orrick pursuant to an engagement agreement entered into with AEA, plus interest. The Company intends to vigorously defend
itself in this matter and has filed a motion to dismiss itself from the arbitration as the Company was not a party to this engagement
agreement nor is AEA a subsidiary of the Company.

Commitments

On October 14, 2024, the Company
entered into a settlement agreement and release with Morgan Franklin Consulting LLC (“MF”) related to the settlement of payments
owed to MF for services rendered in the total amount of $276,796 through twelve equal monthly installments commencing in October of 2024.
As of December 31, 2024 and the date of this Report, the Company has not made any of these payments and is currently in default.

Contingencies

On August 7, 202