Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 279

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 279
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. The issuance of a warrant to the lender further increases the discount on this debt. As the Convertible Notes were issued at a discount, and not a premium, they are eligible for the fair value option. Management identified various features that would likely require separate accounting as derivatives if the fair value option were not taken; specifically, the various features that allow the Company or counterparty to settle the debt for a quantity of shares that is calculated as a percentage of VWAP. Even if no bifurcated features were identified, the Company would still be eligible for the fair value option under ASC 825. Accordingly, the Company elected the fair value option.

On August 1, 2024, the Company issued 8,262shares of unrestricted common stock valued at $ 6.65per share in exchange for the conversion of $ 54,958.33worth of the Convertible Note issued on April 19, 2024.

On September 3, 2024 we issued 10,194shares of unrestricted common stock valued at $ 5.32per share in exchange for the conversion of $ 54,265.09worth of the Convertible Note issued on April 19, 2024.

The remaining unpaid principal as of September 30, 2024 amounted to $ 2,060,000.

| Risk-free rate         |     | Convertible 
 Loan Note   |      3.58 | % |     | Warrant   
 Liability |      3.58 | % |
|:-----------------------|:----|:------------|----------:|:--|:----|:----------|----------:|:--|
| Underlying stock price |     | $           |      4.25 |   |     | $         |      4.25 |   |
| Expected volatility    |     |             |        50 | % |     |           |        50 | % |
| Term                   |     |             | 0.6 years |   |     |           | 5.1 years |   |
| Dividend yield         |     |             |         0 | % |     |           |         0 | % |

| Issuance of convertible loan note at April 19, 2024 |     | Convertible 
 Note        |     - |   |
|:----------------------------------------------------|:----|:------------|------:|:--|
| Fair value of convertible loan note                 |     |             | 2,144