Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 169

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 169
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 thereunder) is limited to 19.99% of the outstanding Common Stock as of April 19, 2024 (the “Exchange Cap”, which is
equal to 640,293 shares of Common Stock, subject to adjustment as described in the Purchase Agreement), unless shareholder approval (as
defined in the Purchase Agreement) (“Stockholder Approval”) is obtained by the Company to issue more than the Exchange Cap.
The Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock
split or other similar transaction. On September 26, 2024 the Company’s shareholders approved the potential issuance of shares by
the Company of more than the Exchange Cap. The Company adopted ASU 2020-06 as of January 1, 2023. This ASU removes the concepts of a beneficial
conversion feature and cash conversion feature from the ASC guidance. The Company recorded a loss on debt issuance of $0.9 million. As
of December 31, 2024, the outstanding principal was $0.4 million with fair value of $0.7 million at that date. The Company also recorded
a $1.3 million gain on movement in fair value in the year ended December 31, 2024.

F-32

As of December 31, 2024, $1,877,323
worth of this note (including principal plus accrued interest and late fees and penalties) had been converted into 1,026,256 shares leaving
$0.4 million of the note principal outstanding.

On October 1, 2024, the Company
entered into a Securities Purchase Agreement (the “Purchase Agreement”), by and between the Company and an institutional investor
(the “Investor”), pursuant to which the Company agreed to issue to the Investor a series of senior convertible notes up to
an aggregate principal amount of $2,500,000, issued with a twelve percent (12.0%) original issue discount (each a “Convertible Note”
and together, the “Convertible Notes”), and warrants (each a “Warrant” and together the “Warrants”)
to purchase shares of the Company’s common stock, $0.0001 par value per share (the “Common Stock”), equal to 50% of
the face value of the Convertible Note divided by the volume weighted average price, at an exercise price of $2.00 per share (the “Exercise
Price”). Pursuant to the