Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 130

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 issued, using the treasury stock method or if-converted method, as applicable. Potentially dilutive shares related to stock options,
warrants, and convertible notes were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect due
to losses in each period. The following table sets forth the outstanding potentially dilutive securities that have been excluded in the
calculation of diluted net loss per share because their inclusion would be anti-dilutive:

    March 31,  
    March 31, 

    2025  
    2024 
  
    Warrants 
     3,143,328  
     478,000 
  
    Total 
     3,143,328  
     478,000 

8

Stock-Based Compensation

The Company accounts for stock-based compensation
in accordance with ASC 718. Stock-based compensation expense for equity instruments issued to employees and non-employees is measured
based on the grant-date fair value of the awards. The fair value of each stock unit is determined based on the valuation of the Company’s
stock on the date of grant. The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton stock
option pricing valuation model. The Company uses a simplified method for calculating the expected term of their options. The Company recognizes
compensation costs using the straight-line method for equity compensation awards over the requisite service period of the awards, which
is generally the awards’ vesting period. The Company accounts for forfeitures of awards in the period they occur.

Use of the Black-Scholes-Merton option-pricing
model requires the input of highly subjective assumptions, including (1) the expected terms of the option, (2) the expected volatility
of the price of the Company’s common stock, and (3) the expected dividend yield of our common stock. The assumptions used in the
option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of
management’s judgments. If factors change and different assumptions are used, the Company’s stock-based compensation expense
could be materially different in the future. Additional inputs to the Black-Scholes-Merton option-pricing model include the risk-free
interest rate and the fair value of the Company’s common stock. The Company determines the risk-free interest rate by using the
United States Treasury Rates of the same period as the expected term of the stock-option.

Recently Adopted Accounting Standards