Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 155

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 155
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013 Recycled Shares, 59,849 additional
shares and 111,862 total number of shares. The FPA provides for a prepayment shortfall in an amount in US dollars equal to $500,000. Meteora
in its sole discretion may sell Recycled Shares at any time following the Trade Date at prices (i) at or above $250.00 during the
first three months following the Closing Date and (ii) at any sales price thereafter, without payment by Meteora of any Early Termination
Obligation until such time as the proceeds from such sales equal 100% of the Prepayment Shortfall. The number of shares subject to the
Forward Purchase Agreement is subject to reduction following a termination of the FPA with respect to such shares as described under “Optional
Early Termination” in the FPA. The reset price is set at $250.00. Commencing from June 22, 2024, the reset price is subject to reduction
upon the occurrence of a Dilutive Offering. 

The Company holds various
financial instruments that are not required to be recorded at fair value. For cash, restricted cash, accounts receivable, accounts payable,
and short-term debt, the carrying amounts approximate fair value due to the short maturity of these instruments.

The
fair value of the Company’s recorded forward purchase agreement (“FPA”) is determined based on unobservable inputs that
are not corroborated by market data, which require a Level 3 classification. The Company records the forward purchase agreement at fair
value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operation.

The
following table presents changes of the forward purchase agreement with significant unobservable inputs (Level 3) as of December 31, 2024,
in thousands:

    Forward Purchase Agreement 
  
    Balance at January 1, 2023 
    $- 
  
    Recognition of Forward Purchase Agreement Asset 
     17,125 
  
    Change in fair value 
     (16,642)
  
    Balance at December 31, 2023 
     483 
  
    Change in fair value 
     (483)
  
    Balance at December 31, 2024 
    $- 

The Company measures the April
19, 2024 convertible note and private placement warrants using a Monte Carlo simulation valuation model and applying the following assumptions
as of December 31, 2024:

    Convertible Loan Note