Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 460

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part II, Item 1
Chunk 460
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 Company was served a complaint
filed in the Superior Court of the State of Delaware by SPAC Sponsor Capital Access (“SCAF”), claiming that approximately
$1.7 million is due and owed to SCAF pursuant to a settlement agreement by and among the parties, plus legal costs and accrued interest. 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. Subsequently, on July 10, 2025 the Company was notified that the Superior
Court of the State of Delaware granted a motion of summary judgment for $1.5 million due under a settlement agreement, plus interest to
date in the amount of approximately $225,000, plus attorney’s fees of approximately $26,000. The parties are currently in further
settlement discussions.

On May 8, 2025, the Company, Alternus Energy Group
PLC (AEG), a related party, 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.

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Item 1A. Risk Factors

In addition to the other information set forth
in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2024
Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. There have been no material
changes during fiscal 2025 to the risk factors that were included in Form 10-K.

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

Sales of Unregistered Securities

On January 2, 2025, a convertible promissory note
holder converted $1,588,693 of the October Convertible Note into 10,591 shares of unrestricted