Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2470

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 7A
Chunk 2470
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.33% of the overall
costs financed. The Warehouse Facility is not currently drawn upon, but a total of approximately €1,800,000 in arrangement and commitment
fees is currently owed to the Lender. Once drawn, the Warehouse Facility capitalizes interest payments until projects reach their commercial
operations dates through to the Maturity Date; it also provides for mandatory prepayments in certain situations.

    15.
    Leases

The Company determines if
an arrangement is a lease or contains a lease at inception or acquisition when the Company acquires a new park. The Company has operating
leases for corporate offices and land with remaining lease terms of 3 to 31 years.

Operating lease assets and
operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement
date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based
on information available at the commencement date in determining the present value of future payments. Lease expense related to the net
present value of payments is recognized on a straight-line basis over the lease term.

F-36

The key components of the
company’s operating leases were as follows (in thousands):

     December 31,   December 31,      2024   2023   Operating Lease - Operating Cash Flows (Fixed Payments)   -    142   Operating Lease - Operating Cash Flows (Liability Reduction)   43    83                New ROU Assets - Operating Leases   -    409                Weighted Average Lease Term - Operating Leases (years)   34.05    20.32   Weighted Average Discount Rate - Operating Leases   9.3%   8.20% 

The Company’s operating
leases generally relate to the rent of office building space, as well as land and rooftops upon which the Company’s solar parks
are built. These leases include those that have been assumed in connection with the Company’s asset acquisitions and business combinations.
The Company’s leases are for varying terms and expire between 2027 and 2055.

In October 2023, the Company
entered a new lease for land in Madrid, Spain where solar parks are planned to be built. The lease term is 35 years with an estimated