Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 302

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 302
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 any adjustments to the amounts and classification of assets
and liabilities that may be necessary should we be unable to continue as a going concern.

Our substantial
indebtedness could adversely affect our renewable energy business, financial condition and results of operations.

We believe that our substantial
indebtedness will increase. As of December 31, 2024, we had $23.6 million in outstanding short-term borrowing. It is likely
that we will continue to be highly leveraged. The degree to which we remain leveraged could have important consequences to stockholders
of the Company, including, but not limited to:

    ●
    making it more difficult for the Company to satisfy its obligations with respect to its other debt and liabilities;

    ●
    increasing the Company’s vulnerability to, and reducing its flexibility to respond to, general adverse economic and industry conditions;

    ●
    requiring the dedication of a substantial portion of the cash flow of the Company from operations to the repayment of principal of, and interest on, indebtedness, thereby reducing the availability of such cash flow and limiting the ability to obtain additional financing to fund working capital, capital expenditures, acquisitions, joint ventures or other general corporate purposes, such as payments to suppliers for PV modules and balance-of-system components and contractors for design, engineering, procurement, and construction services;

    ●
    limiting the Company’s flexibility in planning for, or reacting to, changes in its business and the competitive environment and the industry in which it operates; and

    ●
    placing the Company at a competitive disadvantage as compared to its competitors, to the extent that they are not as highly leveraged.

If the Company incurs
new debt or other obligations, the related risks the Company now faces, as described in this risk factor and elsewhere in these “Risk
Factors,” could intensify.

11

Our business as
a renewable energy company requires significant financial resources, and our growth prospects and future profitability depends to a significant
extent on the availability of additional funding options with acceptable terms. 

Our principal resources
of liquidity to date have been cash from our operations and borrowings from banks and our shareholders. We have leveraged bank facilities
in certain countries in order to meet working capital requirements for its activities. Our principal use of cash has been for pipeline
development, working capital, and general corporate purposes.

We will require significant
amounts of cash to fund the acquisition, development, installation, and construction of our projects and other aspects of our operations.
We may also require