Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 104

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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 are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”) is recorded, processed, summarized, and reported within the time periods specified in SEC
rules and forms, and that such information is accumulated and communicated to our management to allow timely decisions regarding required
disclosure.

Our management, with the participation and supervision
of Mr. Browne, our Chief Executive Officer and Interim Chief Financial Officer, have evaluated the effectiveness of our disclosure controls
and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this annual
report. Based on such evaluation, our Chief Executive Officer and Interim Chief Financial Officer have concluded that as of such date,
our disclosure controls and procedures were not, in design and operation, effective at a reasonable assurance level due to the material
weaknesses in internal control over financial reporting described below.

A material weakness is a deficiency, or combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the Company’s annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

The Company has identified the following material
weakness in internal control over the financial reporting process.

    ●
    The Company did not design and maintain an effective control environment commensurate with its financial reporting requirements. Specifically, the Company lacked a sufficient number of professionals with an appropriate level of accounting knowledge, training and experience to appropriately analyze, record and disclose accounting matters timely and accurately. Additionally, the lack of a sufficient number of professionals resulted in an inability to consistently establish appropriate authorities and responsibilities in pursuit of its financial reporting objectives, as demonstrated by, among other things, insufficient segregation of duties in its finance and accounting functions.

To the extent
reasonably possible given our limited resources, we intend to take measures to cure the aforementioned weaknesses, including, but not
limited to, increasing the capacity of our qualified financial personnel to ensure that accounting policies and procedures are consistent
across the organization and that we have adequate controls over our Exchange Act reporting disclosures.

    ●
    The Company did not design and maintain effective controls for communicating and sharing information within the Company. Specifically, the accounting and finance departments were not consistently provided the complete and adequate support, documentation, and information including the nature of relationships with certain counterparties to record transactions within the financial statements timely,