Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 43

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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, in the JV, for which the Company has
issued 1,000 shares of restricted common stock to Hover valued at $2,000 per share and will issue and commit 700 additional shares of
restricted common stock, and Hover will contribute certain initial projects and project pipeline. As of June 30, 2025 the JV had not yet
closed and the parties continue to operate under a strategic alliance agreement entered into on October 31, 2023. The Company has not
consolidated Hover as of June 30, 2025 because the strategic alliance agreement does not render the Company a controlling financial interest
in Hover. Upon the closing of the JV, the Company will perform an analysis to determine if it has acquired a controlling financial interest
in the JV requiring consolidation pursuant to the requirements of ASC 810.

On October 31, 2024, the Company
and Hover entered into an amendment to their strategic alliance agreement, whereby the Company will provide up to an additional $1,800,000
in development fees to Hover as and when development services are performed by Hover for specific Microgrid Projects. As of June 30, 2025,
services had been performed by Hover for specific Microgrid Projects agreed upon by the Company and $1,750,000 is due to Hover.

14. Development Cost

Initial costs incurred in
project development are capitalized and held on the balance sheet. The Company regularly reviews the status of these projects with our
development partners and can decide to abandon a project if it becomes uneconomic due to various factors, for example, a change in market
conditions leading to higher costs of construction, lower energy rates, political factors or otherwise where governments from time to
time may review their laws and policies that support renewable energy and consider actions that would make the laws and policies less
conducive to the development and operation of renewable energy facilities, or other factors that change the expected returns on the project.
Any reductions or modifications to, or the elimination of, governmental incentives, such as the renewable energy tax credits in the US,
or policies that support renewable energy or the imposition of additional taxes or other assessments on renewable energy could result
in, among other items, the lack of a satisfactory market for the development and/or financing of new renewable energy projects, our abandoning
the development of renewable energy projects, a loss of our investments in the projects, and reduced project returns, any of which could
have a material adverse effect on our business, financial condition, results of operations,