Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1361

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1361
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, such as quoted prices for similar assets and liabilities in active markets; quoted prices for
identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data.

Level 3 — Unobservable inputs
that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes
certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

As
of December 31, 2024, the summary of the fair value instruments held by the Company were as follows, in thousands:

    Fair Value Measurement 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Forward Purchase Agreement 
              -  
              -  
     -  
     - 
  
    Convertible Loan Note 
     -  
     -  
     1,662  
     1,662 
  
    Warrant Liability 
     -  
     -  
     811  
     811 
  
    Total 
    $-  
    $-  
    $2,473  
    $2,473 

F-23

Valuation Techniques

●Forward Purchase Agreement: Valued using unobservable
inputs that are not corroborated by market data (Level 3).

●Convertible Note (fair value option): Valued
using unobservable inputs that are not corroborated by market data (Level 3).

●Warrant Liability: Valued using unobservable
inputs that are not corroborated by market data (Level 3).

On December 3, 2023,
the Company entered into an agreement with (i) Meteora Capital Partners, LP, (ii) Meteora Select Trading Opportunities Master,
LP, and (iii) Meteora Strategic Capital, LLC (collectively “Meteora”) for OTC Equity Prepaid Forward Transactions (the
“FPA”). The purpose of the FPA was to decrease the amount of redemptions in connection with the Company’s Special Meeting
and potentially increase the working capital available to the Company following the Business Combination. 

Pursuant to the terms of the
FPA, Meteora purchased 111,862 (the “Purchased Amount”) shares of common stock concurrently with the Business Combination