Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 240

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 240
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 by 5% per month until the Note is fully repaid. The Purchase Agreement
contains customary representations and warranties by the Company and closed on the same date thereof. The Purchase Agreement resulted
in net proceeds of $250,000 to the Company, which the Company intends to use for working capital purposes.

The 2025 Note, issued pursuant to the Purchase
Agreement, is convertible at the option of the Holder at any time after the Maturity Date, including with registration rights, at a conversion
price per share equal to ninety percent (90%) of the Company’s common stock’s VWAP (which is the three (3) Trading Days immediately
prior to such Conversion Date (or the nearest preceding date)) as of the date of such conversion (the “Conversion Date”).
The current 2025 Note is a senior direct debt obligation of the Company ranking pari passu with all other Notes, but subordinate and junior
in right of payment to the Senior Convertible Notes originally issued to 3i, LP., and other senior or pari passu Indebtedness (as defined
in the Purchase Agreement) of the Company.

On June 6, 2025, the Company entered into a Note
Purchase Agreement (the “Purchase Agreement”), by and between the Company and an institutional investor (the “Investor”),
pursuant to which the Company agreed to issue to the Investor a promissory note in the aggregate total principal amount of $240,000, having
a 16.67% original issue discount, an interest rate of 12% per annum and a maturity date of December 31, 2025 (the “Note”).
Pursuant to the Purchase Agreement, with the closing of the private placement of the Note, the Company received gross proceeds of $200,000,
before fees and other expenses associated with the transaction.

56

Cash Flow Discussion

The Company uses traditional measures of cash
flows, including net cash flows from operating activities, investing activities and financing activities to evaluate its periodic cash
flow results.

For the Six Months Ended June 30, 2025 compared to June 30, 2024

The following table reflects the changes in cash
flows for the comparative periods:

    Six Months Ended  June 30, 

    2025  
    2024  
    Change  ($) 

    (in thousands) 
  
    Net cash provided by/(used in) operating activities 
     (1,848)