Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 966

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1C
Chunk 966
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 public accounting firm prior to the Business Combination,
as the Company’s independent registered public accounting firm, effective as of December 22, 2023. The Audit Committee (the “Committee”)
of the Board approved the dismissal of BDO and engaged Mazars USA as its auditor for 2023.

The Company has not had any
disagreements with its accountants on accounting and financial statements.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and
procedures are designed to ensure that the information we 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 our Chief Executive Officer and our 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 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