Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2243

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 7
Chunk 2243
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564 

Reclassification of Prior Period Cash Flows

On October 3, 2024, the Company
completed the sale of Solis Bond Company DAC and its subsidiaries in Romania, which met the criteria for classification as a discontinued
operation under ASC 205-20. Consequently, the results of Solis and its Romanian subsidiaries have been presented as discontinued operations
in the consolidated financial statements for all periods presented. As a result, the consolidated statements of cash flows for the year
ended December 31, 2023, have been recast to segregate cash flows from discontinued operations. These reclassifications had no impact
on previously reported net cash flows. The following table summarizes the cash flows attributable to discontinued operations (in thousands):

    Year Ended December 31, 
  
    Discontinued Operations 
    2024  
    2023 
  
    Net cash provided by/(used in) operating activities 
    $95,592  
    $10,173 
  
    Net cash provided by/(used in) investing activities 
     23,088  
     (124)
  
    Net cash provided by/(used in) financing activities 
     (137,729) 
     (17,164)

Accounts Receivable

Accounts receivable are uncollateralized
amounts due from customers under normal trade terms. Accounts receivables are presented net of allowance for doubtful accounts. The Company
establishes an allowance for doubtful customer accounts, through a review of historical losses, customer balances, and industry economic
conditions. Under the expected loss model, a loss (or allowance) is recognized upon initial recognition of the asset that reflects all
future events that may lead to a loss being realized, regardless of whether it is probable that the future event will occur. The Company
extends credit based on an evaluation of customers’ financial condition and determines any additional collateral requirements. Exposure
to losses on receivables is principally dependent on each customer’s financial condition. The Company considers invoices past due
when they are outstanding longer than the stated term. Under the expected loss model, a loss (or allowance) is recognized upon initial
recognition of the asset that reflects all future events that may lead to a loss being realized, regardless of whether it is probable
that the future event will occur. Management considers the carrying value of accounts receivable to be fully collectible. If amounts become
uncollectible, they are charged to operations in the period in which that determination is made.

The