Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 173

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 not all parks may be revenue generating for the full year in their first year
of operation. The Company must also account for the timing of acquisitions that take place throughout the financial year.

33

Impacts of the Ukraine/Russia Conflict

The geopolitical situation in Eastern Europe intensified
on February 24, 2022, with Russia’s invasion of Ukraine. The war between the two countries continues to evolve as military activity
proceeds and additional sanctions are imposed. In addition to the human toll and impact of the events on entities that have operations
in Russia, Ukraine, or neighboring countries (e.g., Belarus, Poland, Romania) or that conduct business with their counterparties, the
war is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such
as rising inflation and global supply-chain disruption. Althought we no longer have physical facilities in Romania, the Company has seen
fluctuations in energy rates due to inflation, increased interest rates, and other macro-economic factors.

Known trends or Uncertainties

The Company has a working capital deficiency and
negative equity, and management has determined there is doubt about the Company’s ability to continue as a going concern, if planned
financing and/or equity raises do not occur and/or if the terms of financings or equity raises are not acceptable to the Company. Refer
to Footnote 2 of the accompanying financial statements.

The Company is currently working on several processes
to address the going concern issue. We are working with multiple global banks and funds to secure the necessary corporate and project
level financing to execute our transatlantic business plan and we have sold or otherwise discontinued operations in order to eliminate
significant amounts of debt and other obligations.

Competitive Strengths

The Company believes the following competitive
strengths have contributed and will continue to contribute to its success:

● Fully Integrated Clean Energy Provider
Model: 

We operate as a comprehensive energy provider,
managing the full renewable energy value chain across both utility scale and behind-the-meter microgrid markets. This “develop-to-own
or sell” strategy enables the Company to capture greater margin and retain control from early-stage development through to long-term
operations or strategic monetization, unlike peers focused solely on operational asset acquisitions.

● Experienced and Adaptive Management
Team:

The leadership team brings decades of collective
experience in capital markets, energy infrastructure, project development, and public company governance. Recent partnerships also bolster
technical and operational capabilities in areas such as microgrids, reinforcing the Company’s strategic