Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1128

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1128
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 income
(expense), net in the Consolidated Statement of Operations and Other Comprehensive Income/(Loss).

The initial fair value of
the instrument includes any embedded features. Transaction costs incurred in connection with the issuance of the instrument are expensed
as incurred in accordance with ASC 825-10-25-3. Instruments for which the fair value option has been elected are classified as short-term
or long-term liabilities based on their contractual maturity dates. The Company evaluates the appropriateness of the fair value measurement
hierarchy at each reporting period and discloses the level within the fair value hierarchy (Level 1, Level 2, or Level 3) accordingly.

Recent Accounting Pronouncements 

In December 2023, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):
Improvements to Income Tax Disclosures to enhance the transparency of income tax disclosures relating to the rate reconciliation, disclosure
of income taxes paid, and certain other disclosures. The ASU should be applied prospectively and is effective for annual periods beginning
after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact on the related disclosures; however,
it does not expect this update to have an impact on its financial condition or results of operations.

F-21

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic
280): Improvements to Reportable Segment Disclosures to improve the disclosures about reportable segments and include more detailed information
about a reportable segment’s expenses. This ASU also requires that a public entity with a single reportable segment, provide all
of the disclosures required as part of the amendments and all existing disclosures required by Topic 280. The ASU should be applied retrospectively
to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023 and interim
periods within fiscal years beginning after December 15, 2024. The Company adopted this in the year ended December 31, 2024.

    4.
    2023 Business Combination with Clean Earth Acquisitions Corp.

As discussed in Footnote 1, on December 22, 2023,
Clean Earth Acquisitions Corp. (“CLIN”), Alternus Energy Group Plc (“AEG”) and Clean Earth Acquisition Sponsor
LLC (the “Sponsor”) completed the Business Combination