Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 240

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 240
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 instruments.

The
fair value of the Company’s recorded forward purchase agreement (“FPA”) is determined based on unobservable inputs
that are not corroborated by market data, which require a Level 3 classification. A Monte Carlo simulation model was used to determine
the fair value. The Company records the forward purchase agreement at fair value on the consolidated balance sheets with changes in fair
value recorded in the consolidated statements of operation.

| Forward Purchase Agreement |     | Fair Value Measurement 
 Level 1                | - |     | Level 2 | - |     | Level 3 | 483 |     | Total | 483 |
|:---------------------------|:----|:-----------------------|:--|:----|:--------|:--|:----|:--------|----:|:----|:------|----:|
| Total                      |     | $                      | - |     | $       | - |     | $       | 483 |     | $     | 483 |

| Balance at January 1, 2023                      |     | Forward Purchase Agreement Asset |       - |   |
|:------------------------------------------------|:----|:---------------------------------|--------:|:--|
| Recognition of Forward Purchase Agreement Asset |     |                                  |  17,125 |   |
| Change in fair value                            |     |                                  | (16,642 | ) |
| Balance at December 31, 2023                    |     | $                                |     483 |   |

|                        |     | Forward Purchase Agreement Asset |
| Rik-free rate          |     |                               4% |
| Underlying stock price |     |                            $1.50 |
| Expected volatility    |     |                              75% |
| Term                   |     |                       2.98 years |
| Dividend yield         |     |                               0% |

F-24

| 6. | Business Combination and Acquisitions of Assets |

The Company applies the definition
of a business in ASC 805, Business Combinations, to determine whether it is acquiring a business or a group of assets. When the
Company acquires a business, the purchase price is allocated to (I) the acquired tangible assets and liabilities assumed, primarily consisting
of solar energy facilities and land, (ii) the identified intangible assets and liabilities, primarily consisting of favorable and unfavorable
rate PPAs and REC agreements, (iii) asset retirement obligations, (iv) non-controlling interests, and (v) other