Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 12

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 during the respective periods are included in the consolidated
financial statements from the effective date of acquisition or up to the effective date of disposal, as appropriate. The consolidated
financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related
notes for the year ended December 31, 2024, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and
Exchange Commission (“SEC”).

Net Loss Per Share

Net loss per share is computed pursuant to ASC
260, Earnings per Share. Basic net loss per share attributable to common shareholders is computed by dividing net loss attributable to
common shareholders by the weighted average number of common stock outstanding for the period. Diluted net loss per share attributable
to common shareholders is computed by dividing net loss attributable to common shareholders by the weighted average number of common stock
outstanding for the period plus the number of common stock that would have been outstanding if all potentially dilutive common stock had
been issued, using the treasury stock method or if-converted method, as applicable. Potentially dilutive shares related to stock options,
warrants, and convertible notes were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect due
to losses in each period. The following table sets forth the outstanding potentially dilutive securities that have been excluded in the
calculation of diluted net loss per share because their inclusion would be anti-dilutive:

    March 31,  
    March 31, 

    2025  
    2024 
  
    Warrants 
     3,143,328  
     478,000 
  
    Total 
     3,143,328  
     478,000 

8

Stock-Based Compensation

The Company accounts for stock-based compensation
in accordance with ASC 718. Stock-based compensation expense for equity instruments issued to employees and non-employees is measured
based on the grant-date fair value of the awards. The fair value of each stock unit is determined based on the valuation of the Company’s
stock on the date of grant. The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton stock
option pricing valuation model. The Company uses a simplified method for calculating the expected term of their options. The Company recognizes
compensation costs using the straight-line method for equity compensation awards over the requisite service period of the awards, which
is generally the awards’