Alternus Clean Energy(US:ALCE)2025-06-30 14:34Financial Performance - The Company reported no revenues for the three months ended March 31, 2025, compared to $93,000 in the same period in 2024, representing a 100% decrease [200]. - The Company experienced a loss from continuing operations of $180,000 for the three months ended March 31, 2025, compared to a loss of $5.087 million in 2024 [200]. - The Company reported a comprehensive loss of $769,000 for the three months ended March 31, 2025, compared to a comprehensive loss of $7.811 million in 2024 [200]. - The Company’s discontinued operations reported a total revenue decrease of $2.2 million for the three months ended March 31, 2025, compared to 2024, due to the sale of all operating parks [203]. - The Company reported a gain of $3.589 million from the sale of its subsidiaries in Spain for the three months ended March 31, 2025 [218]. - Net loss for continuing operations decreased by $4.9 million for the three months ended March 31, 2025, attributed to a decrease in SG&A expenses and the gain from the sale of subsidiaries [222]. Revenue and Production - The company expects to generate approximately 15% of annual revenues in Q1, 35% in Q2, 35% in Q3, and 15% in Q4 due to seasonal variations in solar energy production [188]. - The company’s revenue is primarily driven by the volume of electricity generated and sold, with long-term FIT programs or PPAs in place, which generally have fixed pricing for the duration of the contracts [185]. - The total megawatt hours (MWh) sold in the United States for the three months ended March 31, 2024, was 842 MWh, while there were no sales reported for 2025 [198]. Expenses and Cost Management - The consolidated operating expenses for the three months ended March 31, 2025, were $1.969 million, a decrease from $3.199 million in 2024, reflecting a 38.5% reduction [200]. - Selling, general, and administrative expenses for the three months ended March 31, 2025, were $1.490 million, down 54% from $3.107 million in 2024 [208]. - The cost of revenues for the three months ended March 31, 2025, was $1.050 million, a decrease of $1.050 million from $1.050 million in 2024, reflecting a 100% reduction due to the sale of operating parks [206]. Debt and Financing - The company has a working capital deficiency and negative equity, raising doubts about its ability to continue as a going concern without planned financing or equity raises [168]. - The company’s interest rates on senior debt range from 6% to 30%, impacting overall financing costs and operational results [189]. - As of March 31, 2025, total debt was $10,380,000, a decrease of 65.8% from $30,344,000 as of December 31, 2024 [227]. - The company eliminated approximately $115 million in debt and payables related to Solis activities, improving shareholders' equity by approximately $59 million [229]. - The Company intends to finance future acquisitions or growth capital expenditures primarily through long-term non-recourse debt and retained cash flows from operations [225]. - Total interest expense for continuing operations increased by approximately $0.509 million to $2.190 million for the three months ended March 31, 2025, driven by a net increase in interest expense [220]. Strategic Initiatives - The company is actively pursuing strategic partnerships and acquisitions in high-growth areas such as battery storage and circular economy energy systems to enhance technical capabilities and diversify revenue streams [179]. - The company aims to expand its portfolio by acquiring utility-scale clean energy projects across multiple geographies to build a diversified asset base [183]. - The company’s long-term growth strategy relies on its ability to acquire additional renewable power generation assets, which is contingent on access to capital markets [191]. Sustainability and Compliance - The company is committed to establishing a formal sustainability policy framework to ensure that project development is carried out sustainably, mitigating potential local and environmental impacts [183]. - The company is addressing going concern issues and has raised substantial doubt about its ability to continue as a going concern for twelve months from the issuance of the report [228]. - The company is currently quoted on an over-the-counter trading market due to non-compliance with Nasdaq listing requirements [231]. Cash Flow and Liquidity - For the three months ended March 31, 2025, net cash provided by operating activities was $552,000, a significant increase of $1.6 million compared to a net cash used of $2,036,000 in the same period of 2024 [247]. - Net cash used in discontinued operating activities decreased by $2.7 million for the three months ended March 31, 2025, attributed to the sale of operating parks in Poland, the Netherlands, and Romania [249]. - Net cash used in continuing investing activities decreased by $2.9 million for the three months ended March 31, 2025, as the Company did not pursue additional developments [250]. - Net cash provided by continuing financing activities increased by $1.4 million for the three months ended March 31, 2025, driven by approximately $500,000 of new debt and $900,000 of intercompany transaction activity [251]. - The company had cash and cash equivalents of $81,000 as of March 31, 2025, down from $161,000 as of December 31, 2024 [227].