ALTERNUS ENERGY GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 September 2022

Table of Contents	Page Number
Company Information	3
Directors' Report	4 – 10
Consolidated Statement of Comprehensive Income	11
Consolidated Statement of Financial Position	12
Consolidated Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Consolidated Financial Statements	15 – 58

Company Information

Directors	Mr. Vincent Browne Mr. John Thomas Mr. John McQuillan Mr. Javade Chaudhri (added to the Board at February 17, 2022) Ms. Tone Bjørnov Mr. Jon Masdal (added to the Board as at July 29, 2022)
Secretary	Mr. John McQuillan
Registered Office	Suite 9-10 Plaza 212, Blanchardstown Corporate Park 2, Blanchardstown, Dublin 15 D15 R504
Registered Number	642708
Solicitors	Matheson LLP Carmel, Milazzo & Feil LLP Thommessen AS
Bankers	Bank of Ireland JP Morgan Chase DNB Postbank GLS Bank Munchen DKB ING Bank
Auditors	Mazars Chartered Accountants & Statutory Audit Firm Harcourt Centre, Block 3 Harcourt Road Dublin 2

Director's Report for the Nine Months ended 30 September 2022

The directors present herewith their report and unaudited consolidated financial statements for the period ended 30 September 2022. These financial statements reflect the performance of Alternus Energy Group Plc and its subsidiaries ("the Group") for the nine months ended 30 September 2022.

Directors and Secretary

The present directors and secretary are as listed on page 3 and, unless otherwise indicated, have served throughout the period. Mr. Jon Masdal was appointed on July 29, 2022.

The present directors and secretary are as listed on page 3 and, unless otherwise indicated, have served throughout the period. The table below outlines the beneficial interests in the shares of the Company:

Director	Ordinary shares
Vincent Browne	4,318,954
John McQuillan	94,500
John Thomas	385,500
Tone Bjørnov	-
Jon Masdal	-
Javade Chaudhri	-

Principal Development & Performance Activities Review

Alternus Energy Group Plc ("We", "Alternus" or the "Company" and together with its consolidated subsidiaries, the "Group") was incorporated in Dublin, Ireland on 31 January 2019 under the name Alternus Energy International Limited. On 20 October 2020, the Company re-registered as a Public Limited Company (Plc) and changed its name to Alternus Energy Group Plc.

Established in 2016, Alternus Energy Group Plc is an international vertically integrated independent power producer (IPP). Headquartered in Ireland and listed on the Euronext Growth Market – Oslo, the Company develops, constructs, owns, and operates utility scale solar PV projects in multiple countries. The Company also has offices in Rotterdam and America.

The company is headquartered in Ireland and has offices in the United States, Romania, the Netherlands, Italy, and Germany.

Business Summary and Key Performance Indicators

The key performance indicators of the financial results are as follows:

Increased portfolio capacity to 167.5 MWp.
Completed additional tap placement of €10 million green bonds in first quarter of 2022

The financial statements are presented in Euro which is the functional currency of the Group. Eurobased currency volatility continued during the fiscal year 2022 in relation to the US Dollar, Polish Złoty, Great British Pound and Romanian RON, resulting in a foreign exchange gain of €0.75 million for the Group in the year.

Significant Changes in the State of Affairs

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements during the nine months ended 30 September 2022, the Group had net loss of €6.1 million. At 30 September 2022, the Group had €14.7 million of unrestricted cash.

The outbreak of coronavirus, also known as COVID-19 and the Russia – Ukraine crisis, has not substantially impacted the operations of the Group and its core operations.

Results for the period

The results for the financial period are set out in page 11.

Going concern

The directors expect the Company to acquire solar parks and continue the Group's footprint of net MW increase to the portfolio, the financial statements have been prepared on a going concern basis. The Directors are of the opinion that the Company has sufficient cash flows to continue to meet its obligations and there is no intention to wind up the Company. The outbreak of the corona virus, also known as "COVID-19", has spread across the globe and is impacting worldwide economic activity. COVID-19 has not substantially impacted the operations of the Company and its core operations.

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 neighbouring 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. These events are highly uncertain and as such, the Company cannot determine their financial impact at this time.

Political Donations

The Electoral Act, 1997 requires companies to disclose all political donations over €200 in aggregate made during the financial year. The directors, on enquiry, have satisfied themselves that no such donation in excess of this amount has been made by the Company during the period ended 30 September 2022.

Dividends

During the period the Company made no interim dividend payments to ordinary shareholders.

Future Developments in The Business

Despite the significant global headwinds and uncertainty caused by the COVID-19 pandemic, and the Russia – Ukraine Conflict, the Group plans to continue acquiring solar parks and continue expanding its footprint of net megawatts (MW) increase to the portfolio.

Principal Risks and Uncertainties

In the opinion of the Directors, the main risks and uncertainties faced by the Group, along with the nature of their potential impact, are as follows:-

a) Risks relating to unsuccessful completion of transactions The Group is currently negotiating several transactions to acquire solar parks in Poland, Germany, Greece, Spain, Romania and elsewhere across Europe. There can be no assurances that the transactions will complete.
b) Risks related to the Group and the industry in which it operates:
- The Company is a holding company that relies on distributions and other payments, advances, and transfers of funds from its subsidiaries to meet its obligations.
- The reduction, modification or elimination of government subsidies and economic incentives may reduce the economic benefits of existing solar parks and the opportunities to develop or acquire suitable new solar parks.
- Decreases in the spot market price of electricity could harm the Group's revenue and reduce the competitiveness of solar parks in grid-parity markets.
- Risks related to power purchase agreements.
c) Risks related to the Group and the industry in which it operates continued:
- The seasonality of the Group's operations may affect its liquidity and will affect our quarterly results.
- Risks related to acquisitions.
- Failure to manage the Group's growing and changing business could have a material adverse effect on the business, prospects, financial condition, and results of operations.
- The delay between making significant upfront investments in the Group's solar parks and receiving revenue could materially and adversely affect the Group's liquidity, business and results of operations.
- Risks related to developing and maintaining renewable energy projects.
- Risks related to receiving proper planning permissions for the solar parks.
- Solar project development is challenging and may ultimately not be successful and miscalculations in planning a project may negatively affect our engineering, procurement, and construction (EPC) prices, all of which could increase our costs, delay, or cancel a project, and have a material adverse effect on our business, financial condition, results of operations and profit margins.
- Our development activities may be subject to cost overruns or delays, which may materially and adversely affect our financial results and results of operations.
- Risks relating to PV plants quality or PV plants performance.
- The Group's limited operating history may not serve as an adequate basis to judge its prospects and results of operations.
- The holding companies in the Group have a significant number of foreign subsidiaries with whom they have entered into many related party transactions. The relationship of such holding companies with these entities could adversely affect the Group in the event of their bankruptcy or similar insolvency proceeding.
- The Group's business as an independent power producer (IPP) requires significant financial resources and the growth prospects and future profitability of the Group depends on the availability of additional funding options with acceptable terms. If the Group does not successfully execute its financing plan it may have to sell certain of its solar parks.

Risk related to competition.
Risk related to personnel.
If sufficient demand for solar parks does not develop or takes longer than anticipated to develop, the Group's business, financial condition, results of operations and prospects could be materially and adversely affected.
The Group is subject to risks associated with fluctuations in the price of PV modules and balance-of-system components or in the costs of design, construction, and labour.
The Group may be subject to unforeseen costs, liabilities or obligations when operating and maintaining solar parks.
Refurbishment of renewable energy facilities involve significant risks that could result in unplanned power outages or reduced output.
d) Risks related to the Group and the industry in which it operates continued:
- The Group's project operations may be adversely affected by weather and climate conditions, natural disasters, and adverse work environments.
- Business interruptions, whether due to catastrophic disasters or other events, could adversely affect the Group's operations, financial condition, and cash flows.
- The Group's business, results of operations, financial condition and cash flows has been and may continue to be materially and adversely affected by the outbreak of COVID-19.
e) Legal and regulatory risk:
- Litigation risk the Group may, in the ordinary course of business, become involved in such proceedings which may be expensive, lengthy, disruptive to normal business operations and require significant attention from the Group's management bodies.
- Risk related to legal rights to real property.
- The Group is subject to counterparty risks under our Feed in Tariff (FiT) price support schemes and Green Certificates (GC) schemes.
- The Group has limited business insurance coverage internationally.
- The Group conducts its business operations globally and is subject to global and local risks related to economic, regulatory, tax, social and political uncertainties.
- The Group's international operations require significant management resources and presents legal, compliance and execution risk in multiple jurisdictions.
f) Risks related to the Group's financial situation:
- Fluctuations in foreign currency exchange rates may negatively affect the Group's revenue, cost of sales and gross margins and could result in exchange losses.
- The Group's substantial indebtedness could adversely affect its business, financial condition, and results of operations.
g) Risks relating to the shares:
- An active trading market for the Company's shares may not develop and the price of the shares may under any circumstance fluctuate significantly.
- The shares may not be a suitable investment for all investors.

Holders of the shares may need an account with VPS and shareholders that are registered in a nominee account may not be able to exercise voting rights as readily as shareholders whose shares are registered in their own names with the VPS.
Shareholders may face currency exchange risks or adverse tax consequences by investing in the shares denominated in currencies other than their reference currency.
Legal investment considerations may restrict certain investments.
Shareholders may risk being diluted.
The transfer of shares is subject to restrictions under the securities laws of the United States and other jurisdictions.
Future sales or the possibility of future sales of substantial numbers of shares may affect the shares ' market price.

h) Risks relating to the shares:

The Company may be unwilling or unable to pay any dividends or make distributions.
Irish law imposes certain restrictions on shares and shareholders.

Events subsequent to the Quarter End

In accordance with IAS 10, Events after the reporting period (Subsequent Events), we have evaluated subsequent events through the date of issuance of these financial statements.

On October 12, 2022, Alternus Energy Group PLC and Clean Earth Acquisitions Corp, a climate technology and energy transition-focused special purpose acquisition company announced the execution of a definitive business combination agreement. Under the agreement, at the closing, Alternus will transfer its equity ownership in substantially all its subsidiaries in exchange for up to 90 million newly issued shares in Clean Earth. Initially, Clean Earth will issue 55 million shares at closing (subject to a working capital adjustment capped at 1 million additional shares) plus up to 35 million shares subject to certain earn-out provisions, which will be deposited in escrow and will be released if certain EBITDA and share price targets are met. Alternus will own approximately 64% of Clean Earth at closing, assuming no redemptions by Clean Earth shareholders, in which case the combined company will have approximately \$220 million of cash available at closing.

Parent Undertaking and Controlling Party

Alternus Energy Group Plc ("We", "ALTN" or the "Company" and together with its consolidated subsidiaries, the "Group") was incorporated in Dublin, Ireland on January 31, 2019 under the name Alternus Energy International Limited. On October 20, 2020 the Company re-registered as a PLC and changed its name to Alternus Energy Group PLC. The Company is a former subsidiary of the previous parent company of the Group, Alternus Energy Inc., but became the new parent company of the Group following completion of a reorganization. On December 2, 2020, the Group completed the last step of a reorganization, which resulted in the Company becoming the parent company of the Group (the "Reorganization"). The Reorganization included the following main steps: (i) the Company re-registered as a Plc in Ireland (from a Limited company), (ii) the Company incorporated Solis Bond Company, a Designated Activity Company, (iii) Altam Inc., the Company's parent company at the time, spun out the Company through the issuance of a share dividend / the distribution of the Company's shares to Altam Inc.'s shareholders, and (iv) the Company acquired Altam Inc. through a share for share exchange. The net result of the reorganization was no change to the carrying value of the equity. The share dividend was at a 1:1.5 ratio and the share exchange was at 1:4.5 Group Companies.

Related Party

Parties are considered to be related when one party can exercise control, shared control, or significant influence over the other in decision-making involving its finances and operating activities. The related parties of the parent company include major shareholders, subsidiaries, and key management personnel. Key management personnel include members of the Board of Directors and the Secretary. There are no Related Party transactions in 2022 related to the management personnel related to the Board and Secretary.

Directors' Remuneration

	30 September 2022
Director's Remuneration	(€000's)
Remuneration in respect of services as directors	439
Remuneration in respect to long term incentive schemes	-

Directors' and Secretary's Interests in Shares

Shareholder Distribution by Shareholder Type	30 September 2022
Vincent Browne	16%
Other Management/Director Holdings	7%
Other Shareholders	77%
Total Shareholder Distribution	100%

Group Companies

Particulars of the companies within the Group, required to be disclosed under Section 314(1) of the Companies Act 2014, in respect of Group companies are detailed in Note 16 to the Consolidated Financial Statements.

Director's Compliance Statement

The Directors have drawn up a compliance policy statement setting out the Company's policies, that in the Directors' opinion, are appropriate to the Company. The Directors understand that they are responsible for securing the Company's compliance with its relevant obligations. The Company has appropriate arrangements or structures that are, in the Directors' opinion, designed to secure material compliance with the Company's relevant obligations; and the Company has conducted a review (during the financial year) of the arrangements or structures that have been put in place.

Accounting Records

The Directors are responsible for ensuring that proper books and accounting records, as outlined in Sections 281 to 285 of the Companies Act 2014, are kept by the Company. To achieve this, the Directors have appointed a professionally qualified financial director who reports to the Board and ensures that the requirements of Sections 281 to 285 of the Companies Act 2014 are complied with. These books and accounting records are maintained at the Company's registered office in Dublin, Ireland.

Consolidated Statement of Comprehensive Income

		For the 3 Months Ended September 30th		For the 9 Months Ended September 30th
(€000's)	Notes	2022	2021	2022	2021
Revenue	1	11,171	7,110	28,162	13,039
Cost of sales	2	(3,942)	(1,522)	(8,319)	(2,981)
Gross profit		7,229	5,588	19,843	10,058
General and administration expenses	3	(2,274)	(654)	(6,106)	(2,992)
Depreciation	4	(2,311)	(1,606)	(6,995)	(3,419)
Amortisation	4	(23)	(9)	(93)	(23)
Operating profit (loss)		2,621	3,319	6,649	3,624
Finance costs	5	(3,462)	(3,145)	(12,192)	(10,933)
Finance forgiveness		-	158	-	5,877
Non capitalized – Development expense		(216)	-	(129)
Bargain purchase		-	-	-	12,065
Profit (Loss) on ordinary activities before taxation		(1,057)	332	(5,672)	10,633
Income Tax		-	-	-	-
Profit (Loss) for the financial period		(1,057)	332	(5,672)	10,633
Other comprehensive income for the period
Foreign exchange differences on translation of operations of foreign subsidiaries and branches
		1,586	-	(2,174)	-
Total comprehensive income for the year attributable to the owners of the Group		529	332	(7,846)	10,633

Consolidated Statement of Financial Position

(€000's)	Notes	Period ended 30 September 2022	Period ended 30 September 2021
Assets
Non-current assets
Goodwill	6	3,020	1,550
Property, plant and equipment, net	7	185,196	147,256
Total Non-current assets		188,216	148,806
Current assets
Trade and other receivables	8	36,706	13,464
Restricted cash	9	3,908	10,318
Cash and cash equivalents	9	14,721	9,368
Total current assets		55,335	33,150

Total assets		243,551	181,956
Equity and Liabilities
Current liabilities
Trade and other payables	10	24,329	16,961
Capital lease – short term	11	236	117
Borrowings - short term	12	349	2,040
Total current liabilities		24,914	19,118
Non-current liabilities
Assets retirement obligation	13	1,322	324
Capital lease – long term	11	6,566	1,892
Borrowings – long Term	12	175,707	119,381
Total Non-current liabilities		183,595	121,597

Total Liabilities		208,509	140,715
Non-controlling interest		40	-
Capital and reserves
Ordinary share capital presented as equity	15	245	263
Share premium	15	44,859	31,883
Foreign exchange reserve	15	1,141	(194)
Accumulated surplus (deficit)	15	(11,243)	9,289
Total equity		35,002	41,241
Total equity and liabilities		243,551	181,956

Consolidated Statement of Changes in Equity

	Ordinary Common Stock	Ordinary Shares (€000's)	Additional Paid in Capital (€000's)	FX Reserves Arising on Translation (€000's)	Accumulated Surplus (Deficit) (€000's)	Total (€000's)
At 1 January 2022	26,335,738	245	44,798	3,315	(5,571)	42,786
Unrealized loss on Currency Translation	-	-	-	(985)	-	(984)
Loss for the Quarter	-	-	-	-	(4,578)	(4,578)
At 31 March 2022	26,335,738	245	44,798	2,330	(10,149)	37,224
Unrealized gain on currency translation adjustment	-	-	-	(2,775)	-	(2,775)
Issuance of additional shares	30,000	-	61	-	-	61
Loss for the Quarter	-	-	-	-	(37)	(37)
At 30 June 2022	26,365,738	245	44,859	(445)	(10,186)	34,473
Unrealized gain on currency translation adjustment	-	-	-	1,586		1,586
Loss for the Quarter	-	-	-		(1,057)	(1,057)
At 30 September 2022	26,365,738	245	44,859	1,141	(11,243)	35,002

Consolidated Statement of Cash Flow

Supplemental Cash Flow Disclosure

Cash Flows from Operating Activities (€000's)	Period ended 30 September 2022	Period ended 30 September 2021
Group profit/(loss) after tax	(5,672)	10,628
Adjusted for:
Depreciation	6,995	3,419
Amortisation	93	23
Disposal of asset	(99)	-
Finance Forgiveness	-	(5,674)
Bargain Purchase	-	(12,065)
Accrued Interest	-	(229)
Amortisation of Debt Discount	3,027	2,340
Development cost	129	-
Movement in trade and other receivables	1,852	(3,453)
Movement in trade and other payables	(944)	(708)
Movement in prepayments and other assets	640	3,174
Share-based payment expense	-	337
Net cash flows generated from operating activities	6,021	(2,208)
Cash flows from investing activities
Cash paid for acquisition of subsidiaries	(25,362)	(94,694)
Cash used for project investment	(7,082)	-
Cash used for installation in process	-	(1,575)
Net cash used in investing activities	(32,444)	(96,269)
Cash flow from financing activities
Proceed from issuance of share capital, net	-	31,883
Proceeds from issuance of debt, net	19,455	84,727
Net cash generated from/ (used in) financing activities	19,455	116,610
Effect of exchange rate on cash	1,976	127
Net increase in cash and cash equivalents	(4,992)	18,260
Cash and cash equivalents at the beginning of the period	23,621	1,426
Cash and cash equivalents at the end of the period	18,629	19,686
		30 September 2022 30 September 2021

(€000's) Cash paid for interest 6,731 8,427

Notes to the Consolidated Financial Statements for the Nine Months ended 30 September 2022

General Information

The Group's registered address is as follows:

Alternus Energy Group Plc Suite 9-10, Plaza 212 Blanchardstown Corporate Park 2 Dublin D15 R504

Below are details for the Group's Offices and Operating Companies

Q3 2022	Financial Report			Alternus Energy Group Plc and Subsidiaries
		-	Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Principal place of business	Registered address
Power Clouds S.R.L.	SPV	31 March 2015	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
F.R.A.N. Energy Investment S.R.L.	SPV	31 March 2015	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
AE Europe B.V.	Holding Company	August 2016	Netherlands	Evert Van de Beekstraat 1, 104 The Base B, Schiphol, Netherlands, 1118CL
PC-Italia-01 S.R.L.	Sub-Holding	June 2015	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
PC-Italia-02 S.p.A.	SPV	August 2016	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Sant'Angelo Energia S.r.l.	SPV	30 March 2017	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
PCG_HoldCo GmbH	Holding Company	6 July 2018	Germany	The Squaire 12, AM Flughafen, Frankfurt, 60549, Hessen, Germany
PCG_GP UG	General Partner Management Co.	30 August 2018	Germany	Lyoner Stern Hahn Str 70, Frankfurt am Main, 60528, Germany
PSM 20 UG	SPV	14 November 2018	Germany	Lyoner Stern Hahn Str 70, Frankfurt am Main, 60528 Germany
PSM 40 UG	SPV	28 December 2018	Germany	Lyoner Stern Hahn Str 70, Frankfurt am Main, 60528 Germany
GRT 1.1 GmbH & Co KG	SPV	21 December 2018	Germany	Lyoner Stern Hahn Str 70, Frankfurt am Main, 60528 Germany
ALTN HoldCo UG	SPV	14 December 2018	Germany	The Squaire 12, AM Flughafen, Frankfurt, 60549, Hessen, Germany
Altam Inc.	Holding Company	December 2020	USA	City Center Place, 400 S. 4th Street, Las Vegas, NV 89101
CIC Rooftop 2 S.r.l.	SPV	23 April 2019	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
CIC RT Treviso S.r.l.	SPV	23 April 2019	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100

		Alternus Energy Group Plc and Subsidiaries
Q3 2022	Financial Report	-	Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Principal place of business	Registered address
SPV White One S.r.l.	SPV	23 April 2019	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
CTS Power 2 S.r.l.	SPV	23 April 2019	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Zonnepark Rilland B.V.	SPV	20 December 2019	Netherlands	Evert Van de Beekstraat 1, 104 The Base B, Schipohl, Netherlands, 1118CL
PC-Italia-03 S.R.L.	Holding Company	July 2020	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
PC-Italia-04 S.R.L.	Holding Company	July 2020	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Solis Bond Company DAC	Holding Company	December 2020	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
KKSOL S.r.l.	SPV	February 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Petriolo Fotovoltaica S.r.l.	SPV	February 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Solarpark Serre 1 S.r.l.	SPV	March 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Lucas EST S.r.l.	SPV	March 2021	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
Ecosfer Energy S.r.l.	SPV	March 2021	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
Unisun Energy Holding B.V.	Holding Company	April 2021	Netherlands	Westblaak 35, 3012KD, Rotterdam, Netherlands
Unisun Energy B.V.	SPV	April 2021	Netherlands	Westblaak 35, 3012KD, Rotterdam, Netherlands
UPER Energy Europe B.V.	SPV	April 2021	Netherlands	Westblaak 35, 3012KD, Rotterdam, Netherlands
Unisun Energy Poland Investment B.V.	Holding Company	April 2021	Netherlands	Westblaak 35, 3012KD, Rotterdam, Netherlands

Subsidiary	Principal Activity	Date acquired/ established	Principal place of business	Registered address
Blue Sky Energy I B.V.	SPV	April 2021	Netherlands	Westblaak 35, 3012KD, Rotterdam, Netherlands
LJG Green Source Energy Beta Srl	SPV	May 2021	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
BI.MA. SRL	SPV	May 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
MABI S.R.L.	SPV	May 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Alternus Energy Americas Inc.	Holding Company	May 2021	USA	16192 Coastal Highway, Lewes DE, 19558, USA
Solarpark Samas Sp. Z O.O.	SPV	May 2021	Poland	Garazowa 5a. 02-651, Warsaw, Poland
Risorse Solari I S.R.L.	SPV	July 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Risorse Solari III S.R.L.	SPV	August 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Alt Spain 01, S.L.U.	SPV	August 2021	Spain	Calle Monte Esquinza 30, Bajoizquierda, 28010, Madrid, Spain
Altnor AS	Holding Company	August 2021	Norway	Tollbugata 35, Oslo, 157, Norway
Altnua Limited	Holding Company	August 2021	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
AEG JD 02 Limited	Holding Company	September 2021	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
GHFG Limited	Holding Company	September 2021	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
AED Italia-01 S.R.L.	SPV	October 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
AED Italia-02 S.R.L.	SPV	October 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100

Subsidiary	Principal Activity	Date acquired/ established	Principal place of business	Registered address
AED Italia-03 S.R.L.	SPV	October 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
AED Italia-04 S.R.L.	SPV	October 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
AED Italia-05 S.R.L.	SPV	October 2021	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Elektrownia PV Komorowo Sp. Z O.O	SPV	December 2021	Poland	Garazowa 5a., 02-651, Warsaw, Poland
PV Zachod Sp. Z O.O	SPV	December 2021	Poland	Garazowa 5a. 02-651, Warsaw, Poland
RA 01 Sp. Z O.O	SPV	March 2022	Poland	Garazowa 5a., 02-651, Warsaw, Poland
Gardno PV Sp . Z O.O	SPV	March 2022	Poland	Garazowa 5a., 02-651, Warsaw, Poland
Gardno2 PV Sp. Z O.O	SPV	March 2022	Poland	Garazowa 5a., 02-651, Warsaw, Poland
AEG JD 01 Limited	Holding Company	March 2022	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
AEG JD 03 Limited	Holding Company	March 2022	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
AEG MH 01 Limited	Holding Company	March 2022	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
AEG MH 02 Limited	Holding Company	March 2022	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
Uper Energy Romania S.R.L.	Holding Company	March 2022	Romania	st District, 3D Apicultorilor Boulevard, 1th Floor, 1 Bucharest, Romania, 013852
ALT US 02 LLC	Holding Company	March 2022	USA	360 Kingsley Park Drive, Suite 250, Fort Mill, SC 29715, USA
ALT US 03 LLC	Holding Company	May 2022	USA	360 Kingsley Park Drive, Suite 250, Fort Mill, SC 29715, USA

Q3 2022	Financial Report	Alternus Energy Group Plc and Subsidiaries - Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Principal place of business	Registered address
AEG MH 03 Limited	Holding Company	March 2022	Ireland	Suite 9/10, Plaza 212, Blanchardstown Corporate Park 2, Dublin 15, D15 R504, Ireland
Uper Energy Italia S.R.L.	SPV	June 2022	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
ALT POL HC 01 sp. z o.o.	SPV	March 2022	Poland	Garazowa 5a., 02-651, Warsaw, Poland
Alt Spain Holdco, S.L.U.	Holding Company	July 2022	Spain	Calle Monte Esquinza 30, bajo izquierda, 28010 Madrid, Spain
Alt Spain 02, S.L.U.	SPV	July 2022	Spain	Calle Monte Esquinza 30, bajo izquierda, 28010 Madrid, Spain
ALT US 01 LLC	SPV	December 2021	USA	850 New Burton Road, Suite 201, Dover DE, 19904, USA
LightWave Renewables, LLC	SPV	22 April 2022	USA	360 Kingsley Park Drive, Suite 250, Fort Mill, SC 29715, USA
AED Italia-06 S.R.L.		2 August 2022	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
AED Italia-07 S.R.L.		2 August 2022	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
AED Italia-08 S.R.L.		8 August 2022	Italy	Via Battistessa, 10, Caserta, Campania, Italy, 81100
Uper Energy Poland Sp. z o.o.		18 August 2022	Poland	ul. ALEJE UJAZDOWSKIE, No. 41, 00-540, Warsaw, Poland
ALT US 04 LLC	Holding Company	14 September 2022	USA	360 Kingsley Park Drive, Suite 250, Fort Mill, SC 29715, USA

Summary of Significant Accounting Policies

Basis of Financial Statements

Compliance with IFRS, new standards and interpretation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB) and as adopted by the EU and the Companies Act 2014.

New Accounting Standards Effective After the Reporting Period Ended 30 September 2022

The Management assessed that the standard change for amendments below has no significant impact on the Group's financial statements:

Amendments to IFRS 1 – Subsidiary as a First-Time Adopter

The Group adopted all accounting standards and interpretations at 31 December 2021. The new and revised accounting standards and interpretations that have been published by the IASB were adopted by the Group and were assessed as not applicable and have no impact on the Group's consolidated financial statements. The amendment is effective for annual periods beginning on or after 1 January 2022 with early application permitted. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IFRS 3 – References to Conceptual Framework (Conceptual framework and Business Combination)

In October 2018, the IASB issued Definition of a Business (Amendments to IFRS 3). The amendments are to:

clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs;
narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs;
add guidance and illustrative examples to help entities assess whether a substantive process has been acquired;
remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs; and
add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business.

The amendments are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period (beginning on or after 1 January 2020) and to assess acquisitions that occur on or after the beginning of that period. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

In May 2020, the International Accounting Standards Board (IASB or Board) issued Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework. The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989 (Framework), with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 (2018 Conceptual Framework) without significantly changing its requirements. The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential 'day 2' gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework. The amendments are effective for annual reporting periods beginning on or after 1 January 2022 and apply prospectively. Earlier application is permitted if, at the same time or earlier, an entity also applies all of the amendments contained in the Amendments to References to the Conceptual Framework in IFRS Standards (March

2018), which was issued at the same time as the 2018 Conceptual Framework. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IFRS 9 – Fees in the '10 per cent' Test for Derecognition of Financial Liabilities

The amendment clarifies that in applying the '10 per cent' test to assess whether to derecognize a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other's behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the amendment. The amendment is effective for annual periods beginning on or after 1 January 2022 with early application permitted. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IFRS 16 – Lease Incentives

The amendment removes the illustration of the reimbursement of leasehold improvements. As the amendment to IFRS 16 only regards an illustrative example, no effective date is stated. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

In May 2020, the Board issued COVID-19-Related Rent Concessions (the 2020 amendments), which amended IFRS 16 Leases. The 2020 amendments introduced an optional practical expedient that simplifies how a lessee accounts for rent concessions that are a direct consequence of COVID-19. Under that practical expedient, a lessee is not required to assess whether eligible rent concessions are lease modifications, instead accounting for them in accordance with other applicable guidance. The 2021 amendments are effective for annual reporting periods beginning on or after 1 April 2021. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IAS 41 – Taxation in Fair Value Measurements

The amendment removes the requirement in IAS 41 for entities to exclude cash flows for taxation when measuring fair value. This aligns the fair value measurement in IAS 41 with the requirements of IFRS 13 Fair Value Measurement to use internally consistent cash flows and discount rates and enables preparers to determine whether to use pre-tax or post-tax cash flows and discount rates for the most appropriate fair value measurement. The amendment is applied prospectively i.e., for fair value measurements on or after the date an entity initially applies the amendment. The amendment is effective for annual periods beginning on or after 1 January 2022 with early application permitted. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)

On 14 May 2020, the IASB issued Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) amending the standard regarding costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Property, Plant and Equipment - Proceeds before Intended Use (Amendments to IAS 16)

On 14 May 2020, the IASB issued Property, Plant and Equipment - Proceeds before Intended Use (Amendments to IAS 16) regarding proceeds from selling items produced while bringing an asset into the location and condition necessary for it to be capable of operating in the manner intended by management.

It amends the standard to prohibit deducting from the cost of an item of property, plant, and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IFRS 9, IAS 39 and IFRS 7 (Interest Rate Benchmark Reform)

IBOR reform refers to the global reform of interest rate benchmarks, which includes the replacement of some interbank offered rates (IBOR) with alternative benchmark rates. The Board identified two groups of accounting issues arising from IBOR reform that could affect financial reporting and divided its project, IBOR Reform and its Effects on Financial Reporting, into two phases:

pre-IBOR reform: where uncertainty could arise in the run-up to transition (Phase 1 amendments); and
post-IBOR reform: when that uncertainty goes away but companies update the rates in their contracts and the details of their hedging relationships (Phase 2 amendments).

The Phase 2 amendments principally address the following issues.

Under the detailed rules of IFRS 9 Financial Instruments, modifying a financial contract can require recognition of a significant gain or loss in the income statement. However, the amendments introduce a practical expedient if a change results directly from IBOR reform and occurs on an 'economically equivalent' basis. In these cases, changes will be accounted for by updating the effective interest rate.

A similar practical expedient will apply under IFRS 16 Leases for lessees when accounting for lease modifications required by IBOR reform. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Amendments to IAS 1 and IAS 8 (Definition of Material)

In October 2018, the International Accounting Standards Board (IASB or the Board) issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (the amendments) to align the definition of 'material' across the standards and to clarify certain aspects of the definition. The amendments are effective for annual reporting periods beginning on or after 1 January 2020. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

On 23 January 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date.

The amendments in Classification of Liabilities as Current or Non-current (Amendments to IAS 1) affect only the presentation of liabilities in the statement of financial position — not the amount or timing of recognition of any asset, liability, income or expenses, or the information that entities disclose about those items.

clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least 12 months and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability.
clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and
make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets, or services.

The amendments are effective for annual reporting periods beginning on or after 1 January 2023. The Group currently does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

New and amended standards and interpretations (continued) Standards issued but not yet effective

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the company.

The Company has not adopted any other new standards or interpretations that are not mandatory. Other than as indicated above, the directors anticipate that the adoption of those standards or interpretations will have no material impact on the financial statements of the Company in the period of initial application.

Historical Cost, Presentation Currency and Going Concern

The consolidated financial statements have been prepared on the historical cost basis, except were described otherwise in the policies below.

Certain financial instruments carried at amortized cost.
Lease liabilities measured at present value.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that

are within the scope of IFRS 2 Share-based payment, leasing transactions that are within the scope of IFRS 16 Leases, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36 Impairment of Assets.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

The consolidated financial statements of the Group and the financial statements of the Company are presented in Euro (€) which is also the functional currency of the Group and Company.

Management has Prepared Projections and Forecasts for the Group

These include consideration of revenue growth, funding and finance facilities in place, and cash reserves held. On this basis, the Directors consider that it is appropriate to prepare the consolidated financial statements on the going concern assumption.

Exemption from Preparing Company Statement of Comprehensive Income

In accordance with Section 304 of the Companies Act 2014 the Company is availing of the exemption from presenting its individual statement of comprehensive income to the Annual General Meeting and from filing it with the Registrar of Companies. The Group's loss for the nine month period ended 30 September 2022 was €6.1 million vs profit of €6.7 million for nine month ended 30 September 2021.

Basis of Consolidation

The financial statements of the Group incorporate the financial statements of the Company (the parent) and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Control is achieved when the Company:

has the power over the subsidiary;
is exposed, or has rights, to variable returns from its involvement with the subsidiary; and
has the ability to use its power to affect those returns.

The Group reassesses whether it controls the subsidiaries if facts and circumstance indicate that there are changes to their control. When the Company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders.

potential voting rights held by the Company, other vote holders or other parties.
rights arising from other contractual arrangements; and

any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Profit or loss and each component of other comprehensive income of subsidiaries are attributed to the owners of the Group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interest even if this results in the non-controlling interest having deficit balance.

The financial statements of the subsidiaries are prepared for the same reporting year as the Group, using uniform accounting policies for like transactions and other events in similar circumstances. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. Unrealized gains and losses are eliminated.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Group.

When the Group loses control over a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e., reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of.

The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

Revenue Recognition

The Company derives revenues through its subsidiaries from the sale of electricity and the sale of solar renewable energy credits (REC). Energy generation revenue and solar renewable energy credits revenue are recognized as electricity generated by the solar energy facility and delivered to the grid at which time all performance obligations have been delivered. Revenues are based on actual output and contractual sale prices set forth in long-term contracts and the actual price achieved for energy sold to the spot market.

Expense Recognition

Expenses in the statement of comprehensive income are presented using the nature or function of expense method. Costs of sales are expenses incurred that are associated with the goods sold and includes components of cost of sales. Operating expenses are costs attributable to administrative, marketing, selling and other business activities of the Group.

Expenses are recognized in profit or loss when a decrease in future economic benefit related to a decrease in an asset or an increase in a liability has arisen that can be measured reliably. Expenses are recognized in profit or loss: on the basis of a direct association between the costs incurred and the earning of specific items of income; on the basis of systematic and rational allocation procedures when economic benefits are expected to arise over several accounting periods and the association with income

can only be broadly or indirectly determined; or immediately when an expenditure produces no future economic benefits or when, and to the extent that, future economic benefits do not qualify, or cease to qualify, for recognition in the statements of financial position as an asset.

Business Combinations

IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g., an acquisition or merger). Such business combinations are accounted for using the 'acquisition method', which generally requires assets acquired and liabilities assumed to be measured at their fair value at the acquisition date.

We account for business combinations by recognizing in the financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interests in the acquiree at fair value at the acquisition date. We also recognize and measure the goodwill acquired or a gain from a bargain purchase in the business combination and determines what information to disclose to enable users of an entity's financial statements to evaluate the nature and financial effects of the business combination. In addition, acquisition costs related to business combinations are expensed as incurred. Business combinations is a critical accounting policy as there are significant judgments involved in the allocation of acquisition cost.

When we acquire renewable energy facilities we allocate the purchase price to (i) the acquired tangible assets and liabilities assumed, primarily consisting of land, plant, and long-term debt, (ii) the identified intangible assets and liabilities, primarily consisting of the value of favourable and unfavourable rate Government renewable energy incentive programs and Energy offtake agreements and the in-place value of market rate Government renewable energy incentive programs, (iii) non-controlling interests, and (iv) other working capital items based in each case on their fair values in accordance with IFRS.

We perform the analysis of the acquisition using the income approach, or an income approach or excess earnings approach. Factors considered by management in its analysis include considering current market conditions and costs to construct similar facilities. We also consider information obtained about each facility as a result of our pre-acquisition due diligence in estimating the fair value of the tangible and intangible assets and liabilities acquired or assumed. In estimating the fair value, we also establish estimates of energy production, current in-place and market power purchase rates, tax credit arrangements and operating and maintenance costs. A change in any of the assumptions above, which are subjective, could have a significant impact on the results of operations.

The allocation of the purchase price directly affects the following items in our consolidated financial statements:

The amount of purchase price allocated to the various tangible and intangible assets, liabilities, and non-controlling interests on our balance sheet;
The amounts allocated to the value of favourable and unfavourable rate Government renewable energy incentive programs and Energy offtake agreements are amortized to revenue over the remaining non-cancellable terms of the respective arrangement. The amounts allocated to all other tangible assets and intangibles are amortized to depreciation or amortization expense, except for favourable and unfavourable rate land leases and unfavourable rate O&M contracts which are amortized to cost of operations; and
The period over which tangible and intangible assets and liabilities are depreciated or amortized varies, and thus, changes in the amounts allocated to these assets and liabilities will have a direct impact on our results of operations.

Bargain Purchase

A bargain purchase occurs when businesses are acquired for less than fair market value. In a bargain purchase business combination, a corporate entity is acquired by another for an amount that is less than

the fair market value of its net assets. Current accounting rules for business combinations require the acquirer to record the difference between the fair value of the acquired net assets and the purchase price as a gain on its income statement due to negative goodwill.

Prepayments

Prepayments represent expenses not yet incurred but already paid in cash. Prepayments are initially recorded as assets and measured at the amount of cash paid. Subsequently, these are charged to profit or loss as they are consumed in operations or expire with the passage of time.

Prepayments are classified in the statements of financial position as current assets when the cost of goods or services related to the prepayments are expected to be incurred within one year or the Group's normal operating cycle, whichever is longer. Otherwise, prepayments are classified as non-current assets.

Leases

The Group as lessee at inception of a contract, assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The lease liability for operating leases is based on the net present value of future minimum lease payments. The right of use asset for operating leases is based on the lease liability. The right-of-use asset comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise:

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and
amounts expected to be payable under a residual value guarantee.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in the statement of comprehensive income if the carrying amount of the right-of-use asset has been reduced to zero.

The Group presents right-of-use assets that do not meet the definition of investment property in 'property, plant and equipment', and lease liabilities in trade and other payables in the statement of financial position. The movement of right-of-use of the assets of the Group is disclosed in Notes 6 and 13 to the Consolidated Financial Statements.

Short-term Leases and Leases of Low-Value Assets

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of offices and licences that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Foreign Currencies

Foreign currency transactions are translated into the individual entities' respective functional currencies at the exchange rates prevailing on the date of the transaction. At the end of each financial year monetary items denominated in foreign currencies are retranslated at the rates prevailing as of the end of the financial year. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in the statement of comprehensive income for the year. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the statement of comprehensive income for the year except for differences arising on the retranslation of non-monetary items in respect of which gains, and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in other comprehensive income.

To present consolidated financial statements, the assets and liabilities of the Group's foreign operations (including comparatives) are expressed in Euro using exchange rates prevailing at the end of the financial year. Income and expense items (including comparatives) are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised in the statement of comprehensive income in the period in which the foreign operation is disposed of.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities (including monetary items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency instruments designated as hedges of such investments, are taken to the foreign currency translation reserve.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated accordingly.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets, which are assets that necessarily take a substantial period to be prepared for their intended use or sale, are added to the cost of those assets, until such time as the assets is substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognized in the statement of comprehensive income in the period in which they are incurred.

Income Tax

The taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

A provision is recognized for those matters for which the tax determination is uncertain, but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. The assessment is based on the judgement of tax professionals within the Group supported by previous experience in respect of such activities and in certain cases based on specialist independent tax advice.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

– temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

– taxable temporary differences arising on the initial recognition of goodwill. Temporary differences in relation to a right-of-use asset and a lease liability for a specific lease are regarded as a net package (the lease) for the purpose of recognising deferred tax.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. The measurement of deferred tax reflects the tax consequences that would follow from the way the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the Group has not rebutted this presumption. Deferred tax assets and liabilities are offset only if certain criteria are met.

Property, Plant and Equipment

Property, plant, and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs, and borrowing costs capitalised.

Depreciation

Depreciation is calculated using the straight-line method to write off the cost of property, plant, and equipment over their expected useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Additions

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Group and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over their useful lives.

Asset Retirement Obligations

In connection with the acquisition or development of solar energy facilities, the Company may have the legal requirement to remove long-lived assets constructed on leased property and to restore the leased property to its condition prior to the construction of the long-lived assets. This legal requirement is referred to as an asset retirement obligation (ARO). If the Company determines that an ARO is required for a specific solar energy facility, the Company records the present value of the estimate future liability when the solar energy facility is placed in service. AROs recorded for owned facilities are recorded by increasing the carrying value of investment in energy property and depreciated over the solar energy facility's useful life. While an ARO, recorded for a leasing arrangement, is accounted for as a liability in the initial period recognized and amortized over the term of the solar energy facility's useful life. After initial recognition of the liability, the Company accretes the ARO to its future value over the solar energy facility's useful life.

Repairs, maintenance, and minor inspection costs are expensed as incurred.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of comprehensive income.

Investments in Subsidiary

Investments in Subsidiary Companies

A subsidiary is an entity including an unincorporated entity such as a partnership that is controlled by the Company. Investments in subsidiaries are measured initially at cost. Subsequent to initial recognition, investment in subsidiaries is carried in the Group's separate financial statements at cost less any accumulated impairment losses. The Group's accounting policy for impairment of financial assets are applied to determine whether it is necessary to recognize any impairment loss with respect to its investment in the subsidiary. When necessary, the entire carrying amount of the investment (including

goodwill) is tested for impairment in accordance with the Group's accounting policy on impairment of tangible and intangible assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its' carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases. The investments in subsidiaries are derecognized upon disposal or when no future economic benefits are expected to arise from the investment. Gain or loss arising on the disposal is determined as the difference between the sales proceeds and the carrying amount of the investment in subsidiary and is recognized in profit or loss.

Impairment of Tangible and Intangible Assets

The Group reviews the carrying amounts of its tangible and intangible assets as at each reporting date to assess for any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible Assets

Intangible assets consist of long-term operating contracts acquired through the acquisition of solar energy facilities. Intangible assets are initially recognized at their fair value and are amortized over the term of the related Government renewable energy incentive programs using the straight-line method. For solar energy facilities that are purchased and then put into construction, intangible assets are recorded at cost, and are amortized over the term of the related Government renewable energy incentive programs using the straight-line method.

Impairment of Long-Lived Assets

The Company reviews its investment in energy property and Government renewable energy incentive programs for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When evaluating impairment, if the undiscounted cash flows estimated to be generated by the energy property are less than its' carrying amount, the differential carrying amount is determined to be not recoverable. The amount of the impairment loss is equal to the excess of the asset's carrying value over its estimated fair value.

Irrespective of whether there is any indication of impairment, the Group also tests its intangible assets with indefinite useful lives and intangible assets not yet available for use for impairment annually by comparing their respective carrying amounts with their corresponding recoverable amounts.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An impairment loss for the amount by which the asset's carrying amount exceeds the recoverable amount is recognised immediately in the statement of comprehensive income unless the relevant asset is carried at a revalued amount, in which case the impairment loss is first treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the statement of comprehensive income, unless the relevant asset is carried

at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Goodwill and Indefinite-Lived Intangible Assets

The Company has goodwill and certain indefinite-lived intangible assets that have been recorded in connection with the acquisition of a business. Goodwill and indefinite-lived assets are not amortized, but instead are tested for impairment at least annually. Goodwill represents the excess of the purchase price of an acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. For purposes of the goodwill impairment test, the Company has determined that it currently operates as a single reporting unit. If it is determined that an impairment has occurred, the Company adjusts the carrying value accordingly, and charges the impairment as an operating expense in the period the determination is made. Although the Company believes goodwill is appropriately stated in the consolidated financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance.

Financial Instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial instrument and allocating the interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument or where appropriate, a shorter period, to the net carrying amount of the financial instrument. Income and expense are recognised on an effective interest basis for debt instruments other than those financial instruments at fair value through profit or loss.

Financial Assets

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the statement of comprehensive income.

All financial assets are recognised on a trade date - the date on which the Group commits to purchase or sell the asset. They are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.

Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss; held-to-maturity investments; loans and receivables; and available-for-sale financial assets. The classification depends on the nature and purpose for which these financial assets were acquired and is determined at the time of initial recognition.

Loans and Receivables

The Group's loans and receivables comprise trade and other receivables, amounts due from contract customers, bank balances and fixed deposits.

Such loans and receivables are non-derivatives with fixed or determinable payments that are not quoted in an active market. They are measured at amortised cost, using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Impairment of Financial Assets

The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at fair value through other comprehensive income, lease receivables, trade receivables and contract assets, as well as on financial guaranteed contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Group always recognizes lifetime expected credit losses (ECL) for trade receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the receivables, general economic conditions, and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including the time value of money where appropriate. When there has not been a significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. This represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date; except for assets for which a simplified approach was used.

The Group assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if:

a) the financial instrument has a low risk of default;
b) the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and
c) adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.

The Group considers a financial asset to have low credit risk when the asset has an external credit rating of 'investment grade' in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of 'performing'. Performing means that the counterparty has a strong financial position and there are no past due amounts.

The Group considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

when there is a breach of financial covenants by the debtor; or
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group).

Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

Critical to the determination of ECL is the definition of default. The definition of default is used in measuring the amount of ECL and in the determination of whether the loss allowance is based on 12 month or lifetime ECL, as default is a component of the probability of default (PD) which affects both the measurement of ECL and the identification of a significant increase in credit risk.

Derecognition of Financial Assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and recognises a collateralised borrowing for the proceeds receivable.

Financial Liabilities and Equity

Classification of Debt or Equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities. Equity instruments are recorded at the proceeds received net of direct issue costs.

Ordinary Share Capital

Ordinary share capital is classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity.

Financial Liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.

Retained Earnings

Retained earnings represent accumulated profit attributable to equity holders of the Group after deducting dividends declared. Retained earnings may also include effect of changes in accounting policy as may be required by the standard's transitional provisions.

Trade and Other Payables

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, where applicable, using the effective interest method, with interest expense recognised on an effective yield basis.

Borrowings

Interest-bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings.

Derecognition of Financial Liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.

Provisions and Contingencies

Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) because of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, considering the risks and uncertainties surrounding the obligation.

Where a provision is measured using the cash flows estimated to settle the present obligation, its' carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.

If it is no longer probable that a transfer of economic benefits will be required to settle the obligation, the provision should be reversed.

Contingencies

Contingent liabilities, arising because of past events, are not recognised when (i) it is not probable that there will be an outflow of resources, or the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Group's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

Onerous Contracts

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered to exist when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract.

Warranties

Provisions for warranty costs are recognized at the date of sale of the relevant products at the management's best estimate of the expenditure required to settle the Group's obligation.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and in bank to known amounts of cash and are subject to insignificant risk of changes in value.

Related Party Transactions

A related party transaction is a transfer of resources, services or obligations between the Group and a related party, regardless of whether a price is charged. Parties are considered related if one party has control, joint control, or significant influence over the other party in making financial and operating decisions. An entity that has a post-employment benefit plan for the employees and key management

personnel of the Group are also considered to be related parties. Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.

Transactions with Directors

The Company did not record any transactions with the directors for the period ending 30 September 2022.

Directors' and Auditor's Remuneration

Directors' Remuneration

	30 September 2022
Director's Remuneration	(€000's)
Remuneration in respect of services as Director	439
Remuneration in respect to long term incentive schemes	-

Auditor's Remuneration

	30 September 2022
Auditor's Remuneration	(€000's)
Audit services	-
Other non-audit services	-

Significant Accounting Judgements, Estimates and Assumptions

In preparing these financial statements, the Group and Company make judgements, estimates and assumptions concerning the future that impact the application of policies and reported amounts of assets, liabilities, income, and expenses.

The resulting accounting estimates calculated using these judgements and assumptions are based on historical experience and expectations of future events and may not equal the actual results. Estimates and underlying assumptions are reviewed on an ongoing basis, and revisions to estimates are recognised prospectively.

Critical judgements made in applying the Group's and Company's accounting policies that have the most significant effects on the amounts recognised in these financial statements are set out below:

Fair Value Assessment of Acquired Assets

The fair value of the purchase consideration is valued based on a discounted cash flow over the life of the assets. The company uses estimates of future revenues and expenses to determine the fair value. The purchase price allocation was based, in part, on management's current knowledge of the project and the results of a fair value assessment that the Company performed.

In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on the historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgments, apart from those involving estimations, that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognized in financial statements.

Determining the Timing of Satisfaction of Performance Obligations

In making their judgment, management considered the detailed criteria for the recognition of revenue set out in IFRS 15 and in particular whether the Group had transferred control of the goods to the customer. Following the detailed quantification of the Group's liability in respect of rectification work, and the agreed limitation on the customer's ability to require further work or to require replacement of the goods, management are satisfied that control has been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of an appropriate warranty provision for the rectification costs.

Significant Increase of Credit Risk

ECL are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL assets for stage 2 or stage 3 assets. An asset moves to stage 2 when its' credit risk has increased significantly since initial recognition. IFRS 9 does not define what constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased, the Group takes into account qualitative and quantitative reasonable and supportable forward-looking information.

Functional Currency

Based on the economic substance of the underlying circumstances relevant to the Group, the functional currency of the Group has determined to be the Euro. The Euro is the currency of the primary economic environment in which the Group operates. It is the currency that mainly influences the Group in determining the costs and revenues.

Leases

The evaluation of whether an arrangement contains a lease is based on its substance. An arrangement is, or contains, a lease when the fulfilment of the arrangement depends on a specific asset or assets and the arrangement conveys the right to use the asset.

Classification of Lease as Finance Lease

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and rewards of the ownership to the lessee otherwise leases are classified as operating leases. Judgment is used in determining whether the significant risk and rewards of ownership are transferred to the lessee. In making such judgment the Group evaluates the terms and conditions of the lease arrangement. The lease is classified as a finance lease if the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised or the lease term is for the major part of the economic life of the asset or at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset; or the leased assets are of such a specialized nature that only the lessee can use them without major modifications) in which the management believes that the lessor has transferred substantially all the risk and rewards over the leased asset to the lessee.

Based on management evaluation, the lease arrangements entered into by Group as a lessor are accounted for as finance leases because the Group has determined that choose which item applies: (a)

the lessor will transfer the ownership of the leased assets to the Group upon termination of the lease; and, (b) the Group has given the lessee an option to purchase the asset at a price that is sufficiently lower than the fair value at the date of the option.

Determination of Control

Management exercises its judgment in determining whether the Group has control over another entity by evaluating the substance of relationship that indicates the control of Group over its subsidiaries. The recognition and measurement of the Group's investment over these entities will depend on the result of the judgment made.

Estimating Useful Lives of Assets

The useful lives of the Group's assets with definite life are estimated based on the period over which the assets are expected to be available for use. The estimated useful lives of Group's property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the Group's assets. In addition, the estimation of the useful lives is based on the Group's collective assessment of industry practice, internal technical evaluation, and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of property, plant and equipment would increase the recognized operating expenses and decrease non-current assets. The Group's property, plant and equipment are typically measured at 14 - 20 years but are also analysed on an asset-to-asset basis.

Impairment of Goodwill

Determining whether goodwill is impaired requires estimation of the value of cash-generating units to which goodwill has been allocated. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate to calculate present value. Where the actual future cash flows are less than expected a material impairment loss may arise.

Asset Impairment other than Goodwill

The Group performs an impairment review when certain impairment indicators are present. Purchase accounting requires extensive use of accounting estimates and judgment to allocate the purchase price to the fair market values of the assets and liabilities purchased. Determining the recoverable amount of property, plant and equipment, intangible assets, and investment in associates, joint ventures, and subsidiaries, which require the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets, requires the Group to make estimates and assumptions that can materially affect the consolidated financial statements. Future events could cause the Group to conclude that property, plant and equipment, intangible assets, and investment in associates, joint ventures, and subsidiaries are impaired. Any resulting impairment loss could have a material adverse impact on the financial condition and results of operations.

The preparation of the estimated future cash flows involves significant judgment and estimations. While the Group believes that its assumptions are appropriate and reasonable, significant changes in the assumptions may materially affect the assessment of recoverable values and may lead to future additional impairment charges.

1) Revenue

Revenue	30 September 2022 (€000's)	30 September 2021 (€000's)
Revenue	28,162	13,039

Net Revenue, by Offtake Type	30 September 2022 (€000's)	30 September 2021 (€000's)
Government Renewable energy incentive Programs	9,710	9,679
Green Certificates	6,474	-
Energy offtake agreements	11,978	3,360
Total	28,162	13,039

Revenue by Country	30 September 2022 (€000's)	30 September 2021 (€000's)
Romania	13,362	8,357
Italy	2,685	2,710
Germany	135	117
Netherlands	3,921	900
Poland	8,044	955
United States	15	-
Total Revenue by Country	28,162	13,039

Segment information

The Group manages its operations as a single business operation and there are no parts of the Group that qualify as operating segments. The Board assesses the financial performance of the Group on an integrated basis only and accordingly, the Group is managed based on a single segment.

Major customers

Three individual external customers each account for over 10% of the Group's revenue, as follows:

Top 4 customers	September 30 2022 (€000's)
Client 1	8,990
Percentage of Total Revenue	32%
Client 2	3,812
Percentage of Total Revenue	14%
Client 3	3,689
Percentage of Total Revenue	13%
Client 4	3,583
Percentage of Total Revenue	13%

2) Cost of Sales

	30 September 2022 (€000's)	30 September 2021 (€000's)
Energy consumption	(4,954)	(1,775)
Operations & maintenance	(2,119)	(760)
Consulting expense	(410)	(147)
Property Tax	(197)	(71)
Accounting fees	(223)	(80)
Insurance expense	(254)	(91)
Misc. expense	(162)	(57)
Total Cost of sales	(8,319)	(2,981)

3) General and Administration Expense

	30 September 2022 (€000's)	30 September 2021 (€000's)
Compensation expense	(2,994)	(1,467)
Consulting expense	(863)	(423)
Accounting expense	(299)	(147)
T&E expense	(430)	(211)
Legal Fees	(508)	(249)
Insurance	(257)	(126)
Marketing	(217)	(106)
Misc. expense	(538)	(263)
Total General and administration Expense	(6,106)	(2,992)

4) Depreciation and Amortisation

The profit/(loss) on ordinary activities before taxation is stated after charging/(crediting):	30 September 2022 (€000's)	30 September 2021 (€000's)
Amortisation	93	23
Depreciation	6,995	3,419

5) Finance Cost

Finance Cost	30 September 2022 (€000's)	30 September 2021 (€000's)
Bank and Other Interest	(9,327)	(8,732)
Other	440	(3)
Debt Discount	(3,188)	(2,198)
ROU Interest	(117)
Total Finance Cost	(12,192)	(10,933)

6) Intangible Assets

	30 September 2022 (€000's)	30 September 2021 (€000's)
Goodwill at 1 January	3,016	1,100
Additions to Goodwill	-	450
Change in FX	4	-
Goodwill at 30 September	3,020	1,550

7) Property, Plant and Equipment

Movements in the carrying amounts of the Group's property, plant and equipment are as follows:

At 30 September, 2021
Property, Plant and Equipment (€000's)	Property, Plant and Equipment	Land	Right of use asset	Asset Retirement	Installation in Progress	Totals
Cost
Opening Balance	53,998		1,036	124	9,331	64,489
Addtions	93,480	-	1,107	197	1,222	96,006
Reclass from CIP	-	-	-	-	(5,330)	(5,330)
Closing balance of cost	147,478		2,143	321	5,223	155,165
account
Accumulated Depreciation
Opening Balance	4,162		14	20	-	4,196
Depreciation &
Amortisation charge for	1,585		120	8	-	3,713
the year Closing balance of the accumulated depreciation account	7,747		134	28	-	7,909
Net book value at 30 September, 2021	139,731	-	2,009	293	5,223	147,256

At 30 September, 2022

Property, Plant and Equipment (€000's)	Property, Plant and Equipment	Land	Right of use asset	Asset Retirement	Installation in Progress	Totals
Cost
Opening Balance	161,352	470	4,347	523	13,051	179,743
Additions	22,502	-	3,457	751	7,518	33,779
Reclass to CIP	-	-	-	-	(13,012)	(13,012)
Closing balance of cost account	183,854	470	7,804	1,274	7,557	200,510
Accumulated Depreciation
Opening Balance Depreciation&	8,664	-	140	30	-	8,834
Amortisation charge for the year	6,397	-	496	36	-	6,929
Closing balance of the accumulated depreciation account	15,061	-	636	66	-	15,763
Net book value at 30 September, 2022	168,793	470	7,168	1,208	7,557	185,196

Management believes that there is no indication that an impairment loss has occurred.

8) Trade and Other Receivables

The carrying amounts of trade receivables and other receivables approximate their fair value largely due to the short-term maturities and nature of these instruments. All trade receivables are due within the Group's and Company's normal terms which is 30 days.

	30 September 2022 (€000's)	30 September 2021 (€000's)
Trade receivables	9,879	5,311
Other receivable	804	-
Prepayments	4,435	2,239
Project investments	19,849	-
Value added tax recoverable	1,739	5,914
Total Trade and Other Receivables	36,706	13,464

9) Cash and Cash Equivalents

Cash and cash equivalents at the end of the reporting period as shown in the statements of cash flows can be reconciled to the related items in the statements of financial position as follows:

	30 September 2022 (€000's)	30 September 2021 (€000's)
Cash on hand and in banks	14,721	9,368
Restricted cash	3,908	10,318
Cash and Cash Equivalent	18,629	19,686

Restricted Cash and cash equivalent relate to balances that are in the bank accounts for specific defined purposes and cannot be used for any other undefined purposes. The balance has a debt service reserve account as per the requirements from the Bond Trustee that is serving the purpose of issuing the quarterly coupons to the Bond trustee for the Green Bonds issued in 2021. There is an account that has the residual balance of Eur 2 M bond tap that must be used for permitted acquisitions as per Bond terms. The balance also has an account for a bank guarantee in place for Poland and Unisun and there are two acquisition related accounts in Italy and Romania that hold escrow balances.

10) Trade and Other Payables

Trade and Other Payables

The carrying amounts of trade and other payables approximate their fair value largely due to the shortterm maturities and nature of these instruments. The repayment terms of trade payables vary between on demand and 30 days. No interest is payable on trade payables.

Trade, Other Payables, and Accruals

The terms of the accruals are based on underlying invoices.

Trade and Other Payables	30 September 2022 (€000's)	30 September 2021 (€000's)
Trade payables	3,952	9,744
Accruals	19,171	7,217
Value added tax payable	1,003	-
Other payables	203	-
Total Trade and Other Payables	24,329	16,961

11) Commitments and Contingencies

a) Capital commitments

At the period end the Group had no contingent liabilities.

b) Contingent liabilities

At the period end the Group had no contingent liabilities.

c) Lease commitments

The Group has total future minimum lease payments under non-cancellable lease commitments as follows:

Lease Liabilities

	30 September 2022 (€000's)
Right of Use Liability	6,802
Current portion	236
Long Term Portion	6,566
2022	1,106
2023	1,106
2024	1,154
2025	1,172
2026	1,190
Thereafter	31,125
Total Future Lease Payments	35,903
Less: Imputed Interest	(29,101)
Present Value of Future operating Leases	6,802
Less Current Portion of Long-Term Leases	(236)
Operating Leases Net of Current Portion	6,566
Right of Use Assets, operating lease net	7,168

The lease liability for operating leases is based on the net present value of future minimum lease payments. The right of use asset for operating leases is based on the lease liability.

The Group's leases include rental of office spaces for business use and right-of-use licences. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental repayments. The lease terms range from 2 - 25 years depending on the term set in the contract.

The right-of-use asset of licences is classified as 'intangible assets', while the right-of-use asset of office rentals is classified as 'property, plant and equipment'. The movement in the carrying amount of the right-of-use assets of the Group at the start and end of each reporting period.

12) Bank Loans

Debt Summary	30 September 2022 (€000's)	30 September 2021 (€000's)
Debt – Short Term	4,537	602
Bond Debt – secured	140,000	110,000
Convertible Debt – secured	9,000	9,000
Debt – Long Term	27,839	9,131
Gross debt	181,376	128,733
Debt discount	(5,320)	(7,312)
Total Long Term and Short-Term Debt	176,056	121,421

Summary of Borrowing Arrangement Terms:

Promissory Notes

In October 2018, in order to complete additional solar park acquisitions in Germany, one of the Company's subsidiaries, Altam Inc., entered into the following agreements with a third-party accredited investor (the "Lender"), in connection with one of the Company's indirect German subsidiaries, PCG_HoldCo UG (PCG), with an interest rate of 12% and a term of 2 years. Altam had principal outstanding of €3,197,007 as of 30 September 2022.

In December 2017, to complete additional solar park acquisitions, one of the Company's subsidiaries, Altam, issued a 5 year Note with third-party accredited investors (the "Lenders"), with an interest rate of 7.5%. Altam had principal outstanding of €233,242 as of 30 September 2022.

In April 2018, PSM 40 GmbH & Co KG entered a senior secured loan with GLS Bank in Germany. This relates to the acquisition of 6 photovoltaic installations as part of the PSM 40 GmbH & Co KG acquisition with an interest rate of 2.0% and a term of 18 years. PSM 40 had principal outstanding of €1,999,707 as of 30 September 2022.

In January 2020, GRT 1.1 GmbH entered a senior secured loan with DKB Bank in Germany. This relates to the acquisition of 1 photovoltaic installation as part of the GRT GmbH acquisition, with an interest rate of 2.05% and a term of 19 years. GRT 1.1 had principal outstanding of €627,014 as of 30 September 2022.

In January 2020, ALTN Holdco entered in a 20-year senior secured loan with DKB Bank in Germany with an amount of €1,231,279 with an interest rate of 1.74%. The loan had a principal outstanding of €1,148,217 as of 30 September 2022.

In January 2021, the Company approved the issuance by one of its subsidiaries, Solis Bond Company DAC, of a series of bonds in the maximum amount of €200 million a bond term agreement of 3 years with an interest rate of EURIBOR 3 months +6.5%. The bond was used for refinancing existing facilities and funding new acquisitions. As of 30 September 2022, there was €140 million outstanding on the bond.

In March 2021, the Company entered into €9 million secured convertible loan notes (the "Notes"). The Notes have a 3-year term and accrue annual interest at a 10% fixed rate, payable in cash every six months during the term. The Notes are secured by a floating charge security over all the property and assets of the Company with the exception of the AEG ownership of Solis Bond Co DAC, as was the case

with the existing note being settled. All outstanding principal plus a premium of 120% is due 3 years from the date of issuance. The Company is entitled, at its sole option, to prepay the notes at a reduced premium of 110% on the second anniversary of the issuance. Between 31 August 2021 and 9 March 2023, the holders have the option to convert up to a total of 50% of the principal amount of the notes into shares of the Company's ordinary shares at a price of €4.00 per share which would see the Company issue 1,125,000 shares if exercised. If at any time, the market price of the Company's ordinary shares is greater than €8.00 per share for 30 consecutive trading days, the Company is entitled to prepay the notes at 110% premium for any unconverted capital.

In April 2021, the Company acquired 60% of the share capital of a Netherlands company,. Unisun owns a building with an asset value of €750,000 with an outstanding loan of €426,354 as of 30 September 2022.

In August 2021, the Company's subsidiary, Blue Sky Energy, entered into an agreement with ING Bank, Netherlands for financing the Rotterdam Airport Project. In May 2022, the subsidiary received an additional €1,125,000 from ING Bank, Netherlands for the financing of this project. The loan has an outstanding balance of €9,479,448 as of 30 September 2022.

In December 2021, the Company's subsidiary, Alternus Energy Construction Holdings, entered into €1.6 million secured notes (the "Notes"). The loan proceeds were used to refund equity and costs associated with the Unisun acquisition and the Rotterdam Development Project Equity. The loan note holds the interest rate of 9% p.a. The note has an outstanding balance of €1.6 million as of 30 September 2022.

In March 2022, the Company's subsidiary, Solis Bond Co DAC entered into a loan agreement with accredited investors for €2 million note for 1 year. The loan note holds the interest rate of 8% p.a. The loan was fully paid in July 2022.

In March 2022, the Company's entered into a loan agreement with accredited investors for €1 million note for 1 year. The loan note holds the interest rate of 8% p.a.

In June 2022, the Company's entered into a loan agreement with accredited investors for €10 million note for 1 year. The loan note holds the interest rate of 8% p.a.

In June 2022, the Company's subsidiary, Alt US 02, entered into an agreement with Celtic Bank, USA for financing the Lightwave Renewables Project. The subsidiary received a funding of €2,670,367 from Celtic Bank for the financing of this project. The loan has an outstanding balance of €2,670,367 as of 30 September 2022.

13) Asset Retirement Obligations

	30 September 2022 (€000's)	30 September 2021 (€000's)
Asset retirement obligation	1,322	324
Total Asset retirement obligation	1,322	324

14) Share Capital

Share Capital - Group	30 September 2022 (€000's)	30 September 2021 (€000's)
Ordinary share capital - authorized 80,000,000 at Euro 0.01 per share	800	800
Called up Share Capital - Group (€000's)	30 September 2022 (€000's)	30 September 2021 (€000's)
Allotted, called up and fully paid 26,365,738 at Euro 0.01 per share	263	263

	30 September 2022 (€000's)	30 September 2021 (€000's)
9,481,278 Authorized, outstanding ordinary shares of € 0.01 par value each:	245	263
Share Premium Account	44,859	31,883
Foreign exchange reserve	1,141	(194)

15) Reserves

Share premium

The share premium reserve represents the premium on issue of the ordinary shares.

Foreign exchange reserve

The foreign exchange reserve represents gains/losses arising on retranslating the net assets of overseas operations into Euro.

Retained earnings

The retained earnings represent cumulative gains and losses recognised net of transfers to/from other reserves and dividends paid.

16) Subsidiary Undertakings

The Company has the following subsidiary undertakings; all subsidiaries are wholly owned, other than Unisun Energy Holding B.V., which the Company owns 60% of and all shareholdings are in ordinary shares. The Company owns 55% of GHFG Limited and all shareholdings are in ordinary shares.

AE Europe B.V. (formerly Power Clouds Europe B.V.)

In August 2016, a wholly owned subsidiary in the Netherlands, AE Europe B.V. was incorporated to ultimately hold the Group's European operating companies and sub-holding companies as appropriate. As of 31 December 2021, this company only owns PC-Italia-01 S.r.l.

PC-Italia-01 S.R.L. (formerly Power Clouds Wind Italia S.R.L.)

In June 2015, a company in Italy, PC-Italia-01 S.R.L. was incorporated to acquire the Group's Italian special purpose vehicles (SPVs), power plants and/or other assets located in Italy. As of 31 December 2021, this company does not own any SPVs or other assets.

PC-Italia-02 S.p.A. (Formerly PC-Italia-02 S.R.L.)

In August 2016, a company in Italy, PC-Italia-02 SRL was incorporated. This company was incorporated to acquire Italian special purpose vehicles, power plants and/or other assets located in Italy. During the quarter ended 31 March 2017, this company completed the acquisition of the Sant'Angelo Energia S.r.l. in Italy which operates a 702kW PV solar park. Subsequently, in April 2019, PC-Italia-02 acquired four additional SPVs in Italy, CIC Rooftop 2 S.r.l., CIC RT Treviso S.r.l., SPV White One S.r.l., CTS Power 2 S.r.l. During the nine months ended 30 September 2021 all of these entities were transferred to sit under Solis Bond Company DAC.

PCG_HoldCo GmbH & PCG_GP UG

In June 2018, one of the Company's subsidiaries acquired 100% of the share capital of two companies in Germany which were renamed as PCG_HoldCo GmbH and PCG_GP UG immediately thereafter. These two companies were acquired to secure ownership of German special purpose vehicles, PV solar parks and/or other assets located in Germany. During the year ended 31 December 2018, PCG_HoldCo completed the acquisitions of 4 SPVs in Germany, PSM 20 GmbH & Co KG, GRK 17.2 GmbH & Co KG, GRT 1.1 GmbH and PSM 40 GmbH & Co KG. In December 2018, one of the Company's subsidiaries acquired 100% of the share capital of another company in Germany which was renamed to ALTN HoldCo UG.

AEN 01 B.V. and AEN 01 B.V.

In June 2019, a wholly owned subsidiary in the Netherlands, AEN 01 B.V., was incorporated to acquire Netherlands special purpose vehicles, project rights and other solar energy assets in the Netherlands. During the quarter ended 31 December 2019 this company completed the acquisition of Zonnepark Rilland B.V. in the Netherlands, which operates an 11.75MW PV solar park. This SPV was refinanced and acquired by Solis Bond Company.

In July, the Group incorporated another wholly owned subsidiary in the Netherlands, AEN 02 B.V. This company was incorporated to acquire various special purpose vehicles, project rights and other solar energy assets in various locations across Europe. As of 31 December 2021, neither AEN 01 nor AEN 02 own any SPVs.

Solis Bond Company Designated Activity Company (DAC)

In December 2020, a new wholly owned subsidiary, Solis Bond Company DAC, was incorporated in Ireland to issue a series of bonds and hold the Group's European operating companies that are financed through those bonds. The SPV was incorporated with the purpose of facilities management and bond issuance for the Group. During the quarter ended 31 March 2021, Solis refinanced its Italian, Netherlands, and Romanian operating companies: PC-Italia-02 SpA, CTS Power 2 Srl, CIC Rooftop 2 Srl, SPV White One Srl, CIC RT Treviso Srl, Zonnepark Rilland B.V., FRAN Energy Investments Srl, and Power Clouds Srl. Also, during the quarter ended 31 March 2021, Solis acquired 100% of the share capital of the following Romanian companies: Ecosfer Energy Srl, Lucas EST Srl. During the quarter ended 31 March 2021, Solis acquired 100% of the share capital of another Italian company, Serre Srl. Subsequently, in April 2021, Solis acquired 100% of the share capital of another Romanian company, LJG Green Source Energy Beta Srl. In May 2021, Solis acquired 100% of the share capital of another Polish company, Solarpark Samas Sp. Z.O.O. In December 2021, Solis acquired 100% of the share capital of two Polish companies Elektrownia PV Komorowo Sp. Z.O.O and PV Zachod Sp. Z.O.O.

PC-Italia-03 Srl

In July 2020, a new wholly owned subsidiary in Italia, PC-Italia-03 Srl, was incorporated. This company was incorporated to acquire Italian special purpose vehicles, power plants and/or other assets located in Italy. During the quarter ended 31 March 2021, this company completed the acquisition of 100% of the share capital of two Italian SPVs, KKSOL S.r.l. and Petriolo Fotovoltaica S.r.l. During the quarter ended 30 June 2021, this company completed the acquisition of 100% of the share capital of two Italian SPVs, MABI S.r.l. and BIMA S.r.l. During the nine months ended 30 September 2021 the 4 SPVs owned by PC-Italia-03 were transferred to Solis Bond Company DAC as part of Solis's bond financing. In July and August 2021, PC-03 acquired shares of 2 Italian entities Risore Solari 1 S.R.L and Risore Solari III S.R.L respectively, with the purpose of developing solar parks.

Unisun Energy Holding B.V

In April 2021, Alternus Energy Group acquired 60% of the share capital in Unisun Energy Holding B.V. (Unisun), a Netherlands based developer, engineering procurement and construction (EPC) and operations and maintenance (O&M) service provider of renewable energy solutions across Europe. Unisun owns 100% of the following special purpose vehicles and other holding and operating companies in the Netherlands: Unisun Energy B.V., UPER Energy Europe B.V., Unisun Energy Poland Investment B.V. and Blue Sky Energy I B.V.

Alternus Energy America Inc.

In May 2021, a new wholly owned subsidiary in the U.S. was incorporated. This company was incorporated to support the finance and legal functions for the group.

Alternus Energy Development Holding Limited

In August 2021, a new wholly owned subsidiary in Ireland was incorporated to support development activities.

Alternus Energy Construction Holding Limited

In September 2021, a new wholly owned subsidiary in Ireland was incorporated to support EPC for the group

GHFG Limited

In September 2021, a new wholly owned subsidiary in Ireland was incorporated. 55% owned by AEG.

Alt Spain 01, S.L

In August 2021, a new wholly owned subsidiary in Spain was incorporated for the development of solar parks.

Altnor AS

In August 2021, a new wholly owned holding company in Norway was incorporated.

AEG JD 01 Limited

In March 2022, a new wholly owned holding company in Ireland was incorporated.

AEG JD 03 Limited

In March 2022, a new wholly owned holding company in Ireland was incorporated.

AEG MH 01 Limited

In March 2022, a new wholly owned holding company in Ireland was incorporated.

AEG MH 02 Limited

In March 2022, a new wholly owned holding company in Ireland was incorporated.

Uper Energy Romania

In March 2022, a new wholly owned holding company in Romania was incorporated.

ALT US 02 LLC

In March 2022, a new wholly owned holding company in USA was incorporated.

ALT US 03 LLC

In March 2022, a new wholly owned holding company in USA was incorporated.

AEG MH03 Limited

In June 2022, a new wholly owned holding company in Ireland was incorporated

In summary, Alternus Energy Group Plc is a holding company that operates through the following 72 operating subsidiaries as of 30 September 2022:

List of Subsidiary Undertakings

Q3 2022	Financial Report	- Unaudited	Alternus Energy Group Plc and Subsidiaries
List of Subsidiary Undertakings
Subsidiary	Principal Activity	Date acquired/ established	Alternus Energy Ownership	Country of Operation
Power Clouds S.R.L.	SPV	31 March 2015	100% (via Solis)	Operational Romanian Solar Park
F.R.A.N. Energy Investment S.R.L.	SPV	31 March 2015	100% (via Solis)	Operational Romanian Solar Park
AE Europe B.V.	Holding Company	August 2016	100% (via Altam)	Netherlands Holding Company
PC-Italia-01 S.R.L.	Sub-Holding	June 2015	100% (via AE Europe)	Italian Holding Company
PC-Italia-02 S.p.A.	SPV	August 2016	100% (via Solis)	Operational Italian Solar Park
Sant'Angelo Energia S.r.l.	SPV	30 March 2017	100% (via Solis)	Operational Italian Solar Park
PCG_HoldCo GmbH	Holding Company	6 July 2018	100% (via Altam)	German Holding Company
PCG_GP UG	General Partner Management Co.	30 August 2018	100% (via Altam)	Germany Holding Company
PSM 20 UG	SPV	14 November 2018	100% (via PCG_Holdco)	Operational Germany Solar Park
PSM 40 UG	SPV	28 December 2018	100% (via PCG_Holdco)	Operational Germany Solar Park
GRT 1.1 GmbH & Co KG	SPV	21 December 2018	100% (via PCG_Holdco)	Operational Germany Solar Park
ALTN HoldCo UG	SPV	14 December 2018	100% (via PCG_Holdco)	Operational Germany Solar Park
Altam Inc.	Holding Company	December 2020	100% (via AEG)	US Holding Company
CIC Rooftop 2 S.r.l.	SPV	23 April 2019	100% (via Solis)	Operational Italian Solar Park
CIC RT Treviso S.r.l.	SPV	23 April 2019	100% (via Solis)	Operational Italian Solar Park

Q3 2022		Financial Report - Unaudited	Alternus Energy Group Plc and Subsidiaries
Subsidiary	Principal Activity	Date acquired/ established	Alternus Energy Ownership	Country of Operation
SPV White One S.r.l.	SPV	23 April 2019	100% (via Solis)	Operational Italian Solar Park
CTS Power 2 S.r.l.	SPV	23 April 2019	100% (via Solis)	Operational Italian Solar Park
Zonnepark Rilland B.V.	SPV	20 December 2019	100% (via Solis)	Operational Italian Solar Park
PC-Italia-03 S.R.L.	Holding Company	July 2020	100% (via Altnua Limited)	Italian Holding Company
PC-Italia-04 S.R.L.	Holding Company	July 2020	100% (via Altnua Limited)	Italian Holding Company
Solis Bond Company DAC	Holding Company	December 2020	100%	Ireland Holding Company
KKSOL S.r.l.	SPV	February 2021	100% (via Solis)	Operational Italian Solar Park
Petriolo Fotovoltaica S.r.l.	SPV	February 2021	100% (via Solis)	Operational Italian Solar Park
Solarpark Serre 1 S.r.l.	SPV	March 2021	100% (via Solis)	Operational Italian Solar Park
Lucas EST S.r.l.	SPV	March 2021	100% (via Solis)	Operational Romanian Solar Park
Ecosfer Energy S.r.l.	SPV	March 2021	100% (via Solis)	Operational Romanian Solar Park
Unisun Energy Holding B.V.	Holding Company	April 2021	60% (via AEG)	EPC Company
Unisun Energy B.V.	SPV	April 2021	60% (via Unsiun Energy Holding B.V.)	EPC Company
UPER Energy Europe B.V.	SPV	April 2021	60% (via Unsiun Energy Holding B.V.)	O&M Company
Unisun Energy Poland Investment B.V.	Holding Company	April 2021	60% (via Unsiun Energy Holding B.V.)	EPC Company

		Financial Report - Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Alternus Energy Ownership	Country of Operation
Blue Sky Energy I B.V.	SPV	April 2021	60% (via AEGJD 02)	EPC Company
LJG Green Source Energy Beta Srl	SPV	May 2021	100% (via Solis)	Operational Romanian Solar Park
BI.MA. SRL	SPV	May 2021	100% (via Solis)	Operational Italian Solar Park
MABI S.R.L.	SPV	May 2021	100% (via Solis)	Operational Italian Solar Park
Alternus Energy Americas Inc.	Holding Company	May 2021	100% (via AEG)	USA Holding Company
Solarpark Samas Sp. Z O.O.	SPV	May 2021	100% (via Solis)	Operational Polish Solar Park
Risorse Solari I S.R.L.	SPV	July 2021	100% (via PC03)	Italian Solar Development Park
Risorse Solari III S.R.L.	SPV	August 2021	100% (via PC03)	Italian Solar Development Park
Alt Spain 01, S.L.U.	SPV	August 2021	100% (via PC03)	Spanish Solar Development Park
Altnor AS	Holding Company	August 2021	100% (via AEG)	Norway Holding Company
Altnua Limited	Holding Company	August 2021	100% (via AEG MH 02 Limited)	Ireland Holding Company
AEG JD 02 Limited	Holding Company	September 2021	100% (via AEG)	Ireland Holding Company
GHFG Limited	Holding Company	September 2021	55% (via AEG)	Ireland Holding Company
AED Italia-01 S.R.L.	SPV	October 2021	100% (via Altnua Limited)	Italian Solar Development Park
AED Italia-02 S.R.L.	SPV	October 2021	100% (via Altnua Limited)	Italian Solar Development Park

Alternus Energy Group Plc and Subsidiaries
Q3 2022	Financial Report	-	Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Alternus Energy Ownership	Country of Operation
AED Italia-03 S.R.L.	SPV	October 2021	100% (via Altnua Limited)	Italian Solar Development Park
AED Italia-04 S.R.L.	SPV	October 2021	100% (via Altnua Limited)	Italian Solar Development Park
AED Italia-05 S.R.L.	SPV	October 2021	100% (via Altnua Limited)	Italian Solar Development Park
Elektrownia PV Komorowo Sp. Z O.O	SPV	December 2021	100% (via Solis)	Operational Polish Solar Park
PV Zachod Sp. Z O.O	SPV	December 2021	100% (via Solis)	Operational Polish Solar Park
RA 01 Sp. Z O.O	SPV	March 2022	100% (via Solis)	Operational Polish Solar Park
Gardno PV Sp . Z O.O	SPV	March 2022	100% (via Solis)	Operational Polish Solar Park
Gardno2 PV Sp. Z O.O	SPV	March 2022	100% (via Solis)	Operational Polish Solar Park
AEG JD 01 Limited	Holding Company	March 2022	100% (via AEG MH 03 Limited)	Ireland Holding Company
AEG JD 03 Limited	Holding Company	March 2022	100% (via AEG MH 02 Limited)	Ireland Holding Company
AEG MH 01 Limited	Holding Company	March 2022	100% (via Alternus Lux 01 S.a.r.l.)	Ireland Holding Company
AEG MH 02 Limited	Holding Company	March 2022	100% (via AEG MH 01 Limited)	Ireland Holding Company
Uper Energy Romania S.R.L.	Holding Company	March 2022	100% (via Uper Energy Europe B.V.	Romania Holding Company
ALT US 02 LLC	Holding Company	March 2022	100% (via Alternus Energy Americas Inc)	USA Holding Company
ALT US 03 LLC	Holding Company	May 2022	100% (via Alternus Energy Americas Inc)	USA Holding Company

		Alternus Energy Group Plc and Subsidiaries
Q3 2022	Financial Report	- Unaudited
Subsidiary	Principal Activity	Date acquired/ established	Alternus Energy Ownership	Country of Operation
AEG MH 03 Limited	Holding Company	March 2022	100% (via AEG MH 01 Limited)	Ireland Holding Company
Uper Energy Italia S.R.L.	SPV	June 2022	100% (via Uper Energy Europe B.V.	O&M Company
ALT POL HC 01 sp. z o.o.	SPV	March 2022	100% (via AEG MH 01 Limited)	Poland Holding Company
Alt Spain Holdco, S.L.U.	Holding Company	July 2022	100% (via Altnua Limited)	Spain Holding Company
Alt Spain 02, S.L.U.	SPV	July 2022	100% (via Alt Spain Holdco S.L.U.)	Spain Solar Development Park
ALT US 01 LLC	SPV	December 2021	100% (via Alternus Energy Americas Inc)	USA Holding Company
LightWave Renewables, LLC	SPV	22 April 2022	100% (via ALT US 02 LLC)	USA Development Solar Park
AED Italia-06 S.R.L.		2 August 2022	100% (via Altnua Limited)	Italian Holding Company
AED Italia-07 S.R.L.		2 August 2022	100% (via Altnua Limited)	Italian Holding Company
AED Italia-08 S.R.L.		8 August 2022	100% (via Altnua Limited)	Italian Holding Company
Uper Energy Poland Sp. z o.o.		18 August 2022	100% (via Uper Energy Europe B.V.	O&M Company
ALT US 04 LLC	Holding Company	14 September 2022	100% (via Alternus Energy Americas Inc)	USA Holding Company

17) Subsequent Events

In accordance with IAS 10, Events after the reporting period (Subsequent Events), we have evaluated subsequent event through the date of issuance of these financial statements.

redemptions by Clean Earth shareholders, in which case the combined company will have approximately \$220 million of cash available at closing.

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Alternus Energy Group

8172_iss_2022-11-22_ac77e982-54d4-4432-beac-4b603c677f48.pdf

ALTERNUS ENERGY GROUP PLC AND SUBSIDIARIES

UNAUDITED CONSOLDATED FINANCIAL STATEMENTS

Company Information

Director's Report for the Nine Months ended 30 September 2022

Directors and Secretary

Principal Development & Performance Activities Review

Business Summary and Key Performance Indicators

Significant Changes in the State of Affairs

Results for the period

Going concern

Political Donations

Dividends

Future Developments in The Business

Principal Risks and Uncertainties

Events subsequent to the Quarter End

Parent Undertaking and Controlling Party

Related Party

Directors' Remuneration

Directors' and Secretary's Interests in Shares

Group Companies

Director's Compliance Statement

Accounting Records

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flow

Notes to the Consolidated Financial Statements for the Nine Months ended 30 September 2022

General Information

Summary of Significant Accounting Policies

Basis of Financial Statements

Compliance with IFRS, new standards and interpretation

New Accounting Standards Effective After the Reporting Period Ended 30 September 2022

Amendments to IFRS 1 – Subsidiary as a First-Time Adopter

Amendments to IFRS 3 – References to Conceptual Framework (Conceptual framework and Business Combination)

Amendments to IFRS 9 – Fees in the '10 per cent' Test for Derecognition of Financial Liabilities

Amendments to IFRS 16 – Lease Incentives

Amendments to IAS 41 – Taxation in Fair Value Measurements

Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)

Property, Plant and Equipment - Proceeds before Intended Use (Amendments to IAS 16)

Amendments to IFRS 9, IAS 39 and IFRS 7 (Interest Rate Benchmark Reform)

Amendments to IAS 1 and IAS 8 (Definition of Material)

Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

New and amended standards and interpretations (continued) Standards issued but not yet effective

Historical Cost, Presentation Currency and Going Concern

Management has Prepared Projections and Forecasts for the Group

Exemption from Preparing Company Statement of Comprehensive Income

Basis of Consolidation

Revenue Recognition

Expense Recognition

Business Combinations

Bargain Purchase

Prepayments

Leases

Short-term Leases and Leases of Low-Value Assets

Foreign Currencies

Borrowing costs

Income Tax

Current Tax

Deferred tax

Property, Plant and Equipment

Depreciation

Additions

Asset Retirement Obligations

Derecognition

Investments in Subsidiary

Investments in Subsidiary Companies

Impairment of Tangible and Intangible Assets

Intangible Assets

Impairment of Long-Lived Assets

Goodwill and Indefinite-Lived Intangible Assets

Financial Instruments

Effective Interest Method

Financial Assets

Loans and Receivables

Impairment of Financial Assets

Derecognition of Financial Assets

Financial Liabilities and Equity