| Segment Reporting [Text Block] |
20. Segment and Geographic Information
Effective January 1, 2024, the Company adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update requires disclosure of significant segment expenses regularly provided to the Chief Operating Decision Maker (CODM) and enhances qualitative disclosures about segment operations. The adoption of this ASU did not impact the Company’s consolidated financial position, results of operations, or cash flows.
The Company has two reportable segments that consist of PV operations by geographical region, United States Operations and European Operations. The Chief Operating Decision-Maker (CODM) is the CEO.
Historically, the European Segment had derived revenues from three sources, Country Renewable Programs, Green Certificates and Long-term Offtake Agreements. The United States Segment revenues are expected to be derived from Long-term Offtake Agreements. As of December 31, 2024, the Company had no revenue from discontinued operations as the operating parks in Poland, the Netherlands, and Romania were sold. Additionally, the Company had no revenue from continuing operations as the Lightwave operating parks were sold to a related party, Alternus Energy Group Plc, as a result of the deconsolidation of Alternus Energy Americas Inc. on November 5, 2024.
In evaluating financial performance, the CODM uses Adjusted EBITDA to assess segment performance and decide how to allocate resources. Adjusted EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization, and any one time non-operational costs or costs related to financing or capital transactions. The Company uses Adjusted EBITDA because management believes that it can be a useful financial metric in understanding the Company’s earnings from operations. Adjusted EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. As a trans-Atlantic independent solar power provider, we evaluate many of our capital expenditure decisions at a regional level. Accordingly, expenditures on property, plant and equipment and associated debt by segment are presented.
The following tables present information related to the Company’s reportable segments. The data has been presented to show the effect of discontinued operations for subsidiaries sold or deconsolidated.
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| Revenue by Segment |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
|
(in thousands) |
|
| Europe |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Europe – Discontinued Operations |
|
|
- |
|
|
|
3,649 |
|
|
|
- |
|
|
|
9,611 |
|
| United States |
|
|
- |
|
|
|
93 |
|
|
|
- |
|
|
|
280 |
|
| Total for the period |
|
$ |
- |
|
|
$ |
3,742 |
|
|
$ |
- |
|
|
$ |
9,891 |
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| Net Income/(loss) by Segment |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
|
(in thousands) |
|
| Europe |
|
$ |
(335 |
) |
|
$ |
(1,500 |
) |
|
$ |
14,026 |
|
|
$ |
(4,376 |
) |
| Europe – Discontinued Operations |
|
|
- |
|
|
|
(2,370 |
) |
|
|
- |
|
|
|
(5,419 |
) |
| United States |
|
|
(9,414 |
) |
|
|
(1,200 |
) |
|
|
(18,720 |
) |
|
|
(8,691 |
) |
| Total for the period |
|
$ |
(9,749 |
) |
|
$ |
(5,070 |
) |
|
$ |
(4,694 |
) |
|
$ |
(18,486 |
) |
| |
|
As of |
|
|
Year Ended |
|
| |
|
September 30, |
|
|
December 31, |
|
| Assets by Segment |
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
| Europe – Continuing Operations |
|
|
|
|
|
|
|
|
| Other Assets |
|
$ |
26,199 |
|
|
$ |
3,959 |
|
| Total for Europe – Continuing Operations |
|
$ |
26,199 |
|
|
$ |
3,959 |
|
| |
|
|
|
|
|
|
|
|
| United States – Continuing Operations |
|
|
|
|
|
|
|
|
| Other Assets |
|
$ |
31,311 |
|
|
$ |
3,768 |
|
| Total for United States – Continuing Operations |
|
$ |
31,311 |
|
|
$ |
3,768 |
|
| |
|
As of |
|
|
Year Ended |
|
| |
|
September 30, |
|
|
December 31, |
|
| Liabilities by Segment |
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
| Europe – Continuing Operations |
|
|
|
|
|
|
|
|
| Debt |
|
$ |
1,173 |
|
|
$ |
19,807 |
|
| Other Liabilities |
|
|
867 |
|
|
|
1,200 |
|
| Total for Europe – Continuing Operations |
|
$ |
2,040 |
|
|
$ |
21,007 |
|
| |
|
|
|
|
|
|
|
|
| United States – Continuing Operations |
|
|
|
|
|
|
|
|
| Debt |
|
$ |
12,830 |
|
|
$ |
9,598 |
|
| Other Liabilities |
|
|
20,015 |
|
|
|
11,007 |
|
| Total for United States – Continuing Operations |
|
$ |
32,845 |
|
|
$ |
20,605 |
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| EBITDA by Segment |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
|
(in thousands) |
|
| Europe |
|
$ |
(306 |
) |
|
$ |
1,849 |
|
|
$ |
(1,044 |
) |
|
$ |
(1,026 |
) |
| Europe - discontinued operations |
|
|
- |
|
|
|
(663 |
) |
|
|
- |
|
|
|
5,468 |
|
| US |
|
|
(677 |
) |
|
|
(1,780 |
) |
|
|
(5,119 |
) |
|
|
(6,658 |
) |
| Total for the period |
|
$ |
(983 |
) |
|
$ |
(594 |
) |
|
$ |
(6,162 |
) |
|
$ |
(2,216 |
) |
Below is a reconciliation of net income to Adjusted EBITDA for the periods presented:
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| EBITDA Reconciliation to Net Loss |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
(in thousands) |
|
|
(in thousands) |
|
| Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
(306 |
) |
|
$ |
1,849 |
|
|
$ |
(932 |
) |
|
$ |
(1,026 |
) |
| Depreciation, amortization, and accretion |
|
|
- |
|
|
|
(27 |
) |
|
|
- |
|
|
|
(27 |
) |
| Interest expense |
|
|
(29 |
) |
|
|
(3,322 |
) |
|
|
(555 |
) |
|
|
(3,323 |
) |
| Gain on sale of subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
15,513 |
|
|
|
- |
|
| Net Income /(Loss) |
|
$ |
(335 |
) |
|
$ |
(1,500 |
) |
|
$ |
14,026 |
|
|
$ |
(4,376 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe - discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
- |
|
|
$ |
(663 |
) |
|
$ |
- |
|
|
$ |
5,468 |
|
| Gain/(loss) from operations of discontinued business component |
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
|
(3,205 |
) |
| Gain/(loss) on sale of discontinued business components |
|
|
- |
|
|
|
(635 |
) |
|
|
- |
|
|
|
1,531 |
|
| Interest expense |
|
|
- |
|
|
|
(1,228 |
) |
|
|
- |
|
|
|
(9,213 |
) |
| Net Income /(Loss) |
|
$ |
- |
|
|
$ |
(2,370 |
) |
|
$ |
- |
|
|
$ |
(5,419 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
(677 |
) |
|
$ |
(1,780 |
) |
|
$ |
(5,592 |
) |
|
$ |
(6,658 |
) |
| Depreciation, amortization, and accretion |
|
|
- |
|
|
|
(49 |
) |
|
|
(130 |
) |
|
|
(148 |
) |
| Interest expense |
|
|
(371 |
) |
|
|
(450 |
) |
|
|
(3,285 |
) |
|
|
(1,531 |
) |
| Fair value movement of FPA Asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(483 |
) |
| Fair value movement of convertible notes |
|
|
(1,377 |
) |
|
|
1,079 |
|
|
|
(2,263 |
) |
|
|
898 |
|
| Debt restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
(753 |
) |
|
|
- |
|
| Fair value movement of warrant derivative liability |
|
|
(677 |
) |
|
|
- |
|
|
|
(514 |
) |
|
|
- |
|
| Gain on settlement of payables |
|
|
426 |
|
|
|
- |
|
|
|
426 |
|
|
|
- |
|
| Loss on issuance of debt |
|
|
(19 |
) |
|
|
- |
|
|
|
(19 |
) |
|
|
- |
|
| Loss on extinguishment of debt |
|
|
(3,404 |
) |
|
|
- |
|
|
|
(3,404 |
) |
|
|
- |
|
| Loss on settlement of SAA with Hover |
|
|
(2,025 |
) |
|
|
|
|
|
|
(2,025 |
) |
|
|
|
|
| Loss on settlement of liabilities |
|
|
(151) |
|
|
|
- |
|
|
|
(151) |
|
|
|
(948) |
|
| Provision for loss from related party |
|
|
(1,139 |
) |
|
|
- |
|
|
|
(1,139 |
) |
|
|
179 |
|
| Other expense |
|
|
- |
|
|
|
- |
|
|
|
(232 |
) |
|
|
- |
|
| Net Loss |
|
$ |
(9,414 |
) |
|
$ |
(1,200 |
) |
|
$ |
(18,720 |
) |
|
$ |
(8,691 |
) |
| Income Taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Consolidated Net Income / (Loss) |
|
$ |
(9,749 |
) |
|
$ |
(5,070 |
) |
|
$ |
(4,694 |
) |
|
$ |
(18,486 |
) |
|