v3.26.1
Note 21 - Segment and Geographic Information
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting [Text Block]

21.

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. European operations represent our most significant business. The Chief Operating Decision-Maker (CODM) is the CEO.

 

Historically, the European Segment derives revenues from three sources, Country Renewable Programs, Green Certificates and Long-term Offtake Agreements. The United States Segment revenues are 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 continuing operations as the Lightwave operating parks were sold back to the parent company, AEG, 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 from Poland, the Netherlands, and Romania for all periods.

 

  

Year Ended December 31,

 

Revenue by Segment

 

2025

  

2024

 
  

(in thousands)

 

Europe – Discontinued Operations

  -   9,809 

United States

  -   311 

Total for the period

 $-  $10,120 

 

  

Year Ended December 31,

 

Net Income/(Loss) by Segment

 

2025

  

2024

 
  

(in thousands)

 

Europe

 $13,704  $(10,584)

Europe – Discontinued Operations

  -   45,912 

United States

  (21,010)  (14,250)

Total for the period

 $(7,306) $21,078 

 

  

Year Ended December 31,

 

Assets by Segment

 

2025

  

2024

 
  

(in thousands)

 

Europe – Continuing Operations

        

Other Assets

  12   3,958 

Total for Europe – Continuing Operations

 $12  $3,958 
         

United States – Continuing Operations

        

Intangible assets

 $37,518  $- 

Goodwill

 $18,964  $- 

Other Assets

  550   3,769 

Total for United States – Continuing Operations

 $57,032  $3,769 

 

  

Year Ended December 31,

 

Liabilities by Segment

 

2025

  

2024

 
  

(in thousands)

 

Europe – Continuing Operations

        

Debt

 $1,176  $19,807 

Other Liabilities

  1,075   1,200 

Total for Europe – Continuing Operations

 $2,252  $21,007 
         

United States – Continuing Operations

        

Debt

 $14,885  $9,598 

Other Liabilities

  16,885   11,007 

Total for United States – Continuing Operations

 $31,771  $20,605 

 

  

Year Ended December 31,

 

Revenue by Product Type

 

2025

  

2024

 
  

(in thousands)

 

Country Renewable Programs (FiT)

        

United States - Continuing operations

 $-  $311 

Total for the period

 $-  $311 
         

Country Renewable Programs (FiT)

        

Europe – Discontinued Operations

  -   334 

Total for the period

 $-  $334 
         

Green Certificates (FiT)

        

Europe – Discontinued Operations

 $-  $5,803 

Total for the period

 $-  $5,803 
         

Energy Offtake Agreements (PPA)

        

Europe – Discontinued Operations

  -   3,638 

Total for the period

 $-  $3,638 
         

Other Revenue

        

Europe – Discontinued Operations

  -   34 

Total for the period

 $-  $34 

 

  

Year Ended December 31,

 

Adjusted EBITDA by Segment

 

2025

  

2024

 
  

(in thousands)

 

Europe

 $(1,225) $(3,347)

Europe – Discontinued Operations

  -   5,485 

United States

  (6,840)  (8,454)

Total for the period

 $(8,065) $(6,316)

 

Below is a reconciliation of net income to adjusted EBITDA for the periods presented:

 

  

Year Ended December 31,

 

Adjusted EBITDA Reconciliation to Net Income/(Loss)

 

2025

  

2024

 
  

(in thousands)

 

Europe

        

Adjusted EBITDA

 $(1,225) $(3,347)

Depreciation, amortization, and accretion

  -   (21)

Interest expense

  (584)  (3,953)

Impairment of assets

  -   (3,263)

Gain on sale of assets

  15,513   (3,263)

Net Income (Loss)

 $13,704  $(10,584)
         

Europe – Discontinued Operations

        

Adjusted EBITDA

 $-  $5,485 

Depreciation, amortization, and accretion

  -   (1,691)

Interest expense

  -   (9,726)

Income taxes

  -   (87)

Solis bond waiver fee

  -   - 

Impairment loss recognized on the remeasurement to fair value less costs to sell

  -   - 

Gain on sale of discontinued operations, net assets

  -   51,931 

Net Income (Loss)

 $-  $45,912 
         

United States

        

Adjusted EBITDA

 $(6,840) $(8,454)

Depreciation, amortization, and accretion

  (593)  (194)

Interest expense

  (3,614)  (4,820)

Fair value movement of FPA asset

  -   (483)

Fair value movement of convertible note

  (3,967)  67 

Debt restructuring costs

  (753)  - 

Costs associated with legal actions related to unpaid liabilities

  (1,232)  - 

Fair value movement of warrant

  1,564   565 

Loss on issuance of debt

  (35)  - 

Loss on extinguishment of debt

  (3,187)  - 

Gain on settlement of liabilities

  596   - 

Loss on settlement of SAA with Hover

  (2,025)  - 

Provision for loss from related party

  (561)  (520)

Other expense

  (363)  179 

Income taxes

  -   (590)

Net Income (Loss)

 $(21,010) $(14,250)

Consolidated Net Income (Loss)

 $(7,306) $21,078 

 

Theres was no revenue in the year ended December 3, 2025.

 

One customer represented 100% of continuing operational revenues during the year ended December 31, 2024. The revenues from this customer accounted for $0.3 million of revenue for the year ended December 31, 2024.  Five customers represented 76% of the discontinued operational revenues during the year ended December 31, 2024. The revenues from these customers accounted for $7.7 million of revenue for the year ended December 31, 2024.