Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 70

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 70
---
831

      As further discussed below, on September 16, 2024, the Company issued an additional $6.0 million aggregate principal amount of September 2024 Notes. Additionally, on August 15, 2024, the Company elected to issue additional notes as payment for $3.4 million of interest accrued during the period from February 16, 2024 through August 15, 2024. 

12

Interest expense consisted of the following for each period presented.

        Three months ended December 31,

        Six months ended December 31,

        2024

        2023

        2024

        2023

        (in thousands)

        Convertible notes interest
         
        $
        2,027

        $
        953

        $
        3,886

        $
        1,893

        Vehicle notes payable interest

        1

        1

        2

        3

        Amortization of debt issuance costs and    discount — convertible notes

        434

        1,453

        758

        2,905

        Other interest

        —

        —

        —

        18

        Gross interest expense

        2,462

        2,407

        4,646

        4,819

        Less: amount capitalized to construction in progress

        32

        668

        61

        1,293

        Interest expense, net of amounts capitalized
         
        $
        2,430

        $
        1,739

        $
        4,585

        $
        3,526

        Effective interest rate — convertible notes(1)

        13.6
        %

        22.6
        %

        13.1
        %

        22.5
        %
       
      (1)The effective interest rate represents a weighted-average interest rate applicable for the respective period. Interest expense utilized in the calculation is based upon the gross interest expense in the table above, and the principal balance utilized in the calculation is based on the ending net long-term debt applicable to each interest period inclusive of unamortized debt issuance costs and discount, changes in the principal balance resulting from the issuance of any Convertible Notes, interest paid-in-kind and any adjustments resulting from the Amended and Restated Note Purchase Agreement.Convertible NotesOn August 11, 2022,