Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 132

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 132
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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.

Interest expense consisted of the following for each period presented.

|                                                      |     | Three months ended September 30, 
 2024                             
 (in thousands)                   |       |   |     | 2023 |       |   |
|:-----------------------------------------------------|:----|:---------------------------------|------:|:--|:----|:-----|------:|:--|
| Convertible Notes interest                           |     | $                                | 1,859 |   |     | $    |   940 |   |
| Vehicle notes payable interest                       |     |                                  |     1 |   |     |      |     1 |   |
| Amortization of debt issuance costs and              
 discount — Convertible Notes                         |     |                                  |   324 |   |     |      | 1,452 |   |
| Other interest                                       |     |                                  |     — |   |     |      |    18 |   |
| Gross interest expense                               |     |                                  | 2,184 |   |     |      | 2,411 |   |
| Less: amount capitalized to construction in progress |     |                                  |    29 |   |     |      |   624 |   |
| Interest expense, net of amounts capitalized         |     | $                                | 2,155 |   |     | $    | 1,787 |   |
| Effective interest rate — Convertible Notes (1)      |     |                                  |  12.7 | % |     |      |  23.2 | % |

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 new Convertible Notes, interest paid-in-kind and any adjustments resulting from the Amended and Restated Note Purchase Agreement.

Convertible Notes

On August 11, 2022, the Company executed a $60 million private placement of senior secured convertible notes (the “August 2022 Notes”) with Bluescape Special Situations IV (“