Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 79

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 79
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 may offer and sell up to $15.0 million of shares of Common Stock from time to time through the Agents, acting as the Company’s sales agents, or directly to one or more of the Agents, acting as principal (the “ATM Program”).Neither of the Agents is required to sell any specific number or dollar amount of shares of the Company’s Common Stock, but each has agreed, subject to the terms and conditions of the Equity Distribution Agreement, to use its commercially reasonable efforts, consistent with its normal trading and sales practices, to sell the shares of Common Stock on the terms agreed upon by such Agent and the Company.The Company did not sell any shares of Common Stock nor receive any proceeds under the Equity Distribution Agreement during the three and six months ended December 31, 2024. As a result of the August 2024 Equity Offering, the Company is precluded from utilizing the ATM Program for one year following the closing of the offering, and as a result approximately $410 thousand of costs previously capitalized for the ATM Program were written-off to General and administrative expense during the three months ended December 31, 2024.Out-of-Court RestructuringAs discussed in Note 1-Basis of Financial Statement Presentation, the proposed Out-of-Court Restructuring could result in (i) the issuance of 312,490,076 shares of Common Stock upon the exchange of the Convertible Notes, (ii) the issuance of an aggregate $5.0

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 million of Common Stock at the Subscription Price, and (iii) the issuance of Restructuring Warrants with a one-year term to purchase an aggregate number of shares of Common Stock represented by up to $20.0 million divided by the Subscription Price. Each of the aforementioned potential impacts to the Company’s equity structure are subject to satisfaction of customary conditions, including approval by the Company’s stockholders, which has not yet occurred. If the Out-of-Court Restructuring is not consummated, the Company shall file Chapter 11 Cases under the Bankruptcy Code in a Bankruptcy Court pursuant to a Pre-Packaged Chapter 11 Plan, pursuant to which, among other things, all existing equity interests of the Company shall be extinguished, with Ascend and Bluescape each owning their respective pro rata share of 100% of the new equity interests in the Company upon the effective date of the Pre-Packaged Chapter 11 Plan.

11. Share Based CompensationShare based compensation expense is included in general and administrative expense and represents costs associated with restricted