Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 143

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 143
---
|:-----|------:|
| Interest expense on Convertible Notes                                         |     | $                                |  2,184 |     | $    | 2,393 |
| Derivative gain (loss) — Convertible Note Derivatives                         |     | $                                |  2,187 |     | $    |     — |
| Additional shares assuming conversion of Convertible Notes                    |     |                                  | 55,480 |     |      | 3,611 |
| Additional shares assuming exercise of Warrants                               |     |                                  | 10,667 |     |      |     — |
| Stock options and unvested restricted stock units and performance share units |     |                                  |  3,566 |     |      | 4,780 |

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13. Commitments and Contingencies

Purchase Obligations

As of September 30, 2024, the Company had purchase order commitments of approximately $4.3 million primarily for engineering services for our proposed commercial-scale facility, drilling services related to wellfield development, raw materials for the operation of our SSF and other services.

Litigation

On July 17, 2023, the Company filed a complaint (the “Complaint”) against a previous construction contractor in the United States District Court for the Central District of California, Eastern Division, alleging, among other things, numerous breaches by the contractor of its contractual obligations to 5EBA under the Procurement and Construction Contract, effective April 26, 2022, by and between 5EBA and the contractor, relating to the construction of the SSF in California (the “Contract”). On August 10, 2023, the contractor filed an answer to the Complaint as well as a counterclaim for, among other things, alleged breaches by 5EBA of its contractual obligations to the contractor under the Contract and has requested relief in the approximate amount of $5.5 million. The Company plans on filing a response disputing the counterclaims asserted by the contractor and reaffirming the grounds for recovery raised in the Complaint. Discovery has begun and is ongoing. An estimate of reasonably possible losses, if any, cannot be made at this time.

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APPENDIX B-2

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023