Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 85

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 85
---
 Stock price per share   |     |         $1.21 |    |             $1.44 |     |          $1.21 |     |    $3.28 |     |        $11.63 |     |           $15.83 |

(1)A debt rate of 36.7% was utilized in the valuation of the June 2024 Notes, while a rate of 28.7% was utilized for the Original Convertible Notes.

Convertible Notes – Loss on Extinguishment

For accounting purposes, the modification of the terms of the Convertible Notes in connection with the January 2024 Amended and Restated Note Purchase Agreement was evaluated and determined to be representative of an in-substance extinguishment of the Convertible Notes outstanding at that date, and establishment of new debt, primarily due to the significance of the changes to the terms of the conversion features. As a result, the Company wrote-off the remaining principal, accrued interest, unamortized discount and debt issuance costs associated with the prior debt on the Modification Date and recognized the modified debt on the balance sheet at its fair value of $65.2 million. The fair value of the modified debt was determined utilizing a binomial lattice

<div align='center'>60</div>

model, and the significant inputs to such model are described in more detail in the preceding table. The difference in value between the prior debt and the modified debt resulted in a loss on extinguishment of debt of $21.0 million, the calculation of which is summarized in the following table.

|                                           |     | Year ended June 30, 2024 |         |   |
|:------------------------------------------|:----|:-------------------------|--------:|:--|
|                                           |     | -in thousands            |         |   |
| Modified Convertible Notes, at fair value |     |                          |         |   |
| Principal                                 |     | $                        |  63,561 |   |
| Accrued interest                          |     |                          |   1,621 |   |
| Net long-term debt recognized             |     | $                        |  65,182 |   |
| Convertible Notes on Modification Date    |     |                          |         |   |
| Principal                                 |     | $                        |  63,561 |   |
| Accrued interest                          |     |                          |   1,621 |   |
| Unamortized Convertible Notes discount    |     |                          |