Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 84

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 84
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 as the Company's underlying share price can materially affect the fair value estimates. Additionally, the modification of the conversion features associated with the January 2024 Amended and Restated Note Purchase Agreement resulted in a significant increase in the fair value of the Original Convertible Notes outstanding on such date, and a related loss on extinguishment of debt. Other changes in the reported fair value of the Convertible Notes between periods are not recognized in net income and therefore have no effect on reported net income (loss).

The significant assumptions used in the fair value model for the Convertible Notes and related Original Convertible Note Derivative and June 2024 Convertible Note Derivative include the following, with changes in volatility, debt rate and stock price having the most significant impact on the related fair values.

|                         |     |      June 30, 
          2024 |    |          June 11, 
              2024 
 (June 2024 Notes) |     |    January 18, 
           2024 
 (Modification) |     | June 30, 
     2023 |     |  November 26, 
          2022 
 (Termination) |     |       August 26, 
             2022 
 (Original Notes) |
|:------------------------|:----|--------------:|---:|------------------:|:----|---------------:|:----|---------:|:----|--------------:|:----|-----------------:|
| Risk-free interest rate |     |          4.5% |    |              4.5% |     |           4.1% |     |     4.4% |     |          3.9% |     |             3.2% |
| Volatility              |     |         50.0% |    |             55.0% |     |          55.0% |     |    50.0% |     |         40.0% |     |            40.0% |
| Debt rate               |     | 28.7% - 36.7% | -1 |             36.3% |     |          25.3% |     |    17.5% |     |         17.7% |     |            17.3% |
| Stock price per share   |     |         $1.21 |    |             $1.44 |     |