Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 84

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 84
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 structure are subject to satisfaction of customary conditions, including approval by the Company’s stockholders, which has not yet occurred. As such, such impacts have not been considered in the Company’s computation of earnings per share or pro forma earnings per share for the three and six months ended December 31, 2024 and 2023. 

13. Commitments and ContingenciesPurchase ObligationsAs of December 31, 2024, the Company had purchase order commitments of approximately $2.4 million primarily for raw materials for the operation of the SSF, engineering services for the Company’s proposed commercial-scale facility, drilling services related to wellfield development, testing and analytical services, and other services. LitigationOn 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.

14. Subsequent EventsRestructuring Support Agreement and Related AgreementsAs further described in Note 1–Basis of Financial Statement Presentation and Note 10–Equity, on January 14, 2025, the Company entered into a Restructuring Support Agreement with Bluescape, Meridian and Ascend in connection with a restructuring and recapitalization transaction, including the Convertible Notes issued pursuant to the Amended and Restated Note Purchase Agreement by and among the Company, Bluescape, Ascend, the Guarantors from time to time party thereto and Alter Domus (US) LLC, as collateral agent. The Restructuring Support Agreement contemplates either an Out-of-Court Restructuring or In-Court