Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 95

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 95
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, 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. Income Taxes

The Company did not record a U.S. federal or state income tax benefit for losses incurred during the years ended June 30, 2024 and 2023. The Company has concluded that it is more likely than not that its deferred tax assets will not be realized which resulted in the recording of a full valuation allowance during those periods.

Domestic and foreign components of loss before income taxes for the years ended June 30 are as follows.

|                |     | 2024           
 (in thousands) |        |     | 2023 |        |
|:---------------|:----|:---------------|-------:|:----|:-----|-------:|
| United States  |     | $              | 62,013 |     | $    | 30,624 |
| Australia      |     |                |      — |     |      |      — |
| Total net loss |     | $              | 62,013 |     | $    | 30,624 |

The following table presents a reconciliation of the United States statutory income tax rate to the Company’s effective income tax rate for the periods presented.

|                                            |     | Year ended June 30, |    2024 |   |     |   |   2023 |   |
|:-------------------------------------------|:----|:--------------------|--------:|:--|:----|:--|-------:|:--|
|                                            |     | -$ in thousands     |         |   |     |   |        |   |
| Loss before income taxes                   |     | $                   |  62,013 |   |     | $ | 30,624 |   |
| Statutory income tax rate                  |     |                     |      21 | % |     |   |     21 | % |
| Income tax benefit at statutory tax rates  |     | $                   |  13,023 |   |     | $ |