Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 21

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 8
Chunk 21
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 prior to such 

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approval being obtained. The impact of the January 2025 Notes is not reflected in the computation of earnings per share or pro forma earnings per share for the three and six months ended December 31, 2024 and 2023.Proposed Out-of-Court RestructuringAs discussed in Note 1–Basis of Financial Statement Presentation and Note 10–Equity, the proposed Out-of-Court Restructuring could result in (i) the issuance of 312,490,076 shares of Common Stock upon the exchange of the Convertible Notes, (i) the issuance of an aggregate $5.0 million of Common Stock at the Subscription Price, and (iii) the issuance of Restructuring Warrants with a one-year term to purchase an aggregate number of shares of Common Stock represented by up to $20.0 million divided by the Subscription Price. Each of the aforementioned potential impacts to the Company’s equity 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 disput