Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 89

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 89
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 of the offering.

10. Share Based Compensation

2022 Equity Compensation Plan

In March 2022, the Company’s Board of Directors adopted the 5E Advanced Materials, Inc. 2022 Equity Compensation Plan (the “Incentive Plan”). A total of 2.5 million shares of common stock are reserved for issuance under the Incentive Plan. The Incentive Plan authorizes the grant of stock options, restricted share units (“RSUs”), performance share units (“PSUs”), director restricted share units (“DSUs”), performance cash units and other equity-based awards. The Company’s Compensation Committee determines the exercise price for stock options and other equity-based awards, which may not be less than the fair market value of the Company’s common stock on the date of grant. As of June 30, 2024, approximately 1.2 million shares of common stock remain available for issuance under the Incentive Plan. It is the Company’s policy to issue new shares of Common Stock to satisfy stock option exercises.

Share Based Compensation Expense

Share based compensation expense is included in general and administrative expense and represents costs associated with RSUs, DSUs, PSUs and options activity. Share based compensation expense consisted of the following for the periods presented.

|                                                  |     | Year Ended June 30, |  2024 |     |   |  2023 |
|:-------------------------------------------------|:----|:--------------------|------:|:----|:--|------:|
|                                                  |     | -in thousands       |       |     |   |       |
| Share based compensation expense — service based |     |                     |       |     |   |       |
| Employee share option plan                       |     | $                   |   397 |     | $ | 3,064 |
| 2022 Equity Compensation Plan — Options          |     |                     | 1,443 |     |   |   934 |
| 2022 Equity Compensation Plan — PSUs             |     |                     |    18 |     |   |   101 |
| 2022 Equity Compensation Plan — RSU and DSUs     |     |                     | 1,632 |     |   |   854 |
| Total share based compensation expense           |     | $                   | 3,490 |     | $ | 4,953 |

As of June 30, 2024, the Company had approximately $1.8 million of total unrecognized stock-based compensation expense related to un