Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 77

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 77
---
 Each of these provisions expired on December 31, 2024, and accordingly, the Convertible Note Derivatives were derecognized and the remaining fair values were transferred to additional paid-in capital.The components of changes to the fair value of the Convertible Note Derivatives for the period presented are summarized below.

        Derivative

        (Asset)/Liability

        (in thousands)

        Convertible note derivatives (asset) liability — June 30, 2024
         
        $
        3,315

        Additions, at fair value, September 16, 2024

        1,643

        Fair value adjustments (gain) loss, net

        (1,357
        )

        Reclassified to additional paid-in capital, at fair value, December 31, 2024

        (3,601
        )

        Convertible note derivatives (asset) liability — December 31, 2024
         
        $
        —

15

9. Financial Instruments and Fair Value MeasurementsAt December 31, 2024, cash equivalents as well as trade and other payables approximated their fair value due to their short-term nature. The Company’s financial instruments also consist of environmental reclamation bonds which are invested in certificates of deposit and money market funds which are classified as Level 1, the Convertible Notes which are classified as Level 2, and the Convertible Note Derivatives which were classified as Level 3. The reconciliation of changes in the fair value of the Convertible Note Derivatives can be found in Note 8–Convertible Note Derivatives.

10. EquityThe Company is authorized to issue up to 360,000,000 shares of common stock, par value $0.01 per share, and 20,000,000 shares of preferred stock, par value, $0.01 per share. The Company has no outstanding shares of preferred stock. August 2024 Equity OfferingOn August 27, 2024, the Company completed an offering (the “August 2024 Equity Offering”) of (i) 5,333,333 shares (the “Shares”) of Common Stock, (ii) Series A warrants to purchase up to an aggregate of up to 5,333,333 shares of Common Stock (the “Series A Warrants”) and (iii) Series B warrants to purchase an aggregate of 5,333,333 shares of Common Stock (the “Series B Warrants”, and collectively