Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 83

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 83
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the "June 2024 Convertible Note Derivative"). The June 2024 Notes were initially recorded at their face amount of $6 million less debt issuance costs of $541 thousand and the fair value of the June 2024 Convertible Note Derivative, which was determined to be $4.1 million. The provision that results in separate accounting for the June 2024 Convertible Note Derivative will expire on December 31, 2024, and accordingly, the fair value of the June 2024 Convertible Note Derivative, if any, on such date will be transferred to additional paid-in capital. Refer to Note 8—Convertible Notes Derivatives and the discussion immediately below for additional details regarding the fair values of the Original Convertible Note Derivative and the June 2024 Convertible Note Derivative.

Convertible Notes – Fair Value

Fair value and carrying value information for the Convertible Notes at each period end follows.

| As of June 30, 2024                   |     | Principal      
 Amount         
 (in thousands) |        |     | Unamortized Debt 
 Discount and     
 Issuance Costs   |         |   |     | Net Liability 
 Carrying      
 Amount        |        |     | Fair Value 
 Amount     |        |     | Leveling |
|:--------------------------------------|:----|:---------------|-------:|:----|:-----------------|:--------|:--|:----|:--------------|-------:|:----|:-----------|-------:|:----|:---------|
| Convertible Notes due August 15, 2028 |     | $              | 71,671 |     | $                | (6,906  | ) |     | $             | 64,765 |     | $          | 65,231 |     | Level 2  |
| As of June 30, 2023                   |     |                |        |     |                  |         |   |     |               |        |     |            |        |     |          |
| Convertible Notes due August 15, 2027 |     | $              | 61,710 |     | $                | (24,147 | ) |     | $             | 37,563 |     | $          | 40,316 |     | Level 2  |

The valuation model for the Convertible Notes and related Original Convertible Note Derivative and June 2024 Convertible Note Derivative requires the