Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 37

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 8
Chunk 37
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.8 million and a working capital deficit of $8.0 million compared to $4.9 million of cash and cash equivalents and a working capital deficit of $2.9 million as of June 30, 2024. Our predominant source of cash has been generated through equity financing from issuances of our common stock and equity-linked securities, including our Convertible Notes. Since inception, we have not generated revenues, and as such, have relied on equity financing and equity-linked instruments to fund our operating and investing activities. We maintain the majority of our cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at certain of these institutions may exceed insured limits. Market conditions can impact the viability of these institutions.

A summary of our cash flows for the six months ended December 31, 2024 and 2023 follows.

    For the six months ended December 31,

    Variance

    2024

    2023

    $

    %

    ($ in thousands)

    Net cash used in operating activities
     
    $
    (11,677
    )
     
    $
    (14,772
    )
     
    $
    3,095

    -21
    %

    Net cash used in investing activities

    (781
    )

    (3,486
    )

    2,705

    -78
    %

    Net cash provided by financing activities

    8,386

    (20
    )

    8,406

    *

    Net increase (decrease) in cash and cash equivalents
     
    $
    (4,072
    )
     
    $
    (18,278
    )
     
    $
    14,206

    -78
    %

* Represents a percentage change greater than +/- 300%

Cash Flows Used For Operating Activities

Net cash used in operating activities for each of the above periods was primarily the result of general and administrative costs (exclusive of share based compensation), costs incurred in furthering the Project, preparing us for the operation of the SSF, and operating costs of the SSF. During the six months ended December 31, 2024, we used $11.7 million of cash for operating activities, a decrease of approximately $3.1 million or 21% compared to the comparable period in the prior fiscal year. The decrease in cash used in operations during the current period primarily results from the combined decrease