Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 119

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 2
Chunk 119
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 and fees, and we continue to operate under a business plan that includes reductions in certain spending, we will need additional financing in order to continue as a going concern and, as long as the Convertible Notes are outstanding, maintain a cash balance in excess of the $7.5 million minimum cash covenant contained in the Amended and Restated Note Purchase Agreement (as discussed in Note 7–Debt to the unaudited condensed consolidated financial statements). An event of default under the September 2024 Amended and Restated Note Purchase Agreement would give the holders of the Convertible Notes the right to cause all of our Convertible Notes to become immediately due and payable, for which we would not have the resources to repay without additional financing. The receipt of potential funding cannot be considered probable at this time because these plans are not entirely within management's control as of the date of the unaudited condensed consolidated financial statements. Therefore, there exists substantial doubt regarding our ability to continue as a going concern. Even if additional financing is successfully consummated, including as part of the proposed Out-of-Court Restructuring, available liquidity may still not be sufficient to eliminate 

24

the aforementioned substantial doubt regarding our ability to continue as a going concern. Refer to the “Going Concern” discussion within Note 1–Basis of Financial Statement Presentation of the unaudited condensed consolidated financial statements and “Liquidity and Capital Resources” below for more information.

Results of Operations 

The following table summarizes our results of operations for the periods presented.

    Three Months Ended December 31,

    Variance

    Six Months Ended December 31,

    Variance

    2024

    2023

    $

    %

    2024

    2023

    $

    %

    (in thousands)

    (in thousands)

    COSTS AND EXPENSES

    Project expenses
     
    $
    1,679

    $
    1,431

    $
    248

    17
    %
     
    $
    3,233

    $
    3,014

    $
    219

    7
    %

    Small-scale facility operating costs

    1,080

    —

    1,080

    N/A

    2,668

    —

    2,668

    N/A

    General and administrative

    3,280

    7,396

    (4,116
    )