Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 83

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 83
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 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 input of subjective assumptions including expected share price volatility, risk-free interest rate and debt rate. Changes in the input assumptions as well