5E Advanced Materials(US:FEAM)2023-11-08 16:00Financial Performance - Project expenses decreased by $2.0 million or 56% to $1.583 million for the three months ended September 30, 2023, compared to $3.595 million in the same period of 2022[90] - General and administrative expenses increased by $1.2 million or 24% to $6.038 million for the three months ended September 30, 2023, compared to $4.886 million in the same period of 2022[92] - Interest income rose by 116% to $132,000 for the three months ended September 30, 2023, compared to $61,000 in the same period of 2022[90] - Interest expense increased by $1.0 million or 118% to $1.787 million for the three months ended September 30, 2023, compared to $821,000 in the same period of 2022[96] - Total costs and expenses decreased by $844,000 or 10% to $7.713 million for the three months ended September 30, 2023, compared to $8.557 million in the same period of 2022[90] - Net loss for the three months ended September 30, 2023, was $9.370 million, compared to a net income of $4.606 million in the same period of 2022, representing a change of $13.976 million[90] Cash Flow and Financing - For the three months ended September 30, 2023, the company used $6.9 million in cash for operating activities, a decrease of $0.9 million or 12% compared to the same period in 2022[98] - Cash used for investing activities was $1.6 million, a decrease of $3.5 million or 68% compared to the same period in 2022, primarily due to reduced spending on construction in progress related to the Small-Scale Facility[98] - As of September 30, 2023, the company had cash and cash equivalents of $11.8 million, down from $20.3 million as of June 30, 2023[99] - The company has relied on equity financing and hybrid equity and debt instruments since inception, as it has not generated revenues[99] - The company executed a $60 million private placement of senior secured convertible notes in August 2022 to fund the Small-Scale Facility and general corporate purposes[100] - The company expects available cash resources to be exhausted in the next six months, actively exploring financing options to avoid default under the Convertible Note[84] - The company has material short-term cash requirements including general and administrative expenses, construction costs for the Small-Scale Facility, and working capital needs[102] Operational Developments - The Small-Scale Facility construction is substantially complete, with only final electrical work pending before production can commence[82] - Step-Rate Testing was approved by the EPA, marking a significant step towards commencing boric acid and lithium carbonate extraction operations[81] - The company plans to achieve several milestones over the next 12 months that will require additional capital, and it is currently operating under a modified business plan until further financing is secured[101] - Purchase order commitments amounted to $6.8 million for construction works in progress, equipment, and technical reports[104] - The company is pursuing optimization of infrastructure capital expenditures for a larger-scale facility, including upgrades to water resources and power connections[103] - The company aims to become a global producer of boric acid, lithium carbonate, and gypsum, and is hiring team members to support these operational efforts[103]