5E Advanced Materials Inc

11. Earnings (Loss) Per Common Share

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if DSUs, RSUs, PSUs, stock options and convertible securities such as the Convertible Notes (excluding any Additional Shares since the probability of a Make-Whole Fundamental Change cannot be predicted) were exercised or converted into the Company’s Common Stock at the end of the respective period. Diluted loss per share equals basic loss per share for the years ended June 30, 2024 and 2023, as the effect of including dilutive securities in the calculation would be antidilutive.

For the years ended June 30, 2024 and 2023, the following effects are excluded from the computation of dilutive loss per share as such effects would have an anti-dilutive effect.

As discussed in Note 15—Subsequent Events, on August 27, 2024 the Company completed an offering that resulted in the issuance of approximately 5.3 million shares of Common Stock and approximately 10.7 million warrants. This offering also resulted in an adjustment to the conversion rate applicable to the June 2024 Notes. If the Adjusted Conversion Rate were in effect as of June 30, 2024, it would have resulted in approximately 254 thousand additional shares being issued, assuming the conversion of all Convertible Notes. The impacts of these subsequent events are not reflected in the computation of earnings per share, as it would have served to reduce the net loss per share.