Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 392

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 392
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 the year ended December 31, 2024 and 2023, respectively, Polestar recognized $ 129,124 465,168

Note 18 - Reverse recapitalization

As previously outlined inNote 1 - Overview and basis of preparation, Polestar underwent a reverse recapitalization through the merger with GGI and related arrangements. Under this type of transaction structure, Polestar Group is the accounting acquirer and accounting predecessor while GGI is treated as the acquired entity for financial reporting purposes. The Group was deemed to be the accounting acquirer based on an evaluation of the following facts and circumstances:

• Shareholders of the Former Parent retained the largest voting interest in the Group with over 99

• the Board of Directors of the Group comprises four one

• the Former Parent has the ability to appoint the remaining members of the Board as deemed necessary;

• the Former Parent’s senior management is the senior management of the Group;

• the Former Parent’s operations comprise substantially all of the ongoing operations of the Group following the merger with GGI; and

• the Group was the larger entity by substantive operations and employee base while GGI lacked operating activities and maintained net assets principally comprised of cash.

GGI did not meet the definition of a business in accordance with IFRS 3, Business Combination("IFRS 3"), and the merger with GGI was instead accounted for within the scope of IFRS 2, Share-based payment(“ IFRS 2”), as a share-based payment transaction in exchange for a public listing service. Under IFRS 2, the Group recorded a one-time share-based expense of $ 372,318 11.23 The amount of GGI’s identifiable net assets of acquired at Closing, were as follows:

  Cash and cash equivalents                               579,146               
  Prepaid assets                                            6,050               
  Public warrant liability                              ( 40,320)               
  Private warrant liability                             ( 22,770)               
  Total SPAC identifiable net assets at fair value              $      522,106  

The net assets of GGI are stated at fair value, with no goodwill or other intangible assets recorded. The IFRS 2 listing expense was calculated as follows:

  Fair value of Polestar 1                                              22,183,823  
  Equity interest in Polestar issued to GGI shareholders                      5.1%  
  Equity interest in Polestar issued to Former Parent shareholders           94.9%  
  Deemed