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Business Combination | 9 Months Ended
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Sep. 30, 2022
Business Combinations [Abstract] |
Business Combination | Note 3. Business Combination On February 3, 2022 (the “Closing Date”), Ivanhoe Capital Acquisition Corp. (“Ivanhoe”), a Cayman Islands exempted company, and Wormhole Amalgamation Sub Pte. Ltd., a Singapore private company limited by shares and a direct, wholly-owned subsidiary of Ivanhoe (“Amalgamation Sub”), consummated the previously announced business combination (the “Business Combination”) pursuant to which, among other things, Amalgamation Sub merged with and into Old SES, with Old SES surviving the Business Combination as a wholly-owned subsidiary of Ivanhoe. In connection with the closing of the Business Combination (the “Closing”), Ivanhoe migrated out of the Cayman Islands and domesticated as a Delaware corporation prior to the Closing (the “Domestication”) and changed its name to “SES AI Corporation.” The Business Combination was accounted for as a reverse recapitalization. Under this method of accounting, Ivanhoe was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of the Company represent a continuation of the financial statements of Old SES with the Business Combination treated as the equivalent of Old SES issuing stock for the net assets of Ivanhoe, accompanied by a recapitalization. The net assets of Ivanhoe are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination are those of Old SES. As a result, the unaudited condensed consolidated financial statements included in this report reflect (i) the historical operating results of Old SES prior to the Business Combination; (ii) the combined results of the Company and Old SES following the Closing; (iii) the assets and liabilities of Old SES at their historical cost; and (iv) the Company’s equity structure for all periods presented as discussed below. In connection with the Business Combination, the Company received $326.1 million in gross proceeds, including a contribution of $51.6 million of cash held in Ivanhoe’s trust account net of redemption of Ivanhoe Class A common stock held by Ivanhoe’s public stockholders and a $274.5 million private investment in public equity (the “PIPE Financing”) at $10.00 per share of Class A Common Stock, prior to the payment of transaction costs and other amounts. At Closing, the following occurred:
| ● | Each share of Old SES common stock, excluding shares held by the SES Founder Group, and each redeemable convertible preferred share that was outstanding immediately prior to the Closing was cancelled and converted into a number of fully paid and nonassessable shares of Class A Common Stock equal to the Exchange Ratio, rounded down to the nearest whole number;
| ● | Each share of Old SES common stock held by the SES Founder Group that was outstanding immediately prior to the Closing was cancelled and converted into a number of fully paid and nonassessable shares of Class B Common Stock equal to the Exchange Ratio, rounded down to the nearest whole number;
| ● | Each Old SES restricted share that was granted and subject to restrictions (including vesting) immediately prior to the Closing was assumed by the Company and converted into a number of shares of restricted Class A Common Stock equal to the Exchange Ratio, rounded down to the nearest whole number, which remain subject to the same terms and conditions as were applicable prior to the Closing; and
| ● | Each Old SES option that was outstanding immediately prior to the Closing, whether vested or unvested, was assumed by the Company and converted into an option to acquire Class A Common Stock with the same terms as were applicable prior to the Closing, except for the number of shares exercisable and the exercise price, each of which was adjusted using the Exchange Ratio, rounded down to the nearest whole number.
Additionally, (i) in connection with the Domestication on February 2, 2022, 6,900,000 shares of Ivanhoe’s Class B ordinary shares held by the Sponsor converted, on a one-for-one basis, into shares of Class B Common Stock and at Closing converted into an equal number of Class A Common Stock and (ii) at Closing, holders of Old SES common stock, redeemable convertible preferred stock, options and restricted shares received 29,999,947 earn-out shares of the Company’s common stock. In connection with the Business Combination, the Company incurred $46.3 million of transaction costs, consisting of underwriting, legal, and other professional fees, of which $41.6 million was recorded to additional paid-in capital as a reduction of proceeds and the remaining $4.7 million was expensed immediately. Subsequent to the date of closing, $6.2 million of transaction costs recorded to additional paid-in capital related to the Business Combination and PIPE Financing was released. The following table reconciles the elements of the Business Combination to the condensed consolidated statement of cash flows and the condensed consolidated statements of redeemable convertible preferred stock and stockholders’ equity as of the date of closing:
​ | ​ | ​
​ | ​ | (in thousands)
Cash - Ivanhoe's trust and cash, net of redemptions | $ | 51,590
Cash - PIPE Financing | ​ | 274,500
Less: Non-Transaction costs relating to Ivanhoe in conjunction with Closing | ​ | (13,149)
Less: Transaction costs and advisory fees paid | ​ | (26,972)
Net proceeds from Business Combination and PIPE Financing at Closing | ​ | 285,969
Less: Transaction costs paid post Closing | ​ | (3,029)
Financing cash inflow from Business Combination and PIPE Financing | ​ | 282,940
Add: Transaction costs expensed relating to liabilities assumed upon the Business Combination | ​ | 4,649
Less: Transactions costs paid on or before December 31, 2021 | ​ | (3,334)
Less: Sponsor Earn-Out liability | ​ | (36,393)
Less: Liabilities assumed from Ivanhoe | ​ | (387)
Less: Accrued transaction costs | ​ | (12,954)
Net contributions from Business Combination and PIPE Financing | $ | 234,521
​ The number of shares of common stock issued immediately following the consummation of the Business Combination:
​ | ​ | ​
​ | ​ | Number of Shares
Ivanhoe Class A common stock, outstanding prior to Business Combination | ​ | 27,600,000
Less: Redemption of Ivanhoe Class A common stock | ​ | (22,455,850)
Ivanhoe Class A common stock, net of redemptions | ​ | 5,144,150
Ivanhoe Class B ordinary shares, converted to Class A Common Stock upon Closing | ​ | 6,900,000
Total Ivanhoe Class A Common Stock | ​ | 12,044,150
PIPE Investors — Class A Common Stock | ​ | 27,450,000
Old SES common and preferred shares (other than SES Founder Group) converted to Class A Common Stock | ​ | 236,221,766
Old SES Restricted Shares converted to restricted shares of Class A Common Stock | ​ | 2,273,727
SES Founder Group shares of common stock converted to shares of Class B Common Stock | ​ | 39,881,455
Founder Earn-Out Shares (Class B Common Stock) | ​ | 3,999,796
Earn-Out Shares (Class A Common Stock) | ​ | 23,691,182
Earn-Out Restricted Shares (Class A Common Stock) | ​ | 2,308,969
Total | ​ | 347,871,045
Less: Shares of Old SES outstanding prior to Business Combination and PIPE Financing | ​ | (276,103,221)
Business Combination and PIPE Financing Shares | ​ | 71,767,824
​

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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