psny-20230630_d2

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


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FORM 6-K/A

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REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2023

Commission File Number: 001-41431

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Polestar Automotive Holding UK PLC

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Assar Gabrielssons Väg 9
405 31 Göteborg, Sweden
(Address of principal executive office)

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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒    Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

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1


INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K/A

This Amendment to the Form 6-K of Polestar Automotive Holdings UK PLC (“Polestar”), filed on August 31, 2023 (the “Original 6-K”), is being filed solely to provide Polestar’s Unaudited Condensed Consolidated Financial Statements as of June 30, 2023 and for the Three and Six Months Ended June 30, 2023 and 2022 (the “Financial Statements”) using interactive data files in inline eXtensible Business Reporting Language (iXBRL), as attached to this Form 6-K as Exhibit 99.1. The Financial Statements were previously provided without iXBRL as Exhibit 99.3 to the Original 6-K.

The information contained in Exhibit 99.1 shall be deemed to be incorporated by reference into Polestar’s registration statement on Form S-8 (File No: 333-267146) and registration statement on Form F-3 (File No. 333-266101) and to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.


2


EXHIBIT INDEX

Exhibit No.Description of Exhibit
99.1
Unaudited Condensed Consolidated Financial Statements as of June 30, 2023 and for the Three and Six months ended June 30, 2023 and 2022.
101.INSXBRL Instance Document.
101.SCHXBRL Taxonomy Extension Schema Document.
101.CALXBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFXBRL Taxonomy Extension Definition Linkbase Document.
101.LABXBRL Taxonomy Extension Label Linkbase Document.
101.PREXBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

POLESTAR AUTOMOTIVE HOLDING UK PLC

Date: September 14, 2023

By:     /s/ Thomas Ingenlath
Name: Thomas Ingenlath
Title:     Chief Executive Officer

By:     /s/ Johan Malmqvist
Name: Johan Malmqvist
Title:     Chief Financial Officer


4
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The Polestar Group
Unaudited Condensed Consolidated Financial Statements as of June 30, 2023 and for the Three and Six months ended June 30, 2023 and 2022


1


INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss for the Three and Six months ended June 30, 2023 and 2022
3
Unaudited Condensed Consolidated Statement of Financial Position as of June 30, 2023 and December 31, 2022
4
Unaudited Condensed Consolidated Statement of Cash Flows for the Six months ended June 30, 2023 and 2022
5
Unaudited Condensed Consolidated Statement of Changes in Equity for the Six months ended June 30, 2023 and 2022
6
Notes to Unaudited Condensed Consolidated Financial Statements
7 - 19

2


Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss
(in thousands of U.S. dollars except per share data and unless otherwise stated)

Consolidated Statement of LossFor the three months ended June 30,For the six months ended June 30,
Note2023202220232022
Revenue2685,247 589,070 1,231,265 1,041,297 
Cost of sales(686,057)(528,389)(1,213,654)(987,881)
Gross profit/(loss)(810)60,681 17,611 53,416 
Selling, general and administrative expense3(259,627)(234,227)(448,632)(446,781)
Research and development expense3(45,610)(66,670)(81,311)(98,755)
Other operating income (expense), net31,697 (14,733)38,581 (20,742)
Listing expense8 (372,318) (372,318)
Operating loss(274,350)(627,267)(473,751)(885,180)
Finance income7,037 434 12,489 774 
Finance expense(64,436)(38,908)(90,516)(51,427)
Fair value change - Earn-out rights826,800 418,707 232,995 418,707 
Fair value change - Class C Shares83,500 21,531 10,750 21,531 
Loss before income taxes(301,449)(225,503)(308,033)(495,595)
Income tax expense(2,608)(2,741)(5,002)(7,139)
Net loss(304,057)(228,244)(313,035)(502,734)
Net loss per share (in U.S. dollars)5
Basic and diluted(0.14)(0.12)(0.15)(0.26)
Consolidated Statement of Comprehensive Loss
Net loss(304,057)(228,244)(313,035)(502,734)
Other comprehensive income/(loss):
Items that may be subsequently reclassified to the Consolidated Statement of Loss:
Exchange rate differences from translation of foreign operations(27,206)13,304 (26,735)10,659 
Total other comprehensive income/(loss)(27,206)13,304 (26,735)10,659 
Total comprehensive loss(331,263)(214,940)(339,770)(492,075)

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.    
3


Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars unless otherwise stated)

NoteJune 30, 2023December 31, 2022
Assets
Non-current assets
Intangible assets and goodwill61,466,317 1,396,477 
Property, plant, and equipment254,462 258,048 
Vehicles under operating leases4103,116 92,198 
Other non-current assets4,575 5,306 
Deferred tax asset17,581 7,755 
Other investments72,248 2,333 
Total non-current assets1,848,299 1,762,117 
Current assets
Cash and cash equivalents1,057,412 973,877 
Trade receivables196,133 246,107 
Trade receivables - related parties1190,053 74,996 
Accrued income - related parties1113,010 49,060 
Inventories867,499 658,559 
Current tax assets8,889 7,184 
Assets held for sale1253,094 63,224 
Other current assets120,856 107,327 
Total current assets2,406,946 2,180,334 
Total assets4,255,245 3,942,451 
Equity
Share capital(21,167)(21,165)
Other contributed capital(3,586,888)(3,584,232)
Foreign currency translation reserve39,000 12,265 
Accumulated deficit4,039,810 3,726,775 
Total equity9470,755 133,643 
Liabilities
Non-current liabilities
Non-current contract liabilities2(58,267)(50,252)
Deferred tax liabilities(458)(476)
Other non-current provisions(103,646)(73,985)
Other non-current liabilities(50,039)(14,753)
Earn-out liability7, 8(365,575)(598,570)
Other non-current interest-bearing liabilities4(75,793)(85,556)
Total non-current liabilities(653,778)(823,592)
Current liabilities
Trade payables(97,632)(98,458)
Trade payables - related parties11(824,000)(957,497)
Accrued expenses - related parties11(148,041)(164,902)
Advance payments from customers(42,847)(40,869)
Current provisions(60,208)(74,907)
Liabilities to credit institutions10(1,623,433)(1,328,752)
Current tax liabilities(15,767)(10,617)
Interest-bearing current liabilities4(27,658)(21,545)
Interest-bearing current liabilities - related parties11(779,283)(16,690)
Current contract liabilities2(61,642)(46,217)
Class C Shares liability7, 8(17,250)(28,000)
Other current liabilities(342,189)(393,790)
Other current liabilities - related parties11(32,272)(70,258)
Total current liabilities(4,072,222)(3,252,502)
Total liabilities(4,726,000)(4,076,094)
Total equity and liabilities(4,255,245)(3,942,451)
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.
4


Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars unless otherwise stated)

For the six months ended June 30,
Note20232022
Cash flows from operating activities
Net loss(313,035)(502,734)
Adjustments to reconcile net loss to net cash flows:
Depreciation and amortization expense57,074 70,700 
Warranties36,003  
Inventory impairment11,795  
Finance income(12,489)(774)
Finance expense90,516 51,427 
Fair value change - Earn-out rights8(232,995)(418,707)
Fair value change - Class C Shares8(10,750)(21,531)
Listing expense 372,318 
Income tax expense5,002 7,139 
Other non-cash expense (income)19,252 (17,362)
Change in operating assets and liabilities:
Inventories(206,373)219,935 
Contract liabilities224,673 8,008 
Trade receivables, prepaid expenses and other assets72,372 25,698 
Trade payables, accrued expenses and other liabilities(154,206)(162,437)
Interest received12,489 775 
Interest paid(48,667)(34,381)
Taxes paid(11,401) 
Cash used for operating activities(660,740)(401,926)
Cash flows from investing activities
Additions to property, plant and equipment(42,948)(1,624)
Additions to intangible assets6(239,850)(510,301)
Additions to other investments (2,480)
Proceeds from the sale of property, plant and equipment1,710  
Cash used for investing activities(281,088)(514,405)
Cash flows from financing activities
Proceeds from short-term borrowings10, 111,671,964 414,916 
Principal repayments of short-term borrowings10, 11(598,953)(211,514)
Principal repayments of lease liabilities4(9,045)(6,124)
Proceeds from the issuance of share capital and other contributed capital 1,416,000 
Transaction costs (39,000)
Cash provided by financing activities1,063,966 1,574,278 
Effect of foreign exchange rate changes on cash and cash equivalents(38,603)(32,987)
Net increase in cash and cash equivalents83,535 624,960 
Cash and cash equivalents at beginning of period973,877 756,677 
Cash and cash equivalents at end of period1,057,412 1,381,637 

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.
5


Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Changes in Equity
(in thousands of U.S. dollars unless otherwise stated)

NoteShare capitalOther contributed capitalCurrency translation reserve
Accumulated deficit
Total
Balance as of January 1, 2022(1,865,909)(35,231)16,784 1,761,860 (122,496)
Net loss— — — 502,734 502,734 
Other comprehensive income— — (10,659)— (10,659)
Total comprehensive loss  (10,659)502,734 492,075 
Merger with Gores Guggenheim, Inc.8
Changes in the consolidated group1,846,472 (1,846,472)— (1,512)(1,512)
Issuance of Volvo Cars Preference Shares(589)(588,237)— — (588,826)
Issuance to Convertible Note holders(43)43 — —  
Issuance to PIPE investors(265)(249,735)— — (250,000)
Issuance to GGI shareholders(822)(521,285)— — (522,107)
Listing expense— (372,318)— — (372,318)
Transaction costs— 38,903 — — 38,903 
Earn-out rights— — — 1,500,638 1,500,638 
Equity-settled share-based payment3 (4,342)— — (4,342)
Balance as of June 30, 2022(21,156)(3,578,674)6,125 3,763,720 170,015 
Balance as of January 1, 2023(21,165)(3,584,232)12,265 3,726,775 133,643 
Net loss— — — 313,035 313,035 
Other comprehensive loss— — 26,735 — 26,735 
Total comprehensive loss  26,735 313,035 339,770 
Equity-settled share-based payment3(2)(2,656)— — (2,658)
Balance as of June 30, 2023(21,167)(3,586,888)39,000 4,039,810 470,755 

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

6

Notes to the Unaudited Condensed Consolidated Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 1 - Significant accounting policies and judgements
General information
Polestar Automotive Holding UK PLC (formerly known as Polestar Automotive Holding UK Limited) (the “Parent”), together with its subsidiaries, hereafter referred to as “Polestar," “Polestar Group,” and the “Group," is a limited company incorporated in the United Kingdom. Polestar Group operates principally in the automotive industry, engaging in research and development, manufacturing, branding and marketing, and the commercialization and selling of vehicles, technology solutions, and services related to battery electric vehicles. Polestar Group has a presence in 27 markets across Europe, North America, and Asia. Polestar Group has its management headquarters located at Assar Gabrielssons väg 9, 418 78 Göteborg, Sweden.
As of June 30, 2023, related parties own 88.3% of the Group. Of related party ownership, Snita Holding B.V. owns 48.3%, PSD Investment Limited owns 39.2%, and various other entities own 0.8%. The remaining 11.7% of the Group is owned by external investors.
Basis of preparation
The Unaudited Condensed Consolidated Financial Statements in this interim report of Polestar Group are prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting (“IAS 34”), as adopted by the International Accounting Standards Board (“IASB”). The Unaudited Condensed Consolidated Financial Statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. For group financial reporting purposes, Polestar Group companies apply the same accounting principles, irrespective of national legislation, as defined in the Group accounting directives. Such accounting principals have been applied consistently for all periods, unless otherwise stated.
This interim report is prepared in the presentation currency, U.S. Dollar (“USD”). All amounts are stated in thousands of USD (“TUSD”), unless otherwise stated.
Periods discussed prior to June 23, 2022 represent the operations of Polestar Automotive Holding Limited and its consolidated subsidiaries.
Going concern
Polestar Group’s Unaudited Condensed Consolidated Financial Statements have been prepared on a basis that assumes Polestar Group will continue as a going concern and the ordinary course of business will continue in alignment with Management’s 2024-2028 business plan.
Management assessed Polestar Group’s ability to continue as a going concern and evaluated whether there are certain events or conditions, considered in the aggregate, that may cast substantial doubt about Polestar Group’s ability to continue as a going concern. All information available to Management pertaining to the twelve-month period after the issuance date of these Unaudited Condensed Consolidated Financial Statements was used in performing this assessment.
Historically, Polestar Group has financed its operations primarily through short-term working capital loan arrangements with credit institutions (i.e., 12 months or less), contributions from shareholders, credit facilities from related parties, and extended trade credit from related parties. Since inception, Polestar Group has generated recurring net losses and negative operating and investing cash flows. Net losses for the three months ended June 30, 2023 and 2022 amounted to $304,057 and $228,244, respectively. Net losses for the six months ended June 30, 2023 and 2022 amounted to $313,035 and $502,734, respectively. Negative operating and investing cash flows for the six months ended June 30, 2023 and 2022 amounted to $941,828 and $916,331, respectively. Management forecasts that Polestar Group will continue to generate negative operating and investing cash flows in the near future, until sustainable commercial operations are achieved. Securing financing to support operating and development activities represents an ongoing challenge for Polestar Group.
Management’s 2024-2028 business plan indicates that Polestar Group depends on additional financing that is expected to be funded via a combination of new short-term working capital loan arrangements, long-term loan arrangements, credit facilities from related parties, and executing capital market transactions through offerings of debt and/or equity. The timely realization of these financing endeavors is crucial for Polestar Group’s ability to continue as a going concern. If Polestar is unable to obtain financing from these sources or if such financing is not sufficient to cover forecasted operating and investing cash flow needs, Polestar Group will need to seek additional funding through other means (e.g., issuing new shares of equity or issuing bonds). Management has no certainty that Polestar Group will be successful in securing the funds necessary to continue operating and development activities as planned.
Based on these circumstances, Management has determined there is substantial doubt about Polestar Group’s ability to continue as a going concern. There are ongoing efforts in place to mitigate the uncertainty. The Unaudited Condensed Consolidated Financial Statements do not include any adjustments to factor for the going concern uncertainty.
Adoption of new and revised standards
In May 2023, the IASB issued amendments to IAS 12, Income taxes: International Tax Reform – Pillar Two Model Rules, to clarify the application of IAS 12, Income Taxes, to income taxes arising from tax law enacted or substantively enacted to implement the Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two model rules (Pillar Two income taxes). The amendments introduce: (i) a mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules, which was effective immediately upon issuance of the amendment, and (ii) disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before the effective date of the Pillar Two model rules, which apply for annual reporting periods beginning on or after January 1, 2023, but not for any interim periods ending on or before December 31, 2023.
7

Notes to the Unaudited Condensed Consolidated Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
For a detailed assessment of the Group’s adoption of other new and revised standards, refer to Note 1 - Significant accounting policies and judgments of the Consolidated Financial Statements for Polestar Automotive Holding Limited, as of December 31, 2022, and 2021, and for the three years ended December 31, 2022, that were included in the Form 20-F filed with the United States Securities and Exchange Commission (“SEC”) on April 14, 2023. Management has concluded the adoption of new and revised accounting pronouncements has not or will not have a material impact on the Group’s Unaudited Condensed Consolidated Financial Statements. The adoptions of accounting pronouncements issued, but not effective, for the six months ended June 30, 2023, will not have a material impact on the Group’s Unaudited Condensed Consolidated Financial Statements.
Presentation, basis of consolidation, segment reporting, and foreign currency
For a detailed description of the Group’s presentation, basis of consolidation, segment reporting, and foreign currency, including currency risk, refer to Note 1 - Significant accounting policies and judgements and Note 2 - Financial risk management of the Consolidated Financial Statements for Polestar Automotive Holding UK PLC, as of December 31, 2022 and 2021, and for the three years ended December 31, 2022, that were included in the Form 20-F filed with the SEC on April 14, 2023. There are no changes for the periods presented in these Unaudited Condensed Consolidated Financial Statements.
The following tables show the breakdown of the Group’s revenue from external customers and non-current assets by geographical location where the Polestar company recognizing the revenue is located:
For the three months ended June 30,For the six months ended June 30,
Revenue2023202220232022
UK134,412 67,917 291,584 137,218 
USA122,525 134,393 231,737 214,231 
Sweden107,197 59,334 157,043 155,157 
Germany65,402 59,641 117,399 102,209 
Canada40,056 17,836 63,122 24,169 
Netherlands33,567 30,383 50,483 55,938 
Australia24,448 19,130 48,463 23,032 
Belgium31,837 22,932 47,786 42,707 
Norway13,264 54,853 31,194 116,522 
Italy16,082  28,226  
Denmark15,809 24,151 28,009 38,928 
Finland11,446 11,716 24,283 19,058 
China10,795 27,491 18,447 31,643 
Other regions1
58,407 59,293 93,489 80,485 
Total$685,247 $589,070 $1,231,265 $1,041,297 
1 - Other regions primarily consist of Austria, Korea, Spain and Switzerland in 2023. Other regions primarily consist of Korea, Switzerland and Austria in 2022.
As of June 30, 2023As of December 31, 2022
Non-current assets2
Sweden1,224,294 1,151,920 
China472,782 474,301 
Germany66,112 36,747 
United Kingdom21,860 22,777 
USA10,064 37,752 
Other regions3
33,358 28,532 
Total$1,828,470 $1,752,029 
2 - Non-current assets: excludes Deferred tax asset and Other investments.
3 - Other regions primarily consist of Switzerland, Belgium, Netherlands and Australia in 2023. Other regions primarily consist of Belgium, Switzerland and Australia in 2022.
Restatement of certain comparative period items
Net loss per share for the six months ended June 30, 2022 has been restated to reflect the number of equivalent shares issued by the Parent to the Former Parent in connection with the merger with Gores Guggenheim, Inc. on June 23, 2022. The adjustment is based on the number of shares outstanding on the reporting date multiplied by the exchange ratio of 8.335.
In the Unaudited Condensed Consolidated Statement of Changes in Equity as of June 30, 2022, the lines previously presented as Merger with Gores Guggenheim Inc. and Changes in the consolidated group amounting to an equity impact of $199,628 have been
8

Notes to the Unaudited Condensed Consolidated Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
adjusted to present each individual item related to the merger that impacted equity, resulting in an aggregate restated equity impact of $199,564.
Accounting policies
Polestar Group continues to apply the same accounting policies, methods, estimates and judgements as described in Note 1 - Significant accounting policies and judgements of the Consolidated Financial Statements for Polestar Automotive Holding UK PLC, as of December 31, 2022 and 2021, and for the three years ended December 31, 2022, that were included in the Form 20-F filed with the SEC on April 14, 2023.
Use of estimates and judgements
The preparation of these Unaudited Condensed Consolidated Financial Statements, in accordance with IAS 34, requires management to make judgements, estimates, and assumptions that affect the application of the Group’s accounting policies, the reported amount of assets, liabilities, revenues, expenses, and other related financial items. Management reviews its estimates and assumptions on a continuous basis; changes in accounting estimates are recognized in the period in which the estimates are revised, and prospectively thereafter. Actual results could differ materially from those estimates using different assumptions or under different conditions. The Group did not have any events requiring the application of new critical estimates and judgements during the six months ended June 30, 2023.
Earnings per share
Basic earnings per share is calculated by dividing the net loss for the period by the weighted average number of Class A Shares and Class B Shares outstanding during the period. Diluted earnings per share is calculated by adjusting the net income for the period and the weighted average number of Class A Shares and Class B Shares outstanding for the effect of dilutive potential ordinary shares (“POSs”) outstanding during the period (i.e., Class A Shares and/or Class B Shares that the Group is obligated to issue, or might issue under certain circumstances, in accordance with various contractual arrangements). The Group’s POSs are classified based on the nature of their instrument or arrangement and then the earnings per incremental share (“EPIS”) is calculated for each class of POS to determine if they are dilutive or anti-dilutive. Anti-dilutive POSs are excluded from the calculation of dilutive earnings per share.
EPIS is calculated as (1) the consequential effect on profit or loss from the assumed conversion of the class of POS (i.e., the numerator adjustment) divided by (2) the weighted average number of outstanding POSs for the class (i.e., the denominator adjustment). The EPIS denominator adjustment depends on the class of POS. The Group’s classes of POSs and their related EPIS denominator adjustment methods are as follows:
POS ClassEPIS Denominator Adjustment Method
Unvested equity-settled RSUs
Treasury share1
Class C SharesTreasury share
Earn-out rights and PSUsThe number of shares issuable if the reporting date were the end of the contingency period
Convertible NotesThe number of shares issued assuming conversion occurred at the beginning of the reporting period
Convertible Credit Facility with Volvo CarsIf the instrument is converted, the number of shares issued on the date of the conversion
1 - The treasury share method prescribed by IAS 33, Earnings Per Share (“IAS 33”), includes only the bonus element as the EPIS denominator adjustment. The bonus element is the difference between the number of ordinary shares that would be issued at the exercise of the options and the number of ordinary shares deemed to be repurchased at the average market price.
Fair value measurement
Valuation methodology for the fair value of the financial liability related to the Class C-2 Shares
The Class C-2 Shares represents a derivative financial instrument that is carried at fair value through profit and loss (“FVTPL”) by reference to Level 2 measurement inputs because an observable price for the Class C-1 Shares, which are almost identical instruments, is available in the active market. Class C Shares are presented in current liabilities within the Unaudited Condensed Consolidated Statement of Financial Position as they can be exercised by the holder at any time. The related liability is measured at fair value, with any changes in fair value recognized in earnings. The fair value of the Class C-2 Shares is determined using a binomial lattice option pricing model in a risk-neutral framework whereby the future prices of the Class A Shares are calculated assuming a geometric Brownian motion (“GBM”). For each future price, the Class C-2 payoff amount is calculated based on the contractual terms of the Class C-2 Shares, including assumptions for optimal early exercise and redemption, and then discounted at the term-matched risk-free rate. The final fair value of the Class C-2 Shares is calculated as the probability-weighted present value over all modeled future payoff amounts. As of June 30, 2023, the fair value of the Class C-2 Shares was determined to equal $3,105 by leveraging the closing price of the Class C-1 Shares on the Nasdaq of $0.69 per share, an implied volatility of 94%, a risk-free rate of 4.27%, a dividend yield of 0%, and a 1,000 time-steps for the binomial lattice option pricing model. Refer to Note 8 - Reverse recapitalization for more detail on the Class C-2 Shares.
Valuation methodology for the fair value of the financial liability related to the Former Parent’s contingent earn-out rights
The Former Parent’s contingent earn-out right represents a derivative financial instrument that is carried at FVTPL by reference to Level 3 measurement inputs because a quoted or observable price for the instrument or an identical instrument is not available in active markets. The earn-out liability is presented in non-current liabilities within the Unaudited Condensed Consolidated Statement of Financial Position to align with the expected timing of the underlying earn-out payments. The fair value of the earn-out is determined using a Monte Carlo simulation that incorporates a term of 4.48 years, the five earn-out tranches, and the probability of the Class A
9

Notes to the Unaudited Condensed Consolidated Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Shares in ListCo reaching certain daily volume weighted average prices during the earn-out period resulting in the issuance of each tranche of Class A Shares and Class B Shares in ListCo to the Former Parent. As of June 30, 2023, the fair value of the earn-out was determined to equal $365,575 by leveraging an implied volatility of 75% and a risk-free rate of 4.18%. The implied volatility represents the most significant unobservable input utilized in this Level 3 valuation technique. The calculated fair value would increase (decrease) if the implied volatility were higher (lower). Refer to Note 8 - Reverse recapitalization for more detail on the Former Parent’s earn-out rights.
Valuation methodology for the fair value of RSUs and PSUs granted to employees under the 2022 Omnibus Incentive Plan
The fair value of the RSUs granted April 3, 2023 was determined by reference to the Group’s closing share price of $3.79 on the business day immediately preceding the grant date (i.e., $3.79 per RSU). The fair value of PSUs granted was determined by calculating the weighted-average fair value of the 368,732 units linked to market-based vesting conditions and the 1,106,195 units linked to non-market-based vesting conditions. The units linked to non-market-based vesting conditions were fair valued by reference to the Group’s closing share price of $3.79 on the business day immediately preceding the grant date (i.e., $3.79 per unit). The units linked to market-based vesting conditions were fair valued using a Monte Carlo simulation in a risk-neutral option pricing framework whereby the future share prices of Polestar’s Class A Shares and shares of the peer group over the performance period were calculated assuming a GBM. For each simulation path, the payoff amount of the awards was calculated as the simulated price of the Class A Shares multiplied by the simulated total shareholder return vesting (i.e., the number of awards simulated to vest based on the probability of achievement of certain performance conditions) and then discounted to the grant date at the term-matched risk-free rate. The fair value per unit of the units linked to market-based vesting conditions was determined to be $3.33 by leveraging an implied volatility of 75%, a peer group historical average volatility of 63.5%, a risk-free rate of 3.8%, a simulation term of 2.7 years, a dividend yield of 0%, and 100,000 simulation iterations. As such, the weighted-average fair value per PSU was calculated to be $3.68. Refer to Note 3 - Share-based payment for more detail on the 2022 Omnibus Incentive Plan.
Note 2 - Revenue
Polestar Group disaggregates revenue by major category based on the primary economic factors that may impact the nature, amount, timing, and uncertainty of revenue and cash flows from these customer contracts as seen in the table below:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Sales of vehicles1
669,241 578,398 1,198,973 1,016,817 
Sales of software and performance engineered kits5,686 6,333 12,440 10,862 
Sales of carbon credits532 145 532 1,313 
Vehicle leasing revenue3,287 3,060 7,493 7,934 
Other revenue6,501 1,134 11,827 4,371 
Total$685,247 $589,070 $1,231,265 $1,041,297 
1 - Revenue related to sales of vehicles are inclusive of extended and connected services recognized over time.
For the three and six months ended June 30, 2023 and 2022, other revenue primarily consisted of license revenue generated from sales-based royalties received from Volvo Cars on sales of parts and accessories for Polestar vehicles and software performance upgrades.
The Group's largest customer that is not a related party accounted for $155,820 (23%) and $271,246 (22%) of revenue, respectively, for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, no sole customer, that is not a related party, exceeded 10% of total revenue. Refer to Note 11 - Related party transactions for further details on revenues from related parties.
Contract liabilities
Sales generated obligationDeferred revenue - extended serviceDeferred revenue - connected serviceDeferred revenue - operating leases & otherTotal
Balance as of January 1, 202313,069 40,792 30,093 12,515 96,469 
Provided for during the period32,647 15,760 8,466 16,615 73,488 
Settled during the period(26,695)   (26,695)
Released during the period (10,300)(2,463)(9,280)(22,043)
Effect of foreign currency exchange rate differences(91)(96)(1,279)156 (1,310)
Balance as of June 30, 2023$18,930 $46,156 $34,817 $20,006 $119,909 
of which current18,930 22,057 5,216 15,439 61,642 
of which non-current 24,099 29,601 4,567 58,267 

10

Notes to the Unaudited Condensed Consolidated Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
As of June 30, 2023, contract liabilities amounted to $119,909, of which $18,930 was related to variable consideration payable to fleet customers in the form of volume related bonuses and $100,979 was related to remaining performance obligations associated with sales of vehicles and vehicle leasing revenue.
Note 3 - Share-based payment
As noted in Note 1 - Significant accounting policies and judgements, Polestar granted shares to employees under the 2022 Omnibus Plan as part of the Group’s employee compensation. Under the 2022 Omnibus Plan, there are three kinds of programs: At-listing Plan, Post-listing Plan, and the Free Share Plan, all of which are equity-settled. For more details on the terms of each program, refer to Note 7 - Share-based payments in the Consolidated Financial Statements for Polestar Automotive Holding UK PLC, as of December 31, 2022 and 2021, and for the three years ended December 31, 2022 that were included in the Form 20-F filed with the SEC on April 14, 2023. The following table illustrates share activity for the six months ended June 30, 2023:
Number of PSUsNumber of RSUsNumber of Free SharesTotal
Outstanding as of January 1, 2023858,821 458,620 4,222 1,321,663
Granted1,474,927 428,840  1,903,767 
Vested (169,853)(4,222)(174,075)
Forfeited(6,954)(8,639) (15,593)
Outstanding as of June 30, 20232,326,794 708,968  3,035,762 
The following table illustrates total share-based compensation expense for the three and six months ended June 30, 2023 and 2022 by function:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Selling, general and administrative expense1,430 4,342 2,533 4,342 
Research and development expense69  125  
Total$1,499 $4,342 $2,658 $4,342 
Marketing consulting services agreement
On March 24, 2022, Polestar granted an equity-settled share-based payment in exchange for marketing services through November 1, 2023. Per the terms of the agreement, 250,000 Class A Shares vested on August 31, 2022. The remaining 250,000 Class A Shares vest over eight equal quarterly installments, with a final vesting date of November 1, 2023. The grant date fair value of the marketing consulting agreement was $5,308 which was determined using the market value of the shares listed on the Nasdaq. Of the 500,000 Class A Shares granted, 375,000 Class A Shares with a fair value of $4,946 were vested as of December 31, 2022. During the three months ended June 30, 2023, 31,250 Class A Shares vested, and the Group incurred a share-based compensation expense of $114. During the six months ended June 30, 2023 62,500 Class A Shares vested, and the Group incurred a share-based compensation expense of $290.
Note 4 - Leases
Polestar Group as Lessee
The following table depicts the changes in the Group’s right-of-use assets, which are included within Property, plant, and equipment:

Buildings and land
Machinery and equipmentTotal
Acquisition cost
Balance as of January 1, 202389,609 45,416 135,025 
Additions19,149  19,149 
Cancellations(11,020) (11,020)
Effect of foreign currency exchange rate differences(1,245)(2,280)(3,525)
Balance as of June 30, 2023$96,493 $43,136 $139,629 
Accumulated depreciation
Balance as of January 1, 2023(18,934)(20,768)(39,702)
Depreciation expense(8,347)(2,392)(10,739)
Effect of foreign currency exchange rate differences706 1,114 1,820 
Balance as of June 30, 2023$(26,575)$(22,046)$(48,621)
11


Carrying amount as of June 30, 2023$69,918 $21,090 $91,008 

Amounts related to leases recognized in the Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss were as follows:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Income from sub-leasing right-of-use assets252 235 527 615 
Expense relating to short-term leases247 343 495 835 
Expense relating to leases of low value assets 1,899 6 1,911 
Interest expense on leases1,138 1,090 2,166 1,700 
The current and non-current portion of the Group’s lease liabilities were as follows:
As of June 30, 2023As of December 31, 2022
Current lease liability27,658 21,545 
Non-current lease liability75,793 85,556 
Total$103,451 $107,101 
Expected future lease payments to be made to satisfy the Group’s lease liabilities are as follows:
As of June 30, 2023As of December 31, 2022
Within 1 year28,353 21,717 
Between 1 and 2 years28,929 24,484 
Between 2 and 3 years23,631 20,739 
Between 3 and 4 years22,140 17,924 
Between 4 and 5 years8,614 5,987 
Later than 5 years16,985 29,613 
Total$128,652 $120,464 
For the six months ended June 30, 2023 and 2022, total cash outflows for leases amounted to $11,436 and $6,124, respectively.
Polestar Group as Lessor
As a lessor, revenue recognized from operating leases was as follows:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Vehicle leasing revenue$3,287 $3,060 $7,493 $7,934 
For the majority of the Group’s operating lease contracts as a lessor, vehicles are paid for upfront by the customer at contract inception and repurchased by Polestar at the end of the lease term. The following table depicts the changes in the Group’s vehicles under operating leases:
Vehicles under operating leases
Acquisition cost
Balance as of January 1, 2023105,000 
Reclassification from inventory39,877 
Reclassification to inventory(37,585)
Effect of foreign currency exchange rate differences1,695 
12


Balance as of June 30, 2023$108,987 
Accumulated depreciation
Balance as of January 1, 2023(12,802)
Depreciation expense(2,341)
Reclassification to inventory9,250 
Effect of foreign currency exchange rate differences22 
Balance as of June 30, 2023$(5,871)
Carrying amount as of June 30, 2023$103,116 
Note 5 - Net loss per share
The following table presents the computation of basic and diluted net loss per share for the three and six months ended June 30, 2023 and 2022:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Class A and B SharesClass A and B Shares
Net loss attributable to common shareholders(304,057)(228,244)(313,035)(502,734)
Weighted-average number of common shares outstanding:
Basic and diluted2,109,975,806 1,950,335,837 2,109,952,338 1,943,759,914 
Net loss per share (in ones):
Basic and diluted$(0.14)$(0.12)$(0.15)$(0.26)
Loss per share for the six months ended June 30, 2022 is retrospectively adjusted to reflect the number of equivalent shares issued by the Parent to the Former Parent, based on the number of shares outstanding on the reporting date multiplied by the exchange ratio of 8.335. For detail on the equity exchange ratio related to the merger with Gores Guggenheim, Inc. ("GGI"), refer to Note 20 - Equity in the Consolidated Financial Statements for Polestar Automotive Holding UK PLC, as of December 31, 2022, and for the three years ended December 31, 2022 that were included in the Form 20-F filed with the SEC on April 14, 2023. The following table presents shares that were not included in the calculation of diluted earnings per share as their effects would have been antidilutive for the three and six months ended June 30, 2023 and 2022:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Earn-out Shares158,177,609 158,177,609 158,177,609 158,177,609 
Class C-1 Shares20,499,965 15,999,965 20,499,965 15,999,965 
Class C-2 Shares4,500,000 9,000,000 4,500,000 9,000,000 
PSUs2,326,794 858,821 2,326,794 858,821 
RSUs708,968 629,303 708,968 629,303 
Marketing consulting services agreement62,500 187,500 62,500 187,500 
Total antidilutive shares186,275,836 184,853,198 186,275,836 184,853,198 
Note 6 - Intangible assets and goodwill
The following table depicts the split between Polestar Group’s intangible assets, goodwill and trademarks:
As of June 30, 2023As of December 31, 2022
Intangible assets1,419,347 1,347,709 
Goodwill and trademarks46,970 48,768 
Total$1,466,317 $1,396,477 
Intangible assets were as follows:
Internally developed IPSoftwareAcquired IPTotal
13


Acquisition cost
Balance as of January 1, 2023217,600 1,114 1,569,395 1,788,109 
Additions1
49,807  125,411 175,218 
Divestments and disposals  (353)(353)
Effect of foreign currency exchange rate differences(9,332)(46)(68,833)(78,211)
Balance as of June 30, 2023$258,075 $1,068 $1,625,620 $1,884,763 
Accumulated amortization and impairment
Balance as of January 1, 2023(14,856)(389)(425,155)(440,400)
Amortization expense(340)(69)(44,347)(44,756)
Divestments and disposals  303 303 
Effect of foreign currency exchange rate differences556 18 18,863 19,437 
Balance as of June 30, 2023$(14,640)$(440)$(450,336)$(465,416)
Carrying amount as of June 30, 2023$243,435 $628 $1,175,284 $1,419,347 
1 – Of $175,218 in additions for the six months ended June 30, 2023, $53,132 has been settled in cash. These $53,132 are included in the $239,850 cash used for investing activities related to additions to intangible assets, and the remaining $186,718 relates to increases in Trade payables - related parties from prior years which were settled in cash during the six months ended June 30, 2023.
Additions to internally developed IP are primarily related to the Polestar 5 and various other internal programs, such as model year changes, for the six months ended June 30, 2023. Additions of acquired IP during the six months ended June 30, 2023 were primarily related to acquisition of the Polestar 2 and Polestar 3 IP from Volvo Cars. Polestar also acquired IP related to Polestar 4 from Geely. Refer to Note 11 - Related party transactions for further details.
Changes to the carrying amount of goodwill and trademarks during the period were as follows:
GoodwillTrademarksTotal
Balance as of January 1, 202346,460 2,308 48,768 
Effect of foreign currency exchange rate differences(1,713)(85)(1,798)
Balance as of June 30, 2023$44,747 $2,223 $46,970 

Note 7 - Financial instruments
The following table shows the carrying amounts of financial assets and liabilities measured at fair value through profit and loss on a recurring basis:
June 30, 2023December 31, 2022
Assets measured at FVTPLLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Other investments  2,248 2,248   2,333 2,333 
Total assets$ $ $2,248 $2,248 $ $ $2,333 $2,333 
Liabilities measured at FVTPL
Earn-out rights  365,575 365,575   598,570 598,570 
Class C-1 Shares14,145   14,145 17,920   17,920 
Class C-2 Shares 3,105  3,105  10,080  10,080 
Total liabilities$14,145 $3,105 $365,575 $382,825 $17,920 $10,080 $598,570 $626,570 
Note 8 - Reverse recapitalization
Polestar underwent a reverse recapitalization through the merger with GGI and related arrangements on June 23, 2022. For more detail on the reverse recapitalization, including the net assets of GGI assumed by the Group and the Class C Shares and Earn-out rights issued in connection with the merger that are accounted for as derivative liabilities in accordance with IAS 32, Financial Instruments: Presentation (“IAS 32”), and IFRS 9, Financial Instruments (“IFRS 9”), refer to Note 1 - Significant accounting policies and judgements and Note 16 - Reverse recapitalization in the Consolidated Financial Statements for Polestar Automotive Holding UK PLC, as of December 31, 2022 and 2021, and for the years ended December 31, 2022, that were included in the Form 20-F filed with the SEC on April 14, 2023.
Class C Shares
The Class C-2 Shares are not publicly traded and require a valuation approach leveraging Level 2 inputs. Refer to Note 1 - Significant accounting policies and judgements for further details on the valuation methodology utilized to determine the fair value of the Class C-2 Shares. On March 22, 2023, 4,500,000 Class C-2 Shares with a fair value of $3,285 were converted to 4,500,000 Class C-1 Shares with the same fair value following the election by the respective holders of the Class C-2 Shares and approval from the Board of Directors.
As of June 30, 2023As of December 31, 2022
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Liability Fair ValueNumber OutstandingLiability Fair ValueNumber Outstanding
Class C-1 Shares14,145 20,499,965 17,920 15,999,965 
Class C-2 Shares3,105 4,500,000 10,080 9,000,000 
Total17,250 24,999,965 28,000 24,999,965 
Class C-1 Shares
As of January 1, 202317,920 
Class C-2 Shares converted to Class C-1 Shares3,285 
Changes in fair value measurement(7,060)
As of June 30, 2023$14,145 
Class C-2 Shares
As of January 1, 202310,080 
Class C-2 Shares converted to Class C-1 Shares(3,285)
Changes in fair value measurement(3,690)
As of June 30, 2023$3,105 
The fair value change for the Class C Shares was as follows:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Fair value change - Class C-1 Shares2,870 13,760 3,775 13,760 
Fair value change - Class C-2 Shares630 7,771 6,975 7,771 
Fair value change - Class C Shares$3,500 $21,531 $10,750 $21,531 
Earn-out rights
Refer to Note 1 - Significant accounting policies and judgements for further details on the valuation methodology utilized to determine the fair value of the earn-out.
Earn-out rights
As of January 1, 2023598,570 
Changes in fair value measurement(232,995)
As of June 30, 2023$365,575 
The fair value change for the Earn-out rights was as follows:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Fair value change - Earn-out rights$26,800 $418,707 $232,995 $418,707 
Note 9 - Equity
Changes in the Group's equity during the six months ended June 30, 2023 were as follows:
Class A SharesClass B SharesShare capitalOther contributed capital
Balance as of January 1, 2023467,677,673 1,642,233,575 (21,165)(3,584,232)
Equity-settled share-based payment236,575  (2)(2,656)
Balance as of June 30, 2023467,914,248 1,642,233,575 $(21,167)$(3,586,888)
The following instruments of the Parent were issued and outstanding in the form of American depositary shares as of June 30, 2023:
467,914,248 Class A Shares with a par value of $0.01, of which 221,357,712 were owned by related parties;
1,642,233,575 Class B Shares with a par value of $0.01, of which all were owned by related parties;
20,499,965 Class C-1 Shares with a par value of $0.10;
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4,500,000 Class C-2 Shares with a par value of $0.10; and
50,000 Redeemable Preferred Shares with a par value of GBP 1.00.
As of June 30, 2023, there were an additional 4,532,085,752 Class A Shares and 135,133,164 Class B Shares with par values of $0.01 authorized for issuance. No additional Class C Shares or Redeemable Preferred Shares were authorized for issuance. Holders of Class A Shares in Parent are entitled to one vote per share and holders of Class B Shares in Parent are entitled to ten votes per share. Holders of Class C Shares in Parent are entitled to one vote per share for certain matters but have no voting rights with respect to general matters voted on by holders of Class A Shares and Class B Shares in Parent. Additionally, holders of GBP Redeemable Preferred Shares in Parent have no voting rights. Any dividends or other distributions paid by Parent shall be issued to holders of outstanding Class A Shares and Class B Shares in Parent. Holders of Class C Shares and GBP Redeemable Preferred Shares in Parent are not entitled to participate in any dividends or other distributions. Refer to Note 8 - Reverse recapitalization for additional information on the Class C Shares which are accounted for as derivative financial liabilities in accordance with IAS 32 and IFRS 9.
Note 10 - Liabilities to credit institutions
The carrying amount of Polestar Group’s liabilities to credit institutions as of June 30, 2023 and December 31, 2022 were as follows:
Liabilities to credit institutionsAs of June 30, 2023As of December 31, 2022
Working capital loans from banks1,562,847 1,300,108 
Floorplan facilities43,820 16,925 
Sale-leaseback facilities16,766 11,719 
Total$1,623,433 $1,328,752 
The Group had the following working capital loans outstanding as of June 30, 2023:
CurrencyTermSecurityInterestNominal amount in respective currency (thousands)Amount in USD (thousands)
CNYAugust 2022 - August 2023Unsecured
12-month LPR1 plus 0.05%, settled quarterly
716,000 98,626 
USDAugust 2022 - August 2023
Unsecured2
3-month LPR plus 2.3%, settled quarterly
147,000 147,000 
USDSeptember 2022 - September 2023
Unsecured2
3-month LPR plus 2.3%, settled quarterly
255,000 255,000 
USDSeptember 2022 - September 2023
Secured3
4.48% per annum, settled quarterly
133,000 133,000 
USDSeptember 2022 - September 2023
Unsecured2
3-month SOFR4 plus 2.4%, settled quarterly
100,000 100,000 
USDDecember 2022 - December 2023
Unsecured2
7.5% per annum, settled quarterly
200,000 200,000 
EURFebruary 2023 - February 2024
Secured5
3-month EURIBOR6 plus 2.3% and an arrangement fee of 0.15%
382,312 417,312 
USDMarch 2023 - March 2024
Unsecured2
7.35% per annum, settled quarterly
100,000 100,000 
CNYMarch 2023 - March 2024
Unsecured2
12-month LPR plus 0.05%, settled quarterly
260,000 35,814 
CNYApril 2023 - April 2024
Unsecured2
12-month LPR plus 0.05%, settled quarterly
11,430 1,575 
CNYMay 2023 - May 2024
Unsecured2
12-month LPR plus 0.45%, settled quarterly
231,000 31,819 
CNYJune 2023 - June 2024
Unsecured2
12-month LPR plus 1.3%, settled monthly
310,000 42,701 
Total$1,562,847 
1 - People’s Bank of China (“PBOC”) Loan Prime Rate (“LPR").
2 - Letters of keep well from both Volvo Cars and Geely.
3 - Secured by Geely, including letters of keep well from both Volvo Cars and Geely.
4 - Secured Overnight Financing Rate (“SOFR”).
5 - New vehicle inventory purchased via this facility is pledged as security until repaid. This facility has a repayment period of 90 days and includes a covenant tied to the Group’s financial performance.
6 - Euro Interbank Offered Rate (“EURIBOR”).
Floorplan facilities
In the ordinary course of business, Polestar, on a market-by-market basis, enters into multiple low-value credit facilities with various financial service providers to fund operations related to vehicle sales. These facilities provide access to credit with the option to renew
16


as mutually determined by Polestar Group and the financial service provider. The facilities are partially secured by the underlying assets on a market-by-market basis. As of June 30, 2023 and December 31, 2022, the aggregate amounts outstanding under these arrangements were $73,103 and $33,615, respectively.
The Group maintains one such facility with the related party Volvo Cars that is presented separately in Interest-bearing current liabilities - related parties within the Unaudited Condensed Consolidated Statement of Financial Position. Of the amounts above, the aggregate amounts outstanding as of June 30, 2023 and December 31, 2022 due to related parties were $29,283 and $16,690, respectively. Refer to Note 11 - Related party transactions for further details.
Sale-leaseback facilities
Polestar has also entered into contracts to sell vehicles and then lease such vehicles back for a period of up to twelve months. At the end of the leaseback period, Polestar is obligated to repurchase the vehicles. Accordingly, the consideration received for these transactions was recorded as a financing transaction. As of June 30, 2023 and December 31, 2022, the aggregate amount outstanding under these arrangements was $16,766 and $11,719, respectively.
Since the contracts identified above are short term with a duration of twelve months or less, the carrying amount of the contracts is deemed to be a reasonable approximation of their fair value. The Group’s risk management policies related to debt instruments are further detailed in Note 2 - Financial risk management of the Consolidated Financial Statements, as of December 31, 2022 and 2021, and for the three years ended December 31, 2022 that were included in the Form 20-F filed with the SEC on April 14, 2023. There are no changes in terms of risk management policies for the periods presented in these Unaudited Condensed Consolidated Financial Statements.
Note 11 - Related party transactions
For a detailed description of the Group’s related parties and related party transactions, refer to Note 25 - Related party transactions of the Consolidated Financial Statements, as of December 31, 2022 and 2021, and for the three years ended December 31, 2022, that were included in the Form 20-F filed with the SEC on April 14, 2023. There are no changes to the Group’s related parties for the periods presented in these Unaudited Condensed Consolidated Financial Statements. Related party activity during the six months ended June 30, 2023 and 2022 and balances as of June 30, 2023 and December 31, 2022 are presented below.
Financing
In May 2021, the Group entered into a working capital credit facility with Volvo Cars and subsequently drew down on the facility, which has a maturity of one year. As of June 30, 2023, $29,283 of this financing arrangement remained outstanding, which is included in Interest-bearing current liabilities - related parties on the Unaudited Condensed Consolidated Statement of Financial Position. Refer to Note 10 - Liabilities to credit institutions for further details.
Convertible Credit Facility with Volvo Cars
On November 3, 2022 the Group entered into a credit facility agreement with Volvo Cars for $800,000, terminating in May 2024. The credit facility can be drawn upon once a month and is utilizable for general corporate purposes. Interest will be calculated at the floating six-month SOFR rate plus 4.9% per annum. Prior to May 2024, if the Group announces an offering of shares with a proposed capital raise of at least $350,000 and no fewer than five institutional investors participate in the offering, Volvo Cars has the right to convert the principal amount of any outstanding loans into the same class of shares and at the same price per share as received by the participating institutional investors. Under IAS 32 and IFRS 9, Volvo Cars' conversion right meets the definition of an embedded derivative financial liability that is required to be bifurcated from the host debt instrument and accounted for separately because it could result in the issuance of a variable number of Class A Shares in the Parent at a price that was not fixed at the inception of the agreement. Additionally, the economics of Volvo Cars' conversion right are not clearly and closely related to that of the host debt instrument because the principal value of Volvo Cars' conversion right depends on whether or not the Group conducts a qualified equity offering to investors at a market discount. As such, the financial liability related to Volvo Cars' conversion right is carried at fair value with subsequent changes in fair value recognized in the Consolidated Statement of Loss and Comprehensive Loss at each reporting date. As of June 30, 2023, the Group had principal draws of $750,000 outstanding under the facility and the fair value of the financial liability related to Volvo Cars' conversion right was $0.
Sale of goods, services and other
The total revenue recognized for each related party was as follows:
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Volvo Cars34,403 20,931 49,768 44,452 
Volvofinans Bank AB14,311 18,627 21,754 39,115 
Geely1,245  1,245  
Total$49,959 $