false0001819438truetrueQ3--12-31OR9238960This number includes 937,500 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters. The over-allotment expired unexercised on October 31, 2020, thus the 937,500 of Class B ordinary shares were forfeited. 0001819438 2021-09-30 0001819438 2020-12-31 0001819438 2021-07-01 2021-09-30 0001819438 2021-01-01 2021-09-30 0001819438 2020-07-21 2020-09-30 0001819438 2021-01-01 2021-03-31 0001819438 2021-04-01 2021-06-30 0001819438 2020-09-16 2020-09-16 0001819438 2020-09-21 2020-09-21 0001819438 2021-11-19 0001819438 2021-10-08 0001819438 2021-10-08 2021-10-08 0001819438 2020-07-20 0001819438 2020-09-30 0001819438 2021-03-31 0001819438 2021-06-30 0001819438 us-gaap:CommonClassAMember 2021-09-30 0001819438 us-gaap:CommonClassBMember 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0001819438 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember gwh:PrivateWarrantsMember 2021-09-30 0001819438 gwh:PrivateWarrantsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember gwh:PublicWarrantsMember 2021-09-30 0001819438 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember gwh:PublicWarrantsMember 2021-09-30 0001819438 gwh:PrivateWarrantsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-09-30 0001819438 gwh:PublicWarrantsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member gwh:WorkingCapitalLoanRelatedPartyMember 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member gwh:WorkingCapitalLoanRelatedPartyMember 2021-09-30 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member gwh:WorkingCapitalLoanRelatedPartyMember 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputSharePriceMember 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputPriceVolatilityMember 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2021-09-30 0001819438 us-gaap:MeasurementInputExpectedDividendPaymentMember 2021-09-30 0001819438 gwh:PrivatePlacementWarrantHoldersMember 2021-09-30 0001819438 srt:MinimumMember gwh:PrivatePlacementWarrantHoldersMember 2021-09-30 0001819438 gwh:PrivatePlacementWarrantHoldersMember srt:MaximumMember 2021-09-30 0001819438 gwh:WorkingCapitalLoansMember gwh:SponsorMember 2021-09-30 0001819438 gwh:PublicWarrantsMember 2021-09-30 0001819438 gwh:PrivatePlacementWarrantsMember 2021-09-30 0001819438 gwh:SponsorMember 2021-09-30 0001819438 srt:MaximumMember gwh:BusinessAcquisitionMember 2021-09-30 0001819438 us-gaap:IPOMember 2021-09-30 0001819438 gwh:TargetEntityMember 2021-09-30 0001819438 us-gaap:CommonClassBMember gwh:FounderShareholdersMember 2021-09-30 0001819438 gwh:UnderwritingAgreementMember 2021-09-30 0001819438 gwh:ClassAOrdinarySharesSubjectToPossibleRedemptionMember 2021-09-30 0001819438 us-gaap:AccountingStandardsUpdate202006Member 2021-09-30 0001819438 srt:ScenarioPreviouslyReportedMember 2021-09-30 0001819438 gwh:AsRestatedMember 2021-09-30 0001819438 srt:RestatementAdjustmentMember 2021-09-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-09-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-09-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2021-09-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-09-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2021-09-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassBMember 2021-09-30 0001819438 gwh:RedeemableClassACommonStockMember 2021-07-01 2021-09-30 0001819438 gwh:NonRedeemableClassACommonStockMember 2021-07-01 2021-09-30 0001819438 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001819438 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2021-07-01 2021-09-30 0001819438 us-gaap:CommonClassAMember 2021-07-01 2021-09-30 0001819438 us-gaap:CommonClassBMember 2021-07-01 2021-09-30 0001819438 gwh:RedeemableClassACommonStockMember 2020-07-21 2020-09-30 0001819438 gwh:NonRedeemableClassACommonStockMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-07-21 2020-09-30 0001819438 us-gaap:AdditionalPaidInCapitalMember 2020-07-21 2020-09-30 0001819438 us-gaap:RetainedEarningsMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonClassAMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonClassBMember 2020-07-21 2020-09-30 0001819438 gwh:ScenarioPreviousReportedandRestatedMember 2020-07-21 2020-09-30 0001819438 srt:RestatementAdjustmentMember 2020-07-21 2020-09-30 0001819438 gwh:AsRestatedMember 2020-07-21 2020-09-30 0001819438 gwh:ScenarioPreviousReportedandRestatedMember us-gaap:CommonClassAMember 2020-07-21 2020-09-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2020-07-21 2020-09-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonClassBMember gwh:ScenarioPreviousReportedandRestatedMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonClassBMember srt:RestatementAdjustmentMember 2020-07-21 2020-09-30 0001819438 us-gaap:CommonClassBMember gwh:AsRestatedMember 2020-07-21 2020-09-30 0001819438 gwh:WorkingCapitalLoanRelatedPartyMember gwh:AconS2AcquisitionCorpMember us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-09-30 0001819438 gwh:RedeemableClassACommonStockMember 2021-01-01 2021-09-30 0001819438 gwh:NonRedeemableClassACommonStockMember 2021-01-01 2021-09-30 0001819438 gwh:WorkingCapitalLoanRelatedPartyMember 2021-01-01 2021-09-30 0001819438 us-gaap:IPOMember 2021-01-01 2021-09-30 0001819438 us-gaap:MeasurementInputMaturityMember us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-09-30 0001819438 us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-09-30 0001819438 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2021-01-01 2021-09-30 0001819438 gwh:PrivatePlacementWarrantHoldersMember 2021-01-01 2021-09-30 0001819438 us-gaap:PrivatePlacementMember 2021-01-01 2021-09-30 0001819438 gwh:PublicWarrantsMember 2021-01-01 2021-09-30 0001819438 gwh:PrivatePlacementWarrantsMember 2021-01-01 2021-09-30 0001819438 gwh:PrivatePlacementWarrantsMember us-gaap:CommonClassAMember 2021-01-01 2021-09-30 0001819438 us-gaap:CommonClassAMember 2021-01-01 2021-09-30 0001819438 gwh:PublicWarrantsMember us-gaap:CommonClassAMember 2021-01-01 2021-09-30 0001819438 us-gaap:CommonClassBMember 2021-01-01 2021-09-30 0001819438 gwh:UnderwritingAgreementMember 2021-01-01 2021-09-30 0001819438 srt:MaximumMember 2021-01-01 2021-09-30 0001819438 us-gaap:USTreasurySecuritiesMember srt:MaximumMember 2021-01-01 2021-09-30 0001819438 us-gaap:WarrantMember 2021-01-01 2021-09-30 0001819438 gwh:RedeemableWarrantsMember 2021-01-01 2021-09-30 0001819438 srt:RevisionOfPriorPeriodReclassificationAdjustmentMember 2021-01-01 2021-09-30 0001819438 us-gaap:IPOMember 2020-09-21 2020-09-21 0001819438 gwh:SponsorMember us-gaap:PrivatePlacementMember 2020-09-21 2020-09-21 0001819438 us-gaap:OverAllotmentOptionMember 2020-09-21 2020-09-21 0001819438 us-gaap:PrivatePlacementMember 2020-09-21 2020-09-21 0001819438 us-gaap:IPOMember 2020-09-21 0001819438 us-gaap:IPOMember us-gaap:CommonClassAMember 2020-09-21 0001819438 us-gaap:CommonClassAMember us-gaap:PrivatePlacementMember 2020-09-21 0001819438 gwh:SponsorMember us-gaap:PrivatePlacementMember 2020-09-21 0001819438 us-gaap:OverAllotmentOptionMember 2020-09-21 0001819438 us-gaap:PrivatePlacementMember 2020-09-21 0001819438 us-gaap:MeasurementInputMaturityMember us-gaap:FairValueInputsLevel3Member 2020-07-21 2020-12-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember 2020-07-21 2020-12-31 0001819438 srt:RestatementAdjustmentMember 2020-07-21 2020-12-31 0001819438 gwh:AsRestatedMember 2020-07-21 2020-12-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember us-gaap:CommonClassAMember 2020-07-21 2020-12-31 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2020-07-21 2020-12-31 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2020-07-21 2020-12-31 0001819438 us-gaap:CommonClassBMember gwh:ScenarioPreviousReportedandRestatedMember 2020-07-21 2020-12-31 0001819438 us-gaap:CommonClassBMember srt:RestatementAdjustmentMember 2020-07-21 2020-12-31 0001819438 us-gaap:CommonClassBMember gwh:AsRestatedMember 2020-07-21 2020-12-31 0001819438 us-gaap:CommonClassAMember 2020-12-31 0001819438 us-gaap:CommonClassBMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001819438 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001819438 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember gwh:PrivateWarrantsMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember gwh:PrivateWarrantsMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember gwh:PublicWarrantsMember 2020-12-31 0001819438 gwh:PublicWarrantsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001819438 gwh:PrivateWarrantsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001819438 gwh:PublicWarrantsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputSharePriceMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputPriceVolatilityMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRiskFreeInterestRateMember 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2020-12-31 0001819438 gwh:ClassAOrdinarySharesSubjectToPossibleRedemptionMember 2020-12-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember 2020-12-31 0001819438 gwh:AsRestatedMember 2020-12-31 0001819438 srt:RestatementAdjustmentMember 2020-12-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember us-gaap:CommonClassAMember 2020-12-31 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2020-12-31 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2020-12-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember us-gaap:CommonClassBMember 2020-12-31 0001819438 us-gaap:CommonClassBMember srt:RestatementAdjustmentMember 2020-12-31 0001819438 gwh:AsRestatedMember us-gaap:CommonClassBMember 2020-12-31 0001819438 srt:MaximumMember us-gaap:WarrantMember gwh:WorkingCapitalLoansMember gwh:SponsorMember 2020-07-27 2020-07-27 0001819438 gwh:SponsorMember us-gaap:CommonClassBMember 2020-07-27 2020-07-27 0001819438 gwh:FounderSharesMember gwh:SponsorMember 2020-07-27 2020-07-27 0001819438 gwh:SponsorMember srt:MaximumMember gwh:FounderSharesMember 2020-07-27 2020-07-27 0001819438 gwh:SponsorMember srt:MinimumMember gwh:FounderSharesMember 2020-07-27 2020-07-27 0001819438 gwh:SponsorMember us-gaap:CommonClassBMember 2020-07-27 0001819438 gwh:FounderSharesMember gwh:SponsorMember 2020-07-27 0001819438 gwh:SponsorMember us-gaap:IPOMember gwh:PromissoryNoteMember 2020-07-27 0001819438 gwh:SponsorMember gwh:WorkingCapitalLoansMember 2020-07-27 0001819438 us-gaap:CommonClassBMember 2020-10-31 2020-10-31 0001819438 srt:ScenarioPreviouslyReportedMember 2021-06-30 0001819438 gwh:AsRestatedMember 2021-06-30 0001819438 srt:RestatementAdjustmentMember 2021-06-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-06-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-06-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2021-06-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-06-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2021-06-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassBMember 2021-06-30 0001819438 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-03-31 0001819438 gwh:AsRestatedMember 2021-01-01 2021-03-31 0001819438 srt:RestatementAdjustmentMember 2021-01-01 2021-03-31 0001819438 gwh:RedeemableClassACommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-03-31 0001819438 gwh:RedeemableClassACommonStockMember srt:RestatementAdjustmentMember 2021-01-01 2021-03-31 0001819438 gwh:RedeemableClassACommonStockMember gwh:AsRestatedMember 2021-01-01 2021-03-31 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-03-31 0001819438 gwh:NonRedeemableClassBCommonStockMember srt:RestatementAdjustmentMember 2021-01-01 2021-03-31 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:AsRestatedMember 2021-01-01 2021-03-31 0001819438 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-04-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember srt:RestatementAdjustmentMember 2021-04-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember gwh:AsRestatedMember 2021-04-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-04-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember srt:RestatementAdjustmentMember 2021-04-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:AsRestatedMember 2021-04-01 2021-06-30 0001819438 us-gaap:CommonClassBMember 2020-10-31 0001819438 gwh:PIPEInvestorsMember 2021-10-08 0001819438 gwh:EssCommonStockMember 2021-10-08 0001819438 gwh:LegacyEssMember 2021-10-08 0001819438 gwh:PrivatePlacementWarrantsMember 2021-10-08 0001819438 gwh:PIPEInvestorsMember 2021-10-08 2021-10-08 0001819438 gwh:PrivatePlacementWarrantsMember 2021-10-08 2021-10-08 0001819438 gwh:PrivatePlacementWarrantsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2021-10-08 2021-10-08 0001819438 gwh:PrivatePlacementWarrantsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2021-10-08 2021-10-08 0001819438 srt:ScenarioPreviouslyReportedMember 2020-09-30 0001819438 gwh:AsRestatedMember 2020-09-30 0001819438 srt:RestatementAdjustmentMember 2020-09-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2020-09-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2020-09-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2020-09-30 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2020-09-30 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2020-09-30 0001819438 gwh:AsRestatedMember us-gaap:CommonClassBMember 2020-09-30 0001819438 srt:ScenarioPreviouslyReportedMember 2021-03-31 0001819438 gwh:AsRestatedMember 2021-03-31 0001819438 srt:RestatementAdjustmentMember 2021-03-31 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-03-31 0001819438 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-03-31 0001819438 gwh:AsRestatedMember us-gaap:CommonClassAMember 2021-03-31 0001819438 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-03-31 0001819438 us-gaap:CommonClassBMember srt:RestatementAdjustmentMember 2021-03-31 0001819438 gwh:AsRestatedMember us-gaap:CommonClassBMember 2021-03-31 0001819438 gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-06-30 0001819438 srt:RestatementAdjustmentMember 2021-01-01 2021-06-30 0001819438 gwh:AsRestatedMember 2021-01-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember srt:RestatementAdjustmentMember 2021-01-01 2021-06-30 0001819438 gwh:RedeemableClassACommonStockMember gwh:AsRestatedMember 2021-01-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:ScenarioPreviousReportedandRestatedMember 2021-01-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember srt:RestatementAdjustmentMember 2021-01-01 2021-06-30 0001819438 gwh:NonRedeemableClassBCommonStockMember gwh:AsRestatedMember 2021-01-01 2021-06-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-09-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-09-30 0001819438 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001819438 us-gaap:RetainedEarningsMember 2021-09-30 0001819438 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2020-07-20 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-07-20 0001819438 us-gaap:AdditionalPaidInCapitalMember 2020-07-20 0001819438 us-gaap:RetainedEarningsMember 2020-07-20 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-09-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-09-30 0001819438 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001819438 us-gaap:RetainedEarningsMember 2020-09-30 0001819438 us-gaap:FairValueInputsLevel3Member gwh:AconS2AcquisitionCorpMember gwh:WorkingCapitalLoanRelatedPartyMember 2019-12-31 0001819438 gwh:WorkingCapitalLoanRelatedPartyMember gwh:AconS2AcquisitionCorpMember us-gaap:FairValueInputsLevel3Member 2020-09-30 0001819438 us-gaap:FairValueInputsLevel3Member 2020-12-31 0001819438 us-gaap:FairValueInputsLevel3Member 2021-09-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-12-31 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-12-31 0001819438 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001819438 us-gaap:RetainedEarningsMember 2020-12-31 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-03-31 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-03-31 0001819438 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001819438 us-gaap:RetainedEarningsMember 2021-03-31 0001819438 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-06-30 0001819438 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-06-30 0001819438 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001819438 us-gaap:RetainedEarningsMember 2021-06-30 iso4217:USD xbrli:shares utr:Year utr:Month utr:Day xbrli:pure iso4217:USD xbrli:shares
Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number:
001-39525
 
 
ESS TECH, INC
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
98-1550150
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)
26440 SW Parkway Ave., Bldg. 83
Wilsonville, OR 97070
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (855)
423-9920
ACON S2 Acquisition Corp.
1133 Connecticut Ave NW, Ste 700
Washington, DC 20036
(202)
454-1100
(Former name or former address, if changed since last report)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common stock, par value $0.0001 per share
 
GWH
 
The New York Stock Exchange
Redeemable warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50
 
GWH.W
 
The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer,
a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company”
in Rule 12b-2 of
the Exchange Act.
 
Large accelerated filer
 
  
Accelerated filer
 
       
Non-accelerated filer
 
  
Smaller reporting company
 
       
 
 
 
  
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  ☐    No  
As of November
19
, 2021,
135,429,891
shares of Common Stock, par value $0.0001, were issued and outstanding.
 
 
 

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
Quarterly Report on
Form 10-Q
For the Quarterly Period Ended September 30, 2021
Table of Contents
 
 
  
Page No.
 
  
Item 1.
 
  
 
1
 
 
  
 
1
 
 
  
 
2
 
 
  
 
3
 
 
  
 
4
 
 
  
 
5
 
Item 2.
 
  
 
24
 
Item 3.
 
  
 
29
 
Item 4.
 
  
 
29
 
  
 
31
 
Item 1.
 
  
 
31
 
Item 1A.
 
  
 
31
 
Item 2.
 
  
 
31
 
Item 3.
 
  
 
31
 
Item 4.
 
  
 
31
 
Item 5.
 
  
 
31
 
Item 6.
 
  
 
34
 
  
 
36
 
 

Table of Contents
PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements.
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
September 30, 2021
   
December 31, 2020
 
        
 
(restated)
 
Assets
                
Current assets:
                
Cash
   $ 1,177     $ 470,073  
Prepaid expenses
     160,186       215,972  
    
 
 
   
 
 
 
Total current assets
     161,363       686,045  
Other assets
     40,741       136,991  
Cash equivalents held in Trust Account
    
250,016,847
      250,004,454  
    
 
 
   
 
 
 
Total Assets
  
$
250,218,951
 
 
$
250,827,490
 
    
 
 
   
 
 
 
Liabilities and Shareholders’
Deficit
                
Current liabilities:
                
Accounts payable
   $ 222,866     $ —    
Accrued expenses
     1,428,762       99,107  
Accrued expenses - related party
     130,000       40,000  
Working capital loan
 - related party, at fair value
     361,751       —    
    
 
 
   
 
 
 
Total current liabilities
     2,143,379       139,107  
Deferred underwriting commissions
     8,750,000       8,750,000  
Derivative warrant liabilities
     20,217,050       21,354,400  
    
 
 
   
 
 
 
Total liabilities
     31,110,429       30,243,507  
Commitments and Contingencies
            
Class A ordinary shares 25,000,000 shares subject to possible redemption at $10.00 per share at
September
 30, 2021 and December 31, 2020, respectively
     250,000,000       250,000,000  
Shareholders’
Deficit
:
                
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
            
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized at
September
 30, 2021 and December 30, 2020, respectively
                  
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,250,000 shares issued and outstanding at
September
 30, 2021 and December 31, 2020
     625       625  
Additional
paid-in
capital
     94       94  
Accumulated
deficit
     (30,892,197     (29,416,736
    
 
 
   
 
 
 
Total shareholders’
deficit
     (30,891,478     (29,416,017
    
 
 
   
 
 
 
Total Liabilities and Shareholders’
Deficit
  
$
250,218,951
 
 
$
250,827,490
 
    
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
1

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
  
For the three
months ended
September 30,
2021
 
 
For the nine
months ended
September 30,
2021
 
 
For the period
from July 21,
2020 (inception)
through
September 30,
2020
 
 
 
 
 
 
 
 
 
(
restated
)
 
General and administrative expenses
   $ 1,702,053     $ 2,625,204     $ 41,854  
    
 
 
   
 
 
   
 
 
 
Loss from operations
     (1,702,053     (2,625,204 )     (41,854
Other income (expense)
                        
Change in fair value of derivative warrant liabilities
     (2,232,690     1,137,350       —    
Financing costs – derivative warrant liabilities
 
 
 
 
 
 
 
 
(735,490
)
 
Gain on marketable securities (net), and dividends held in Trust Account
     4,925       12,393       —    
    
 
 
   
 
 
   
 
 
 
Total other income (expense)
     (2,227,765     1,149,743      
(735,490
)
    
 
 
   
 
 
   
 
 
 
Net loss
   $ (3,929,818   $ (1,475,461   $ (777,344
    
 
 
   
 
 
   
 
 
 
Weighted average shares outstanding of common stock subject to redemption, basic and diluted
     25,000,000       25,000,000      
3,787,879
 
    
 
 
   
 
 
   
 
 
 
Basic and diluted net loss per share, common stock subject to redemption
   $ (0.13   $ (0.05   $
(0.08
)
    
 
 
   
 
 
   
 
 
 
Weighted average shares outstanding of common stock, basic and diluted
     6,250,000       6,250,000       6,250,000  
    
 
 
   
 
 
   
 
 
 
Basic and diluted net loss per share, common stock
   $ (0.13   $ (0.05   $ (0.08
    
 
 
   
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
2

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
 
 
  
Ordinary Shares
 
  
Additional
 
  
 
 
 
Total
 
 
  
Class A
 
  
Class B
 
  
Paid-in
 
  
Accumulated
 
 
Shareholders’
 
 
  
Shares
 
  
Amount
 
  
Shares
 
  
Amount
 
  
Capital
 
  
Deficit
 
 
Deficit
 
Balance - December 31, 2020
 
(unaudited)
 
(restated)
  
 
  
 
  
$
  
 
  
 
6,250,000
 
  
$
625
 
  
$
94
 
  
$
(29,416,736
 
$
(29,416,017
Net income
     —          —          —          —          —          9,238,963       9,238,963  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
Balance - March 31, 2021 (unaudited)
 (restated)
  
 
  
 
  
$
  
 
  
 
6,250,000
 
  
$
625
 
  
$
94
 
  
$
(20,177,773
 
$
(20,177,054
Net loss
     —          —          —          —          —          (6,784,606     (6,784,606
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
Balance - June 30, 2021 (unaudited)
 (restated)
  
 
  
 
  
$
  
 
  
 
6,250,000
 
  
$
625
 
  
$
94
 
  
$
(26,962,379
 
$
(26,961,660
Net loss
     —          —          —          —          —          (3,929,818     (3,929,818
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
Balance -
September
 30, 2021 (unaudited)
  
 
  
 
  
$
  
 
  
 
6,250,000
 
  
$
625
 
  
$
94
 
  
$
(30,892,197
 
$
(30,891,478
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
 
 
  
Ordinary Shares
 
  
Additional
 
 
 
 
 
Total
 
 
  
Class A
 
  
Class B
 
  
Paid-in
 
 
Accumulated
 
 
Shareholders’
 
 
  
Shares
 
  
Amount
 
  
Shares
 
  
Amount
 
  
Capital
 
 
Deficit
 
 
Deficit
 
Balance - July 21, 2020 (inception)
  
 
  
 
  
$
  
 
  
 
  
 
  
$
  
 
  
$
  
 
 
$
  
 
 
$
  
 
Issuance of ordinary shares to Sponsor
(1)
     —          —          7,187,500        719        24,281       —         25,000  
Remeasurement adjustment
on Class A ordinary shares subject to possible redemption
     —          —          —          —          (24,281     (26,122,471     (26,146,752
Net loss
     —          —          —          —          —         (777,344     (777,344
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
Balance - September 30, 2020
 (restated)
  
 
  
 
  
$
  
 
  
 
7,187,500
 
  
$
719
 
  
$
  
 
 
$
(26,899,815
 
$
(26,899,096
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
 
 
(1)
This number includes 937,500 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters. The over-allotment expired unexercised on October 31, 2020, thus the 937,500 of Class B ordinary shares were forfeited.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
3

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.).
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
 
    
For the nine
months ended
September 30,
2021
   
For the period from
July 21, 2020
(inception) through
September 30,

2020
 
          
(restated)
 
Cash Flows from Operating Activities:
                
Net
loss
   $ (1,475,461   $ (777,344
Adjustments to reconcile net
loss
to net cash used in operating activities:
                
Gain on marketable securities (net), and dividends held in Trust Account
     (12,393     —    
Change in fair value of derivative warrant liabilities
     (1,137,350     —    
Financing costs – derivate warrant liabilities
 
 
 
 
 
735,490
 
Expenses paid by sponsor in exchange for working capital loan
     361,751          
General and administrative expenses paid by Sponsor in exchange for issuance of Class B ordinary shares
     —         16,000  
Changes in operating assets and liabilities:
                
Prepaid expenses
     152,036       (420,591
Accounts payable
     222,866       406,145  
Accrued expenses
     1,329,655       3,500  
Accrued expenses – related party
     90,000       10,000  
    
 
 
   
 
 
 
Net cash used in operating activities
     (468,896 )     (26,800
    
 
 
   
 
 
 
Cash Flows from Investing Activities:
                
Cash deposited in Trust Account
     —         (250,000,000
    
 
 
   
 
 
 
Net cash provided by
 
(used in)
investing activities
           (250,000,000
    
 
 
   
 
 
 
Cash Flows from Financing Activities:
                
Proceeds from note payable to related party
     —         25,000  
Repayment of note payable to related party
     —         (111,542
Proceeds received from initial public offering, gross
     —         250,000,000  
Proceeds received from private placement
     —         7,000,000  
Offering costs paid
     —         (5,140,200
    
 
 
   
 
 
 
Net cash provided by financing activities
     —         251,773,258  
    
 
 
   
 
 
 
Net increase in cash
     (468,896 )     1,746,458  
Cash - beginning of the period
     470,073       —    
    
 
 
   
 
 
 
Cash - end of the period
  
$
 1,177
 
 
$
1,746,458
 
    
 
 
   
 
 
 
Supplemental disclosure of noncash investing and financing activities:
                
Operating expenses paid by Sponsor included in working capital loan
   $ 361,751     $ —    
Offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares
   $ —       $ 9,000  
Offering costs included in accounts payable
   $ —       $ 5,000  
Offering costs included in accrued liabilities
   $ —       $ 391,500  
Offering costs included in note payable - related party
   $ —       $ 86,542  
Deferred underwriting commissions
   $ —       $ 8,750,000  
Remeasurement adjustment on Class A ordinary shares subject to possible redemption
 
$
 
—  
 
 
$
26,146,752
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
4

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note
1-Description
of Organization, Business Operations and Basis of Presentation
ESS Tech, Inc., formerly known as ACON S2 Acquisition Corp. (the “Company”) was a blank check company incorporated as a Cayman Islands exempted company on July 21, 2020. The Company was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses Business Combination. While the Company may pursue a business combination opportunity in any business, industry, sector or geographical location, management intends to initially focus the search on identifying a prospective target business that employs a strategic approach to sustainability; that is, a business whose pursuit of sustainability—environmental, social and/or economic—is core to driving its performance and success. The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012 (the “JOBS Act”).
The Business Combination
On October 8, 2021 (the “Closing Date”), the
Company
consummated the
previously
announced Merger pursuant to that certain Agreement and Plan of Merger, dated as of May 6, 2021 (as it may be amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), by and among the Company, SCharge Merger Sub, Inc., a Delaware corporation and a wholly-owned direct subsidiary
 
of the Company (“Merger Sub”), and ESS Tech Subsidiary, Inc. (formerly known as ESS Tech, Inc.), a Delaware corporation (“Legacy ESS”). The Merger Agreement and the transactions contemplated thereby were unanimously approved by the board of directors of each of the Company and Legacy ESS. In connection with the closing of the Merger (the “Closing”), (i) the Company became a Delaware Corporation (the “Domestication”) and (ii) following the Domestication, a business combination between the Company and Legacy ESS was effectuated through the merger of Merger Sub with and into Legacy ESS, with Legacy ESS continuing as the surviving company and as a wholly-owned subsidiary of the Company. On the Closing Date, the Company changed its name from ACON S2 Acquisition Corp. to “ESS Tech, Inc.” The Domestication, the Merger and the other transactions contemplated by the Merger Agreement are hereinafter referred to as the “Business Combination”.
In accordance with the terms and subject to the conditions of the Merger Agreement, each share of common stock of Legacy ESS, par value $0.0001 per share (“Legacy ESS Common Stock”),
was
 converted into the right to receive a number of shares of common stock, par value $0.0001 per share, of the Company (“Common Stock”) based on the adjusted equity value of Legacy ESS, as described in the Merger Agreement, at an exchange ratio of 1.47110014425, resulting in an aggregate of 99,562,793 shares of Common Stock being issued to Legacy ESS stockholders. Additionally, in the event that the volume weighted average price of the Common Stock exceeds certain price thresholds for sustained periods of time or there is a change of control where the per share consideration paid in the transaction exceeds certain thresholds, up to 15,675,002 additional shares of Common Stock may be issued to the parties that were holders of Legacy ESS Common Stock immediately prior to the Closing.
No fractional shares of Common Stock were issued upon the exchange of Legacy ESS Common Stock. Any fractional shares were rounded down to the nearest whole share of Common Stock, resulting in an aggregate total of $311.03 cash payments by the Company made to Legacy ESS stockholders in lieu of fractional shares.
In connection with the Closing, the Company issued and sold an aggregate of 25,000,000 shares of Common Stock for a purchase price of $10.00 per share and an aggregate purchase price of $250.0 million pursuant to previously announced subscription agreements (the “PIPE Subscription Agreements”) with certain accredited investors (the “PIPE Investment”).
In connection with the Closing, the Company’s shareholders holding 20,754,719 shares of Common Stock exercised their right to redeem such shares. As a result, approximately $207,547,190 of funds was withdrawn from the Company’s trust account (the “Trust Account”) to fund participant share redemptions.
 
5

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
A
lso in connection with the Closing, 583,333 private placement warrants held by the Sponsor (as defined below) were forfeited. Of the remaining 4,083,334 private placement warrants, 3,500,000 vested at Closing, and 583,334 will vest in two equal tranches upon the occurrence of certain milestone events.
See the Company’s Current Report on Form
8-K
filed with
the
Securities and Exchange Commission (“SEC”) on October 15, 2021 for more details.
Business Prior to the Business Combination
On May 6, 2021, the Company, entered into an Agreement and
Plan
of Merger (as it may be amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), by and among the Company, SCharge Merger Sub, Inc., a Delaware corporation and a wholly-owned direct subsidiary of the Company (“Merger Sub”), and ESS Tech, Inc., a Delaware corporation. The Merger Agreement and the transactions contemplated thereby were unanimously approved by the board of directors of each of the Company and Legacy ESS. On October 8, 2021, the Company completed the business combination. See business combination described below.
All activity for the period
from
July 21, 2020 (inception) through September 30, 2021 relates to the Company’s formation and the initial public offering (the “Initial Public Offering”), which is described below, and, since the closing of the Initial Public Offering, a search for a business combination candidate. The Company will not generate any operating revenues until after the completion of its initial business combination, at the earliest. The Company will generate
non-operating
income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.
The Company’s sponsor is ACON S2 Sponsor, L.L.C., a Delaware limited liability company (“Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective on September 16, 2020. On September 21, 2020, the Company consummated its Initial Public Offering of 25,000,000 units (the “Units” and, with respect to the Class A ordinary shares included in the Units being offered, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $250.0 million, and incurring offering costs of approximately $14.4 million, inclusive of approximately $8.8 million in deferred underwriting commissions (Note
7
). The underwriters were granted a
45-day
option from the date of the final prospectus relating to the Initial Public Offering to purchase up to 3,750,000 additional Units to cover over-allotments, if any, at $10.00 per Unit. The over-allotment
option
expired unexercised on October 31, 2020.
Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 4,666,667 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”), at a price of $1.50 per Private Placement Warrant with our Sponsor, generating gross proceeds of $7.0 million (Note
5
).
Upon the closing of the Initial Public Offering and the Private Placement, $250.0 million ($10.00 per Unit) of the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement were placed in a trust account (“Trust Account”) with Continental Stock Transfer & Trust Company acting as trustee and invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act having a maturity of
 
185 days or less or in money market funds meeting certain conditions under Rule
2a-7
promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a business combination and (ii) the distribution of the Trust Account as
described below.
While the
Company’s management has broad discretion with respect to the specific application of the
cash held outside of the Trust Account, substantially all of the
net proceeds
from the
Initial Public Offering and the sale of the Private Placement Warrants,
which are placed in the Trust Account,
are intended to be applied generally toward
completing
a
Business Combination
.
The Company’s initial business combination must be with one or more operating businesses or assets with a fair market value equal to at least
 
80
%
of the net assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the interest earned on the trust account) at the time the Company signs a definitive agreement in connection with the initial business combination. However, the Company will only complete a business combination if the post-transaction company owns or acquires
50
%
or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act 1940, as amended, or the Investment Company Act.
 
6

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
T
he Company will provide its holders of the Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a business combination either (i) in connection with a shareholder meeting called to approve the business combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a business combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be
 
$
10.00
per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The
per-share
amount to be distributed to Public Shareholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters. In such case, the Company will proceed with a business combination if the Company has net tangible assets of at
least $
5,000,001
 
upon such consummation of a business combination and a majority of the shares voted are voted in favor of the business combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to the amended and restated memorandum and articles of association adopted by the Company upon the consummation of the Initial Public Offering (the “Amended and Restated Memorandum and Articles of Association”), conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing a business combination. If, however, a shareholder approval of the transactions is required by law, or the Company decides to obtain shareholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each Public Shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transactions. If the Company seeks shareholder approval in connection with a business combination, the holders of the Founder Shares prior to this Initial Public Offering (the “Initial Shareholders”) have agreed to vote their Founder Shares and any Public Shares purchased during or after the Initial Public Offering in favor of a business combination.
In addition, the Initial Shareholders have agreed to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of a business combination. In addition, the Company has agreed not to enter into a definitive agreement regarding an initial business combination without the prior consent of our Sponsor.
Notwithstanding the foregoing, the Company’s Amended and Restated Memorandum and Articles of Association provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is restricted from redeeming its shares with respect to more than an aggregate of
 
15
%
 
or more of the Class A ordinary shares sold in the Initial Public Offering, without the prior consent of the Company.
The Company’s Sponsor, executive officers and directors agreed not to propose an amendment to the Company’s Amended and Restated Memorandum and Articles of Association that would affect the substance or timing of the Company’s obligation to provide for the redemption of its Public Shares in connection with a business combination or to redeem
 
100%
of its Public Shares if the Company does not complete a business combination, unless the Company provides the Public Shareholders with the opportunity to redeem their Class A ordinary shares in conjunction with any such amendment.
I
f the Company is unable to complete a business
combination
within 24 months from the closing of the Initial Public Offering, or September 21, 2022 (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not more than ten (10) business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income taxes, if any (less up to $
100,000
of interest to pay dissolution expenses) divided by the number of the then-outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii), to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other
applicable law
.
 
7

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
T
he Initial Shareholders agreed to waive their liquidation rights with respect to the Founder Shares if the Company
 
fails to complete a business combination within the Combination Period. However, if the Initial Shareholders should acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a business combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note
7
) held in the Trust Account in the event the Company does not complete a business combination within in the Combination Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be only $
10.00
per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, our Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party, our Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that our Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have vendors, service providers (except the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected through December 31, 2021.
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act, and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
 
8

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
F
urther, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required
to
comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or
do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such an election to opt out is irrevocable. The
 
Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Liquidity
As of September 30, 2021, we had approximately $1,000 in our operating bank account, and negative working capital of approximately $1.9 million. On October 8, 2021, the Company completed the aforementioned Business Combination and completed the PIPE Investment. Based on the foregoing, management believes that the Company will have sufficient cash on hand to meet its needs through one year from this filing
.
Risks and Uncertainties
In March 2020, the
 World Health Organization declared the outbreak of a novel coronavirus
(COVID-19)
as a pandemic which continues to spread throughout the United States and the world. As of the date the financial statements were issued, there was considerable uncertainty around the expected duration of this pandemic. The Company has concluded that while it is reasonably possible that
COVID-19
could have a ne
g
ative effect on identifying a target company for a
b
usiness
c
ombination, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note 2 - Restatement of Previously Issued Financial Statements
In preparation of the Company’s unaudited condensed consolidated financial statements as of and for the quarterly period ended September 30, 2021, the Company concluded it should restate its previously issued financial statements to classify all Class A ordinary shares subject to possible redemption in temporary equity. In accordance with the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” (“ASC 480”), paragraph
480-10-S99,
redemption provisions not solely within the control of the Company require shares subject to redemption to be classified outside of permanent equity. The Company had previously classified a portion of its Class A ordinary shares in permanent equity, or total shareholders’ equity, representing net tangible assets of $5,000,001. As a result, the Company restated its previously filed financial statements to present all Class A ordinary shares as temporary equity and to recognize the remeasurement adjustment from the initial book value to redemption value at the time of its Initial Public Offering.
In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the corrections and has determined that the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s Form 8-K filed with the SEC on September 25, 2020 (the “Post-IPO Balance Sheet”) and the Company’s Form 10-Qs for the quarterly periods ended September 30, 2020, March 31, 2021, and June 30, 2021 and the Company’s 10-K/A filed with the SEC on May 24, 2021 (the “Affected
Quarterly
Periods”). Therefore, the Company, in consultation with its Audit Committee, concluded that the Post-IPO Balance Sheet and the Affected Quarterly Periods should be restated to present all Class A ordinary shares subject to possible redemption as temporary equity and to recognize a remeasurement adjustment from the initial book value to redemption value at the time of its Initial Public Offering. As such, the Company is reporting these restatements to those periods in this quarterly report. The previously presented Post-IPO Balance Sheet and Affected Quarterly Periods should no longer be relied upon.
Impact of the Restatement
The change in the carrying value of the Class A ordinary shares subject to possible redemption in the Post-IPO Balance Sheet resulted in a decrease of approximately $
5.7 million in additional
paid-in-capital 
and an increase of approximately $26.1 million to accumulated deficit, as well as a reclassification of $
31.9
million Class A ordinary shares from permanent equity to temporary equity.
 
9

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
As of September 21, 2020
  
As Reported
 
  
Adjustment
 
  
As Restated
 
Total assets
  
$
252,174,258
 
  
     
  
$
252,174,258
 
 
  
 
 
 
  
     
  
 
 
 
Total liabilities
  
$
29,049,500
 
  
     
  
$
29,049,500
 
 
  
 
 
 
  
     
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
218,124,750
 
  
 
31,875,250
 
  
 
250,000,000
 
Preference shares
  
 
  
 
  
 
  
 
  
 
    
 
Class A ordinary shares
  
 
319
 
  
 
(319
  
 
  
 
Class B ordinary shares
  
 
719
 
  
 
  
 
  
 
719
 
Additional
paid-in
capital
  
 
5,747,460
 
  
 
(5,747,460
  
 
  
 
Accumulated deficit
  
 
(748,490
  
 
(26,127,471
  
 
(26,875,961
 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ equity (deficit)
  
$
5,000,008
 
  
$
(31,875,250
  
$
(26,875,242
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)
  
$
252,174,258
 
  
$
  
 
  
$
252,174,258
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The impact of the restatement on the balance sheets and statements of shareholders’ equity for the Affected Quarterly and Annual Periods is presented below. The restatement had no impact on net income or net cash flows from operating, investing or financing activities.
The tables
below present the
 effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet and statements of shareholders’ equity as of September 30, 2020:
 
As of September 30, 2020
  
As Reported
 
  
Adjustment
 
  
As Restated
 
Total assets
  
$
252,167,049
 
  
     
  
$
252,167,049
 
 
  
 
 
 
  
     
  
 
 
 
Total liabilities
  
$
29,066,145
 
  
     
  
$
29,066,145
 
 
  
 
 
 
  
     
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
218,100,900
 
  
 
31,899,100
 
  
 
250,000,000
 
Preference shares
  
 
  
 
  
 
  
 
  
 
  
 
Class A ordinary shares
  
 
319
 
  
 
(319
  
 
  
 
Class B ordinary shares
  
 
719
 
  
 
  
 
  
 
719
 
Additional
paid-in
capital
  
 
5,776,310
 
  
 
(5,776,310
  
 
  
 
Accumulated deficit
  
 
(777,344
  
 
(26,122,471
  
 
(26,899,815
 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ equity (deficit)
  
$
5,000,004
 
  
$
(31,899,100
  
$
(26,899,096
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)
  
$
252,167,049
 
  
$
  
 
  
$
252,167,049
 
 
  
 
 
 
  
 
 
 
  
 
 
 

Statement of changes in Stockholders’ equity for the period from
July 21, 2020 (inception) through September 30, 2020 (unaudited)
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Sale of units in initial public offering, gross
  
$
237,500,000
 
  
$
(237,500,000
  
$
  
 
Offering costs
  
$
(13,646,752
  
 
13,646,752
 
  
 
  
 
Remeasurement of Class A ordinary shares subject to possible redemption
  
 
  
 
  
 
(26,146,752
  
 
(26,146,752
Shares subject to possible redemption
  
 
218,100,900
 
  
 
(218,100,900
  
 
  
 
10

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
The tables
 below present the
 effect of the financial statement adjustments related
to
the restatement discussed above of the Company’s previously reported balance sheet and statement of shareholders’ equity as of December 31, 2020:
 
As of December 31, 2020
  
As Reported
 
  
Adjustment
 
  
As Restated
 
Total assets
  
$
250,827,490
 
  
     
  
$
250,827,490
 
 
  
 
 
 
  
     
  
 
 
 
Total liabilities
  
$
30,243,507
 
  
     
  
$
30,243,507
 
 
  
 
 
 
  
     
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
215,583,980
 
  
 
34,416,020
 
  
 
250,000,000
 
Preference shares
  
 
  
 
  
 
  
 
  
 
  
 
Class A ordinary shares
  
 
344
 
  
 
(344
  
 
  
 
Class B ordinary shares
  
 
625
 
  
 
  
 
  
 
625
 
Additional
paid-in
capital
  
 
8,293,299
 
  
 
(8,293,299
  
 
  
 
Accumulated deficit
  
 
(3,294,265
  
 
(26,122,377
  
 
(29,416,642
 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ equity (deficit)
  
$
5,000,003
 
  
$
(34,416,020
  
$
(29,416,017
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)
  
$
250,827,490
 
  
$
  
 
  
$
250,827,490
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
Statement of changes in Stockholders’ equity for the period from
July 21, 2020 (inception) through December 31, 2020 (unaudited)
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Sale of units in initial public offering, gross
  
$
237,500,000
 
  
$
(237,500,000
  
$
  
 
Offering costs
  
$
(13,646,752
  
 
13,646,752
 
  
 
  
 
Remeasurement of Class A ordinary shares subject to possible redemption
  
 
  
 
  
 
(26,146,752
  
 
(26,146,752
Shares subject to possible redemption
  
 
(215,583,980
  
 
215,583,980
 
  
 
  
 
The tables below present the effect
 of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet and statement of shareholders’ equity as of March 31, 2021:
 
As of March 31, 2021
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Total assets
  
$
250,663,379
 
  
     
  
$
250,663,379
 
 
  
 
 
 
  
     
  
 
 
 
Total liabilities
  
$
20,840,433
 
  
     
  
$
20,840,433
 
 
  
 
 
 
  
     
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
224,822,940
 
  
 
25,177,060
 
  
 
250,000,000
 
Preference shares
  
 
  
 
  
 
  
 
  
 
  
 
Class A ordinary shares
  
 
252
 
  
 
(252
  
 
 
  Class B ordinary shares
  
 
625
 
  
 
  
 
  
 
625
 
Additional
paid-in
capital
  
 
  
 
  
 
  
 
  
 
  
 
Accumulated deficit
  
 
4,999,129
 
  
 
(25,176,808
  
 
(20,177,679
 
  
 
 
 
  
     
  
 
 
 
Total shareholders’ equity (deficit)
  
$
5,000,006
 
  
$
(25,177,060
  
$
(20,177,054
 
  
 
 
 
  
     
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)
  
$
250,663,379
 
  
$
  
 
  
$
250,663,379
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
As of March 31, 2021
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Shares subject to redemption
  
$
  (9,238,960
)
 
  
$
  9,238,960
 
  
$
                 
 
 
11

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
The tables below present the effect of
 the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet and statement of shareholders’ equity as of June 30, 2021:
 
As of June 30, 2021
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Total assets
  
$
250,304,732
 
  
     
  
$
250,304,732
 
 
  
 
 
 
  
     
  
 
 
 
Total liabilities
  
$
27,266,392
 
  
     
  
$
27,266,392
 
 
  
 
 
 
  
     
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
218,038,330
 
  
 
31,961,670
 
  
 
250,000,000
 
Preference shares
  
 
  
 
  
 
  
 
  
 
  
 
Class A ordinary shares
  
 
320
 
  
 
(320
  
 
  
 
Class B ordinary shares
  
 
625
 
  
 
  
 
  
 
625
 
Additional
paid-in
capital
  
 
6,784,542
 
  
 
(6,784,542
  
 
  
 
Accumulated deficit
  
 
(1,785,477
  
 
(25,176,808
  
 
(26,962,285
 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ equity (deficit)
  
$
5,000,010
 
  
$
(31,961,670
  
$
(26,961,660
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)
  
$
250,304,732
 
  
$
  
 
  
$
250,304,732
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
As of June 30, 2021
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Shares subject to redemption
  
$
6,784,610
 
  
$
(6,784,610
)
 
  
$
  
 
In connection with the change in presentation for the Class A ordinary shares subject to possible redemption, the Company has restated its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares participate pro rata in the income and losses of the Company. The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per common share is presented below for the Affected Quarterly and Annual Periods:
 
 
  
EPS for Class A ordinary shares (redeemable)
 
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Form
10-Q
(March 31, 2021) - three months ended March 31, 2021
  
  
  
Earnings allocable to ordinary shares subject to possible redemption
  
$
3,321
 
  
$
7,387,849
 
  
$
7,391,170
 
Weighted average shares outstanding
  
 
21,568,664
 
  
 
3,431,336
 
  
 
25,000,000
 
Basic and diluted earnings per share
  
$
  
 
  
$
0.30
 
  
$
0.30
 
Form
10-Q
(June 30, 2021) - three months ended June 30, 2021
  
     
  
     
  
     
Earnings (loss) allocable to ordinary shares subject to possible redemption
 
$
3,293
 
 
$
(5,430,978
)
 
$
(5,427,685
)
Weighted average shares outstanding
  
 
22,474,838
 
  
 
2,525,162
 
  
 
25,000,000
 
Basic and diluted earnings per share
  
$
  
 
  
$
(0.22
  
$
(0.22
Form
10-Q
(June 30, 2021) - six months ended June 30, 2021
  
     
  
     
  
     
Earnings allocable to ordinary shares subject to possible redemption
 
$
6,514
 
 
$
1,956,972
 
 
$
1,963,486
 
Weighted average shares outstanding
  
 
22,024,254
 
  
 
2,975,746
 
  
 
25,000,000
 
Basic and diluted earnings per share
  
$
  
 
  
$
0.08
 
  
$
0.08
 
 
 
  
EPS for Class B ordinary shares
(non-redeemable)
 
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Form
10-Q
(March 31, 2021) - three months ended March 31, 2021
  
  
  
Earnings allocable to non-redeemable ordinary shares
  
$
9,235,642
 
  
$
(7,387,849
  
$
1,847,793
 
Weighted average shares outstanding
  
 
9,681,336
 
  
 
(3,431,336
  
 
6,250,000
 
Basic and diluted earnings per share
  
$
0.95
 
  
$
(0.65
  
$
0.30
 
Form
10-Q
(June 30, 2021) - three months ended June 30, 2021
  
     
  
     
  
     
Loss allocable to non-redeemable ordinary shares
 
$
(6,787,899
)
 
$
5,430,978
 
 
$
(1,356,921
)
Weighted average shares outstanding
  
 
8,775,162
 
  
 
(2,525,162
  
 
6,250,000
 
Basic and diluted earnings per share
  
$
(0.77
  
$
0.55
 
  
$
(0.22
Form
10-Q
(June 30, 2021) - six months ended June 30, 2021
  
     
  
     
  
     
Earnings allocable to non-redeemable ordinary shares
 
$
2,447,843
 
 
$
(1,956,972
)
 
$
490,871
 
Weighted average shares outstanding
  
 
9,225,746
 
  
 
(2,975,746
  
 
6,250,000
 
Basic and diluted earnings per share
  
$
0.27
 
  
$
(0.19
  
$
0.08
 
 
 
 
  
EPS for Class A ordinary shares (redeemable)
 
  
As Previously
Reported
 
  
Adjustment
 
  
As Restated
 
Form
10-Q
(September 30, 2020) - the period from July 21, 2020 (inception) through September 30, 2020
  
  
  
Earnings (loss) allocable to ordinary shares subject to possible redemption
  
$
3,841
 
  
$
(2,378,506
  
$
(2,374,665
Weighted average shares outstanding
  
 
21,810,415
 
  
 
(18,022,536
  
 
3,787,879
 
Basic and diluted earnings per share
  
$
  
 
  
$
(0.08
  
$
(0.08
Form
10-K/A
(December 31, 2020) - the period from July 21, 2020 (inception) through December 31, 2020
  
     
  
     
  
     
Earnings (loss) allocable to ordinary shares subject to possible redemption
 
$
 
 
 
$
(293,337
)
 
$
(293,337
)
Weighted average shares outstanding
  
 
21,719,426
 
  
 
(5,580,185
  
 
16,139,241
 
Basic and diluted earnings per share
  
$
  
 
  
$
(0.15
  
$
(0.15
 
 
 
  
EPS for Class B ordinary shares (non-
redeemable)
 
  
As Previously
Reported, As
Restated
 
  
Adjustment
 
  
As Restated
 
Form 10-Q (September 30, 2020) - the period from July 21, 2020 (inception) through September 30, 2020
  
  
  
Loss allocable to non-redeemable ordinary shares
  
$
(777,344
  
$
293,337
 
  
$
(484,007
Weighted average shares outstanding
  
 
6,732,994
 
  
 
(482,994
  
 
6,250,000
 
Basic and diluted earnings per share
  
$
(0.12
  
$
0.04
 
  
$
(0.08
Form 10-K/A (December 31, 2020) - the period from July 21, 2020 (inception) through December 31, 2020
  
     
  
     
  
     
Loss allocable to non-redeemable ordinary shares
 
$
(3,298,105
)
 
$
2,378,505
 
 
$
(919,600
)
Weighted average shares outstanding
  
 
8,310,766
 
  
 
(2,060,766
  
 
6,250,000
 
Basic and diluted earnings per share
  
$
(0.40
  
$
0.25
 
  
$
(0.15
12

Table of Contents
ESS TECH, INC.
(Formerly ACON S2 ACQUISITION CORP.)