Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 23

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 23
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 from reservations to binding agreements and/or binding orders or become long-term commitments and the failure to do so would have a material adverse effect on REE’s business, prospects, financial results and results of operations. If we are unsuccessful in converting our March MOU into a binding agreement and/or binding order, it would significantly reduce our reservation value. In addition, any event of bankruptcy, insolvency, or general downturn in the business of the March MOU customer or in its respective industry more generally, will significantly reduce our reservation value, which could have an adverse impact our business, results of operations, reputation, and long term prospects with respect to the viability of our business.

In addition, while we intend to sell our SDV products to customers, including OEMs, such relationships do not necessarily produce long-terms contracts with definitive agreement for purchases. Instead, executed written agreements with these customers typically provide that we will provide our SDV products to such customers pursuant to standard purchase orders under our general terms and conditions, pursuant to which they are generally not obligated to purchase our solutions in any certain quantity or at any certain price. For the foreseeable future, if we are successful in converting our March MOU into a definitive agreement, our business, results of operations, and financial condition will likely primarily depend on this single customer.

In the future, our customers may decide not to purchase our products, may purchase fewer of our SDV products than they did in the past, or may alter their purchasing patterns, and OEMs may discontinue incorporation of our products in their vehicle models, including as a result of a transition to in-house solutions or solutions provided by our competitors, or their individual or aggregate production levels may decline due to a number of factors, including supply chain challenges and macroeconomic conditions. Further, the amount of revenue attributable to any single customer, or our customer concentration generally, may fluctuate in any given period. The loss of one or more customers, a reduction in sales to any customer, the discontinued or decreased incorporation of our products by any OEM, or our inability to attract new customers and OEMs would significantly negatively impact our revenue and adversely affect our business, results of operations, and financial condition and would likely result in our company requiring to seek protection from creditors as part of a bankruptcy proceeding.

There is no guarantee that our potential customers will purchase our SDV products in any certain quantity or at any certain price even after we achieve design wins, and there may be significant delays between the time we achieve a design win until we realize revenue from the vehicle model