Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 22

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 22
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 the SDV and EV industry, many of which are beyond REE’s control, including substantial risks and expenses in the course of establishing or entering new markets, organizing operations and undertaking marketing activities. The likelihood of REE’s success must be considered in light of these risks, expenses, complications, delays and the competitive environment in which REE operates. In addition, if and when REE resumes manufacturing in the future, its plan to outsource manufacturing to suppliers and strategic partners and to utilize its current and future Integration Centers for the assembly of REE products is a novel business strategy and REE cannot guarantee that the strategy will be successful or profitable, or that it will successfully control its costs through this structure, REE may be unable to generate sufficient revenues, raise additional capital or operate profitably or to meet projected gross margins, EBITDA and cash flows. REE will continue to encounter risks and difficulties frequently experienced by companies in the early stages of commercialization, including, if applicable, scaling up REE’s infrastructure, commercialization and headcount, and may encounter unforeseen expenses, difficulties or delays in connection with its growth. In addition, REE expects to continue to sustain substantial operating expenses without

Table of C ontents

generating sufficient revenues to cover expenditures. Any investment in REE is therefore highly speculative and could result in the loss of an investor’s entire investment.

Our reservations include both binding orders and non-binding reservation and such non-binding reservations may not result in definitive purchase orders and/or agreements and the majority of our reservation value is dependent upon our March MOU customer.

Our reservations include both binding and non-binding reservations. For example, on March 18, 2025, we announced our entry into an MOU with a global technology company developing and marketing new mobility solutions for passenger and freight transport, or March MOU. In accordance with the terms of the March MOU, the parties intend to sign a strategic collaboration agreement by year-end 2025 which could potentially generate $770 million revenue over the next five years. In addition to the potential revenues from the MOU reservations, we currently have an additional $137 million in reservations, which includes reservations for production that extends beyond 2025. Thus, as of the date of this Annual Report, we have approximately 30 customers in various industries representing approximately 6,200 reservations valued at approximately $908 million, out of which $770 million is attributable to our March MOU. There can be no guarantee that any such strategic collaborations, customers or strategic partners will transition