Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 97

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 97
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 to a decrease in non-R& D employee headcount as a result of our realignment to our business plan. Excluding share-based compensation, selling, general and administrative expenses decreased by $6.9 million, or 25%, from $27.7 million for the year ended December 31, 2023 to $20.8 million for the year ended December 31, 2024.

Income (Loss) from Warrants Remeasurement

Income (loss) from warrants remeasurement, decreased by $23.2 million, or 5,845%, from income of $0.4 million for the year ended December 31, 2023 to a loss of $22.8 million for the year ended December 31, 2024. This decrease was due to pre-funded warrants we issued in a transaction that we conducted in September 2024, as well as a change in the fair value of the warrants liability, which was mainly impacted by the decline of the Company’s share price.

Financial Income (Expenses), Net

Financial income (expenses), net decreased by $11.7 million, or 299%, from financial income, net of $3.9 million for the year ended December 31, 2023 to financial expenses, net of $7.8 million for the year ended December 31, 2024. This decrease was primarily attributable to a change in the fair value of a derivative liability that was mainly impacted by the increase in the Company’s share price following our September 2024 Offering (defined below), a decrease in interest income from bank deposits due to lower average cash balances as well as an increase in interest expenses and discount amortization related to our convertible promissory notes.

Table of C ontents

Taxes on Income (tax benefit)

Taxes on income (tax benefit), increased by $3.5 million, or 252%, from a tax benefit of $1.4 million for the year ended December 31, 2023 to taxes on income of $2.1 million for the year ended December 31, 2024. This increase was primarily due to an increase in deferred tax expenses, which was partially offset by uncertain tax positions reversed in the year ended December 31, 2024 and related to previous years.

B. Liquidity and Capital Resources.

As of the date of this Annual Report, we have not yet generated significant revenues from our principal business operations and have generated minimal revenues overall and do not expect to generate sufficient revenues