Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 66

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 66
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E from effectively operating its business, or may cause harm to its business that may or may not be reparable.

While we seek to adhere to the industry's best practices by implementing security controls, including ISO 27001, and by establishing measures to manage and reduce the risks associated with engaging third-parties, including suppliers, service providers, and strategic partners, cybercrime continues to escalate. Threats posed by malware, viruses, hacking, social engineering attacks, and especially ransomware attacks are increasingly common. These threats pose significant risks and have a considerable impact. Specifically, REE is at risk for interruptions, outages and breaches of its: (a) operational systems, including business, financial, accounting, product development, data processing or production processes, owned by REE, its suppliers, service providers, and/or strategic partners; (b) facility security systems, owned by REE, its suppliers, service providers, and/or strategic partners; (c) transmission control modules or other in-product technology, owned by REE, its suppliers, service providers, and/or strategic partners; (d) the integrated software in REE’s products; or (e) customer data that REE processes, its suppliers, service providers, and/or strategic partners process on its behalf. In addition, some of our employees work remotely, which increases our cybersecurity risk, creates data accessibility concerns, and makes us more susceptible to security breaches or business disruptions. REE’s systems are vulnerable to damage or interruption from, among others, physical theft, fire, terrorist attacks, natural disasters, power loss, war, telecommunications failures (including the internet), viruses, denial or degradation of service attacks, ransomware, social engineering schemes, insider theft or misuse or other attempts to harm REE’s systems. Such interruption, outage and/or breach incidents could: materially disrupt REE’s operational systems, including planned over-the-air update capabilities; result in loss of intellectual property, trade secrets or other proprietary or competitively sensitive information; compromise certain information of employees, potential customers, suppliers, service providers, and strategic partners, or others; jeopardize the security of REE’s facilities; or affect the performance of in-product technology and the integrated software in REE’s products.

We also use and/or rely upon third-party technology, software, and systems in various contexts, including, without limitation, cloud services, single-sign on platforms, email, word processing, back-office support, payment processing, cybersecurity, and other functions. These third-party providers, as applicable, process, store,