Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 209

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 209
---
.5  
  Volatility                        95.00%      96.54%                 57.77%      59.65%  
  Risk-free rate                     4.48%       4.49%                  4.27%       4.34%  
  Cost of Debt (Rd)                  7.64%                              7.03%       7.10%  
  Dividend yield                      0.0%                               0.0%              

Changes in the fair value of Level 3

The following table presents the changes in the fair value of Level 3 warrants and derivative liabilities for the year ended December 31, 2024 and 2023:

                                                                    Total Level 3 Financial Liabilities              
  Balance at December 31, 2023                                      $                                         7,526  
  Change in fair value of derivative liabilities at fair value                                                9,143  
  Partial conversion of convertible notes                           ( 394)                                           
  Change in fair value of warrants liability                                                                  5,610  
  Balance at December 31, 2024                                      $                                        21,885  

                                                                    Total Level 3 Financial Liabilities             
  Balance at December 31, 2022                                      $                                            —  
  Issuance of derivative liabilities at fair value (Note 13)                                                 4,366  
  Change in fair value of derivative liabilities at fair value      ( 240)                                          
  Issuance of warrants (Note 13)                                                                             3,796  
  Change in fair value of warrants liability                        ( 396)                                          
  Balance at December 31, 2023                                      $                                        7,526  

F-37

Table of Contents

REE AUTOMOTIVE LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

U. S. dollars in thousands (except share and per share data)

NOTE 16. FINANCIAL INCOME (EXPENSES), NET

The components of financial income (expenses), net are as follows:

                                                       Year ended December 31,                                                             
                                                                          2024                      2023                 2022              
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Interest income                                                            $         2,874           $      4,488      $          2,869  
  Foreign currency translation