Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 186

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 186
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472

F-12

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 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

I sraeli severance pay

Pursuant to Section 14 of Israel’s Severance Compensation Law, 1963 (“ Section 14”), the Israeli entity’s employees are included under this section and entitled only to monthly deposits at a rate of 8.33

For the years ended December 31, 2024, 2023, and 2022, severance pay expenses amounted to $ 987 1,069 1,217

Employee benefit plan - Defined contribution plan

The Company maintains a defined contribution 401(k) retirement savings plan for its U. S. employees. Each participant in the 401(k) retirement savings plan may elect to contribute a percentage of his or her annual compensation up to a specified maximum amount allowed under U. S. Internal Revenue Service regulations. The Company matches employee contributions to a maximum of 4 81 106 117

The Company maintains a privately administered pension insurance plan in the United Kingdom. Contributions to the plan are recognized as employee benefit expense when due. 6 515 538 371

Warranty liability

Warranty liability provided to customers is accrued in accordance with management’s estimate.

As of December 31, 2024 and 2023, the warranty liability amounts were immaterial.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments and non-current restricted cash.

The Company maintains its cash, cash equivalents, short-term investments and non-current restricted cash with high-quality financial institutions mainly in Israel, the U. S. and the U. K., and regularly monitors their composition and maturities.

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts and option contracts.

F-13

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 2. SUMMARY OF SIGNIFICANT ACCOUNTING