Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 105

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 105
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                                       2023                
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                   USD in thousands                                               
  Net cash provided by (used in)                                                                                                  
  Operating activities                                             $                            (68,985)      $         (89,273)  
  Investing activities                                                                            35,969                  49,617  
  Financing activities                                                                            63,548                  23,971  
  Net change in cash and cash equivalents and restricted cash      $                              30,532      $         (15,685)  

Cash Flows from Operating Activities

Our cash flows used in operating activities to-date have primarily resulted from costs related to development of our products, payroll, fluctuations in accounts payable and other current assets and liabilities. We expects to continue incurring cash outflows on operating activities until we begin to generate sufficient cash flows from our business.

During the year ended December 31, 2024, operating activities used $69.0 million in cash. The primary factors affecting operating cash flows during this period were a net loss of $111.8 million before deducting non-cash charges mainly consisting of changes in the fair value of warrant and derivative liabilities of $31.9 million, share-based compensation of $9.6 million, depreciation, amortization, and accretion expense and a change in operating right of use asset and liability, net, of $4.0 million. These non-cash charges were offset by an increase in operating working capital of $6.4 million.

During the year ended December 31, 2023, operating activities used $89.3 million in cash. The primary factors affecting operating cash flows during this period were a net loss of $114.2 million before deducting non-cash charges mainly consisting primarily of share-based compensation of $16.3 million, depreciation, amortization, and accretion expense and a change in operating right of use asset and liability, net, of $3.7 million, offset by a change in fair value of financial liabilities of $0.6 million. These non-cash charges were offset by an increase in operating working capital of $5.6 million. For comparative purposes, we have included amortization of operating lease right-of-use assets as part of the change in operating lease right-of-use assets and liabilities, net. This change did not affect the overall change in cash flows from operating activities.

Table of C ontents

Cash Flows from Investing Activities

Our cash flows