Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 3

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

• REE may incur significant costs and expenses in connection with the protection and enforcement of its intellectual property rights, including but not limited to litigation costs.

• Our dual class structure has the effect of concentrating voting power.

• Political, economic and military conditions in Israel could adversely affect REE’s supply chain, business, operations, and ability to raise capital.

Risks Related to REE’s Finances

REE is an early stage company with a history of losses, and expects to incur significant expenses and continuing losses for the foreseeable future, and there is substantial doubt that we will have sufficient funds to satisfy our obligations, including through the next 12 months from the date of this Annual Report if we are unable to obtain sufficient additional funding or do not have access to capital to finance our current business plan. As a result, REE may be unable to meet its future capital requirements, which could jeopardize its ability to continue its business operations and/or lose control of its business to a creditor.

As an early-stage growth company, REE’s ability to access capital is critical. Until REE can generate sufficient revenue to cover its operating expenses, working capital and capital expenditures, REE must raise additional capital. Since inception, REE has incurred, and REE expects it will continue to incur, losses and negative cash flow, either or both of which are significant. As of December 31, 2024, REE’s cash and cash equivalents were $72.3 million (including $18 million from our credit facility) and it has recorded a net loss of $111.8 million and $114.2 million for the years ended December 31, 2024 and 2023, respectively. The report of our independent registered public accounting firm for the year ended December 31, 2024 included herein contains an explanatory paragraph indicating that there is substantial doubt that we will have sufficient funds to satisfy our obligations through the next twelve months from the date of this Annual Report. The consolidated financial statements do not include any adjustments with respect to the carrying amounts of assets and liabilities and their classification that might be necessary should the Company be unable to continue as a going concern. Our ability to continue our business, including as a going concern, is dependent on our ability to obtain the necessary financing to meet our obligations and repay our liabilities arising from the ordinary course of business operations when they become due. The outcome of these matters cannot be predicted with any certainty at this time