Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 41

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 41
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 expenditures in these efforts, our future business, results of operations, and financial condition would be significantly adversely affected and likely result in us having to wind down and/or restructure our business and/or seek creditor protection.

We invest significant effort and money from the time of our initial contact with an OEM, to the time when an OEM, can choose our products and/or technology to be incorporated into one or more specific vehicle models to be produced by the OEM. This selection process is known as a “design win”. We could expend significant resources pursuing, but fail to achieve, a design win. After a design win, it is typically difficult for a product or technology that did not receive the design win to displace the winner until the OEM issues a new request for quotation because an OEM will generally not change complex technology already integrated in its systems until a vehicle model is revamped. In addition, the firm with the winning design may have an advantage with the OEM going forward because of the established relationship between the winning firm and the OEM, which would make it more difficult for that firm’s competitors to win the designs for other production models. If we fail to win a significant number of OEM design competitions in the future, then our business, results of operations, and financial condition would be adversely affected and our business would likely fail.

Similarly, with respect to other target customers, many of these potential customers are dealers and large multinational corporations with substantial negotiating power relative to it and, in some instances, may have internal solutions that are competitive to REE’s products. These large, multinational corporations also have significant development resources that may allow them to acquire or develop independently, or in partnership with others, competitive technologies. Meeting the technical requirements and obtaining purchase orders from any of these companies will require a substantial investment of REE’s time and resources. REE cannot assure you that such efforts will result in definitive purchase orders from these or other companies or that it will generate meaningful revenue from the sales of its products to these types of customers. If REE’s products are not selected by these customers or if these corporations develop or acquire competitive technology in lieu of our products, it will have an adverse effect on REE’s business, its prospects and results of operations may be adversely affected.

Discontinuation, lack of commercial success, or loss of business with respect to a particular product model for which REE is a significant supplier could reduce REE’s sales and adversely affect its profitability.

If REE is able to secure design wins and its products are included in OEM or technology company vehicles, it