REE Automotive Ltd. Q4 FY2024 earnings call

1. Milestones in 2024: Received first Federal Motor Vehicle Safety Standard Certification for a full-by-wire vehicle in the U.S., Airbus collaborated with REE to complete the first autonomous drive on an active runway using REE's SDV technology, and launched REEai Cloud in collaboration with Geotab for vehicle services and advanced data analytics. 2. 2025 Challenges: U.S. tariffs and trade policies impacted the supply chain, leading to a temporary pause in production. 3. Focus on Software: Accelerated progress in the software business, actively engaging with OEMs, and transitioning toward a subscription-based revenue model. 4. Cost Reduction: Plan to significantly reduce monthly cash burn by cutting operating expenses and adjusting headcount to optimize the corporate structure.

1. Temporarily paused production due to uncertainty around U.S. tariffs and trade policies. 2. Aim to reduce monthly operating expenses from ~$6 million to ~$3-4 million by the end of 2025. 3. Expected Q1 2025 cash and cash equivalent balance is approximately $79.6 million, including an $80 million credit facility.

1. U.S. tariffs and trade policies have significantly impacted the supply chain and production plans. 2. Substantial doubt about the company's ability to continue as a going concern over the next 12 months due to macroeconomic environment and tariff-related challenges.

Q: Can you talk about the conversion of the MoU to a definitive agreement and its impact on timeline?

A: Currently, there's no change in the timeline indicated. We are receiving payments for services delivered and are on track with previous announcements.

Q: What is the first quarter cash balance excluding the credit facility?

A: It's $61 million.

Q: Talk about reservations, cancellations, and the path to revenue.

A: Customers remain interested in our SDV technology. The ~$1 billion in reservations (including binding orders and MoUs) shows strong demand. Due to the temporary pause in production, it's early to assess when revenue from deliveries will start, but we're focusing on our software business in the interim while evaluating macroeconomic conditions and tariffs.