REE Automotive .(US:REE)2025-12-30 11:19Financial Performance - Revenues for the six months ended June 30, 2025, were $184,000, compared to $160,000 for the same period in 2024, reflecting a growth of 15%[6] - Gross loss increased to $14,320,000 for the six months ended June 30, 2025, compared to a gross loss of $1,295,000 in the prior year, indicating a significant deterioration in gross margin[6] - Operating loss for the first half of 2025 was $75,965,000, compared to $38,817,000 for the same period in 2024, representing an increase of 95.7%[6] - Net loss for the six months ended June 30, 2025, was $24,314,000, a decrease from a net loss of $35,970,000 in the same period of 2024, showing an improvement of 32.4%[6] - Total operating expenses rose to $61,645 thousand in 2025 from $37,522 thousand in 2024, reflecting a 64% increase[86] Assets and Equity - Total assets decreased to $89,542,000 as of June 30, 2025, down from $130,280,000 as of December 31, 2024, representing a decline of approximately 31.2%[5] - Cash and cash equivalents decreased to $54,668,000 as of June 30, 2025, down from $72,262,000 at the end of 2024, a reduction of 24.2%[5] - Total shareholders' equity increased to $35,949,000 as of June 30, 2025, up from $23,128,000 as of December 31, 2024, reflecting a growth of 55.1%[5] - Property and equipment, net decreased to $7,135 as of June 30, 2025, from $22,110 as of December 31, 2024, primarily due to impairment charges of $19,748 recorded for long-lived assets[53][55] Cash Flow and Financing - The company incurred negative cash flows from operating activities amounting to $47,853,000 for the six months ended June 30, 2025[17] - REE Automotive Ltd. completed two registered direct offerings in March 2025, generating net proceeds of approximately $34.361 million[16] - The company expects its existing financial resources to fund operations only into the second quarter of 2026 without additional financing[17] - The Company utilized $18,000 under its Credit Facility as of June 30, 2025, with an annual interest rate of 7.83%, down from 8.84% in the previous year[58] Research and Development - Research and development expenses rose to $30,040,000 for the six months ended June 30, 2025, compared to $23,421,000 in the prior year, an increase of 28.1%[6] - The company recorded R&D tax credit benefits of $0 for the six months ended June 30, 2025, down from $5,697,000 in 2024[39] - Research and development expenses for the six months ended June 30, 2025, totaled $29,040 thousand, compared to $29,118 thousand in 2024, indicating a slight decrease[86] Impairment and Legal Matters - The company reported a significant impairment of long-lived assets amounting to $20,080,000 during the first half of 2025[11] - The company recorded impairment charges of long-lived assets totaling $20,080,000 for the six months ended June 30, 2025, compared to zero in 2024[33] - The Company is involved in ongoing legal proceedings, including a lawsuit with OSR Group, which claims damages of no less than $2.6 billion, but the Company believes the claims are without merit[66] Shareholder Information - The weighted average number of ordinary shares used in computing basic and diluted net loss per share increased to 30,043,892 for the six months ended June 30, 2025, compared to 11,934,325 in the same period of 2024[6] - The company conducted two registered direct offerings in March 2025, issuing a total of 8,595,807 Class A Ordinary Shares at a price of $4.25 per share, resulting in gross proceeds of approximately $36,532,000[76] - The company granted 129,186 Restricted Stock Units (RSUs) to employees, with a weighted average grant date fair value of $6.16 per RSU during the six months ended June 30, 2025[77] Future Outlook and Collaborations - The company expects to generate up to approximately $107 million over a two-year development period from a collaboration with a global technology company on autonomous shuttle prototypes[88] - The company entered into a non-binding memorandum of understanding with Mitsubishi Fuso to evaluate and develop software-defined vehicles over an initial one-year period[88] - A non-binding memorandum of understanding was established with BorgWarner for the evaluation and potential commercialization of a next-generation electric drive unit based on REEcorner technology[88]