REE Automotive (REE) Q4 2024 Earnings Call May 15, 2025 08:30 AM ET Company Participants Dana Rubinstein - Chief Strategy OfficerDaniel Barel - Co-Founder and CEOHai Aviv - CFO Conference Call Participants C.K. Poe Fratt - MD - Equity Research & Senior Transportation Analyst Operator Good day, and thank you for standing by. Welcome to the RE Automotive's Fourth Quarter and Full Year twenty twenty four Financial Results Conference Call. At this time, all participants are in listen only mode. After the speake ...

Financial Data and Key Metrics Changes - The company improved its liquidity to $72 million at the end of 2024, including an $18 million credit facility, following two successful securities offerings that raised approximately $60 million in gross proceeds [12] - The GAAP net loss for the full year was $111.8 million, a slight improvement from $114.2 million in 2023, primarily due to lower engineering and R&D expenses [13] - On a non-GAAP basis, the net loss improved to $70.3 million from $98.3 million in 2023, driven by reductions in engineering and R&D expenses [14] Business Line Data and Key Metrics Changes - The company achieved significant milestones in technology, including the first federal motor vehicle safety standard certification for a full by-wire vehicle in the US and the completion of the first autonomous drive on an active runway with Airbus [5][8] - The launch of ReAI Cloud in collaboration with Geotab opened new software revenue opportunities, indicating a shift towards a software-driven business model [5] Market Data and Key Metrics Changes - The company reported close to $1 billion in reservations, which includes binding orders and capacity reservations, indicating strong demand for its technology despite the temporary pause in production [34] - The current US tariffs and trade policies have significantly impacted the supply chain, affecting the company's ability to execute its original production plans [7][8] Company Strategy and Development Direction - The company is focusing on a software-first approach, transitioning towards a subscription-based revenue model and licensing its technology to OEMs and technology companies [10][20] - A strategic decision was made to temporarily pause production to address uncertainties in the macroeconomic environment and tariffs, while prioritizing software development [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technology and its ability to adapt to market conditions, emphasizing the importance of preserving cash for future flexibility [21] - The company remains optimistic about the demand for its software-defined vehicle technology, which is seen as a cornerstone for future mobility [9][22] Other Important Information - The company plans to significantly reduce monthly operational expenses, targeting a reduction from $5-6 million to $3-4 million by the end of the year [30] - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months, prompting plans for cost reductions and restructuring [17] Q&A Session Summary Question: Can you talk about the conversion of the MOU to a definitive agreement? - Management indicated that there is currently no change in the timeline for the MOU and that payments have already started being received for services delivered [27][28] Question: What is the actual cash balance at the end of the quarter excluding the credit facility? - The cash balance was reported at $61 million excluding the credit facility [29] Question: Can you discuss the cash burn and headcount at the end of the quarter? - The anticipated operating expenses are expected to be between $5-6 million a month, with plans to reduce this to $3-4 million by year-end [30][31] Question: Have there been any cancellations in reservations due to the production pause? - Management noted that customer interest in the product has increased, and they believe there is strong demand for their technology despite the production pause [34]