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- **Strategic Shift to Software**: Paused P7 production to focus on SDV technology licensing, targeting a subscription-based model with $1 billion in reservations.
- **Cost Cuts**: Aims to reduce monthly burn by 60% to $3-4 million by Q4 2025, including headcount reductions and operational efficiency improvements.
- **Financial Resilience**: $61 million cash on hand (Q1 2025) and $80 million credit facility, despite full-year GAAP net loss of $111.8 million.
- **Market Validation**: Strong demand for SDV technology, with no reservation cancellations and growing interest from OEMs for software integration.

**【CEO Summary Section】**
- **2024 Milestones**: Achieved first U.S. FMVSS certification for full-by-wire vehicle, completed autonomous runway test with Airbus, and launched REEai Cloud with Geotab for predictive maintenance and data analytics.
- **Production Pause**: Temporarily halted P7 vehicle production due to U.S. tariffs and supply chain disruptions, focusing on cost reduction and software business acceleration.
- **Strategic Shift**: Transitioning to a subscription-based model for SDV (Software-Defined Vehicle) technology, with $1 billion in non-binding reservations and partnerships with OEMs.
- **Cost Reduction**: Targeting a 60% reduction in monthly burn by Q4 2025, including headcount adjustments and operational efficiency improvements.

**【CFO Financial Commentary】**
- **Liquidity**: Ended Q1 2025 with $61 million in cash (excluding $80 million credit facility), after raising $36.5 million in Q1 2025 through registered offerings.
- **Financial Performance**: Full-year GAAP net loss of $111.8 million (slight improvement from 2023), driven by reduced R&D expenses and operational efficiencies. Non-GAAP net loss narrowed to $70.3 million.
- **Cash Flow**: Narrowed free cash flow burn year-over-year, with plans to further optimize capital allocation for software-focused growth.
- **Risks**: Substantial doubt about 12-month continuity due to macroeconomic challenges, requiring production pause and cost restructuring.

**【Q&A Highlights】**
- **MoU Progress**: Definitive agreement timeline remains unchanged; received initial payments and on track with customer expectations.
- **Reservation Book**: No cancellations reported; demand for SDV technology remains strong, with customers prioritizing software capabilities.
- **Cash Burn Target**: Aiming to reduce monthly operating expenses from $6 million to $3-4 million by year-end, starting from a Q1 2025 burn of $18-20 million.
- **Headcount Restructuring**: Leadership team adjustments to align with software-focused strategy, with details to be announced soon.

REE Automotive Ltd. (REE) Q4 2024 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REE

REE fundamentals

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