REE Automotive Ltd.

And thank you all for joining our first quarter 2022 conference call. We're going to move now to slide two. And we hope that you have seen our press release and investor presentation issued earlier this morning at investor.re.oto. We will be referring to the presentation during the webcast today. I would like to remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, Strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may be different from other anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please refer to the company's Form 20F filed on March 28, 2022, with the Securities and Exchange Commission, which identifies the principal risks and uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward-looking statements except as required by law. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, non-GAAP net loss, and non-GAAP EPS. Please see our earnings release for reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. Joining me today is our co-founder and CEO, Daniel Barrell, who will provide an overview of our business and given operations update, and our CFO, David Goldberg, who will continue with the discussion on our financial results and outlook. At this point, I will turn the call over to Daniel. Daniel, please.

Thank you, Limor. Good morning and welcome to our first quarter 2022 update call. Let's go to slide three. I will begin the call with an update on the significant strong progress we are making towards commercial production in 2023 as we focus on converting our pipeline into backlog and establishing the production capacity to fulfill orders. Let me start by saying we are delivering on our commitments. We are preparing for full vehicle customer evaluation this summer, and we've demonstrated our robotic assembly capabilities. This is a very exciting time for us as we continue the disciplined execution of our funded P7 commercialization and achieve the milestones we have been communicating to the market as we advance towards firm orders and commercial production. Moving to slide four. We show a track record of execution and continue on pace to deliver. This has been a significant year for us already. And let me touch briefly on the strong foundation we've built. We spent 2019 building our core engineering capabilities and 2020 establishing supply chain capacity and validating our technology. Last year, we focused on building out the comprehensive ecosystem needed to enable commercial vehicle electrification, broke ground on our production facilities, and established a strong plan towards commercialization of our products. This includes establishing our X-by-wire homologation path and securing funding for P7 commercialization. This year, we've made significant progress validating our P7 platform at our UK engineering center and advance our manufacturing readiness, demonstrating robotic assembly capabilities for our highly automated integration center that is expected to become operational this year. We are also presenting, for the first time, a full vehicle for customer validation this summer. Following the completion of prototype validation by our customers on private roads, we expect to receive firm orders towards the end of the year. After that, we expect to validate advanced prototypes on public roads and obtain purchase orders. Moving forward, I will detail our recent progress to bring our P7 product to market and a step forward in manufacturing readiness to achieve our 2023 commercial production plan. Let's go to slide five. Commercialization of our P7 platform also continues on track. The product allows customers across many segments, such as delivery, logistics, retail, and passenger, unique benefits, efficiencies, and flexibility, enabled by the re-corners and their fully independent X-by-wire control system. It is suited for application including commercial trucks, school buses, walk-in vans, and recreational vehicles. It is also designed to significantly reduce development times of electric commercial models. Fully flat from end to end, the P7 platform is intended to power Class III to V vehicles with payloads up to 8,800 pounds, range of up to 370 miles, and all-wheel steering and drive. As we shared before, in some of our P7 programs, REE is the manufacturer of record, MOR, responsible for the homologation and registration of the electric platform. The homologation activities are progressing on track on both the component and system level. Additionally, core control system software and functional safety development, a key element of the development of mission-specific variation enabled by ReConners, are progressing according to plan. We have a number of ongoing P7 programs with several counterparties. In addition of bringing full vehicle to market for fleets, including a leading logistic company, OEMs remain an important part of our go-to-market strategy. As we have previously shared, we have a joint development agreement with a major commercial vehicle OEM to develop electric vehicles from Class III to Class V for North America, and we continue the progress in this joint development phase. We displayed the P7 platform for the first time in the U.S. at NITA's Work Track Week, where we showed our re-corner technology and platform to dozens of existing and new potential customers across fleet owners, technology companies, OEMs, upfitters, and auto manufacturers. We also hosted several customers at our engineering center in the U.K., to experience and evaluate the P7 platform on the track and discuss our advancements on build, verification, and validation activities. The short clip from our platform testing is available in the presentation on our website. We are very encouraged by our customer feedback from our on-track demonstration in Israel and in the UK and feel confident in our previously communicated timeline. Let's move to slide six. Earlier today, we announced the major milestones of commencing customer validation on private roads this summer of a full electric vehicle powered by REE. We are very excited by the opportunity to bring to market the industry's first fully drive-by-wire commercial vehicle to our pipeline customers in the U.S. with our new Class 5 walk-in van prototype developed in partnership with EAVX. the EV business unit of JB Poindexter. This new electric commercial van is the first in many ways. It is the first one to use EAVX's new body design that will develop from the ground up to first be showcased on our new P7 platform. In addition, this is the industry's first full vehicle that is powered by REE and our novel REE Corner technology. It is a true game changer in so many ways, and most importantly, we are on track to deliver a commercial EV powered by REE less than 12 months after announcing our partnerships with EAVX. I am very proud of both our teams and our joint commitment to electrification and carbon neutrality. Customer evaluations on the new electric van will take place this summer over the course of several weeks in Michigan. The pre-booked event will allow EAVX and REIT's pipeline customers across retail, delivery, and logistics segments to experience the vehicles, discuss their unique requirements, and secure production capacity for 2023 deliveries. Our strategic go-to-market partnership with EAVX leverages J.P. Poindexter's distribution network of large fleet operators and backed by a proven history of creating excellent work truck and commercial vehicle bodies and accessories through their business unit, Morgan Olson. As a reminder, Morgan Olson is the largest producer of walk-in van bodies in North America and has decades of legacy experience enabling last-mile deliveries of a wide range of parcels and goods for retail, Internet, and service companies. We are excited for our customers to experience firsthand the unique benefits of the first X-by-wire vehicle built with a best-in-class Morgan Olson body and powered by RE. RE is a horizontally integrated business, and through our collaboration with leading partners such as EAVX, we are well positioned on the demand side to deliver full vehicles to customers while remaining focused on our core business of corners and platforms. Agreements with OEMs and body manufacturers allows us to tap into their existing customer base of these automotive leaders. Now, onto slide seven. Accordingly, we are building out our production capabilities in advance of anticipated customer demand. We recently announced the commissioning of our highly robotic integration centers for North America and Europe. As we shared yesterday, we are very happy to update that our core robotic assembly process is on schedule to be implemented into first highly automated integration center in the UK, as you can see on slide seven. This is an important milestone on our path to commercial production next year. The robotic assembly and use of autonomous guided vehicles in the 30 manufacturing cells are the heart of our modular production line that will be operational this year. The novel cloud-based robotic manufacturing approach will provide significant efficiency, saving, and scalability as they will enable us to continuously fine-tune our assembly procedures and rapidly deploy them to other sites. We have established key strategic supplier agreements to support our manufacturing readiness ahead of commercial production next year. REE has nominated Expert Technology Group, a leading manufacturer of industrial automation system, automated assembly, special purpose machinery, and single and multi-robotic cell, including robotic assembly. for the integration of its robotic and automated manufacturing technologies. We also adopted Rockwell Automation's Plex Manufacturing Execution System, or MAS, to support RIS highly digitized manufacturing across integration centers. The Plex system provide us cloud capabilities, which will serve as a digital backbone for RIS global operation and future assembly lines. Not only does MESS enable local scale flexibility to manage a customer's specific manufacturing operation, but it also allows us to quickly share and scale best practices globally. The interconnectedness of our operation will allow us to rapidly deploy changes to assembly procedures to assembly lines globally. You can think of it as a command center from which our global operations will be managed. You can watch a short clip on our core robotic assembly on our website. Our teams are doing tremendous work towards production readiness and I'm happy to update that the European Integration Center in the UK is on schedule to come online in the second half of this year with initial capacity of 10,000 vehicles. Our North American Integration Center in Austin, Texas is also on track to come online next year with an additional capacity of 10,000 vehicle sets. I am excited that Josh Tech recently joined REE as our chief operating officer to lead the design and build out of our integration centers. Josh served on Tesla's operations leadership team and brings over 23 years of experience to REE in complex product development and launch, industrialization, infrastructure development, engineering, supply chain, quality, and operations management. I have the utmost confidence in Josh and the entire operations team. RIS CapEx slide production approach is based on leveraging its global network of tier one partners manufacturing capacity with highly automated component assembly and testing to take place in RIS integration centers. This means not only faster time to market, but also secure supply chain capacity and quality control. Our first highly automated integration center is both the starting point and the backbone of RIS's future global manufacturing capacity. We are highly engaged with pipeline customers and see the paramount importance of offering them a full solution for electrification, from financing of infrastructure and vehicles through modular advanced electric vehicles to global maintenance and data and battery service. We are able to offer such a comprehensive set of capabilities based on our global ecosystem of partners for a full turnkey solution that will enable and expedite a smooth and scalable transition for our customers from ICE to EV fleets. As I have said before, our efforts are primarily focused on the nearest term commercial opportunities. Although I have devoted the majority of my time today to the P7 platform and our collaboration with EAVX, we continue to make progress with Hino Motors, a global leader in heavy and medium-duty trucks, as we jointly develop the platformer, which we showcased at CES in January, with a goal to deliver a functional platform prototype for evaluation and testing by the end of this year. The platformer is capable of carrying a customized mobility service module that can carry passengers, goods, and deliver services. The mobility service module can be easily detached from the EV platform and, once detached, can serve as an independent, standalone unit, leaving the platform to be operated separately and continue on its next mission. We are very confident with the potential of this program and the demand for it in the market. We are actively exploring multiple business cases relevant for such a novel and future-looking solution with the ReCorner technology at its core. As I've mentioned, our platform is indifferent to vehicle size, shape, power source, and level of autonomy. So the potential application is broad and future-proof. and can be deployed across fleets of varying vehicle classes. We have other exciting programs in various stages of development, including concepts for autonomous vehicles, and we will share updates about these when we are able to. I would like to commend the retines across the world for their phenomenal work and dedication to making this a more sustainable, carbon neutral world as we move faster for fully electric vehicles future. With that, I will hand the call over to David Goldberg, CFO, to discuss our financial results.

David. Thank you, Daniel, and good morning. Moving to slide nine, I'll start with a review of our first quarter 2022 results. The company reported a gap net loss of $23 million in the first quarter of 2022 compared to a net loss of $46.7 million in the fourth quarter of 2021. The decrease in GAAP net loss is mainly attributed to non-cash income from war remeasurement this quarter compared to a loss recorded in the previous quarter. Non-GAAP net loss of $29.9 million in the first quarter of 2022 increased compared to $26 million in the fourth quarter of 2021, primarily due to higher RMD sales and marketing expenses as the company executed its business plan. Non-GAAP results exclude share-based compensation expenses of $8.5 million and income of $15.3 million related to the impact of the warrant evaluation. As of March 31st, 2022, our cash balance was $239 million. We remain disciplined and continue to have sufficient funding to execute the programs Daniel described. As communicated during our Q4 2021 earnings call, we have budgeted a range of $130 to $150 million in cash spending, inclusive of both capital and operating for fiscal year 2022. This range is presented on a cash basis and is tied to the execution of current programs. Accordingly, expenses are dependent on the timing and achievement milestones related to the company's commercial programs, which will not be linear throughout 2022. The company is on track to invest approximately $30 million during 2022, primarily related to the establishment of our initial production capacity. This portion of the budget is effectively committed and will mostly be incurred in the second half of 2022. I note that some of the expenses related to the establishment of initial production capacity may not be counted a lot. Our OpEx plan is mostly comprised of technical and engineering spend required to execute our programs according to the timeline we have communicated. We remain focused on executing our current P7 and platformer programs. While we believe a significant opportunity exists beyond our current program, the majority of our budget has been allocated towards executing these programs. Before I conclude, it's important to remember that our costs will mirror the execution of our product milestones. For example, if MOUs and other pipeline opportunities convert to firm commitments or existing programs expand in scope, our spending may accelerate. The company may require additional liquidity to deliver those opportunities. The cadence of our spending plan will be indicative of our progress, and we will continue to update our shareholders on budget expectations as the year unfolds. With that, let's move to the final slide, and I'll turn the call back to the operator to open the line for Q&A. Operator?