{"url_path":"/sec/ree/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Information","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1843588/0001628280-26-035308-index.html","accession_number":"0001628280-26-035308","cik":"0001843588","ticker":"REE","issuer_name":"REE Automotive Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1843588/0001628280-26-035308-index.html","primary_entity_key":"0001843588","primary_entity_name":"REE Automotive Ltd."},"word_count":844,"has_tables":true,"body_markdown":"Item 8: Financial Information\n\nA. Consolidated Statements and Other Financial Information.\n\nWe have appended our consolidated financial statements at the end of this Annual Report, starting at page [F-](#ib754f8dbfd9a410ebea6292869b01926_241)[1](#ib754f8dbfd9a410ebea6292869b01926_241), as part of this Annual Report.\n\nLegal Proceedings\n\nFrom time to time, REE may become involved in actions, claims, suits, and other legal proceedings, such as requests to disclose information before initiating derivative cases, arising in the ordinary course of our business, including but not limited to claims related to employment, intellectual property and shareholder matters. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.\n\nOSR Legal Proceeding\n\nOn December 16, 2022, a lawsuit was filed in the District Court, against REE and its US subsidiaries (in this section, the “Group”), by OSR Group alleging that the Group stole OSR Group’s trade secrets. The OSR Group requested the court to grant them the following: (a) a request for an injunction pertaining to the use of such trade secrets; (b) affirmative action to protect the OSR Group’s alleged trade secrets; (c) the establishment of a constructive trust to transfer all the relevant Group’s legal title and intellectual property to the OSR Group; (d) an award to the OSR Group of monetary damages in an amount of no less than USD 2.6 billion together with exemplary damages in an amount of no less than USD 5.2 billion, such amounts to be determined in the trial, plus interest; (e) an award to the OSR Group for all of its expenses relating to the action; (f) an award to the OSR Group of pre-judgment interest on all damages; and (g) an award of other relief as the court deem fit. REE believes that the lawsuit is without merit and is defending itself vigorously. On January 4, 2024, Magistrate Judge Susan Hightower entered a Report and Recommendation, or the Report, recommending dismissal of the lawsuit based on forum non conveniens, such that OSR could pursue its claims in an Israeli forum rather than in the U.S., assuming that OSR chooses to do so after dismissal. The Report was pending before the District Court, which conducted a de novo review of the motion to dismiss, the response, the Report and its recommendation, the objection to the Report and recommendation, the response and reply to the objections, and the applicable laws. The Report was not binding on the District Court. On August 26, 2024, the District Court issued an order adopting the recommendation of the Report and granted the Group’s motion to dismiss for forum non conveniens in accordance with the Report and the recommendation therein and ordered the clerk of the court to close the case. The District Court also noted that it may reassert jurisdiction if timely notified that the courts of Israel refuse to accept jurisdiction of this case for reasons other than the OSR Group’s refusal to pursue an action or to comply with the procedural requirements of Israeli courts. On September 26, 2024, the OSR Group filed a Notice of Appeal to the U.S. Court of Appeals for the Fifth Circuit, appealing the District Judge’s adoption of the Report and dismissal of the case for forum non conveniens. On October 10, 2025, the Court of Appeals affirmed the District Court’s decision dismissing the OSR Group’s claim for forum non conveniens. On November 12, 2025, the Fifth Circuit denied OSR’s petition for rehearing. On February 10, 2026, the deadline for OSR to seek appellate review before the U. S. Supreme Court expired. To our knowledge, OSR did not file a motion requesting an extension of time to pursue such review.\n\nAs of December 31, 2025 and December 31, 2024, respectively, the Company did not record a loss contingency.\n\nSchwab Arbitration Proceeding\n\nOn August 27, 2025, a demand for arbitration was filed with the American Arbitration Association in Michigan, against REE and its US subsidiary by Schwab Industries, Inc., or Schwab, alleging a failure to pay all required outstanding amounts. REE counterclaimed alleging mismanagement, price increases, mistakes, and unjustified requests for payment advances along with a failure to deliver under the terms of the contract. On April 16, 2026, the parties entered into a settlement agreement under which the Company agreed to make a payment to Schwab in exchange for a release of the relevant parties from all claims. Accordingly, as of December 31, 2025, the Company record a loss contingency.\n\nDividend Policy\n\nWe have never declared or paid any cash dividends on our Ordinary Shares. We currently intend to retain any future earnings to finance operations and to expand our business and, therefore, do not expect to pay any cash dividends in the foreseeable future.\n\nB. Significant Changes\n\n121\n\n[Table of Contents](#ib754f8dbfd9a410ebea6292869b01926_7)\n\nSince the date of our financial statements included in Item 18 of this Annual Report, no significant changes have occurred since December 31, 2025, except as otherwise disclosed in this Annual Report.\n\n122\n\n[Table of Contents](#ib754f8dbfd9a410ebea6292869b01926_7)"}