Q4 2021 REE Automotive Holding Inc Earnings Call

March 3, 2022

Greetings and welcome to the real Automotives fourth quarter 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the opening remarks to ask a question. During the session you will need to press star one on your telephone as a reminder.

This conference is being recorded I would now like to turn the call over to Jim I agree about Vice President of Investor Relations. Thank you you may begin.

Thank you and thank you all for joining our fourth quarter 2021 conference call. We hope that you have seen our press release and Investor deck issued earlier. This morning at investors that read that Oh too.

I would like to remind you that today's call may include forward looking statements any statement, describing our beliefs goals plans and strategies expectations projections forecasts and assumptions our forward looking statements. Please note that the companys actual results may be different from other.

Aided by such forward looking statements for a variety of reasons many of which are beyond our control.

Please see our recent filings with the SEC, which identify 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 release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures.

Joining me today is our co founder and CEO , Daniel Brown, who will provide an overview of our business and given operations update as well as our as our CFO , David Goldberg, who will continue with a discussion on our financial results and outlook at this point I will turn the call over to Daniel Daniel.

Please.

Thank you Lynn Moore, good morning, and welcome to our fourth quarter of 2021 earnings call I will begin the call with an update on the company's progress on our many strategic initiatives and discuss milestones achieved in the last few months.

And then our new CFO , David Goldberg will follow with a recap on the financials of the fourth quarter and our outlook. Finally before we open the call for your questions I'll provide a brief overview of our technology and vision for the future for listeners who may not be as familiar with.

The last several years have been busy and exciting for me as we accelerate our path to production in 2023 and <unk>.

And 19 in 2020 before re with a public company, we were focused on validating our technology and setting up our supply chain.

These were of course critical as we couldn't engage major global counterparties without the technology and capabilities to deliver on our promise.

Moreover, the measure we have taken in the past couple of years to build and enhance our supply chain and vendors network position us well to mitigate the global supply chain issues.

Though I believe that tight market conditions will moderate by the time restarts of commercial production.

This past year was transformational for the company, we entered into strategic collaborations to develop designs and prototypes to support various applications and build the right ecosystem.

Together with our strategic partners that enables us to start accepting orders by the end of 2022 and produce in 2023.

Horizontally integrated business raised agnostic to vehicles size shape power source and driving mode.

Our products are designed to be operated on either battery or fuel cells and in any drive mode, both human driven and autonomous while affording complete design freedom to our customers.

Through our collaboration with leading partners.

We're well positioned on the demand side to deliver full vehicle to customers, while remaining focused on our core business of corners and platforms.

Agreements with Oems and battery manufacturers.

How's us to tap into existing customer base and these automotives leaders.

For example.

Through our strategic collaboration with AVX, the easy focused business unit of JV Poindexter and company will target the fast growing U S walk in van market by a joint sales team J P point. After is the leading producer of walk in van bodies in North America with more than 50%.

<unk> market share.

We have also partnered with American axle and manufacturing a leading global automotive supplier of drive drivetrain technologies to supply a compact high performance three and want electric drive unit and E D.

Which we have developed together during the past three years.

Re plans to leverage American axle system integration capabilities and focus on noise vibration and harnesses reduction to incorporate American axle is lightweight and efficient next generation electric drive unit into the rig corners. The rig corner. The reboard are designed to be many.

Factored using a novel manufacturing mode.

Components will be manufactured by our partners and suppliers via multiple production lines around the world fitting a global network of integration centers owned and operated by <unk>.

Raised capex light manufacturing approach and integration centers enable us to remain.

Comparatively asset light enterprise. This means not only faster time to market, but also secured supply chain capacity and quality control.

Our partnership and collaboration not only allows us to grow to market quickly with full vehicles. They will also position us to develop a comprehensive ecosystem of enabling capabilities and services such as vehicle financing charging infrastructure after sales and service and data as a service for.

A full turnkey solution that will enable and expedite is smooth and scalable transition for our customers from IC to EV fleets.

As an example in December we announced a strategic partnership with Hitachi America, a subsidiary of Hitachi L. T D. Two.

To co create a highly scalable data as a service and analytics as a service platform, which is expected to provide operational efficiencies to our customers through intelligence and analytics across the lifecycle of the vehicle.

It could also provide REIT with an opportunity for subscription based revenue.

We are working on other collaborations that support our go to market plan and after market service.

These relate to financing and EV charging infrastructure and we look forward to sharing more information in the future.

I cannot overstate the importance of rays ecosystem as it is fundamental to our business.

These are all critically important steps as we.

We are not just buying components or implementing third party technology.

We are jointly developing key capabilities together with our partners.

Fortunately in doing so we believe we have created a path to dramatically streamline the transition to electrification of the automotive industry.

A great example for this would be a strategic development agreement, we signed in mid 2021 with a leading global commercial OEM to jointly develop class four commercial evs.

<unk> jointly take them to the market in the U S with our supply chain and partner ecosystem Foundation, we continue to aggressively execute on the timeline previously provided.

We are targeting completion of prototype validation by our customers on non public roads and obtaining firm orders towards the end of the year.

Following that we expect to validate the advanced prototypes on public roads and obtained purchase orders.

During 2021, we made a significant progress toward commercialization and production capabilities in anticipation of prototype trials and ultimately production, we established and staffed reason engineering center of excellence in the U K.

To accelerate engineering design validation verification and testing as well as some obligation in the state of the art facility.

<unk> focused on building its highly automated launch factory and first integrations centre in Coventry The U K in 2022 and plans to open its first asset light integration center in Texas.

Which is expected to be operational in 2023.

We anticipate the initial capacity to produce 10000 vehicles sets by the end of 2022 ramping up to 20000 vehicles sets by the end of 2023.

All of these things set the stage for the activities. We are undertaking this year to tie to our anticipated timeline for commercial production in 2023.

Regarding our existing programs, we are focused on commercial vehicles segment of the market, including the light commercial vehicles delivery vans and trucks and meet duty commercial vehicles.

We're focused on this segment because of the rapid electrification of commercial fleets and the differentiation of our modular approach, which ultimately leads to lower total cost of ownership for our customers.

Impelling value proposition to any skilled commercial enterprise.

As I mentioned earlier, 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.

<unk> seven program.

Most recently, we started trials of our new piece of and modular platform designed for commercial delivery vehicles and walk in van.

The <unk> enables unmatched efficiencies for fleets offering a low.

Fully flat chassis for vehicles and classes three to five and approximately 35% more cargo space for a given footprint.

Oh with optimize total cost of ownership.

Re corners can be integrated into full vehicles or chassis and our approach can meet electrification needs across customers.

Electric and autonomous vehicles built on top of <unk> seven platforms are designed to achieve driving ranges up to 370 miles, which Mack with Matt.

Speed of 80 miles per hour and supporting payload of 8800 pounds.

For fleet owners needing full vehicle solutions re can deliver future proof mission specific design win.

With a network of global automotive partners.

Operators and other manufacturers looking for full design freedom.

Can also take res strip chassis or chassis cabs for maximum dimension all flexibility for speciality equipment.

We have a number of ongoing piece seven programs with several counterparties.

One is based on the functional and operational specification of a major global logistic company, including the product validation and durability cycle.

We expect these customers to test a full vehicle prototype on private roads in.

The U S in mid 2022.

The other two program, which I mentioned earlier, our strategic collaboration with E AVX.

Which we started to <unk> prototypes for up fitting advanced Tau pet for private road validation in mid 2022.

The other is our joint development agreement with a major commercial vehicle OEM.

With which we develop the class four O electrified platform for commercial trucks school buses walk in van and recreational vehicles.

The joined development Phase ran the global commercial vehicle OEM expect to enter into a supply agreement for <unk> to supply its III quanta for a dedicated EV chassis.

We expect to start providing <unk>.

Full vehicle prototypes to our pipeline customers in the U S and the U K for private road validation in mid 2022 with first orders expected towards the end of the year.

The slot form of program, our collaboration with Hino Motors, a global leader in heavy and medium duty trucks is progressing as well.

Together with Hino, we jointly exhibited our concept modular EV platform.

Slot format at the <unk>.

Electronic show in Las Vegas, This past January .

The platform Leverages innovative.

Innovative <unk> technology, which allows the entire drive components to reside within the wheel housing between the willing to chassis, thus, creating a fully flat chassis.

This platform is capable of carrying a customized mobility service model that can carry passengers good and delivery services. The mobility service module can be easily detached from the EV platform and once they touch can serve as an independent Standalone unit, leaving the platform to be operated.

Currently and continue on its next mission.

<unk> anticipated that slot former prototype.

We produced in 2022.

The <unk> program.

Finally in November we unveiled an autonomous concept vehicle based on our modular EV platform design based on interest from potential customers for such a vehicle of this nature.

The full scale concept is geared for customers, including delivery fleet operators E retailers and technology companies seeking to build fully autonomous solutions. According to their exact specifications and with unmatched interior space for transporting passengers and cargo.

Since Slurped. We initially presented the company has received significant interest and intends to produce a proof of concept vehicle for the customers by the end of 2022.

Before I hand him Nicole please allow me to properly introduce our new CFO , David Goldberg and welcome him to the REIT team.

As you May have seen David recently joined US from Magna International where he most recently served as senior Vice President of corporate development.

We're counting on David to lead all aspects of Reed financial functions strategic industry partnerships and investors relations.

Really confident that David will have some.

Men this impact on the company as we execute this critical path of our business plan.

David Thank.

Thank you Daniel and good morning, everyone.

Im excited to be here with you on this call today and even more excited about the opportunities that lie ahead for re <unk>.

He has developed ground breaking technology that I believe will revolutionize the EV market.

<unk> has a truly unique approach to the market opportunity and I'm certainly joining re had a pivotal stage in the company's growth plan.

I look forward to getting to know re shareholders as well as our analyst community over the coming quarters and commit to providing transparency into our financial results and plans going forward.

First I'd like to discuss the company's results for the fourth quarter, then focus on our expectations for 2022 and share my perspectives around those expectations.

The company reported a GAAP net loss of $46 $7 million in the fourth quarter of 2021 compared to $414 9 million in the third quarter of 2021.

As discussed last quarter, the third quarter results were impacted by $394 million of expenses related to the vesting of performance based stock options granted to the company's founders prior to its merger with Tenex capital.

non-GAAP net loss of $26 million in the fourth quarter of 2021 increased compared to $19 million in the third quarter of 2021.

We continue to ramp our programs and add the technical and engineering staff required to meet our anticipated timeline.

As of December 31, the number of employees was 270 on a full time basis and that compares to 84 at the beginning of the year.

As of December 31, 2021, our cash balance totaled $275 8 million comprised entirely of cash and no debt.

We have sufficient funding to execute the program to Daniel described earlier as well as to advance their R&D efforts that are underway.

For 2022, we have budgeted a range of $130 million to $150 million in cash spending inclusive of both capital and operating expenses.

I should note that we present this range on a cash basis as it is primarily tied to the execution of our current programs.

The path to production is never a straight line, but we are providing our internal budgeting plans to maximize transparency.

Due to <unk> asset light model, we expect to invest close to $30 million in 2022.

Mainly related to the establishment of our production capability, which will be concentrated in our UK launch factory and integration center as well as our Austin integration Center. This portion of the budget is effectively committed and enables <unk> to execute against its expected timeline.

Our Opex plan is mostly comprised of technical and engineering spend required to execute our programs. According to the timelines we've communicated.

With reference to my earlier comment on our budget being on a cash basis. It is important to note that if certain milestones get pushed out in time, some cost will get pushed out as well.

Similarly, if mou or other pipeline opportunities convert to agreements or existing programs expand in scope spending may accelerate and me and we may require additional liquidity to deliver against those opportunities.

We are very focused on executing our current programs, but of course have ambitions that extend far beyond that given that the total size of the addressable market.

Having said that the vast majority of our budget is allocated towards our current programs.

The cadence of our spending plan will be indicative of our progress and we will update our shareholders on budget expectations as the year unfolds and with that I'll hand, the call back to Daniel for additional comments. Thanks, David.

Before opening the call up to questions.

Like to touch on <unk> competitive positioning in what has rapidly become a very vibrant and active EV market.

As I've said before the manufacturing process for vehicles Hasnt changed significantly in decades.

This applies to both vehicles powered by combustion engines and electric vehicles.

As the adaptation of electric vehicles accelerates. The main difference in manufacturing is this substitution of an internal combustion engine for an electric one.

The components are still between the wheels and on the chassis, which constrains modularity and functionality.

Re is fundamentally different approach to easy design and manufacturing.

<unk> corner patented technology integrates critical vehicle components like steering braking suspension powertrain and control into a single compact module located between the chassis and will.

Fully flat platforms are designed to serve as the foundation upon which evs are built.

This means our platforms are designed to provide greater interior space and volumetric efficiency than conventional vehicles build.

This translates into more cargo carrying capacity whether cargo means people are shipping boxes.

And that means lower total cost of ownership and higher return on investment for our customers.

Because our products are modular.

Widely applicable to vehicles of all class types and completely agnostic to shape power source or driving mode.

That's why we can build the <unk> seven and the leopard without a decade of R&D in between.

Our approach is also future proof in that we are able to continuously improve upon July without rebuilding the design from the ground up.

While we do not intend to get ahead of our business plan and are squarely focused on executing it.

I cant help I imagine the opportunities that lie ahead.

And I would like to express my gratitude to our partners and stakeholders that share this vision.

Thank you we will now begin the question and answer session. As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key please standby, while we compile the Q&A roster.

Your first question today comes from the line of Greg Hills <unk>. Please go ahead. Your line is open.

Okay.

Data annual my Am I on the line.

I'm not sure if thats for Greg lowest turn on.

Your line is open is that okay, great Hey, good morning, good afternoon everybody.

Okay. All right. Thank you for the update I guess I was kind of curious as I think about.

The company. This year, clearly 2022 is going to be a big execution year for you could.

Could you walk us through some of the key steps as you see them or hurdles as we think about the.

I'll now gay Homologation process.

Which is I guess expected to start here in the next few months.

Right.

So.

One yes, absolutely agree 2022.

Very important here.

Hum.

We've got a lot of plans for it.

<unk>.

The main steps I think we should look for for 2022 would divide into category.

One on the demand side and one on the supply side absolutely.

Were you referring to both our adjusted the supply side and I'm obligated.

Yes, correct.

Yes.

<unk>.

On Homologation.

It's a process right so.

In Europe in litigation on slightly different.

And we're making progress for the path.

Obligation of our technology, we expect.

To be fully homologate it.

And on the road ready.

It could be handing over <unk>.

On time in 2023.

The two.

Naturally.

The process is slightly different than in Europe , where in Europe , you have a governance body that oversees it.

And we are making a lot of progress on both fronts.

We have not identified any hurdles at this point that would take us off course.

In some litigation.

Currently everything is expected to proceed scheduled and on track.

Okay, great. Okay, Great and then and then realizing that the <unk> is going to be being sold into and you mentioned that either the EBIT either for.

Battery battery electric battery vehicles, as well as fuel cell vehicles.

At this point do we do we have any kind of feel.

Is there more customer interest for our fuel.

You will sell over a battery electric vehicle just trying to understand that just because as we think about it at least.

While we are bullish on fuel cells longer term it seems like battery electric solutions are kind of hearing that.

I tend to agree.

<unk> are here and now and also battery.

Is it a variety and I think this is one off.

Strong points, because we're agnostic to parcels, but not necessarily adjust between batteries and fuel cells, but also different kind of a battery of different chemistry.

Our solid state batteries and all that.

Our approach is that we are agnostic to batteries, meaning that we can accommodate.

<unk> kind of batteries from multiple suppliers and multiple chemistries and configuration of that gives us a lot of flexibility.

Two main fronts, one in terms naturally of technology and performance in the market, but not only that but it gives us a lot of hedging.

Again.

<unk> and supply.

Having said that we do see demand for fuel cells.

<unk> is usually what we see located more towards the high end of the vehicle class the longer range more heavy side of the business.

But again I think thats the second.

Down the road.

Okay. So I mean not to put words in your mouth, but it sounds like the bulk of demand that youre seeing as we start to think about 'twenty three 'twenty four is more for electric vehicles as opposed to fuel cells.

Correct.

Okay perfect. Thank you very much.

Thank you.

Your next question comes from the line of.

Andres Sheppard from Cantor Fitzgerald. Please go ahead your line is open.

Hi, Good morning, Daniel can you hear me okay.

Of course good morning.

Good morning, how are you congrats on the quarter.

A couple of quick questions for me. So you've mentioned that you expect pizza black from orders towards the end of the year.

I'm just wondering if maybe you can give us a bit more color in terms of the order flow and the revenue that could translate to and how do you see that ramping up in 2023.

Sure.

First and foremost we are a tech company.

Our tech enabled mission specific vehicles those vehicles are best suited for customers.

In terms of efficiency uptime and Tcl.

Those customers need to experience that tech and its benefit.

And after the experience of taking benefit that would lead to a firm order, which basically mean.

Converting our large pipeline to backlog.

The plan for 2022, so we have started already at the end of 2021 to provide customers with prototypes for evaluation and we reported the first one last year and we will continue doing so.

In 2022.

Once those customers have experienced the technology all of these benefits in the.

The strong differentiation.

The next phase would be for them to place those firm orders to allow us to move forward.

And I guess.

Add another point where capacity rising.

For revenues in 2023.

The orders that would come in.

At the end of the here, we're going to have 10000 capacity for 10000 stack.

Beginning in 2023.

Got it that's very helpful. Thanks, Scott, maybe one quick follow up.

I'm wondering if maybe you can give us an update on the <unk> total customer programs that you had referenced in the past any changes to sign agreements or the pipeline.

Yes.

Continue to make progress on that.

We continue to.

Develop that pipeline I do think that for 2022 onwards, the more important.

Index.

For us to be.

Focusing on will be converting into firm orders.

Well.

We are continuing to build the pipeline and growing and bringing more partners.

<unk>.

We've also of course.

Shared with you earlier today.

Last year, we signed with <unk>.

Very large global commercial OEM.

Four.

Fourth.

So that is going to continue growing but again I believe that the queen.

Conversion of the pipeline into backlog.

Our focus on this year and got towards the end of the year, but.

I think the important factor for us as a company to execute on.

Great. Thank you very much Daniel I'll pass it on thank you.

Sure.

Thank you. Your next question comes from the line of Jeff Osborne from Cowen. Please go ahead. Your line is open.

Yes.

Hey, guys. This is Shawn on for Jeff Osborne.

Good afternoon.

Hey, I'm good good afternoon, guys. Thanks for taking my question.

So for the first question, yes, I'm seeing that UK Indonesian center is now coming online in 2022 as opposed to the initial plan 23. So.

Ken one infer from that that Youre seeing thats good demand growth in Europe for delivery.

Or is it going to be delivered somewhere else.

And can you perhaps talk about that.

What kind of vehicle categories are you seeing there.

Yeah. So.

You are correct, we have moved faster on our European integration Center.

Comment the demand from Europe .

So we will have two.

Engineered to integration centers up and running for the production of 2023, one for Europe and one for the U S.

We are building our integration centers in a very disciplined way.

We're focusing on having them close to strategic customers.

Hey.

The whole idea behind our.

Capex slides and asset manufacturing strategy.

We were able to set up those integration center, rather quickly within 10 to 12 months from commissioning.

Two key.

Customers and adding the incremental.

As needed.

Yeah.

So is there a particular reason why the European one is coming in ahead of the North American one just and I know going.

Going off of your timeline it seems like.

The first delivery would be North America right.

The first delivery will be the peak seven program.

<unk> seven is a very modular.

Paul.

Brian .

Aimed at delivery companies to help us build the.

The Oems.

Panama shuttle et cetera.

<unk> remains on track and we see rather global demand for it.

So it will be available both in Europe , and the U S.

Understood. Thanks, so much and just as a follow up.

So on the Avia last week announced that they are joining moving on so can you perhaps.

Touch upon.

Where you are in the autonomous development with Avia and <unk>, perhaps in general.

And it looks like from a revenue standpoint.

Can you mention how or what fraction of your revenue is coming in from.

Autonomous.

In the next few years.

Okay.

So.

Our near term focus is actually not on level four or five economy.

We see that as a really significant opportunity over the long term.

But the near term is very much tied to.

I have vehicles with drivers.

No.

Of course, it's all by wire the rig corner, then re aboard RF wireless system there.

Therefore.

Perfectly suitable for autonomy.

Yeah.

But like David just said, we think that in terms of go to market.

Hum.

Autonomy is a little bit further away both in terms of regulation and volume. So our main focus is.

Yeah.

Humanly driven that should we say seven.

And yes, it can be also driven autonomous.

Sure.

Got it. Thank you so much guys appreciate it.

Thank you. Thank you.

Next question comes from Mike <unk> from D. A Davidson. Please go ahead your line is open.

Yes, Hey, good morning, guys. Good afternoon, I should say.

I wanted to ask quickly.

Okay.

I wanted to ask quickly first about the sales process.

You had mentioned I think it was for <unk> and <unk>.

Global OEM that you are also working with.

What is there anything that's changed it sounds like you guys are jointly it sounded like your comments that you were jointly selling those.

Those.

As vehicles to the end user.

That took a different approach than I've heard before will you be allowing the oes and of course, the AVX to be the person is facing the end user.

Are they still responsible for the final sale or are you going to be more involved now.

Yes.

I don't think there is a change in what we've communicated before.

Thanks.

Our strategy.

Our strategy and philosophy is that we complete we do not compete.

No.

Therefore, our partners are very important.

Hi, Paul.

In go to market and we develop technology together.

And the fact that we were able to work alongside.

But would you be able to like UBS and pointed out.

As well.

A few Oems is very unique.

Hum.

On the list.

By working with them of course, we are at times, becoming the differentiator.

For them in the market.

All the way up to a certain points where in few programs.

Actually a very strong customer pool.

Coming from the customers asking a certain OEM or a partner too.

Works together with REIT and provide them with a holistic product based on our powered by <unk>.

<unk>.

The strategy has remained the same.

And just expect that.

So.

Okay got it got it thank you for that.

I also wanted to ask a that'd be it maybe a two part question here about the supply chain situation facing the globe today.

It's 122 is there do you have a large number of protest.

Protests that you plan to make it is only a few dozen vehicles is within 100 or is there any sense that you've got the kind of quantities that might be a challenge for any of your supplier to deliver for the current year.

Hum.

We don't see any challenges in developing prototypes of this year.

<unk>.

Quite a bit of that.

Supply chain is already started last year as well.

We've been gearing.

We have been.

I think very disciplined in bringing up our supply chain for them to use.

Building up the consumer customer base and pipeline.

So we've got everything we need in order to put vehicles on the customers' full vehicles.

On the customer this year.

In order for them to experience.

Allogeneic benefit.

Great and the other part of that question is about building out the.

Hey, Jason centers.

And in the U K have.

If you had any issues with obtaining the equipment that you need.

To install or is there still plenty of time before you actually need them.

Functional.

So yes.

Both Austin and commentary in the UK.

Are on track there are no delays.

But we see.

Keep in mind, both our integration center.

So they're relatively asset light.

There are some robotics and HGV.

Which I think that we would love to.

Right.

Over all.

Hopefully in the summer to experienced dose and see how it looks like.

We have signed the agreements that we need we have the capacity.

<unk>.

Robotics and equipment that we need for those centers, having said that like David said the.

SLP is expected in 2023.

So those will be operational.

Towards.

Probably even before.

Okay I'll leave it there thanks so much.

Thank you.

Thank you no further questions on the phone lines I will pass the call back.

Thank you Sharon.

Before we conclude.

I would like to read the questions.

The platform the Q&A platform that.

That we launched.

And this question.

I would like to understand our go to market strategy better.

If the company, having an actual order anytime soon or is it keeping week partnership.

Yes.

The answer to that is.

Something along the lines about what we've said.

Four.

As I explained earlier, we expect to get initial firm orders by the end of the year.

And Thats after a pipeline customers validate our full vehicle prototype power by re experience the technology and its benefits.

This process with unable us to convert our.

Current rather large pipeline into backlog.

And.

Yeah.

I think that's the approach we've been communicated.

Time over time again.

For everybody. So that's also on track.

Thank you Danielle.

Thank you very much everyone now looking forward to that.

Bye bye thank you all.

Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

Thanks.

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Thank you and thank you all for joining our fourth quarter 2021 conference call. We hope that you have seen our press release and Investor deck issued earlier this morning at Investor <unk> Dot read that Oh too.

They did by such forward looking statements for a variety of reasons many of which are beyond our control.

Please see our recent filing with the FCC, which identify 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.

Joining me today is our co founder and CEO , Daniel <unk>, who will provide an overview of our business and given operations update as well as our as our CFO , David Goldberg, who will continue with a discussion on our financial results and outlook at this point I will turn the call over to Daniel Daniel.

Please.

The last several years have been busy and exciting for me as we accelerate our path to production in 2023, and 2019 and 2020 before re was a public company. We were focused on validating our technology and setting up our supply chain.

These were of course critical as we couldn't engage major global counterparties without the technology and capabilities to deliver on our promise.

Moreover, the measure we have taken in the past couple of years to build and enhance our supply chain and vendors network position us well to mitigate the global supply chain issues.

Though I believe that tight market conditions will moderate by the time restarts of commercial production.

This past year was transformational for the company, we entered into strategic collaborations to develop designs and prototypes to support various applications and build the right ecosystem.

Together with our strategic partners that enables us to start accepting orders by the end of 2022 and produce in 2023.

Is it horizontally integrated business raised agnostic to vehicle size shape power source and driving mode.

Our products are designed to be operated on either battery or fuel cells and in any drive mode, both human driven and autonomous while affording complete design freedom to our customers.

Through our collaboration with leading partners.

We are well positioned on the demand side to deliver full vehicle to customers, while remaining focused on our core business of corners and platforms.

Agreements with Oems and battery manufacturers.

Laos us to tap into existing customer base and these automotive leaders.

For example.

Through our strategic collaboration with AVX, the easy focused business unit of JV Poindexter and company will target the fast growing U S walk in van market by a joint sales team J P pointed out there is the leading producer of walk in van bodies in North America with more than 50%.

<unk> market share.

We have also partnered with American axle and manufacturing a leading global automotive supplier of drive drivetrain technologies to supply a compact high performance three in one electric drive unit and E D.

Which we have developed together during the past three years.

Corner. The reboard are designed to be manufactured using a novel manufacturing though.

The components will be manufactured by our partners and suppliers via multiple production lines around the world.

<unk>, a global network of integration centers owned and operated by re <unk>.

Raised capex slide manufacturing approach and integration centers enable us to remain a comparatively asset light enterprise. This means not only faster time to market, but also secured supply chain capacity and quality control.

For a full turnkey solution that will enable and expedite is smooth and scalable transition for our customers from IC to EV fleets.

As an example in December we announced a strategic partnership with Hitachi America.

Subsidiary of Hitachi LCD.

<unk> co create a highly scalable data as a service and analytics as a service platform, which is expected to provide operational efficiencies to our customers through intelligence and analytics across the lifecycle of the vehicle.

It could also provide <unk> with an opportunity for subscription based revenue.

We are working on other collaborations that support our go to market plan and after market service.

These relate to financing and EV charging infrastructure and we look forward to sharing more information in the future.

I cannot overstate the importance of raise ecosystem as it is fundamental to our business.

These are all critically important steps as we are not just buying components or implementing third party technology.

We are jointly developing key capabilities together with our partners importantly in doing so we believe we have created a path to dramatically streamline the transition to electrification of the automotive industry.

A great example for this would be a strategic development agreement, we signed in mid 2021, with a leading global commercial OEM to jointly develop glass for commercial Evs and jointly take them to the market in the U S with our supply chain and partner ecosystem Foundation, we continue.

To aggressively execute on the timeline previously provided.

We are targeting completion of prototype validation by our customers on non public roads and obtaining firm orders towards the end of the year.

Following that we expect to validate the advanced prototypes on public roads and obtained purchase orders.

During 2021, we made a significant progress toward commercialization and production capabilities in anticipation of prototype trials and ultimately production, we established and staffed Res Engineering center of excellence in the U K to accelerate engineering design validation.

<unk> verification and testing as well as some obligation in the state of the art facility.

<unk> focused on building its highly automated launch factory and first integrations centre in Coventry The U K in 2022 and plans to open its first asset light integration center in Texas.

Which is expected to be operational in 2023.

We anticipate the initial capacity to produce 10000 vehicles sets by the end of 2022 ramping up to 20000 vehicles sets by the end of 2023.

All of these things set the stage for the activities. We are undertaking this year to tie to our anticipated timeline for commercial production in 2023.

Regarding our existing programs, we are focused on commercial vehicles segment of the market, including the light commercial vehicle delivery vans and trucks and meet duty commercial vehicles.

As I mentioned earlier, 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.

<unk> seven program.

Most recently, we started trials of our new P. Seven modular platform designed for commercial delivery vehicles and walk in van <unk>.

<unk> enables unmatched efficiencies for fleets offering a low <unk>.

Fully flat chassis for vehicles and classes three to five and approximately 35% more cargo space for a given footprint.

Oh with optimize total cost of ownership.

Re corners can be integrated into full vehicles or chassis and our approach can meet electrification needs across customers.

Electric and autonomous vehicles built on top of <unk> platforms are designed to achieve driving ranges up to 370 miles, which Mac with Max speed of 80 miles per hour and supporting payload of 8800 pounds.

For fleet owners needing full vehicle solutions re can deliver future proof mission specific design win.

With a network of global automotive partners.

Outfitters and other manufacturers looking for full design freedom.

Can also take Reeves strip chassis or chassis cabs for maximum dimension all flexibility for speciality equipment.

We have a number of ongoing seven programs with several counterparties.

One is based on a functional and operational specification of a major global logistic company, including product validation and durability cycle.

We expect these customers to test a full vehicle prototype on private roads in.

The U S in mid 2022.

The other two program, which I mentioned earlier, our strategic collaboration with AVX.

To which we started to send prototypes for up fitting advance top hat for private road validation in mid 2022.

The other is our joint development agreement with a major commercial vehicle OEM.

With which we develop a class four O electrified platform for commercial trucks school buses walk in vans and recreational vehicles.

The joint development Phase ran the global commercial vehicle OEM expect to enter into a supply agreement for <unk> to supply its III quanta for a dedicated new EV chassis.

We expect to start providing <unk>.

Full vehicle prototypes to our pipeline customers in the U S and the UK for private road validation in mid 2022 with first orders expected towards the end of the year.

The platform of program, our collaboration with Hino Motors, a global leader in heavy and medium duty trucks is progressing as well together with Hino, we jointly exhibited our concept modular EV platform. The slot format at the consumer electronics show in Las Vegas. This past January .

The platform Leverages.

Innovative <unk> technology, which allows the entire drive components to reside within the wheel housing between the willing to chassis.

Creating a fully flat chassis.

This platform is capable of carrying a customized mobility service model that can carry passengers good and delivery services <unk>.

The mobility service module can be easily detached from the EV platform and wants to touch can serve as an independent Standalone unit, leaving the platform to be operated separately and continue on its next mission.

<unk> anticipated that flat former prototype will be produced in 2022.

The <unk> program.

Finally in November we unveiled an autonomous concept vehicle based on our modular EV platform design based on interest from potential customers for such a vehicle of this nature.

The full scale concept is geared for customers, including delivery fleet operated E retailers and technology companies seeking to build fully autonomous solutions. According to their exact specifications and with unmatched interior space for transporting passengers and cargo.

Since Slurped. We initially presented the company has received significant interest and intent to produce a proof of concept vehicle for the customers by the end of 2022.

Before I hand him Nicole please allow me to properly introduce our new CFO , David Goldberg and welcome him to the REIT team.

As you May have seen David recently joined US from Magna International where he most recently served as senior Vice President of corporate development.

We're counting on David to lead all aspects of <unk> financial functions strategic industry partnerships and investors relations.

Highly confident that David will have a tremendous impact on the company as we execute the critical path of our business plan.

David.

Thank you Daniel and good morning, everyone.

Im excited to be here with you on this call today and even more excited about the opportunities that lie ahead for re <unk>.

<unk> has developed ground breaking technology that I believe will revolutionize the EV market.