Innoviz Technologies Ltd ( INVZ ) shares are trading higher Monday after the company announced a multi-year payment plan expected to bolster its financial position.

What Happened: Innoviz ( INVZ ) said it entered into a multi-year NRE (Non-Recurring Engineering services) payment plan of approximately $80 million with key existing customers.

$40 million is expected to be paid in 2025 with further amounts expected in 2026 and 2027. Innoviz ( INVZ ) said the payments will be incremental to revenues generated from ongoing sales of LiDAR products based on existing and new orders.

“NREs are essential to strategically funding our operations and reaching the start of production for several customers in 2026, and with this plan with our key customers we are poised to start 2025 from a position of financial strength,” said Omer Keilaf, founder and CEO of Innoviz ( INVZ ).

“We believe it is clear that our customers trust our ability to support the next generation of autonomous vehicles and meet their demands through Innoviz’s superior technology and ability to bring LiDARs to production. The expected NRE payments announced today, taken together with customer programs entering production, strengthen the financial foundation of the Company and position Innoviz ( INVZ ) to deliver significant value in the years to come.”

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Innoviz ( INVZ ) said it will provide information regarding its 2025 outlook on its fourth quarter 2024 earnings call. The company is not reporting its quarterly earnings again until sometime in February. Analysts currently expect the company to report a loss of 14 cents per share and revenue of $5.86 million, according to estimates from Benzinga Pro.

Innovix reported third-quarter financial results in November. The company ended the period with $87.7 million in total liquidity, consisting of cash and cash equivalents, bank deposits, marketable securities and short-term restricted cash.

INVZ Price Action: Innoviz ( INVZ ) shares were up 24.8% at $1.44 at the time of publication Monday, according to Benzinga Pro.