Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 170

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 170
---
 subject to Vision meeting certain annual revenues targets for the calendar
years 2022 and 2023. As of the date of the acquisition, the fair value of the contingent consideration was $1,323.

Between March 2022 and July 2024 the
Earn-Out Agreement was amended several times. Under the amended terms of the agreement, the Earn-Out payment was reduced to €4,250.
The annual revenue targets for 2022 and 2023 were met. The Company paid in full the Earn-Out liability, $3.0million (€2.75million)
and $1.7million (€1.5million) in 2024 and 2023, respectively.

The amendments were
treated as post-combination events and their impact was recognized as an operating expense.

NOTE 4 - OPERATING SEGMENTS AND GEOGRAPHICAL INFORMATION:

The Company operates its business and
reports its financial results infouroperating segments:

  Architecture – this segment focuses on sales for both interior and exterior applications for commercial,  

  Automotive – this segment focuses on sales that enable OEMs to incorporate Company’s technology              

  Safety tech – this segment focuses on sales of advanced driver assistance systems for buses, coaches,                   

  Aeronautics – this segment focuses on the sale of shading and cabin management systems in  

The Company’s Chief Executive Officer
(“ CEO”), was identified as the chief operating decision maker (“ CODM”) as of December
2024. The CODM reviews the financial information based on the Group’s disaggregated information about revenues and gross margin,
once a quarter, including budget-to-actual variances, to make decisions about resources to be allocated to the segments and assess their
performance. Segment revenues, expenses and gross margin exclude intersegment transactions. The CODM does not make operating and investing
decisions based on assets, and as such does not review asset information per segment.

The Company’s
segments structure has been updated and the architecture segment and the automotive segment presented separately as of January 2024 and
the CODM reviews this segment structure. Prior year figures were recast to reflect this change.

F-22

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(U. S. dollars in thousands, except share and per
share amounts)

NOTE 4 - OPERATING SEGMENTS AND GEOGRAPHICAL INFORMATION(continued):

  Segment Information:  

                                        December 31, 2024                                                                                
                                        Aeron