Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 160

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 160
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 lease right of use assets on the consolidated balance sheet. Operating lease liabilities are presented
separately from other liabilities. Finance lease ROU assets are included in property and equipment. Finance lease liabilities are presented
separately from other liabilities in the consolidated balance sheet.

  Contingencies  

Certain conditions
may exist as of the date of the financial statements, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities and such assessment
inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the
Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any
legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

Management applies
the guidance in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it
is probable that a material loss has been incurred and the amount of the liability can be reasonably estimated, then the reasonably estimated
liability is recorded as accrued expenses in the Company’s financial statements. If the assessment indicates that a potential material
loss contingency is not probable but is reasonably possible, or is probable but cannot be reasonably estimated, then the nature of the
contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed.

Loss contingencies
considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantees are disclosed.

  Share-based compensation  

The Company’s
employees’, subcontractors’ and directors’ share-based payment awards are classified as equity awards. The Company accounts
for these awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense
over the requisite service period using the straight-line method. Forfeitures are recognized as they occur. The Company accounts for its
advisors’ equity classified share-based payment in a similar manner.

The Company elected
to recognize compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the straight-line
method based on the multiple-option award approach.

  Employee rights upon retirement  

The Company is required
to make severance payments upon dismissal of an employee or upon termination of employment in certain circumstances. In accordance with
the current employment