Company: GGR
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001886190-25-000017
Chunk: 92

Company: Gogoro Inc.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 92
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. These upgrades are expected to create economic benefits in the long run but do generate a short-term reduction in our gross margin as we continue carrying out these upgrades. We expect our cash position, gross profit and gross margin will continue to be impacted by the costs of these upgrades during 2025. In order to improve our overall customer experience and to extend battery life, we plan to continue upgrading a substantial quantity of our battery packs which are already in circulation and will improve designs of our battery packs to make them even more rugged, safer and long-lasting.

Sales and Marketing

Sales and marketing expenses decreased by $6.9 million, or 13.6%, from $51.0 million for the year ended December 31, 2023 to $44.1 million for the year ended December 31, 2024. This decrease was primarily driven by a $2.2 million decrease in share-based compensation expense related to the issuance of restricted stock awards, a $1.6 million decrease in payroll expenses and short-term employee benefits due to the realignment of our organization structure, a $2.0 million decrease in spending on retail marketing campaigns and product launches, and a $3.0 million decrease in retail operation-related expenses, including freight, bank charge, importing/exporting expenses and depreciation. These reductions were partially offset by an increase in impairment loss on account receivable.

General and Administrative

General and administrative expenses decreased by $12.6 million, or 28.3%, from $44.4 million for the year ended December 31, 2023, to $31.9 million for the year ended December 31, 2024. This decrease was primarily driven by a $8.0 million decrease in share-based compensation expense associated with the issuance of restricted stock awards, a $1.2 million decrease in payroll expenses and short-term employee benefits due to the realignment of our organization structure, a $1.0 million decrease in insurance expenditures associated with risk management costs from 2023, and a $0.6 million decrease in service expense for professional consultants. Other

Table of Contents

than the aforementioned factors, general and administrative expenses remained relatively stable, supported by enhanced expense controls that led to lower payroll and other headcount-related expenses.

Research and Development

Research and development expenses decreased by $5.9 million, or 14.5%, from $40.9 million for the year ended December 31, 2023, to $34.9 million for the year ended December