Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 51

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 51
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2023.

Safety-Tech

Revenues in our safety-tech
segment increased by approximately $15.9million, or 53.7%, to $45.6million for the year ended December 31, 2024, compared to $29.7million for the year ended December 31, 2023. The increase resulted mainly from strong demand across the segment’s product lines,
which led to increased sales.

Cost of revenues

Cost of revenues increased by approximately $15.8
million, or 27.1%, to $73.8 million for the year ended December 31, 2024, compared to $58.0 million for the year ended December 31, 2023.
The increase resulted mainly from an increase of $10.7 million in materials costs consistent with higher revenues, an increase of $4.8
million in payroll and related expenses, including share-based compensation, primarily due to an increase in salaries and an increase
in the number of operational and production employees to support the increased revenues.

Gross Profit and Gross Profit Margin

Gross profit increased by approximately $9.8 million,
or 49.1%, to $29.7 million for the year ended December 31, 2024, compared to $19.9 million for the year ended December 31, 2023. The
increase resulted mainly from the increase in revenue year-on-year.

Gross profit margin represents our gross profit
as a percentage of our revenue. Gross profit margin increased by approximately 3.0% to 29.0% for the year ended December 31, 2024, compared
to 26.0% for the year ended December 31, 2023. The increase in gross margin was primarily the result of higher revenues as a result of
a fixed cost base.

For the year ended December 31, 2024, our gross
profit margin was 42.4%, 33.5%, (18.2%) and 18.4% in our aeronautics, architecture, automotive and safety tech segments, respectively.
For the year ended December 31, 2023, our gross profit margin was 34.2%, 31.2%, (7.2%) and 15.4% in our aeronautics, architecture, automotive
and safety tech segments, respectively.

Research and development expenses

Research
and development expenses increased by approximately $1. 6 million, or9.