Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 163

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 163
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 payments terms such as 30-60 days from the invoice date. Vision’s payment terms generally include a payment requirement
within 30 to 60 days after a performance obligation has been satisfied. Due to the short time period between payment and delivery, the
Company does not have any contracts for the provision of goods that result in the material contract assets and contract liabilities.

Taxes levied by government
authorities on revenue-bearing transactions that are collected by the Company from a customer, are excluded from the transaction price.

The Company applies
the practical expedient in ASC 606-10-65-1 and does not adjust the transaction price for the effects of a significant financing component
when a customer pays for a good within one year or less. Also, as permitted by ASC 606, the Company does not disclose information on unearned
revenue for binding contracts and purchase orders for a period of one year or less.

  Cost of revenues  

Cost of revenue consists
of raw materials used in production line for the Company’s end product, shipping and handling costs, salary of headcount related
to production, employee-related expenses and overhead expenses of internal assembly line, service costs, depreciation of production equipment
and amortization of technology. Cost of revenues also consists of royalties to the Israel Innovation Authority, see Note 11(a).

  Research and development costs  

Research and development
costs are charged to the statement of operations as incurred. Research and development expenses include costs directly attributable to
the conduct of research and development programs, including the cost of payroll taxes and other employee benefits, lab expenses, consumable
equipment and consulting fees. The Company receives royalty-bearing grants, which represents participation of the Israel Innovation Authority
in approved programs for research and development, see Note 11(a). These grants are recognized as a reduction of research and development
expenses as the related costs are incurred.

Research credit tax
granted by the French Government is recognized when the tax credit becomes receivable, provided there is reasonable assurance that the
Vision will comply with the conditions attributed to this credit and there is reasonable assurance the credit will be received. The tax
credit is deducted from the research and development expenses as the applicable costs are incurred.

  Advertising expenses  

Advertising costs
are expensed as incurred and were approximately $456and $323for the years ended December 31, 2024 and 2023, respectively.

  Income taxes:  

  Deferred taxes  

Income taxes are computed using the asset
and liability method. Under the asset and