Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 157

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 157
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 ASC 350”) requires goodwill to be tested for impairment at the reporting unit level at least
annually or between annual tests in certain circumstances and written down when impaired. The Company tests its goodwill for impairment
every calendar year end. ASC 350 allows an entity to first assess qualitative factors to determine whether a quantitative goodwill impairment
test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely
than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment
testing is required. An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly
to the quantitative goodwill impairment test. The quantitative assessment compares the fair value of the reporting unit to its carrying
value, including goodwill.

An interim goodwill
impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would
more likely than not reduce the fair value of a reporting unit below its carrying amount. As of December 31, 2024, no such events occurred.

  Impairment of long-lived assets  

The Company tests
long-lived assets for impairment whenever events or circumstances indicate the carrying amount may not be recoverable. If the sum of expected
future cash flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment
loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value of expected
future cash flows (discounted cash flows), or some other fair value measure.

For the years ended
December 31, 2024 and 2023, the Company did not recognize an impairment loss for its long-lived assets.

  Trade Receivables  

Trade receivables
are presented in the Company’s consolidated balance sheets net of allowance for expected credit losses. The Company maintains the
allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance
represents the current estimate of lifetime expected credit losses over the remaining duration of existing trade receivables considering
current market conditions and supportable forecasts when appropriate. Changes in the allowance for expected credit losses are recognized
in general and administrative expenses.

  Transfers of receivables  

Vision has agreements
with an unrelated third party (a factor) for factoring of specific accounts receivable. The factoring terms includes full recourse to
the