Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 199

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 199
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 2022        458,218       8.24  
  Granted                                 344,182      10.80  
  Vested                                ( 296,176       8.76  
  Forfeited                              ( 24,374       9.53  
  Outstanding at December 31, 2023        481,850       9.68  

F-48

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(U. S. dollars in thousands, except share and per
share amounts)

NOTE 17 - SHARE-BASED COMPENSATION(continued):

The Company currently uses authorized
and unissued shares to satisfy share award exercises.

The share-based compensation expense
by line item in the accompanying consolidated statements of operations is summarized as follows:

                                  Year ended December 31                                  
                                  2024                                   2023             
 ──────────────────────────────────────────────────────────────────────────────────────────
  Cost of sales                   $                             303      $           139  
  Research and development                                      610                  240  
  General and administrative                                  4,975                1,964  
  Sales and marketing                                           719                  224  
                                  $                           6,607      $         2,567  

NOTE 18 - INCOME TAX:

  Corporate taxation in Israel  

The Company is taxed according to the
regular corporate income tax in Israel. The corporate tax rate is23%.

  Income taxes on non-Israeli subsidiaries  

The Company’s main subsidiaries
incorporated in the U. S. in the state of Delaware, France, Germany and China (see Note 1) are assessed for tax purposes in accordance
with the tax laws in the countries of their residence. In the year 2024, the Company’s U. S. subsidiary is subject to combined federal
and state income taxes of approximately21%, the subsidiary in Germany is subject to combined corporation tax and trade tax of approximately28%, Vision is subject to income and capital gains tax of25%, and the subsidiary in China is subject to combined corporation tax and trade
tax of approximately25%.

  Tax loss carryforwards  

As of December 31, 2024, the expected
tax loss carryforwards of the Company were approximately $116,515which may be carried forward and offset against taxable income in the
future for an indefinite period. Vision and its subsidiaries have tax loss carryforwards of $55,753, which may