Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 155

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 155
---
 amounts
of cash.

Restricted cash consists
of funds that are contractually restricted as to usage or withdrawal due to funding agreements. The Company has presented restricted cash
separately from cash and cash equivalents in the consolidated balance sheets. The Company includes its restricted bank deposits in cash
and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the combined statement of cash flows.

  Restricted long-term bank deposits  

Restricted bank deposits
with maturity dates of more thanone yearare included in restricted long-term bank deposits. Long-term bank deposits are denominated
in NIS. The interest rates on the Company’s deposits range between0.05%-3.7%. As of December 31, 2024 and 2023, the Company had
a lien on the Company’s bank deposits in respect of bank guarantees granted and in order to secure the lease agreements.

  Investments in marketable securities  

The Company’s
investments in marketable equity securities are recorded at fair value with changes in fair value recognized in financial income (expense),
net in the consolidated statements of operations.

  Derivatives  

The Company recognizes
all derivative instruments as either assets or liabilities in the consolidated balance sheet at their respective fair values. All gains
and losses associated with derivatives are reported as financial income (expenses), net in the accompanying consolidated statements of
operations.

  Inventories  

Inventories are stated
at the lower of cost or net realizable value. The Company determines the cost of inventory using the weighted average cost method. Inventory
costs consist of materials, direct labor, overhead and IP amortization. The Company periodically reviews its inventory levels and writes
down inventory that is expected to expire prior to being sold, inventory in excess of expected sales requirements and inventory that fails
to meet commercial sale specifications, with a corresponding charge to cost of sales. For further details see Note 5.

F-11

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES(continued):

  Property and equipment:  

Property and equipment are stated at
cost, net of accumulated depreciation and amortization.

The Group’s
property and equipment are depreciated by the straight-line method on the basis of their estimated useful lives.

Annual rates of depreciation
are as follows:

  Computers and electronic equipment                                3 years                       
  Laboratory equipment                                              14