Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 182

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 182
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 development activities performed by the Company (“ Support Grants”.
As of December 31, 2024 the Company received a total amount of $2,373out of which $1,119are non-bearing grants.

The Company is obligated to pay royalties
of1.3% to3% to the government of Israel, computed based on the revenues from sales of products that the Company is developing that are
assisted by the Support Grant until100% of the Support Grant, linked to the U. S. dollar, is repaid. Pursuant to reporting and royalty
payment procedures of the IIA, such royalties are to be paid at an annual interest rate equal to LIBOR (“the IIA Royalties Computation
Method”).

The Company’s royalty expenses
to the government of Israel for the years ended December 31, 2024 and 2023 in respect of the mentioned programs were $266and $31, respectively.

As of December 31, 2024, the Company
had a contingent obligation to the IIA in the amount of approximately $1,283including annual interest. As of January 1, 2024, due to
the cancellation of the LIBOR interest rate, the amount of the obligation is bearing 12-month term SOFR interest rate.

F-33

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NOTE 11 - COMMITMENTS AND CONTINGENT LIABILITIES(continued):

  Employee retirement benefits  

Vision’s retirement commitments
are partly covered by payments made under a retirement contract for the benefit of employees and managed externally at Natixis Financial
Institution. The provision for retirement benefits on December 31, 2024 represents an accrual for lump-sum payments to be paid at the
time an employee retires if he or she is still employed by the Company at the date of retirement.

Vision’s benefit obligation on
December 31, 2024 was $1,716. Vision’s plan assets consisted of cash deposits in an amount of $370on December 31, 2024.

The Group recognized a net amount of
$191in profit and loss for the net benefit obligation in 2024.

The benefits expected to be paid in each
of the next five fiscal years, and in the aggregate for the five fiscal years thereafter, are detailed in the table below:

  2025*                       81