Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 2

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 3
Chunk 2
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 must meet specifications that we do not control or dictate. As such, the OEM and Tier 1 supplier customers
generally must make significant commitments of resources to test and validate our products before including them in any particular
end product. We could expend our resources without success and if we do not achieve a design win with respect to a particular end
product, we may not have an opportunity to supply our products to the OEM or Tier 1 supplier for that end product for a period of
many years. After a design win, it is typically quite difficult for a product or technology that did not receive the design win
to displace the winner until the OEM or Tier 1 supplier issues a new request for quote, or RFQ, because it is very unlikely that an
OEM or Tier 1 supplier will change complex technology. In addition, the company with the winning design may have an advantage with
the OEM or Tier 1 supplier going forward because of the established relationship between the winning firm and such OEM or Tier 1
supplier, which could make it more difficult for such company’s competitors to win the designs for other production models. If
we fail to win a significant number of OEM design competitions in the future, our business, results of operations and financial
condition would be adversely affected.

Further, we are subject to
the risk that an OEM or supplier customer cancels or postpones implementation of our technologies, as well as that we will not be able
to implement our technologies successfully. Further, our sales could be less than forecast if the end product is unsuccessful, including
reasons unrelated to our technologies. Long development cycles and product cancellations or postponements may materially adversely affect
our business, results of operations and financial condition.

Failure to make competitive technological
advances will put us at a disadvantage and may lead to a negative operational and financial outcome.

Continuing technological changes
in the market for our light and vision control products could make our products less competitive or obsolete, either generally or for
particular applications. Our future success will depend upon our ability to develop and introduce a variety of new capabilities and enhancements
to our existing product and service offerings, as well as introduce a variety of new product offerings, to address the changing needs
of the markets in which we offer products. Delays in introducing new light and vision control products and enhancements, the failure
to choose correctly among technical alternatives or the failure to offer innovative product or enhancements at competitive prices may
cause existing and potential customers to purchase our competitors