Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 161

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 161
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 terms with all of its employees (Section 14 of the Israeli Severance Pay Law, 1963) located in Israel, the Company
makes regular deposits, at a rate of8.33% of their monthly salary, with certain insurance companies for accounts controlled by each applicable
employee in order to secure the employee’s full retirement benefit obligation.

F-15

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):

The Company is relieved
from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability
in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected on the Company’s consolidated
balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have
been irrevocably transferred to the applicable insurance companies.

The amounts of severance
payment expenses were $707and $592and for the years ended December 31, 2024 and 2023, respectively.

In France, Vision
has a noncontributory defined benefit pension plan covering substantially all employees upon their retirement. The benefits are based
on years of service and the level of compensation during the last year. The provision for retirement benefits on December 31, 2023 and
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. See note 11 for further details.

  Revenue recognition  

The Company accounts
for its revenue under ASC Topic 606, Revenue from Contracts with Customers. In accordance with ASC Topic 606, the Company recognizes revenues
when its customers obtain control of its product for an amount that reflects the consideration it expects to receive from its customers
in exchange for that product. To determine revenue recognition for contracts that are determined to be in scope of ASC Topic 606, the
Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in
the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract;
and (v) recognize revenue when (or as) the Company satisfies the performance obligation.