Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 197

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 197
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 2023                                                                                   
                                    Award                                          Exercise                    Vesting                             
                                    amount                                         price                       period                              
  Employees                                                           339,185                    0.23 NIS                   4 years      10 years  
  Subcontractors and directors                                          4,997                    0.23 NIS                   4 years      10 years  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Total granted                                                       344,182                                                                      

The fair value of options granted
to employees, subcontractors and directors during 2024 and 2023 was $6.8million and $3.7million, accordingly.

The fair value of each option granted
is estimated using the Black-Scholes option pricing method. The volatility was calculated on a daily basis for a period equal to the expected
term of each option and based on the 75thpercentile of the observations from comparable companies.

The estimation of the risk-free interest
rates was based on the zero-coupon yield of U. S. Treasury bonds for the expected term of each option. When appropriate, the Company’s
management uses the simplified method for as its expected life for employees, absent sufficient historical share option exercise experience,
and the expected term of each option as its expected life for sub-contractors. The Company’s historical share option exercise experience
does not provide a reasonable basis for estimating the expected term. The expected term of the options granted represents the period of
time that granted options are expected to remain outstanding.

F-46

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 underlying data used for computing
the fair value of the options (as of the grant date) are as follows:

 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Employees                                                                                        
  Expected term (years) —                                                6.11      5.91 - 6.14     
  Expected volatility                                                   43.48      40.98% - 42.14  
  Risk free interest rate                                                4.30      3.80%- 3.83     
  Expected dividend yield                                                0.00      0.00            
  Exercise price                                                 0.06 - 10.48      0.06            
  Non