Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 156

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 156
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 - 15 years                 
  Office furniture and equipment                                    3 - 17 years Mainly 3 years   
  Production lines, industrial fixtures, equipment and tooling      2 - 15 years Mainly 10 years  
  Vehicles                                                          6.25 years                    
  Demonstration equipment                                           4 - 5 years                   

Leasehold improvements
are amortized by the straight-line method over the expected lease term, which is shorter than the estimated useful life of the improvements.

Depreciation of property
under construction begins when it is available for use, that is when it is in the location and condition necessary for it to be capable
of operating in the manner intended by management.

  Intangible assets  

The Company’s
intangible assets originated primarily from the acquisition of Vision (see Note 3), the RFI acquisition (see Note 6) and the agreement
with Resonac Corporation - IP (see Note 8).

Intangible assets
acquired in a business combination and intangible asset related to completed projects purchased in asset acquisitions are accounted for
pursuant to Accounting Standard Codification (“ ASC”) 350, Intangibles - Goodwill and Other.

Intangible assets
are amortized using a straight-line amortization over their estimated useful lives.

Annual rates of amortization rates are as follows:

  Exclusivity right           4 years      
  Technology & IP             5 - 7 years  
  Customer relationships      15 years     

Amortization of customer
relationships and exclusivity right are presented under depreciation and amortization operating expenses. Amortization of technology and
IP is allocated between costs of revenues and operating expenses.

  Goodwill  

Goodwill reflects
the excess of the consideration transferred, including the fair value of any contingent consideration over the assigned fair values of
the identifiable net assets acquired.

The Company allocates
goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. The primary
items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled
workforce, neither of which qualifies for recognition as an intangible asset.

F-12

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):

ASC 350, “ Intangibles
- Goodwill and other” (“