Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 172

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 172
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ES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NOTE 5
- INVENTORIES:

Inventories consisted of the following:

                                   December 31                                    
                                   2024                         2023              
 ──────────────────────────────────────────────────────────────────────────────────
  Finished products                $                 1,345      $          1,163  
  Raw and packaging materials                       13,563                11,882  
  Products in process                                  968                   129  
                                   $                15,876      $         13,174  

The Company recorded inventory write-downs
in the amount of $0and $238for the year ended December 31, 2024 and 2023, respectively. These write-downs are linked to slow-moving
inventory.

NOTE 6 - INVESTMENT IN MARKETABLE SECURITIES:

Investment in RFI assets

The Company invests in securities of
Research Frontiers Incorporated, a Nasdaq listed company, or RFI. As of December 31, 2024 the Company holds1,838,824shares of RFI’s
common stock, which represents5.5% of RFI’s shares.

The Company’s investment in RFI
common stock is recorded at fair market value and unrealized gains and losses are included in financial income (expense), net, in the
consolidated statements of operations and comprehensive loss.

The price per share of RFI’s
common stock as of December 31, 2024 and 2023 are $1.71and $1.01, respectively. The revaluation of the above-mentioned investment, for
the years ended December 31, 2024 and 2023, amounted to $1,287and $(1,655), respectively. The revaluation was recorded as financial expense,
net.

In January 2024, the Company entered
into a note purchase agreement with OIC Growth Fund I, L. P. and affiliated funds in a total amount of $26.0million, see Note 9(d). As
of December 31, 2024, the restricted amount from the Company’s RFI shares pledged in related to the 2024 NPA is $3,144.

F-25

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(U. S. dollars in thousands,