Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 55

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 55
---
 the year ended December 31, 2023 to (13.8%) for the year ended December 31, 2024. The improvement was primarily
driven by increase in revenue year-on-year.

Free Cash Flow

                                        Year Ended                                        
                                        December 31,                                      
  (in thousands of USD)                 2024                           2023               
 ──────────────────────────────────────────────────────────────────────────────────────────
  Net cash in operating activities      $                 (31,905                (31,115  
  Free Cash Flow                        $                 (43,521                (41,544  

Free Cash Flow is a non-GAAP
financial metric that we define as net cash used in operating activities, the most directly comparable financial measure based on U. S.
GAAP, less capital expenditures.

Our Free Cash Flow decreased from $(41.5)
million for the year ended December 31, 2023 to $(43.5) million for the year ended December 31, 2024. This decrease was
primarily driven by increase of cash used in operating activities in the amount of $(0.8) million and additional capex
investments in the amount of $(1.2) million.

The following table reconciles
Net Loss to EBITDA and Adjusted EBITDA, Net Loss Margin to Adjusted EBITDA Margin and Free Cash Flow to net cash used in operating activities,
the most directly comparable GAAP measures:

                                                        Year Ended                              
                                                        December 31,                            
  (in thousands of USD)                                 2024                                    
 ────────────────────────────────────────────────────────────────────────────────────────────────
  Net Loss                                              $                 (53,182      (79,267  
  Income tax expense (income)                           $                      62          183  
  Financial (income) expenses, net                      $                  22,314       47,122  
  Depreciation and amortization                         $                   6,676        5,711  
  EBITDA                                                $                 (24,130      (26,251  
  Acquisition related costs and debt raising costs      $                   2,796        2,006  
  Non-cash fair value adjustments (1)                   $                     (23          747  
  Equity-based compensation expense                     $                   6,607        2,567  
  One-time expense (income)                             $                     143            -  
  Doubtful debt expenses (2)