Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 56

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 56
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  (1)      Expenses related mainly                                                                                                       
  (2)      Intangible assets resulted                                                                                                    
  (3)      One-time expenses (income).                                                                                                   
  (4)      Doubtful debt expenses                                                                                                        

Our Adjusted Net Loss decreased
from $(36.8) million for the year ended December 31, 2023 to $(29.2) million for the year ended December 31, 2024. This decrease
was primarily driven by an increase in gross profit and a decrease in interest expenses, offset partially by increase of operating expenses.

We believe that these non-GAAP
financial measures are useful in evaluating our business as a way of assisting an investor in evaluating future cash flows of the business.

B. Liquidity and Capital Resources

Overview

Our capital requirements will depend on many factors,
including sales volume, the timing and extent of spending to expand our production capabilities, support research and development efforts,
investments in information technology systems, the expansion of sales and marketing activities, increased costs as we continue to hire
additional personnel, and market adoption of new and enhanced products and features. For the years ended December 31, 2023 and 2024,
we had a net loss of $79.3 million and $53.2 million, respectively.

To date, our principal sources of liquidity have
been proceeds from our private offerings of our convertible securities, proceeds from the issuance of SAFEs, proceeds from loans and
credit facilities and proceeds from our initial public offering in June 2024.

Based on our current business plan, we believe
our current cash and cash equivalents, anticipated cash flow from operations and credit facilities, will be sufficient to meet our anticipated
cash requirements over at least the next 12 months. We may need to raise additional capital before we can expect to become profitable
from sales of our light and vision control products and may raise additional capital to expand our business, to pursue strategic investments,
to take advantage of financing opportunities or for other reasons.

We are currently finalizing
a debt financing arrangement with an Israeli commercial bank for $10 million. We expect to enter into definitive agreements with the bank
in the first half of 2025. However, there can be no assurance that definitive agreements will be entered into.

If we are required to raise additional funds by
issuing equity securities, dilution of shareholders may result. Any debt or equity securities issued may also have rights, preferences,
and privileges senior to those of holders of our ordinary shares