Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 200

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 200
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 be carried forward indefinitely.
The Company has recognized valuation allowance for the full amount in respect of these tax loss carryforwards since their utilization
is not expected in the foreseeable future.

F-49

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NOTE 18 - INCOME TAX(continued):

Israel and foreign components of income
(loss) from continuing operations, before income taxes consisted of:

                         Year ended December 31                                        
                         2024                                      2023                
  Israel - Domestic      $                           ( 30,447      $         ( 65,124  
 ───────────────────────────────────────────────────────────────────────────────────────
  Foreign                                            ( 22,673                ( 13,960  
  Total                  $                           ( 53,120      $         ( 79,084  

The majority of the Company’s income
tax expenses arise from its foreign subsidiaries.

  Uncertainty in income tax  

The Company applies a more-likely-than-not
recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not
recognize a tax benefit unless it is more likely than not that the tax position will be sustained upon examination, including resolution
of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these
positions is measured at the largest amount of benefit that is greater than50% likely of being realized upon ultimate settlement. As
of December 31, 2024 and 2023, no liability for unrecognized tax benefits was recorded due to immateriality.

  Tax rate reconciliation  

Income tax expense attributable to
income from continuing operations was62and183for the years ended on December 31, 2024 and 2023, respectively, and differed from the
amounts computed by applying an Israeli Statutory income tax rate of23%, to pretax income from continuing operations, mainly as a result
of changes in valuation allowance of $14,405and $9,577respectively, as well as nondeductible expenses.

                                                                             Year ended December 31                                        
                                                                             2024                                      2023                
  Loss before income taxes                                                   $                           ( 53,120      $         ( 79,084  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Statutory tax rate