Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 35

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 4
Chunk 35
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 2022, President Biden signed an Executive Order on ‘ Enhancing Safeguards for United States Intelligence Activities’ which
introduced new redress mechanisms and binding safeguards to address the concerns raised by the CJEU in relation to data transfers from
the EEA to the United States and which formed the basis of the new EU-US Data Privacy Framework, or DPF, as released on December 13,
2022. The European Commission adopted its Adequacy Decision in relation to the DPF on July 10, 2023, rendering the DPF effective as an
EU GDPR transfer mechanism to U. S. entities self-certified under the DPF. On October 12, 2023, the UK Extension to the DPF came into
effect (as approved by the UK Government), as a UK GDPR data transfer mechanism to U. S. entities self-certified under the UK Extension
to the DPF.

Since we are under the supervision
of relevant data protection authorities in the EEA and we may also be subject to the supervision of the data protection authority in
the United Kingdom, we may be fined under both the EU GDPR and UK GDPR for the same breach. Penalties for certain breaches are up to
the greater of EUR 20 million/GBP 17.5 million or 4% of our global annual turnover. In addition to fines, a breach of the GDPR
may result in regulatory investigations, reputational damage, orders to cease or change our data processing activities, enforcement notices,
assessment notices for a compulsory audit and/or civil claims (including class actions).

We have taken some steps to
comply with certain applicable laws, policies, legal obligations relating to data privacy, data protection and data security, however,
we may not be in full compliance with all such requirements. It is also possible that the obligations imposed on us by applicable data
privacy laws and regulations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may
conflict with other rules or our practices in other jurisdictions.

Dynamic Glass Act

The Dynamic Glass Act of 2021,
or the Dynamic Glass Act, is a clean energy bill that was introduced in the U. S. Congress on March 17, 2021. The bill amends
the Internal Revenue Code of 1986 to ensure that electrochromic glass qualifies as an energy property for the energy tax credit. The
Dynamic Glass Act defines “electrochromic glass” as glass that uses electricity to change its light