Company: GAUZ
Filing Date: 2025-07-03
Form Type: F-3
Source: 0001213900-25-061387
Chunk: 11

Company: Gauzy Ltd.
Filing Date: 2025-07-03
Form: F-3
Chunk 11
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establishment of the State of Israel in 1948 and in recent years, a number of armed conflicts have occurred between Israel and its neighboring
countries and terrorist organizations active in the region, including Hamas (an Islamist militia and political group in the Gaza Strip),
Hezbollah (an Islamist militia and political group in Lebanon) and Iran. Any hostilities involving Israel or the interruption or curtailment
of trade between Israel and its trading partners could adversely affect our business, financial condition and results of operations.

In October 2023, Hamas terrorists infiltrated Israel’s
southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive
rocket attacks on the Israeli population and industrial centers located along Israel’s
border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in thousands of deaths and injuries,
and, in addition, Hamas kidnapped many Israeli civilians and soldiers. Following the attack, Israel’s security cabinet declared
war against Hamas and commenced a military campaign against Hamas in parallel to Hamas’ continued rocket and other terror attacks.

Since the commencement of these events, there have
been continued hostilities between Israel and Hezbollah and other extremist groups in the region, such as the Houthis in Yemen and various
rebel militia groups in Syria and Iraq. In addition, Iran launched direct attacks on Israel involving hundreds of drones and missiles
and has threatened to continue to attack Israel and is widely believed to be developing nuclear weapons. Iran is also believed to have
a strong influence among extremist groups in the region, such as Hamas in Gaza, Hezbollah in Lebanon, the Houthi movement in Yemen and
various rebel militia groups in Syria and Iraq. In addition to missile attacks on Israel, the Houthis launched attacks on global shipping
routes in the Red Sea, causing disruptions of supply chains.

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In June 2025, a new round of direct hostilities
broke out between Israel and Iran. Iran launched significant missile and drone
strikes at Israel and Israel attacked a range of targets in Iran. This escalation has heightened regional instability and has increased
security risks across Israel and resulted in significant travel restrictions, facility closures and shelter-in-place orders in Israel
and temporary closures of Israeli airspace and port activity.

While none of our production lines or capabilities
have been impacted since the war broke out on October 7, 2023, we cannot predict the
intensity or duration of Israel’s war with Hamas