Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 175

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 175
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4), the Company reallocated goodwill to its reorganized reporting units
using a relative fair value approach. The Company performed an impairment analysis for these two reporting units upon reallocation. Based
on the Company’s assessment as of date of the change in the reporting units, and December 31, 2024, its annual impairment assessment
date, it was concluded that the fair value of each of the architecture and automotive reporting units exceeded its carrying amount and
therefore no goodwill impairment was required.

The changes in the carrying amount of
goodwill for the years ended December 31, 2024 and 2023 were as follows:

                                       Aeronautics                 Architecture                                                
  Changes during the period:                                                                                                   
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Balance as of December 31, 2022      $                4,958      $                 1,382      8,764      5,676       20,780  
  Translation differences                                 184                           60        315        211          770  
  Balance as of December 31, 2023      $                5,142      $                 1,442      9,079      5,887       21,550  
  Changes during the period:                                                                                                   
  Translation differences                               ( 303                         ( 85      ( 534      ( 346      ( 1,268  
  Balance as of December 31, 2024      $                4,839      $                 1,357      8,545      5,541       20,282  

The Company operates its business throughfourreporting segments: Aeronautics, Architecture, Automotive and Safety tech. See Note 4 for additional segment information.

The Company determines the fair value
of its reporting units using the income approach. According to the income approach, the Company uses discounted cash flows to estimate
the fair value. Cash flow projections are based on the Company’s estimates of revenue growth rates and operating margins, taking
into consideration the industry’s and market’s conditions. The discount rate used is based on the weighted average cost of
capital (“ WACC”), adjusted for the relevant risk associated with country-specific and business-specific characteristics.

As of December 31, 2024, the Company
performed a quantitative assessment of the reporting units’ fair value. No impairment charges were recognized as of December 31,
2024.