Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 47

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 47
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 impacted by the economic uncertainty and volatility
in the markets in the future. We cannot quantify such impact to our business at this moment, as we are an early growth stage company
and have not yet commenced the mass production and sale of products. To mitigate supply chain risks we may face in the future, we aim
to focus on Tier 1 suppliers located in close proximity to our production facilities and will seek to negotiate contracts with our suppliers
that lock in price and delivery commitments. Since we are strategically located in close proximity to our customers, we have a geographic
competitive advantage that deepens local customer relationships, enhances commercial innovation, optimizes customer support, shortens
supply chains and enables us to deliver our technologies quickly and efficiently around the world.

Impact of supply chain
disruptions on business operations. In connection with the ongoing global supply chain disruption, we continue to work with
our suppliers on (i) mitigating the effects of recent procurement shortages, (ii) negating the impacts on supply chain disruption on
costs and (iii) effectively scheduling for key product developments. Mitigation steps undertaken by us include design modifications that
utilize parts and materials that are more readily available and the expansion of our supply chain to form a wider procurement network
to source products in short supply. To date, these mitigation steps have been successful at reducing the impact of supply chain disruptions
while also maintaining our commitment to product quality and performance reliability. To date, no new material risks have emerged as
a result of these mitigation steps. We anticipate these supply chain challenges will continue to exist over the near term and plan to
continually employ mitigation strategies to reduce the impact on future product deliveries.

A. Operating Results

Components of Operating Results

The period-to-period comparisons
of our results of operations have been prepared using the historical periods included in our consolidated financial statements. The following
discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Annual
Report.

Revenues

We primarily derive revenue
mainly from the sale of cockpit and cabin shading in our aeronautics segment, the sale of ADAS technology and driver safety doors in
our safety tech segment, and the sale of SPD and LC films for smart glass applications in our architecture and automotive segments.

We expect revenue to increase
over time as we expand our customer base. We expect that our revenue will fluctuate from period to period due to new product offerings,
varying branding and sales activities, entrance into new end-markets and market segments