Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 49

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 49
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,
such as subcontractor, advertising and exhibition expenses, public relations and websites costs.

We expect our sales and marketing
expenses to increase in absolute dollars as we expand our commercial sales, marketing and business development teams, increase our presence
globally; and increase marketing activities to drive awareness and adoption of our products. While these expenses may vary from period
to period as a percentage of revenue, we expect these expenses to increase as a percentage of sales in the short term as we continue
to grow our commercial organization to drive anticipated growth in the business.

Financial expenses

The finance expenses consisted
primarily of change in fair value of investments, warrants and financial liabilities measured at fair value, interest expenses on loans
and exchange rate differences expenses.

Income Taxes

Income taxes primarily consist
of income taxes from our subsidiaries in Germany, the United States and China.

Basis of Presentation

We currently conduct our
business and report our financial results through four operating segments: aeronautics, architecture, automotive and safety tech.

Results of Operations

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 document.
We have derived this data from our consolidated financial statements included elsewhere in this Annual Report.

Year Ended December 31, 2024 Compared to
Year Ended December 31, 2023

                                                                                                          Year Ended               
                                                                                                        December 31,               
  (in thousands of USD, except share and per share data)                                                        2024         2023  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenues                                                                                                  $103,527      $77,980  
  Cost of revenues (exclusive of depreciation and amortization)                                               71,718       55,992  
  Depreciation and amortization                                                                                2,068        2,047  
  Total cost of revenues                                                                                      73,786       58,039  
  Gross profit                                                                                                29,741       19,941  
  Gross profit margin                                                                                             29           26  
  Operating expenses:                                                                                                              
  Research and development expenses (exclusive of depreciation and amortization reflected below)             $17,590      $16,035  
  General and administrative expenses (exclusive of depreciation and amortization reflected below)            22,194       16,187  
  Sales and