Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 46

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 46
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 testament to our acquisition sourcing and execution capabilities.

Geopolitical
Environment. 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. Following the attack, Israel’s security cabinet declared war
against Hamas and commenced a military campaign against Hamas. In addition, since the commencement of these events, there have been
continued hostilities along Israel’s northern border with Lebanon (with the Hezbollah terror organization), Israel’s
southern border with the Gaza Strip (with the Hamas terrorist organization) and on other fronts from various extremist groups in
region, such as the Houthis in Yemen and various rebel militia groups in Syria and Iraq. Further, in April 2024 and October 2024,
Iran launched a series of drone and missile strikes against Israel. In November 2024, a ceasefire was brokered between Israel and
Hezbollah, and on January 19, 2025, a temporary ceasefire went into effect between Israel and Hamas, the results of which are
uncertain. To date our operations and financial results have not been materially affected. If the ceasefires declared collapse or a
new war commences or hostilities expand to other fronts, our operations may be adversely affected. We expect that the current
conflict in the Gaza Strip, Lebanon and the security situation in Israel will not have a material impact on our business results in
the short term. However, since this is an event beyond our control, its continuation or cessation may affect our expectations. We
continue to monitor our ongoing activities and will need to make any needed adjustments to ensure continuity of our business, while
supporting the safety and well-being of our employees.

Economic conditions
and resulting business trendsOur results of operations are impacted by the relative strength of the overall economy and
its effect on business investment, unemployment, consumer spending behavior, and business and consumer demand. Our customers’ underlying
business activities are also linked to the macroeconomic and geopolitical environment. Global supply chain disruptions and high energy
prices are expected to continue in 2025. In addition, terrorism or other geopolitical events may increase the likelihood of supply chain
interruptions and may impair our ability to compete in current or future markets, or otherwise subject us to potential material liability.
While we do not believe that our business segments, products, lines of service, projects or operations have been materially impacted
by the global supply chain disruptions, we cannot guarantee that we will not be materially