Gauzy Ltd.(GAUZ) - 2025 Q2 - Quarterly Report

Condensed Consolidated Financial Statements This section presents Gauzy Ltd.'s interim financial statements, including balance sheets, statements of operations, changes in equity, and cash flows, along with explanatory notes Condensed Consolidated Balance Sheets Total assets decreased to $136,806 thousand by June 30, 2025, due to lower current assets and increased liabilities, reducing equity | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Assets | | | | | | Total Current Assets | $46,452 | $54,608 | $(8,156) | -14.94% | | Total Non-Current Assets | $90,354 | $83,637 | $6,717 | 8.03% | | Total Assets | $136,806 | $138,245 | $(1,439) | -1.04% | | Liabilities | | | | | | Total Current Liabilities | $70,874 | $56,728 | $14,146 | 24.94% | | Total Long-Term Liabilities | $48,072 | $33,187 | $14,885 | 44.85% | | Total Liabilities | $118,946 | $89,915 | $29,031 | 32.29% | | Shareholders' Equity | | | | | | Total Shareholders' Equity | $17,860 | $48,330 | $(30,470) | -63.05% | - Cash and cash equivalents decreased significantly from $5,615 thousand at December 31, 2024, to $1,235 thousand at June 30, 2025, representing a 78% decline[4] - Trade receivables, net, decreased from $24,358 thousand to $16,991 thousand, a 30.2% reduction, indicating potential changes in collection or sales patterns[4] Condensed Consolidated Statements of Operations and Comprehensive Loss Revenues decreased and operating loss increased for both three and six months ended June 30, 2025, though net loss improved due to financial income | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :------------------------------------ | :--------------------------- | :--------------------------- | :-------------- | :--------------------------- | :--------------------------- | :-------------- | | Revenues | $20,054 | $24,409 | -17.84% | $42,421 | $49,138 | -13.70% | | Gross Profit | $4,286 | $6,592 | -35.00% | $10,018 | $12,807 | -21.78% | | Operating Loss | $(12,510) | $(7,921) | 57.94% | $(21,203) | $(17,552) | 20.80% | | Financial Income (Expenses), net | $1,790 | $(15,274) | 111.72% | $(240) | $(18,828) | 98.72% | | Loss Before Income Tax | $(10,720) | $(23,065) | -53.53% | $(21,443) | $(36,250) | -40.85% | | Net Loss for the Period | $(10,736) | $(23,087) | -53.51% | $(21,514) | $(36,334) | -40.80% | | Basic and Diluted Loss Per Share | $(0.57) | $(2.60) | -78.08% | $(1.15) | $(5.14) | -77.63% | - Other comprehensive loss significantly increased to $(10,947) thousand for the three months ended June 30, 2025, from $4,116 thousand in the prior year, primarily due to a large fair value loss on changes of own credit risk[10] Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and Shareholders' Equity (Capital Deficiency) Total shareholders' equity significantly decreased to $17,860 thousand by June 30, 2025, primarily due to net loss and other comprehensive loss | Metric (in thousands) | Balance at January 1, 2025 | Changes during Six Months Ended June 30, 2025 | Balance at June 30, 2025 | | :-------------------------- | :------------------------- | :-------------------------------------------- | :----------------------- | | Ordinary shares (Amount) | $865 | $0 | $865 | | Additional paid-in capital | $275,390 | $1,537 | $276,927 | | Other comprehensive loss | $(2,913) | $(10,493) | $(13,406) | | Accumulated deficit | $(225,012) | $(21,514) | $(246,526) | | Total Shareholders' Equity | $48,330 | $(30,470) | $17,860 | - The company issued 22,850 ordinary shares through the exercise of options and warrants during the six months ended June 30, 2025[14] - Share-based compensation contributed $1,537 thousand to additional paid-in capital for the six months ended June 30, 2025[14] Condensed Consolidated Statements of Cash Flows Cash, cash equivalents, and restricted cash saw a net decrease of $4,590 thousand by June 30, 2025, primarily due to reduced financing activities | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------- | | Net cash used in operating activities | $(3,870) | $(15,663) | 75.20% | | Net cash used in investing activities | $(3,648) | $(4,218) | 13.51% | | Net cash (used in) provided by financing activities | $2,928 | $78,974 | -96.29% | | Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $(4,590) | $59,093 | -107.77% | | Balance at End of Period | $1,365 | $63,785 | -97.86% | - Operating cash outflow improved significantly, decreasing from $(15,663) thousand in 2024 to $(3,870) thousand in 2025, driven by positive changes in trade receivables and other current liabilities[29] - Financing activities provided substantially less cash in 2025 ($2,928 thousand) compared to 2024 ($78,974 thousand), largely due to the absence of IPO proceeds and a decrease in proceeds from long-term debt[29] Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, significant transactions, and segment information NOTE 1 - Nature of Operations Gauzy Ltd., an Israeli smart glass technology company, completed its IPO in June 2024, and despite losses, maintains sufficient liquidity for the next 12 months - Gauzy Ltd. was incorporated in Israel in 2009 and is engaged in the development, manufacturing, and supply of technologies for operating and control of complex materials[34] - On June 7, 2024, the Company closed its initial public offering (IPO), issuing 4,411,765 shares at $17.00 per share, generating net proceeds of $68.25 million[36] - As of June 30, 2025, the Company had an accumulated deficit of $246,526 thousand and incurred operating losses of $21,203 thousand, with negative cash flows from operating activities of $3,870 thousand[37] - Management believes existing cash, cash equivalents, and available amounts under Note Purchase Agreements (NPAs) provide