Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 37

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 37
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 the United States. Therefore,
devaluation in the local currencies of our customers relative to the NIS could have a negative impact on our revenues and results of operations.
We are also subject to other foreign currency risks including repatriation restrictions in certain countries, particularly in Latin America.

We
do not use derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign exchange
rates on our balance sheet accounts and forecast cash flows. In some countries, we are unable to use “hedging” techniques
to mitigate our risks because hedging options are not available for certain government-restricted currencies. Moreover, derivative instruments
are usually limited in time and as a result, cannot mitigate currency risks for the longer term. The volatility in the foreign currency
markets may make it challenging to hedge our foreign currency exposures effectively.

In
some cases, we may face regulatory, tax, accounting or corporate restrictions on money transfer from the country from which consideration
should have been paid to us (or to our respective selling subsidiary) or revenues could have accumulated and allocated to us or could
face general restriction on foreign currency transfer outside of such country. Inability to collect and receive amounts that are already
due and payable could have a negative impact on our results of operations.

We received grants
from the IIA, the Israeli Ministry of Energy and other governmental ministries that may require us to pay royalties and restrict our ability
to transfer intellectual property or know-how outside of Israel.

We
have received government grants from IIA and other governmental ministries for the financing of a significant portion of our research
and development expenditures in Israel. Unless otherwise agreed by the applicable authority of the IIA, we must nevertheless continue
to comply with the requirements of Israeli Law for the Encouragement of Industrial Research and Development, 1984 and regulations promulgated
thereunder, or the R& D Law, with respect to technologies that were developed using such grants, or the Financed Know-How, including
an obligation to repay such grants from consideration received from sales of products which are based on the Financed Know-How, if and
when such sales occur and if applicable in accordance with the grant plan.

In
accordance with certain grant plans, in addition to the obligation to pay royalties to the IIA and the Israeli Ministry of Energy, the
R& D Law requires that products which incorporate Financed Know-How be manufactured in Israel and prohibits the transfer of Financed
Know-How and any right derived there