Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 65

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 4A
Chunk 65
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──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Salary and related expenses                                                          $                 -        $           393  
  Consultants and subcontractors                                                                         -                    112  
  Expenditure on materials (including inventory impairment loss)                                         -                      1  
  Royalties                                                                                              -                     84  
  Operating costs not attributed to projects (mainly salary and related expenses)                        985                  965  
  Total                                                                                $                 985      $         1,555  

Our cost of revenues for the
year ended December 31, 2024, decreased by 37% to $985 thousand, compared to $1,555 thousand for the year ended December 31, 2023. This
decrease was primarily due to the termination of our project in Romania in 2023. In the prior year, this project incurred significant
costs, including $393 thousand in salary and related expenses and $112 thousand in payments to consultants and subcontractors, which were
no longer present in 2024. Additionally, there was a decrease of $84 thousand in royalty liabilities, partially offset by a $20 thousand
increase in operating costs unrelated to our projects.

Research and Development, Net

The following table discloses
the breakdown of net research and development expenses for the year ended December 31, 2024 and 2023:

                                      Year Ended                                    
                                      December 31,                                  
  Dollars in thousands                2024                         2023             
 ────────────────────────────────────────────────────────────────────────────────────
  Salary and related expenses         $                 2,604      $         2,268  
  Consultants and subcontractors                          342                  388  
  Expenditure on materials                                 56                   70  
  Depreciation and other                                  200                  104  
  Office maintenance                                      387                  440  
                                                        3,589                3,270  
  Less – government grants                                  -                  (92  
  Total                               $                 3,589      $         3,178  

Net research and development
expenses for the year ended December 31, 2024, increased by 13% to $3,589 thousand, compared to $3,178 thousand for the year ended December
31, 2023. This increase was primarily driven by a $336 thousand rise in payroll and related expenses, due to higher allocations to research
and development expenses of $367