Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 113

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 113
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  Less – valuation allowance                    ( 20,886      ( 18,767  
  Net deferred tax assets                              -             -  

  Including capital loss  

Realization
of deferred tax assets is contingent upon sufficient future taxable income during the period that deductible temporary differences and
carried forward losses are expected to be available to be offset against taxable income. As the achievement of required future taxable
income is not more likely than not, the Company recorded a full valuation allowance.

  Reconciliation of theoretical tax expenses to actual expenses  

The
primary difference between the statutory tax rate of the Company and the effective rate results primarily from the changes in valuation
allowance in respect of carried forward tax losses for tax purposes and research and development expenses due to the uncertainty of the
realization of such tax benefits.

  Uncertain tax positions  

As
of December 31, 2024 and 2023, the Company does not have a provision for uncertain tax positions.

  Roll forward of valuation allowance (U. S. dollars in thousands):  

  Balance as of December 31, 2022      ( 15,723  
  Additions                             ( 3,458  
  Translation differences                   414  
  Balance as of December 31, 2023      ( 18,767  
  Additions                             ( 2,119  
  Translation differences                     -  
  Balance as of December 31, 2024      ( 20,886  

  Tax assessments  

The Company files consolidated tax
returns with its subsidiary Brenmiller Rotem. The Company has final tax assessments up to and including the tax year 2019. The other subsidiaries
have not been assessed for tax purposes since their incorporation.

F-21

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 - LOAN FROM THE EUROPEAN INVESTMENT
BANK (“ EIB”)

On March 31, 2021, the Company and EIB
signed an agreement for the receipt of financing for the expansion plan of the Company and the establishment of an advanced production
plant for TES systems in Israel (“the Financing Agreement”), the main terms of which are as follows:

  The financing is limited to an amount of EUR 7.5 million.  

  The drawing down of the loan will be done in 2 tranches – the first, in the amount of EUR 4 million,                                          
  was done in July 2022,