Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 16

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 16
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 factor which effects the level of demand for products we develop for the industrial segments we target
as potential customers. We anticipate that if prices for natural gas and coal increase as their availability diminishes worldwide due
to geopolitical crises and burdensome regulations, together with expected increases in the prices due to carbon taxes and the price per
credit for tons of CO2, there will be more demand for our products.

We may enter into
agreements to operate projects at a financial loss in order to penetrate certain markets.

In
order to penetrate certain markets or demonstrate our technological capabilities, and as part of our long-term business strategy, we may
enter into agreements to finance, build and operate projects at a financial loss to us. Such agreements may materially affect our business,
financial condition, and results of operations.

The terms of our
credit facility agreement with the EIB will and future indebtedness may, restrict our current and future operations, particularly our
ability to take certain actions and to raise capital for future projects.

The
terms of the credit facility agreement with the EIB contain, and agreements governing future indebtedness may contain, a number of covenants
that impose operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interest
without the consent of EIB or other future lender, including restrictions on our ability to:

  transfer or sell assets;  

  pay dividends or distributions on our shares  

  merge, amalgamate or consolidate with another  

  acquire another entity or business;  

  incur additional debt or indebtedness other than  

  create or incur liens on our assets; and  

  provide project finance guarantees.  

As
a result of the restrictions contained in the credit facility agreement with EIB, and that may be contained in any agreements for future
indebtedness, we may be limited in how we conduct our business, unable to raise additional debt financing to operate during general economic
or business downturns or unable to compete effectively or take advantage of new business opportunities or raise capital for project finance.
These restrictions may affect our ability to grow in accordance with our strategy.

Our revenues and
efforts to become profitable may be impacted by our need to pay royalties on government grants and other agreements, which may also include
terms subjecting us to penalties if we are in default of material terms.

We
are required to pay annual royalties to the Israeli government at a rate of between 3% and 5% on revenues from the use of technology that