Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 101

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 101
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 the same or similar risk characteristics such as customer type and geographic
location, among others.

F-11

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (cont.):

  Allowance for credit losses (cont.)  

The Company estimates the expected
credit losses by applying the related corporate default rate which corresponds to the credit rating of the specific customer.

As of December 31, 2024 the Company
wrote-off an uncollectible customer balance of $669; other write-off activity and recoveries for the periods presented were not material.
Current expected credit loss expense is $289thousand, $380thousand and $0, for the years ended December 31, 2024, 2023 and 2022, respectively.

  Concentration of Credit Risk  

Financial instruments which potentially
subject the Company to concentrations of credit risk consist of trade and other receivables, and cash, cash equivalents and restricted
deposits held at financial institutions.

The Company places its cash and cash
equivalents, bank deposits and restricted deposits in high credit quality financial institutions. In general, customers are not required
to provide collateral or any other security to support accounts receivable but are required to make advances with the advancement of
projects.

  Inventories  

Inventory is measured at the lower
of cost and net realizable value.

Inventory costing is based on the first-in-first-out
method. In the case of purchased goods and work in process, costs include raw materials, direct labor, share based compensation and other
direct costs and fixed production overheads (based on the normal operating capacity of the production facilities).

Net realizable value is the estimated
selling price in the ordinary course of business, less attributable selling expenses.

  Property, plant and equipment  

Property, plant and equipment items
(including leasehold improvements) are initially recognized at cost of acquisition or construction, less relevant government investment
grants and accumulated depreciation and impairment.

The cost of self-constructed assets
includes the cost of the direct materials, as well as any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management.

Repairs and maintenance are charged
to the statement of comprehensive loss during the period in which they are incurred.

The assets are depreciated using the
straight-line method to allocate their cost over their estimated useful lives. Annual rates of