Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 100

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 100
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OLIDATED FINANCIAL STATEMENTS

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (cont.):

  Functional and presentation currency (cont.):  

The change in functional currency to
the U. S. dollar resulted inter-alia in a reclassification of the Company’s certain equity-classified warrants (whose fair value
as of January 1, 2024 was $1,649thousand), to liabilities due to their NIS-denominated exercise price. See also Note 11B, as to changes
in the currency of exercise price made during the reporting period.

Transactions and balances

Foreign currency transactions are translated
into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates, are generally recognized in financial income or expenses.

  Cash, cash equivalents and restricted cash deposits  

The Company considers as cash equivalents
all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from
the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash. Restricted
cash consists primarily of bank deposits to secure obligations under our operating lease agreements. Restricted cash is presented at cost,
including accrued interest, and is classified as current or non-current based on the remaining term of the restriction.

  Accounts receivable  

Accounts receivable balances are due
from customers that receive engineering services or enter into projects with the Company for the installation of TES systems. Contracts
with customers are entered into based on evaluation of a customer’s financial condition and typically include customers with high
credit rating. Trade accounts receivable from sales of services or systems are typically due within 60 days from reaching the agreed milestone
between the parties.

Accounts receivable have been reduced
by an allowance for current expected credit losses. The estimate is a result of the Company’s ongoing evaluation of collectability,
customer credit worthiness, historical levels of credit losses, and future expectations.

As of December 31, 2023, the Company has one individual customer that
exceeds 10% of receivables.

  Allowance for credit losses  

The Company performs an analysis of potential
credit losses related to its financial instruments. Such instruments are primarily cash and cash equivalents, restricted deposits and
receivables, based on class of financing receivables which share