Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 48

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 48
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 the customer remains the owner of the equipment and we provide warranty and maintenance services to the customer at a predetermined
price as part of the sale package.

In
2023, we also started the implementation of our new business model, the EaaS model, wherein we install a TES bGentmsystem
for the benefit of third party customers at a customer’s site and provide operation and maintenance services. We then sell energy
(steam, hot air, etc.) to the customer at agreed upon prices. The EaaS model is more suitable to industrial customers who are not energy
experts and wish to outsource their energy services. In 2023, for the Tempo Beverages Ltd., or Tempo, project, we initiated our first
EaaS contracts where we plan to own, finance, build and operate our TES systems at or near our customers’ sites and either sell
the energy to the customer at a fixed energy price or receive a fixed revenue stream in connection with the energy service provided to
the customer. In both cases, we have granted the customer a right to acquire the TES system after fixed period. Backed by our TES gigafactory in Dimona, Israel, which at its full production capacity target of 4 GWh is expected to produce $200 million
worth of bGen™ systems annually, our position as a leader in thermal energy storage translated into a global pipeline of commercial
opportunities valued at over $500 million as of the date of this annual report on Form 20-F.

We
market our products through exclusive distributers in our target markets, with online marketing efforts to attract potential customers,
and direct outreach to potential customers through our sales team. Our primary target markets are in the United States, Europe, and Israel.
We are initiating commercial equipment sales or EaaS model agreements in many of these target markets and, depending on their success,
we expect to develop our sales and services for future customers in these regions.

Since
our incorporation, we have had ongoing losses and incurred negative cash flows from operating activities. For example, as of December
31, 2024, and December 31, 2023, we had operating losses of $10,562 thousand and $9,860 thousand, respectively. We have mainly financed
our activities through issuances of Ordinary Shares and warrants, revenues from the sale of products, revenues from licensing fees and
engineering services, governmental grants and a loan from the EIB. Management plans continuing commercialization of our products and services