Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 3

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 3
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 capital expenditures to remain competitive. In addition, they may have an impact on
the efficacy of our operations and future results of operations and financial condition.

We may be subject
to unexpected maintenance warranty expenses or service claims that could reduce our profits.

We
generally provide our customers with a maintenance warranty period of twenty-four months in connection with the sale of our TES systems
and no longer than twenty-eight months from the delivery date of the BNRG products set forth in the purchase order. This product warranty
covers defects in used material and manufacturing workmanship- the latter of which is related to mis-production, mis-assembly or fatigue.
As a result, we may bear the risk of warranty claims after we have completed the installation of a TES system. Upon completion of installation
of a TES system, we intend to record an estimated liability for potential warranty or service claims. Our failure to predict accurately
future warranty claims, including if claims are in excess of our recorded lability, could adversely affect our financial results.

We are dependent
upon third-party manufacturers and suppliers making us vulnerable to supply shortages and problems, increased costs and quality or compliance
issues, any of which could harm our business.

We
rely on third parties to manufacture and supply us with proprietary custom subcomponents for our TES systems. We rely on a limited number
of suppliers who provide us with materials and components as well as manufacture and assemble certain components of our TES systems. Accordingly,
in the event equipment must be repaired or replaced, our operations may be interrupted, and, in turn, our financial results may be negatively
impacted. Further, we may encounter expenses in the event that the equipment requires a repair or replacement.

Additionally,
our suppliers may encounter problems themselves during manufacturing for a variety of reasons, including, for example, failure to follow
specific protocols and procedures, failure to comply with applicable legal and regulatory requirements, equipment malfunction and environmental
factors, failure to properly conduct their own business affairs and infringement of third-party intellectual property rights, any of which
could delay or impede their ability to meet our requirements. Our reliance on these third-party suppliers also subjects us to other risks
that could harm our business, including:

  we may not be able to obtain an adequate supply          
  in a timely manner or on commercially reasonable terms;  
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  our suppliers, especially new suppliers, may                                                                                   
  make errors in manufacturing that could negatively affect the efficacy or safety of our