Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 109

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 109
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 its first mile-stone under the agreement. Upon commissioning to Tempo,
the system is expected to be classified as a sale type lease, due to the longevity of its use (15 years) and its purchase option after
the third year from commissioning.

NOTE 6 - INVESTMENT IN JOINT VENTURE

In 2024, under a joint venture agreement
with a Spanish partner in the field of renewable energy (an agreement that became effective on September 24, 2024), the parties established
a new company - Brenmiller Europe S. L. - where60% of the shares are held by the Company and the remaining40% by the Spanish
partner (hereinafter - “ BRSL”). Under the agreement, the parties agreed to cooperate in the promotion and sale of renewable
energy projects or services of the Company in certain European territories through BRSL. According to the agreement, the parties made
an initial investment of Euro7,500in shareholders’ equity (of which the Company’s share was Euro4,500), and committed to
fund the activities of BRSL during the first three years of its operation (up to the amount of Euro1.44million), by way of shareholder
loans, according to their relative shareholding. As of December 31, 2024, the Company provided a loan to BRSL of Euro66.6thousand in
that regard. BRSL had insignificant activities in the last quarter of 2024.

BRSL Board of directors is comprised
of 2 representatives from each party and one independent director that will serve as chairman of the board, but has no decisive vote.
The agreement sets a list of issues that require “de-facto” mutual agreement of both parties in board’s decisions. Any
change in this mechanism requires a qualified majority of75% in shareholders meetings. Consequently, the Company concluded that it has
no control over the JV but has the ability to exercise significant influence.

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT:

  The composition of assets, grouped by major classifications and accumulated depreciation, is as follows (U. S. dollars in thousands):  
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                                          December 31                                      
                                          2024                          2023               
 ───────────────────────────────────────────────────────────────────────────────────────────
  Cost:                                                                                    
  Plant (new production facility)         $                  5,088