Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 120

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 120
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, on May 23, 2024, all consented
warrants were reclassified to equity at their present fair value of $219thousand (valued at modification date under the Black - Scholes
pricing model, under the following assumptions: risk free interest rate4.53%-4.71%, expected term3.6-4years, expected price volatility
of100%-103%, fair value of an ordinary share of $1.55and0% dividend yield); consequently, the Company recognized $1,419thousand in
financial income for year 2024, resulting from the change in fair value of the warrants’ liability (an additional individual consented
to such a change on December 17, 2024 resulting with a reclassification to equity of $6thousand). The remaining liability of $10thousand
is presented among long-term liabilities.

  (b)      Following the issuance of warrants on January 25, 2024 (see A5) above), the Company determined that some                                  

Issuance costs were proportionally
allocated to the issued financial instruments based on the proceed amounts allocated to such instruments. Consequently, $473thousand
of issuance costs, that were allocated to the warrants, were carried directly to financial expenses.

F-26

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 - EQUITY(cont.):

  Warrants (cont.)  

The features of these warrants were
amended under an agreement with the holding investor which became effective on June 6, 2024. Consequently, the Company reclassified these
warrants to equity at their fair value of $481thousand (valued under the Black - Scholes pricing model under the following assumptions:
risk free interest rate4.3%, expected term4.6years, expected price volatility of100%, fair value of an ordinary share of $1.07and0% dividend yield) and recognized financial income from the change in their fair value of $2,695thousand.

  Share-based payments:  

  2013 Option Scheme  

In July 2013, the Company’s Board
approved a share option scheme that is intended to provide an incentive to retain or attract employees, directors, consultants and service
providers of the Company and its Affiliates and will be administered by the Board (“the 2013 plan”). On September 15, 2022,
the Board approved an amendment to the plan