Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 60

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 60
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 takes the marketing requirement specifications
and converts them into technical and functional specifications which are the contract to the research and development stage.

Our
research and development activities work concurrently with the launching and engineering stages of already developed products. We plan
to increase our research and development activities in connection with the next generations of products that we are designed to deliver
higher densities, at higher temperatures of up to 1800 degrees Fahrenheit and offer better performance from our core TES technology. We
have received a grant from the IIA for this high-temperature development.

We
finance our research and development activity in part by investing our cash flow and in part by grants from the Israeli Ministry of Economy
and Industry, including grants from the IIA, the Israeli Ministry of Energy, the BIRD Foundation, and the NYPA. These grants are awarded
after examination of applications, which are submitted by our research and development managers. For more information, see “ Item
5. B. Liquidity and Capital Resources - Grants and other Funding Arrangements.”.

Financing
that is granted by the IIA is in the range of 30-50% of the submitted budget of the development of a particular product, which includes
the costs of manpower and the costs of the materials that are required to develop and manufacture a first prototype of the product. In
light of this government financing, we are required to comply with the provisions of the Israeli Encouragement of Research and Development
Law related to intellectual property and we are required to pay yearly royalties to the Israeli government at a rate of 3-5% on the revenues
generated from the sale of our products developed under an IIA program up to the total amount of the grants received from IIA plus the
relevant interest rate, if any. Under IIA regulations, grants received before June 30, 2017, bear the annual interest rate that applied
at the time of the approval of the applicable IIA file which will apply to all of the funding received under such IIA approval. Grants
received from the IIA after June 30, 2017, bear an annual interest rate based on the 12-month Secured Overnight Financing Rate, or SOFR,
or at an alternative rate published by the Bank of Israel plus 0.71513%. Grants approved after January 1, 2024, shall bear the higher
interest rate of (i) 12 months SOFR, plus 1%, or (ii) a fixed annual interest rate of 4