Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 99

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 99
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The Group’s financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America
(“ U. S. GAAP”).

  Use of estimates in the preparation of financial statements:  

The preparation of consolidated financial
statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed
in the consolidated financial statements and accompanying notes. Estimates are primarily used for, but not limited to, valuation of share-based
compensation, useful lives of property, plant and equipment and royalty liabilities. Actual results could differ from those estimates,
and such differences may have a material impact on the Company’s financial position or results of operations.

  Principles of consolidation:  

The accompanying consolidated financial
statements include the accounts of Brenmiller Energy Ltd. and its wholly-owned subsidiaries. All intercompany balances and transactions
have been eliminated in consolidation.

  Joint venture  

The Company’s investment in
joint venture (“ JV”) in Spain (see Note 6), in which it has the ability to exercise significant influence is accounted
for under the equity method.

  Functional and presentation currency:  

Throughout 2023, the functional currency
of the Parent Company’s financial statements was the New Israeli Shekel (“ NIS”) and the presentation currency was the
U. S. Dollar ($). Effective January 1, 2024 the Company changed its functional currency to the U. S. dollar from the NIS. Prior to this change,
the Group’s presentation currency used in its consolidated financial statements was the U. S. Dollar ($), while translation differences
from NIS were carried to “ Other Comprehensive Income or Loss”.

This change was based on the assessment
by the Company’s management, that the dollar has become the primary economic environment in which the Company operates, after considering
several factors and changes in circumstances in 2023 including inter alia: the commercialization of the Company’s products, changes
in the composition of its cost of sales, available funds are mainly denominated in U. S. dollars, and the fact that the Company’s
principal source of financing, following the delisting of its shares from trading in TASE, is derived from the U. S. capital markets (Note
12B), and all of the Company’s budgeting is conducted mainly in U. S. dollars. The change in functional currency was accounted for
prospectively.

F-10

Brenmiller Energy Ltd.

NOTES TO THE CONS