Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 107

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 107
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 specifies that employees are entitled to severance payment, following the termination
of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month’s salary for each year of
employment, or a portion thereof.

The Company’s
liability for severance pay is covered by the provisions of Section 14 of the Israeli Severance Pay Law (“ Section 14”).
Under Section 14 employees are entitled to monthly deposits, at a rate of8.33% of their monthly salary, contributed by
the Company on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future
severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these
employees and the deposits under Section 14 are not recorded as assets on the consolidated statements of position.

The expenses recognized in 2024, 2023
and 2022 in relation to these contributions were $275thousand, $266thousand and $328thousands, respectively.

  Income Taxes  

Income taxes
are recognized using the asset and liability method whereby deferred tax asset and liability account balances are determined based on
differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse.

F-16

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: (cont.)

  Income Taxes (cont.)  

A valuation
allowance is recognized to the extent that it is more likely than not that the deferred taxes will
not be realized in the foreseeable future. The Company has provided a full valuation allowance with respect to its deferred tax assets.

The Company
follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition
by determining if the available evidence indicates that it is more likely than not that the position will be sustained on examination.
If this threshold is met, the second step is to measure the tax position as the largest amount that is greater than50% likely of being
realized upon ultimate settlement.

  Segments  

The
Company identifies operating segments in accordance with ASC Topic 280, “ Segment Reporting”. Accordingly, the Company has
determined that it has one operating and reportable segment - see also Note 14.

  New