Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 36

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 36
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 the movement of components and raw material into Israel and our finished
products exported from Israel. Such disruption could materially adversely affect our business, prospects, financial condition, and results
of operations.

Furthermore,
the Israeli government is currently pursuing extensive changes to Israel’s judicial system. In response, individuals, organizations
and institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively impact the business
environment in Israel including due to reluctance of foreign investors to invest or conduct business in Israel, as well as to increased
currency fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets and other changes
in macroeconomic conditions. Such proposed changes may also adversely affect the labor market in Israel or lead to political instability
or civil unrest. To the extent that any of these negative developments do occur, they may have an adverse effect on our business, our
results of operations, financial condition and our ability to raise additional funds.

We expect to be
exposed to fluctuations in currency exchange rates, which could adversely affect our results of operations.

We
are exposed to foreign currency risk mainly with respect to revenue generated outside of Israel, the purchase of raw materials, foreign
subcontractors and advisors and royalty liabilities that are denominated or linked to dollars. Most of our expenses are denominated in
NIS, which expenses primarily include payroll expenses, the dollar and, to a lesser extent, the Euro. In the years ended December 31,
2024 and 2023, approximately 73% and 78%, respectively, of our expenses were denominated in NIS. Our NIS-denominated expenses consist
principally of salaries and related costs as well as other related personnel expenses. In addition, our lease and Israeli facility-related
expenses and certain engagements with other Israeli vendors are denominated in NIS. We anticipate that a portion of our expenses will
continue to be denominated in NIS. The appreciation of the NIS in relation to the dollar amounted to 0.6% for the year ended December
31, 2024 and the appreciation of the NIS in relation to the dollar amounted to 3.1% for the year ended December 31, 2023. We cannot predict
any future trends in the rate of depreciation or appreciation of the NIS against the dollar. Accordingly, we face exposure to adverse
movements in currency exchange rates.

We
expect to derive a significant portion of our revenues in dollars and in local currencies of customers outside