Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 105

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 105
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 The Group’s contract
liabilities from contracts with customers consist primarily of deferred revenue.

  (1)      Revenue from sale of TES units  

The Company manufactures and sells TES
units based on the development and its technological know-how and patents. The Group sells the TES units as a finished product, either
under a sale contract with the customer or a sale type lease (see also Note 2T).

The sale of TES units is recognized at
a point in time when the Group delivers the product to the customer. Delivery of the TES units does not occur until the products have
been sent to the specified location, and the customer has received the products in accordance with the contract of sale and the Group
has objective evidence that all the criteria for receipt have been met.

  (2)      Revenue from rendering engineering services  

The Company provides, from time to time,
ancillary engineering services in connection with the potential sale of the TES units. Revenue from the provision of such services is
recognized in accordance with milestones performed.

  (3)      Revenue from licensing agreement  

The Company grants, at its discretion,
rights for production and / or distribution of the TES units in various countries around the world.

The granting of these rights can entitle
the Company to revenue, either from payment for production license and its use, and/or royalty income generated from the sale of the storage
units by the entity that received the production and distribution rights. Income from production license is recognized when the relevant
know-how is transferred to the licensee; royalties are recognized upon sale of units.

  Leases:  

1) The Company as a lessee

The Group leases buildings, offices and
vehicles under operating leases. Lease agreements are for a period of between3and5years, which includes extension options.

The Company determines if an arrangement
is a lease at inception, and recognizes right-of- use (“ ROU’) assets and current and non-current operating lease liabilities
in the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease
liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities
are recognized as of the commencement date based on the present value of lease payments over the lease term. Lease terms will include
options to extend or terminate the lease when it is reasonably certain that the Company will either exercise or not exercise the option
to renew or terminate the lease. The discount rate for