Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 17

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 17
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has been developed under IIA, the Israeli Ministry of Economy and Industry, and the Israeli Ministry of Energy programs up to the total
amount of grants received and bearing interest i) the annual interest rate that applied at the time of the approval of the applicable
IIA file which applies to all of the funding received under that IIA approval for grants received before June 30, 2017 and ii) the 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%.

In
addition, in consideration for the support from the BIRD Foundation, the Israel-United States Binational Research and Development Foundation,
we are obligated, among other things, to pay annual royalties at a rate of 5% on all of the revenues deriving from the technology that
has been developed and up to a maximum ceiling of 150% of the amount of the grant, subject to the terms of the agreement with the BIRD
Foundation. Moreover, under the terms of our credit facility agreement with the EIB, we are required to pay annual royalties at a rate
of 2.0% on all gross sales of TES that we produce each quarter until a royalty cap of the amounts that have been disbursed under the facility
is reached. Furthermore, as part of our agreement with the New York Power Authority of the State of New York, or NYPA, we are obligated
pay annual royalties to NYPA of 5% from gross sales made, beginning June 1, 2022, until NYPA has been fully compensated for the expenditure
amounts agreed between the parties. The first payment was retroactive and included our gross sales from all applications since January
11, 2018.

If
we are able to generate revenues from the commercialization of our technology, the requirement that we pay royalties on certain projects
will impact the amount of revenue that we generate and may delay our efforts to become profitable.

Risks Related to Our
Intellectual Property

If we are unable
to obtain and maintain effective patent rights for our products and services, we may not be able to compete effectively in our markets.
If we are unable to protect the confidentiality of our trade secrets or