Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 104

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 104
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 the inclusion of any potential Ordinary Shares in the reported years would be anti-dilutive.

Potentially dilutive Ordinary Shares
result from the assumed exercise of options and warrants, using the “treasury stock” method, and the assumed vesting of restricted
share units.

  Share-based payment  

The Company measures all share-based
awards, including share options, restricted shares (“ RS”) and restricted share units (“ RSUs”), based on their
estimated fair value on the grant date for awards to its employees, directors and service providers.

The Company uses the Black-Scholes pricing
model to determine the fair values of share options. The option pricing model requires the input of highly subjective assumptions, including
the expected share price volatility and expected term. Any changes in these highly subjective assumptions would significantly impact the
share-based compensation expense. We measure the fair value of RSs and RSUs based on the grant-date share price of the underlying ordinary
share.

Share-based compensation expenses for
options and RSUs are recognized using the accelerated attribution method, over the requisite service period (primarily a four or three
years period for share options and one year for RSUs), net of estimated forfeitures. See Note 11 for further information.

  Revenue recognition:  

Revenues
are recognized in accordance with ASC 606; revenue from contracts with customers is recognized when control of the promised goods or services
is transferred to the customers, in an amount that the Company expects in exchange for those goods or services.

The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in
an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company
applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract,
(3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize
revenue when the performance obligation is satisfied.

F-14

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: (cont.)

  Revenue recognition (cont.):  

Deferred
revenue is mainly comprised of payment made on completion of certain milestones, prior to final delivery, or up-front fees. Amounts are
recorded as accounts receivable when the Company’s right to consideration is unconditional.