Brenmiller Energy(BNRG) - 2024 Q2 - Quarterly Report

Financial Performance - Net loss for the six months ended June 30, 2024, was $1,581,000, a significant improvement from a net loss of $5,328,000 in the same period of 2023, reflecting a 70.3% reduction[10] - Operating loss for the six months ended June 30, 2024, was $5,375,000, slightly improved from $5,418,000 in the prior year[10] - The company reported a comprehensive loss of $1,581,000 for the first half of 2024, compared to a comprehensive loss of $5,751,000 in the same period of 2023, showing a 72.5% improvement[10] - The company reported a net loss of $1,581 thousand for the six months ended June 30, 2024, compared to a net loss of $5,328 thousand in the same period of 2023[93] Assets and Liabilities - Total assets increased to $13,924,000 as of June 30, 2024, up from $10,594,000 as of December 31, 2023, representing a 31.0% growth[4] - Total liabilities decreased to $7,388,000 as of June 30, 2024, down from $7,714,000 at the end of 2023, a decline of 4.2%[7] - Shareholders' equity increased to $6,536,000 as of June 30, 2024, compared to $2,880,000 at the end of 2023, indicating a 127.8% rise[7] Cash Flow and Capital Raising - Cash and cash equivalents rose to $6,966,000, compared to $3,183,000 at the end of 2023, marking a 118.0% increase[4] - The company raised $5,651,000 from the issuance of shares and prefunded warrants during the first half of 2024[18] - The Company raised approximately $4.0 million from a public offering on January 25, 2024, with agent fees and expenses totaling $596 thousand[51] - The Company is exploring additional capital raising through private and public offerings, including the withdrawal of financing from the EIB and government grants[33] Research and Development - Research and development expenses for the first half of 2024 were $1,808,000, compared to $1,711,000 in the same period of 2023, reflecting a 5.7% increase[10] Operations and Market Activity - The Company has commenced the commercialization of its products and services in 2023, with a new production line expected to begin operations in the second half of 2024[26] - The ongoing regional conflict in Israel has disrupted operations, affecting supply chains and increasing costs, which could materially impact the Company's business and financial condition[28] - The company recognized revenue from engineering services provided to a customer in Europe, amounting to $387 thousand expected to be recognized in the second half of 2024[80] Shareholder and Equity Information - The weighted average number of ordinary shares outstanding increased to 3,510,328 in the six months ended June 30, 2024, from 1,765,142 in the same period of 2023[93] - The company granted 115,635 fully vested restricted shares (RS) valued at $158 thousand and share-based bonuses totaling $535 thousand during the six months ended June 30, 2024[58] - As of June 30, 2024, the total share-based compensation expenses amounted to $915 thousand, a decrease from $1,409 thousand in the same period of 2023[67] - The company has an unrecognized share-based compensation expense of $152 thousand to be recognized over the average remaining vesting period of one year[67] Financial Instruments and Agreements - The company recognized financial income of $1,419 thousand from the change in fair value of warrants' liability during the reporting period[51] - The company reclassified certain warrants from equity to liabilities at a fair value of $1,649 thousand due to a change in functional currency to the U.S. dollar[51] - The company reported a fair value adjustment of warrants amounting to $4,114 thousand for the six months ended June 30, 2024[88] - The company signed an amendment to the credit facility agreement with the European Investment Bank, extending the availability of €3.5 million for plant expansion to March 31, 2025[95] Investment Agreements - The Company entered into a definitive securities purchase agreement with Alpha Capital Anstalt for a private placement of 1,000,000 Ordinary Shares at a price of $1.05 per share[98] - The closing of the private placement is subject to conditions, including obtaining consent from an existing lender within 90 days[98] - The investor has a one-time future investment right to subscribe for an additional 1,000,000 Ordinary Shares at a price of $2.50 per share, triggered when the Company's Ordinary Shares close at or above $2.50 on Nasdaq[98] - The future investment right must be exercised within 12 months after the closing date of the initial placement[98] - Investors must notify the Company in writing by 4:00 PM (New York City time) on the fifth business day following the trigger date to undertake the future investment[98] - The agreement includes restrictions to ensure that the investor does not exceed a beneficial ownership limitation of 24.99% of the outstanding Ordinary Shares after the issuance[98]