Brenmiller Energy(BNRG) - 2022 Q4 - Annual Report

Report Overview and Business Update This section provides an overview of Brenmiller Energy's operational achievements and strategic developments in 2022, alongside updates on key projects and R&D initiatives 2022 Highlights and Management Commentary Brenmiller Energy achieved significant operational progress in 2022, securing $9.2 million in orders, advancing key projects, and strengthening its financial position, with management optimistic about the $60 billion market - Received $9.2 million in commercial orders in 2022, with significant future growth anticipated based on the current project pipeline[2][4] - Management believes the company's current valuation is undervalued relative to its assets and a total addressable market estimated at $60 billion[5] - Key 2022 achievements include the commissioning of a utility-scale project with Enel, a major commercial sale to Philip Morris, and a successful Nasdaq listing in May 2022[3][4][7] - Management and existing investors have demonstrated strong confidence, with total investments reaching approximately $40 million to date, including a $3.6 million private placement in January 2023[3] Project Updates Brenmiller provided updates on key international projects, including the Enel and Philip Morris systems, new installations in the US and Brazil, and a green hydrogen MOU in Spain - Enel (Italy): A 24 MWh TES system at a combined cycle power plant is in the commissioning phase and expected to be fully operational by the end of H1 2023[8] - Philip Morris (Romania): A $9.2 million agreement for a 31.5 MWh bGen system is in progress, with basic engineering complete and a building permit expected by the end of Q2 2023[9] - SUNY Purchase (USA): A 0.5 MWh co-generation station installation with NYPA is complete and in the commissioning phase, with final delivery expected by the end of Q2 2023[10] - Fortlev (Brazil): A 1 MWh TES system using biomass has been designed, manufactured, and delivered[11] - Green Enesys & Viridi RE (Spain): Signed an MOU to perform engineering studies for incorporating bGen TES into proposed green hydrogen production facilities in Spain[12] Production Facility and R&D Brenmiller is expanding its production capabilities with a new Dimona facility, targeting 4,000 MWh annual capacity by late 2023, funded by a €7.5 million EIB credit facility, while net R&D expenses increased to $4.62 million in 2022 and are expected to rise - A new production facility in Dimona, Israel, is under construction and expected to have an annual production capacity of up to 4,000 MWh of bGen modules by the end of 2023[13] - The Dimona facility is financed through a non-dilutive €7.5 million credit facility from the European Investment Bank (EIB), with the first €4.0 million drawn in July 2022[13] R&D Expenses, Net | R&D Expenses, Net (in thousands USD) | 2022 | 2021 | | :--- | :--- | :--- | | Total R&D expenses | 4,893 | 4,966 | | Less – grants | (275) | (1,266) | | Research, development and engineering expenses, net | 4,618 | 3,700 | - The company expects research, development, and engineering expenses to materially increase as it continues to develop its storage units and bGen™ technology[16] Financial Performance This section details Brenmiller Energy's financial results, including its balance sheet and income statement, for the year ended December 31, 2022 Consolidated Statements of Financial Position (Balance Sheet) As of December 31, 2022, Brenmiller's financial position showed decreased total assets and equity, alongside increased liabilities primarily due to a new EIB loan - As of December 31, 2022, the company had cash and cash equivalents of $6.1 million, down from $8.3 million at the end of 2021[20][25] Key Balance Sheet Items | Key Balance Sheet Items (in thousands USD) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | 8,585 | 9,137 | | Total Assets | 12,383 | 14,596 | | Total Current Liabilities | 2,652 | 4,156 | | Total Liabilities | 9,719 | 9,053 | | Total Equity | 2,664 | 5,543 | - The company took on a new long-term loan from the European Investment Bank (EIB), with a balance of $3.97 million as of year-end 2022[25] Consolidated Statements of Comprehensive Loss (Income Statement) For 2022, Brenmiller reported increased revenues to $1.52 million, primarily from licensing fees, but higher operating expenses resulted in a wider operating loss of $11.63 million and a net loss of $11.07 million Key Income Statement Items | Key Income Statement Items (in thousands USD, except per share data) | 2022 | 2021 | | :--- | :--- | :--- | | Revenues | 1,520 | 395 | | Cost of Revenues | (1,935) | (4,051) | | R&D Expenses, Net | (4,618) | (3,700) | | General & Administrative Expenses | (4,465) | (2,586) | | Operating Loss | (11,628) | (11,066) | | Loss for the Year | (11,067) | (10,348) | | Basic Loss Per Share | ($0.76) | ($0.87) | - Revenues in 2022 were primarily driven by $1.5 million in licensing fees, a new revenue stream compared to 2021[28] - The operating loss widened due to increased R&D expenses (up to $4.6M from $3.7M), Marketing expenses (up to $1.2M from $0.7M), and General & Administrative expenses (up to $4.5M from $2.6M)[28]