Company: BWAY
Filing Date: 2025-09-30
Form Type: 6-K
Source: 0001171843-25-006185
Chunk: 21

Company: Brainsway Ltd.
Filing Date: 2025-09-30
Form: 6-K
Chunk 21
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 may potentially be under a Pay Per Use model, whereby the customer pays a fixed fee per every
patient session during which the system is used. Further potential revenues may be derived from extended warranty fees paid for the
system for service coverage beyond the standard included warranty period, which is generally for one year, and from variable or
usage fees based on the number of treatments performed with the system.

| 4 |

We are also able to leverage our platform technology, which
includes the ability to treat multiple indications using different H-Coil helmets, to facilitate transactions utilizing combined pricing
models often involving a single system with one or more add-on helmets.

Our revenues from the operating leases of our Deep TMS systems
are recognized on a straight-line method over the term of the lease. Usage based fees, if applicable, are recognized as revenue when we
are entitled to receive such revenue. Our revenues from sales are recognized when control of the system is transferred to the customer,
generally upon delivery of the system.

Cost of revenues and gross margin

Our cost of revenues includes a significant component for
the Deep TMS systems that we sell under our sales model. The cost of revenues for systems that we sell primarily consists of the costs
of raw materials, including components purchased from our third-party contract manufacturers, and manufacturing and assembly of the components
that we perform ourselves. The entire cost of the Deep TMS system is recognized upon such sales. While we have previously used a third-party
stimulator for our Deep TMS systems, we developed and have received FDA clearance for our own proprietary stimulator for MDD (in May 2018),
OCD (in March 2019), and smoking addiction (in April 2021).

In the case of our other models, including our fixed-fee lease
model, where we maintain ownership of the Deep TMS systems and place our systems at sites for use by our customers, rather than selling
them outright. Cost of revenue for these models includes a significant component of depreciation of the Deep TMS systems. We expect to
continue to own our Deep TMS systems that have been placed under these models for the foreseeable future, which allows us to maintain
our relatively low cost of revenues for those systems.

The cost of revenues for systems that we lease or sell also
includes costs related to personnel, royalties to U.S. Public Health Service, or PHS, and Yeda Research and Development Company Ltd.,
or Yeda, the technology transfer arm of the Weizmann Institute of Science