Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 71

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 71
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 emergency circumstances at any time. Since the initiation of the
Israel-Gaza war, several of our Israel-based employees were drafted to the Reserves for purposes of the war effort, including five employees
in 2023 and four in 2024. These employees hail from different departments across our organization, including R& D, manufacturing, and
finance. While some of these employees have been released, should they be re-drafted, or should the war expand and/or other circumstances
occur that would result in additional employees being drafted into the reserves, certain Israel-based functions, primarily including our
R& D and scientific operations could be impacted. These impacts could include delays in our ability to rollout next generation products,
and/or any planned redesigned components, features and/or capabilities on our existing products.

The termination
or reduction of tax and other incentives that the Israeli Government provides to domestic companies may increase the costs involved in
operating a company in Israel.

The Israeli government currently provides tax and
capital investment incentives to domestic companies, as well as grant and loan programs relating to research and development, and marketing
and export activities. In recent years, the Israeli Government has reduced the benefits available under these programs and the Israeli
Governmental authorities have indicated that the government may in the future further reduce or eliminate the benefits of those programs.
In connection with the increased defense expenses due to the Israel-Gaza war and other hostilities in Israel since October 2023, additional
budget cuts could be implemented, resulting in termination or reduction of grants and other benefits. We may take advantage of these benefits
and programs in the future, however, there is no assurance that such benefits and programs would continue to be available in the future
to us. If such benefits and programs were terminated or further reduced, it could have an adverse effect on our business, operating results,
and financial condition.

  41  

The Israeli
government grants that we received require us to meet several conditions, may restrict our ability to manufacture our Deep TMS systems
and transfer relevant know-how outside of Israel and require us to pay royalties, including increased royalties if we manufacture our
Deep TMS systems outside of Israel or payment of a redemption fee if we transfer relevant know-how outside of Israel.

We have received royalty-bearing grants from the
government of Israel through the Israel Innovation Authority (IIA) (formerly the Office of the Chief Scientist of the Ministry of Economy
and Industry), for the financing of a portion of our research and development expenditures in Israel. When know-how