Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 131

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 131
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 both direct
and online marketing materials, which are all designed to increase the use of our systems for the authorized indications.

Commencing the year ended December 31, 2024, we increased our marketing efforts directed at large clinic
networks or chains and enterprise accounts and on multi-unit sales. While these transactions account for an increasing portion of our
installed-base and commercial pipeline, there is a correlating increased financial risk imposed by our reliance on these deals, particularly
in the event of customer default or delays in payment. See the section titled “ Risk Factors - Our long-term growth depends
on our ability to increase market penetration and further commercialize Deep TMS, as well as develop enhancements and features to the
Deep TMS system through our research and development efforts. If we fail to do so, we may be unable to achieve future growth.”

Outside
of the United States

Approximately 19% of our revenues for the fiscal
year ended December 31, 2024 and approximately 25% of our revenues for the fiscal years ended December 31, 2023 and 2022, were generated
outside of the United States. A significant part of our sales outside the United States are made indirectly with local distributors and
agents. Most of our sales outside the United States are made via the purchase model, although we lease some of our Deep TMS systems as
well, and in Israel we have several sites who have enlisted under a pay-per-use model. Our primary focus is on selling to hospitals, medical
centers and clinics dealing with the treatment of psychiatric neurological and addiction illnesses and disorders.

Our non-U. S. sales are managed both by our internal
team in Israel and by local agents in various countries. In Israel, we do not use a distributor and our sales team distributes directly
to our customers. We have exclusive distribution agreements in various territories, including, notably, in Canada, Japan, South Korea,
Thailand, Taiwan, the Philippines, Italy, Spain, Czech Republic, Greece and India, and are seeking new distribution partners for other
strategic markets. Under our distribution agreements, the distributor typically receives an exclusive right to commercialize our Deep
TMS system in the relevant territory. The exclusivity is contingent upon fulfillment of certain quotas, or pre-defined minimum orders
of a number of systems per period. We have the right to cancel the exclusivity of the distributor if the distributor fails to fulfill
the set targets. The distributor is required to pay us for each Deep TMS system