Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 27

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 27
---
 otherwise not
perform satisfactorily in carrying out these activities; we could grant exclusive rights to our collaborators that would prevent us from
collaborating with others; we may be forced to terminate, litigate, and/or renegotiate arrangements with our collaborators due to default
on their obligations to us or due to their improper maintaining or defending our intellectual property rights or their use of our intellectual
property or proprietary information in a way that gives rise to actual or threatened litigation that could jeopardize or invalidate our
intellectual property or proprietary information or expose us to potential liability; our collaborators may have claims that we breached
our obligations to them which may result in termination, renegotiation, litigation or delays in performance of such arrangements; disputes
may arise between us and a collaborator that causes the delay or termination of the research, development, and/or commercialization of
our current or future products or that results in costly litigation or arbitration that diverts management attention and resources; collaborations
may be terminated, and, if terminated, may result in a need for additional capital to pursue further development or commercialization
of the applicable current or future products; collaborators may own or co-own intellectual property covering our products that results
from our collaborating with them, and in such cases, we would not have the exclusive right to develop or commercialize such intellectual
property; and a collaborator’s sales and marketing activities or other operations may not be in compliance with applicable laws
resulting in civil or criminal proceedings.

  16  

We bear the
risk of product liability lawsuits and warranty claims which might harm our business, may not be covered by our insurance policies or
may exceed our insurance policy coverage, and we may not have enough funds to cover such claims or lawsuits damages.

Our business exposes us to potential product liability
claims that are inherent in the testing, manufacture, sale, promotion, and use of medical devices for the treatment of MDD (including
reduction of comorbid anxiety symptoms, commonly referred to as anxious depression), OCD, smoking addiction, and other potential indications.
Our treatments are designed for patients who suffer from significant psychiatric, and neurological disorders, and addictions, and these
patients are more likely to experience significant adverse health outcomes, which could increase the risk of product liability lawsuits.
Furthermore, if physicians and other operators are not sufficiently trained in the use of our Deep TMS systems, they may misuse or ineffectively
use our system, which may result in unsatisfactory patient outcomes. We could become the subject of