Company: BWAY
Filing Date: 2025-09-30
Form Type: 6-K
Source: 0001171843-25-006185
Chunk: 9

Company: Brainsway Ltd.
Filing Date: 2025-09-30
Form: 6-K
Chunk 9
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On June 4, 2025, the Company entered into a strategic equity financing
agreement with Stella MSO, LLC (“Stella”)., a private, unlisted company providing services to mental health clinics. Under
the terms of the definitive agreement, BrainsWay invested $5,000 in Stella, in exchange for an approximately 5% minority stake holding
in the company in the form of a preferred, annually compounding security. The agreement also provides for a redemption mechanism relating
to the shares. This investment is classified as a financial asset under IFRS 9, measured at fair value through OCI.

As of June 30, 2025, the investment was carried at its initial cost
of $5,000 which approximates fair value. This assessment was based on the short period between the acquisition date and the reporting
date, the absence of observable market prices, and no material changes in Stella’s financial condition or operations.

The Company will reassess the fair value of the investment at each
future reporting period based on available financial and market data.

| c. | Warrants Liability: |

During the reporting period, the Company amended the terms of the
warrant originally issued to Valor BrainsWay Holdings, LLC (“Valor”) on November 5, 2024 (the “Valor Warrant”),
which included removal of the cashless exercise feature effective as of April 1, 2025. As a result of the amendment, the Valor Warrant was reclassified from
financial liability to an equity instrument on that date.

The table below presents the movement in the warrant liability:

| Schedule of warrants liability                                  |     |   | June 30, 2025 |   |
|:----------------------------------------------------------------|:----|:--|--------------:|:--|
| Balance as of January 1,                                        |     | $ |         2,429 |   |
| Gain from remeasurement to fair value through profit or loss    |     |   |          (303 | ) |
| Reclassified from a financial liability to an equity instrument |     |   |        (2,126 | ) |
| Balance as of June 30, 2025                                     |     | $ |             — |   |

| 7 |

BRAINSWAY LTD. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data