Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 31

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 31
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 negotiated
contracts with shipping companies, resulting in unexpected increases in shipping costs and reduction in our profitability. For example,
since late 2023, we needed to utilize more expensive air shipping methods in order to ensure timely delivery of capacitors, head caps,
and certain other components in our systems to avoid delays caused by the recent Houthi disruptions to traditional trade routes. In addition,
the geopolitical instability caused by the Ukraine war and by the Israel-Gaza and Israel-Hezbollah war (and related tensions with Israel’s
other neighboring countries) has resulted in several disruptions and delays in our global transportation channels, manpower and other
challenges at our outsourced manufacturer (which relies heavily on facilities and personnel located near the Israel-Lebanon border, a
region particularly susceptible to any skirmishes and other outbreaks of violence between Israel and Hezbollah and/or other northern
neighbors), as well as quantity limits and price increases. See “ - We rely on third parties, including suppliers for some
components used in manufacturing our Deep TMS products, distributors to market and promote our products internationally and third parties
to conduct our clinical trials, which exposes us to uncertainty and instability.” and “ - We have manufacturing,
assembly and other significant functions that are located in Israel and, therefore, our business and operations may be adversely affected
by political, economic and military conditions in Israel.”

In the period following the COVID-19 global pandemic,
as part of the global supply chain crisis, we have seen a significant rise in the price of many of the electronic components needed for
our systems. These price increases - which were initially caused by supply and demand factors, and, in some cases, shortages relating
to these parts across the globe - have subsequently remained elevated despite the fact that many of these challenges have since
improved. On a related point, the lead time for receiving certain specific electronic components shipped by suppliers has also increased
in recent years, compelling us to increase buffer inventory levels to ensure that future demand for our systems can be timely met. These
risks may be further exacerbated in light of geopolitical events, including the ongoing conflict between Russia and Ukraine, the Israel-Gaza
war, the Israel-Hezbollah war and potential related tensions with Israel’s other neighboring countries.

Expedited, reliable shipping is essential to our
operations. We rely heavily on providers of transport services for reliable and secure point-to-point transport of our products to our
customers and for tracking of these shipments. Should a carrier encounter delivery performance issues such as loss, damage or destruction