Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 76

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 76
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ifies that the
right to receive consideration for “service inventions” can be waived by the employee and that in certain circumstances, such
waiver does not necessarily have to be explicit. In order to determine the scope and validity of such wavier, the Committee will examine,
on a case-by-case basis, the general contractual framework between the parties, using interpretation rules of the general Israeli contract
laws. Further, the Committee has not yet determined one specific formula for calculating this remuneration (but rather uses the criteria
specified in the Patents Law). As such, and although our employees have agreed to assign to us service invention rights, we may face claims
demanding remuneration in consideration for assigned inventions. As a consequence of such claims, we could be required to pay additional
remuneration or royalties to our current and/or former employees, or be forced to litigate such claims, which could negatively affect
our business.

  43  

The government
tax benefits that we currently are entitled to receive require us to meet several conditions and may be terminated or reduced in the future.

Some of our operations in Israel may entitle us
to certain tax benefits under the Law for the Encouragement of Capital Investments, 5719-1959, or the Investment Law, once we begin to
generate taxable income. If we do not meet the requirements for maintaining these benefits, they may be reduced or cancelled and the
relevant operations would be subject to Israeli corporate tax at the standard rate, which is currently set at 23%. In addition to being
subject to the standard corporate tax rate, we could be required to refund any tax benefits that we may receive in the future, plus interest
and penalties thereon. Even if we continue to meet the relevant requirements, the tax benefits that our current “ Technology Enterprise”
is entitled to may not apply in the future at their current levels or at all. If these tax benefits were reduced or eliminated, the amount
of taxes that we pay would likely increase, as all of our operations would consequently be subject to corporate tax at the standard rate,
which could adversely affect our results of operations. Additionally, if we increase our activities outside of Israel, for example, by
way of acquisitions, our increased activities may not be eligible for inclusion in Israeli tax benefits programs. See “Material
Tax Considerations - Israeli Tax Considerations and Government Programs” for additional information concerning these tax
benefits.

Your rights
and responsibilities as a shareholder will be governed by Israeli law, which