Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 68

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 68
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 effect on our business, prospects, financial condition and results of
operation.

Risks Related
to Our Functions in Israel

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.

Certain material aspects of our business are located
in Israel, including our headquarters, our research and development and our manufacturing and assembling. 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.”
In addition, 71 of our employees are located in Israel. Accordingly, our business will be directly influenced by the political, economic,
and military conditions affecting Israel at any given time. Since the establishment of the State of Israel in 1948, a number of armed
conflicts have occurred between Israel and its neighboring countries. These conflicts involved missile strikes against civilian targets
in various parts of Israel and negatively affected business conditions in Israel. In addition, Israel faces threats from more distant
neighbors, in particular Iran. A change in the security and political situation in Israel and in the economy could impede our ability
to raise the funds required to finance our research and development plans and to create joint ventures with third parties, and could
otherwise have a material adverse effect on our business, operating results, and financial condition.

  39  

Our facilities, and those of some of our suppliers
including the outsourced contract manufacturer for our newer systems, are in range of rockets that may be fired from Lebanon, Syria or
the Gaza Strip into Israel. In the event that our facilities are damaged as a result of hostile action or hostilities otherwise disrupt
the ongoing operation of our facilities, our research and development activities, and our ability to deliver products to customers could
be materially and adversely affected. Our commercial insurance does not cover losses that may occur as a result of an event associated
with the security situation in the Middle East. Although the Israeli government is currently committed to covering the reinstatement value
of direct damages that are caused by terrorist attacks or acts of war, there can be no assurance that this government coverage will be
maintained, or if maintained, will be sufficient to compensate us fully for damages incurred. Any losses or damages incurred by us could
have a material adverse effect on our business, financial condition, and results of operations.

In October