Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 137

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 137
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 other noninvasive treatments for MDD (including anxious depression), OCD, and smoking addiction. Examples of noninvasive treatment
options in early development include low-intensity and low-frequency ultrasound (LIFU), transcranial laser therapy, and infrared therapy.
We cannot predict whether any of these or any other treatment options will succeed in clinical trials or be commercially marketable in
the future.

Intellectual
Property

See “Item 5. Operating and Financial Review
and Prospects - C. Research and Development, Patents and Licenses.”

Government Grants

As of December 31, 2024, we have received grants
from the IIA in an aggregate amount of approximately $13.4 million. We are currently required to pay 3% royalties of sales of our Deep
TMS products, which payment obligations do not currently exceed the amount of the grant received (in U. S. dollars), plus interest at an
annual rate equal to the LIBOR rate. As of December 31, 2024, we have paid royalties to the IIA in an aggregate amount of approximately
$6.2 million (including amounts in respect of accrued interest), with remaining outstanding royalties of up to $10.1 million.

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In addition, we received from MAGNET approvals for
grants in an aggregate amount of NIS 8.2 million (approximately $2.2 million based on the NIS to USD exchange rate as of December 31,
2024). There is no requirement to repay the grants or pay royalties thereon.

Manufacturing
and Supply

We manage all aspects of product supply through our
Jerusalem and/or U. S.-based operations teams. We manufacture our proprietary H-Coils and outsource the manufacture of certain components,
including the stimulator, the computer controlling the stimulator, cooling system, the helmet, and the arm of the helmet, which are produced
and tested to our specifications. We assemble Deep TMS systems at our headquarters in Jerusalem, U. S. warehouses and/or installation sites.
In some cases, we rely on third-party providers to provide components used in existing products and we expect to continue to do so for
future products. Our production activities also include manually assembling certain components of our devices for all required clinical
and commercial quantities, and the integration of all components into a functioning Deep TMS system.

We rely on suppliers for most of the components used
in manufacturing Deep TMS, including the computer controlling the stimulator,