Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 28

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 28
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 product liability lawsuits alleging
that component failures, malfunctions, manufacturing flaws, design defects or inadequate disclosure of product-related risks or product-related
information resulted in an unsafe condition or injury to the patients.

Regardless of their merit or eventual outcome, product
liability claims may result in decreased demand for Deep TMS; injury to our reputation and brand; significant litigation costs or substantial
monetary awards to or costly settlements with patients; product recalls; loss of revenues; the inability to commercialize new indications,
enhancements, or features; and diversion of management attention from pursuing our business strategy.

We do not carry insurance for all categories of risk
that our business may encounter. Some of the policies we currently maintain include public liability, employer’s liability, property,
third party liability, umbrella, workers’ compensation, products and clinical trial liability, and directors’ and officers’
liability. We do not know, however, if these policies will provide us with adequate levels of coverage, particularly in light of the dynamic
and changing risk profile we face as a result of new business models, territories and ventures we pursue. Any significant uninsured liability
may require us to pay substantial amounts, which would adversely affect our cash position and results of operations. If a product liability
claim or series of claims is brought against us for uninsured liabilities or in excess of our insurance coverage, our business could suffer.
Any product liability claim brought against us, with or without merit, could result in the increase of our product liability insurance
rates or the inability to secure coverage in the future. In addition, a recall of some of our products, whether or not related to a product
liability claim, could result in significant costs and loss of customers.

In addition, we bear the risk of warranty claims
on the products we supply, often for the entire contract term for systems which we lease to customers, and generally for at least one
year for Deep TMS systems we sell to customers. There can be no assurance that we will have sufficient funds, devices, components and/or
personnel to cover future warranty claims. We may not be successful in claiming recovery of relevant components from our suppliers or
vendors in the event of a successful warranty claim against us by a customer and, to the extent recovered, such recovery from our vendor
or supplier may not be adequate. In addition, warranty claims brought by our customers related to third-party components may arise after
the termination of the warranty period we are eligible to receive from our suppliers, which could result in costs to us