Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 161

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 161
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 features on our current platform (including beta
testing of additional remote capabilities), pursue future confirmatory trials and data collection efforts for existing indications, and
seek FDA clearance for new indications such as fatigue in MS, addictions (including alcohol, cocaine and/or opioid addiction), pain and
other potential psychiatric and neurological indications. On November 5, 2024 we consummated a private placement of 2,103,745 ADSs and
warrants to purchase 1,500,000 ADSs to Valor, for aggregate immediate gross proceeds of approximately $20 million. We believe that our
existing cash resources will be sufficient to enable us to fund our operating expenses and capital expenditure requirements in the foreseeable future.

Components of Our Results of Operations

Revenues

We derive our revenues from the lease and sale of
our Deep TMS systems. We offer the following main pricing models:

  Sale Model: The Deep TMS system is sold to the customer for a fixed purchase  

  Fixed-fee Lease Model: The customer leases the Deep TMS system and pays a fixed        
  annual or monthly fee for the term of the lease (generally between 48 and 60 months).  
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Additional revenues may be generated from certain
customers in certain territories who are or may potentially be under a Pay Per Use model, whereby the customer pays a fixed fee per every
patient session during which the system is used. Further potential revenues may be derived from extended warranty fees paid for the system
for service coverage beyond the standard included warranty period, which is generally for one year, and from variable or usage fees based
on the number of treatments performed with the system.

We are also able to leverage our platform technology,
which includes the ability to treat multiple indications using different H-Coil helmets, to facilitate transactions utilizing combined
pricing models often involving a single system with one or more add-on helmets.

Our revenues from the operating
leases of our Deep TMS systems are recognized on a straight-line method over the term of the lease. Usage based fees, if applicable, are
recognized as revenue when we are entitled to receive such revenue. Our revenues from sales are recognized when control of the system
is transferred to the customer, generally upon delivery of the system.

Cost of revenues
and gross margin

Our cost of revenues includes a significant component
for the Deep TMS systems that we sell under our sales model. The cost of revenues for systems that we sell primarily consists of the