Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 72

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 72
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 is developed using
IIA grants, the Encouragement of Research, Development and Technological Innovation in Industry Law 5744-1984, or the Innovation Law,
the IIA’s rules and guidelines as well as the terms of each of these grants, impose an obligation to pay royalties from any income
deriving from a product developed, in whole or in part, directly or indirectly, in the framework of a research and development program
funded by the IIA, including any derivatives and related services. Therefore, we are required to pay low single-digit royalties on the
sale of those of our products developed with this funding, which payments shall not exceed, in the aggregate, the amount of the grant
received (in U. S. dollars), plus interest at an annual rate based on LIBOR. In addition, the Innovation Law restricts our ability to manufacture
our products, and transfer know-how developed as a result of the IIA’s funded research and development, outside of Israel. In certain
cases, transfer of the IIA funded know-how outside of Israel requires pre-approval by the IIA, which may also impose certain conditions,
including payment of a redemption fee calculated according to the formulas provided in the IIA’s rules and guidelines, or the Redemption
Fee, which differentiate between certain situations (while in no event will the Redemption Fee be more than six (6) times the grants received
from the IIA plus interest). In addition, we may need or deem it beneficial to us to manufacture our products outside of Israel, in which
case prior approval from the IIA is required (such approval is not required for the transfer of less than 10% of the manufacturing capacity
in the aggregate), and we would be required to pay royalties at an accelerated rate and would be subject to payment of increased royalties,
as defined under the IIA’s rules and regulations (up to, in the aggregate, 300% of the amount of the grant received (dollar linked),
plus interest at annual rate based on LIBOR, depending on the manufacturing volume that is performed outside Israel less royalties already
paid to the IIA). Accordingly, we may be limited in our ability to manufacture outside of Israel, and the manufacture of our products
outside of Israel could have a material adverse effect on our business and results of operations.

The IIA has also published rules and guidelines with
respect to the grant to a foreign entity of the right to use know-how that was developed using the IIA’s grants, or