Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 164

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 164
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 by observing the following
critical accounting policies:

Allowance f or Doubtful Accounts based on Expected Credit Losses on Trade Receivables

We apply a simplified approach and measure the loss allowance
in respect of our short-term financial assets, trade receivables, in an amount equal to the lifetime expected credit losses.

We record an allowance for doubtful accounts based on
expected credit losses for trade receivables. The allowance rates are based on days past due for our various customers. The allowance
is initially based on our historical observed default rates as well as forward-looking information. At each reporting date, the historical
observed default rates are updated and changes in the forward-looking estimates are analyzed. The amount of the allowance is sensitive
to changes in circumstances and forecasted economic conditions.

Impairment of inventory:

The net realizable value is determined based on management's evaluation including
forecasts and estimates as to the amounts expected to be realized from the sale or use of inventory. The possible effects on the financial
statements are the recognition of impairment loss or the reversal of impairment loss.

Determining the Fair Value of an Unquoted
Financial Asset or Liability - for the Warrants Liability

The fair value of unquoted financial assets or liability in Level 3 of the fair
value hierarchy is determined using valuation techniques, generally using future cash flows discounted at current rates applicable for
items with similar terms and risk characteristics. Changes in estimated future cash flows and estimated discount rates, after consideration
of risks such as liquidity risk, credit risk and volatility, are liable to affect the fair value of these assets of liability.

  96  

Recent Accounting
Pronouncements

The recent accounting pronouncements are set forth
in Note 2 to our audited consolidated financial statements beginning on page F-1 of this Annual Report.

  Operating Results  

Quarterly
Results of Operations

The following tables show our unaudited quarterly statements of operations
for the periods indicated. We have prepared this quarterly information on a basis consistent with our audited financial statements.

  Three months ended                                                                                                                    
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenues                                               10,005      11,414       6,625       7,829      9,029       7,970       8,006  
  Cost of revenues                                        2,468       2,903       1,792       2,095      2,290