Brainsway(BWAY) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company reported cash and cash equivalents of $69.6 million, an increase from$ 46.3 million as of December 31, 2023[520]. - The company achieved positive cash flows from operating activities of $10.3 million in 2024, compared to$ 1.3 million in 2023, marking an increase of $9.0 million[524]. - The net cash provided by investing activities was$ 30.3 million in 2024, a significant recovery from the $37.4 million used in 2023[525]. - Net cash provided by financing activities increased to$ 18.3 million in 2024, compared to $1.0 million used in 2023, primarily due to proceeds from a private placement[526]. - As of December 31, 2024, the company had an accumulated deficit of$ 98.4 million, reduced from $101.3 million in 2023[520]. - Finance income increased to$ 2.0 million for the year ended December 31, 2024, up from $1.0 million in 2023, primarily due to the remeasurement of warrants[517]. Capital Raising and Funding - The company raised approximately$ 20 million in November 2024 from a private placement, which is expected to support ongoing operations and marketing efforts[522]. - The company received grants from the IIA totaling approximately $13.4 million, with royalties paid amounting to$ 6.2 million as of December 31, 2024[528]. - The Valor Warrant allows for the purchase of 1,500,000 ADSs at an exercise price of $9.50686, which may be exercised if the ADS closing price exceeds the exercise price by 40%[531]. Intellectual Property and Technology - The company’s intellectual property portfolio includes 34 issued U.S. patents and 60 issued patents in other jurisdictions related to Deep TMS technology[535]. - The company owns a family of patent applications covering several H-Coils, including those used in MDD and OCD systems, with one pending patent application in the U.S. and five in other jurisdictions[549]. - The company has faced challenges in protecting its intellectual property, with potential risks related to patent applications and competition in the neuromodulation market[550]. - The company is actively involved in the commercialization of Deep TMS technology, with exclusive licenses for worldwide commercialization from PHS and Yeda[551]. Research and Development - The company has a strong focus on research and development, particularly in the field of TMS technology for treating depression, leveraging exclusive licenses from PHS and Yeda[559]. - The company expects revenue growth from the marketing of its Deep TMS system for MDD, OCD, and smoking addiction[522]. Compensation and Governance - The total compensation for all directors and officers for the year ended December 31, 2024, was approximately$ 4.9 million, with $3 million paid as salary[584]. - The five highest compensated officers received a total compensation ranging from$ 307,177 to $804,304, with the CEO Hadar Levy earning$ 804,304[588]. - The company has adopted a Compensation Recovery Policy to recover incentive-based compensation in case of accounting restatements[585]. - The compensation policy requires approval from the board and shareholders, with specific provisions for non-controlling shareholders[599]. - The company’s compensation committee is responsible for recommending compensation policies and reviewing their implementation every three years[644]. Board of Directors and Committees - The Board of Directors consists of eight independent directors, with terms lasting until the next annual general meeting[609]. - The audit committee consists of three members, all of whom must be independent directors, and is responsible for overseeing financial risk exposures and compliance with legal requirements[629][628]. - The company has established four standing committees: audit committee, compensation committee, nomination committee, and executive committee[621]. - The company complies with Nasdaq requirements for the composition of its audit committee and compensation committee, opting out of certain Israeli Companies Law requirements[620][625]. Employee Relations - As of December 31, 2024, the company had 120 employees, with 49 based in the United States and 71 in Israel[687]. - The company has never experienced any employment-related work stoppages and maintains a good relationship with its employees[688]. - The company provides benefits and working conditions beyond the required minimums as per employment-related laws and regulations[687].