BRAINSWAY LTD. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2020 U.S. DOLLARS IN THOUSANDS UNAUDITED INDEX Page Condensed Interim Consolidated Statements of Financial Position 2 Condensed Inter

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

OF SEPTEMBER 30, 2020

DOLLARS IN THOUSANDS

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

dollars in thousands (except share and per share data)

accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

dollars in thousands (except share and per share data)

accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

dollars in thousands (except share and per share data)

Net of issuance expenses of $ 2,290.

accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

dollars in thousands (except share and per share data)

accompanying notes are an integral part of the interim consolidated financial statements.

accompanying notes are an integral part of the interim consolidated financial statements.

TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Ltd. ("the Company"), was incorporated on November 7, 2006, is a commercial stage medical device company focused on

the development and sale of non-invasive Deep Transcranial Magnetic Stimulation ("Deep TMS") technology for the treatment

of neurological and addiction disorders. The Deep TMS system ("system") uses magnetic pulses to stimulate neurons

and consequently modulates the physiological activity of the brain.

January 2013, the first commercial Deep TMS system received clearance by the United States Food and Drug Administration ("FDA")

for the treatment of major depressive disorder ("MDD") in adults who failed to achieve satisfactory improvement from

anti-depressant medication. In August 2018, the Company received clearance of marketing authorization by the FDA for the adjunct

therapy for the treatment of obsessive-compulsive disorder (OCD) in adults.

August 24, 2020 Brainsway Ltd. announced that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA)

for the Company's deep transcranial magnetic stimulation ("Deep TMS") system for its use as an aid in short-term

smoking cessation in adults.

Company and its wholly owned subsidiaries, Brainsway, Inc., Moach R&D Services Ltd. ("Moach"), and Brainsway USA

Inc ("USA Inc"), collectively, the "Group," derive revenues from the sale and lease of its systems.

date, the financial impact on the Company's business has been moderate, and the Company has put in place a comprehensive

alternative commercial strategy to support growth initiatives while adhering to government and health regulatory guidelines. Additionally,

to date, there have been no significant disruptions to the supply chain, and the Company currently has sufficient supply of components

to assemble the Company's Deep TMS systems and meet commercial demand. However, the Company has experienced decreased commercial

activities which have affected the revenue from leases of the Company's Deep TMS systems due to slower initiation of certain

promotional activities associated with a significant decrease in in-clinic patient visits, tests and treatments and the impact

on our sales force's ability to engage with healthcare providers in an in-person setting, cancellation of events such as

industry conferences and limited local and international travel. The ability to successfully commercialize the Deep TMS system

for smoking addiction depends on in-clinic patient visits and the availability of diagnostics, both of which has have been negatively

affected by the pandemic. In addition, the COVID-19 pandemic has adversely affected and may continue to adversely affect the Company's

clinical and pre-clinical trials, including the ability to initiate and complete clinical and pre-clinical trials within the anticipated

timelines, and delays or difficulties in enrolling patients in clinical trials and recruiting clinical site investigators and

clinical site staff.

2: SIGNIFICANT ACCOUNTING POLICIES

interim consolidated financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting."

accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed

in the preparation of the Annual Consolidated Financial Statements.

of whether to classify a lease as a finance lease or an operating lease in accordance with the criteria stipulated in IFRS 16

requires significant judgment.

preparation of the financial statements requires management to make estimates and assumptions that have an effect on the application

of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses. Changes in accounting estimates

are reported in the period of the change in estimate.

key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed

by the Company that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial

year are discussed below.

grants received from the IIA are recognized as a liability if future economic benefits are expected from the research and development

activity that will result in royalty-bearing sales. There is uncertainty regarding the estimated future cash flows and discount

rate used to measure the amount of the liability.

Group uses a provision matrix to calculate the allowance for doubtful accounts based on expected credit losses (ECL's) for

trade receivables. The provision rates are based on days past due for its various customers. The provision matrix is initially

based on the Group's 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 ECLs is

sensitive to changes in circumstances and forecast economic conditions. The Group's historical credit loss experience and

forecast of economic conditions may also not be representative of customers' actual default in the future.

fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model

is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield

and risk-free interest rate.

and outstanding capital:

4: SHARE-BASED PAYMENTS

weighted average remaining contractual life for the options outstanding as of September 30, 2020 was approximately five years.

range of exercise prices for options outstanding as of September 30, 2020 was NIS 17.32 to NIS 31.19.

5: ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS ITEMS

reported in the financial statements for each group of similar products and services:

reported in the financial statements derived from the Company's country of domicile (Israel) and foreign countries based

on the location of the customers, are as follows:

6: EVENTS AFTER THE REPORTING PERIOD

Board of Directors has approved, subject to shareholder approval, to grant 180,000 RSUs to the CEO as an amendment to the terms

of employment of the CEO, in lieu of future grants of such RSUs per above.