BrainsWay : Financial Report Q2 2023

BRAINSWAY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands

		June 30,			December 31,
		2023			2022
ASSETS		(Unaudited)			(Audited)
Current Assets
Cash and cash equivalents	$	43,168	$	47,581
Short-term deposits		271			271
Trade receivables, net		3,416			4,844
Inventory		3,301			3,837
Other current assets		1,914			1,556
		52,070			58,089
Non-Current Assets
System components		1,678			1,220
Leased systems, net		3,292			3,118
Other property and equipment		990			1,008
Other long-term assets		1,217			1,042
		7,177			6,388
	$	59,247	$	64,477
LIABILITIES AND EQUITY
Current Liabilities
Trade payables	$	539	$	1,116
Deferred revenues		1,984			1,477
Liability in respect of research and development grants		803			1,057
Derivative liabilities		102			-
Other accounts payable		4,031			4,491
		7,459			8,141
Non-Current Liabilities
Deferred revenues and other liabilities		4,858			4,923
Liability in respect of research and development grants		5,575			6,016
		10,433			10,939
Equity
Share capital		365			364
Share premium		140,551			138,146
Share-based payment reserve		3,826			6,180
Currency Translation Adjustments		(2,188)			(2,188)
Accumulated deficit		(101,199)			(97,105)
		41,355			45,397
	$	59,247	$	64,477

BRAINSWAY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

U.S. dollars in thousands (except per share data)

	For the three months ended			For the six months ended
		June 30,				June 30,
		2023			2022			2023			2022
		(Unaudited)				(Unaudited)
Revenues	$	7,829	$	8,006	$	14,454	$	15,976
Cost of revenues		2,095			2,192			3,887			4,059
Gross profit		5,734			5,814			10,567			11,917
Research and development expenses, net		1,902			1,731			3,687			3,307
Selling and marketing expenses		3,983			4,552			8,895			8,698
General and administrative expenses		1,192			1,539			2,995			3,402
Total operating expenses		7,077			7,822			15,577			15,407
Operating loss		(1,343)			(2,008)			(5,010)			(3,490)
Finance income (expense), net		(135)			(329)			1,272			(653)
Loss before income taxes		(1,478)			(2,337)			(3,738)			(4,143)
Taxes on income		185			113			356			300
Net loss and total comprehensive loss	$	(1,663)		$	(2,450)		$	(4,094)		$	(4,443)
Basic and diluted net loss per share	$	(0.05)	$	(0.07)	$	(0.12)	$	(0.13)

BRAINSWAY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	For the three months ended			For the six months ended
		June 30,				June 30,
		2023			2022			2023			2022
		(Unaudited)				(Unaudited)
Cash flows from operating activities:
Total comprehensive loss	$	(1,663)	$	(2,450)	$	(4,094)	$	(4,443)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to profit or loss items:
Depreciation and amortization		101			154			194			296
Depreciation of leased systems		239			246			472			491
Impairments and disposals		211			301			457			233
Finance expenses, net		199			329			(1,272)			653
Cost of share based payment		103			408			52			782
Income taxes		185			113			356			300
Total adjustments to reconcile loss		1,038			1,551			259			2,755
Changes in asset and liability items:
Decrease (increase) in trade receivables		1,928			(1,072)			1,435			(1,135)
Decrease (increase) in inventory		1,295			(792)			367			(2,105)
Increase in other accounts receivable		(390)			(257)			(612)			(318)
Increase (decrease) in trade payables		(46)			1,073			(581)			561
Increase in other accounts payable		(1,230)			(384)			(738)			(894)
Increase (decrease) in deferred revenues and other liabilities		(289)			(5)			411			268
Total changes in asset and liability		1,268			(1,437)			282			(3,623)
Cash paid and received during the period for:
Interest paid		(10)			(11)			(22)			(23)
Interest received		366			304			1,040			307
Income taxes paid		(4)			(263)			(11)			(266)
Total cash paid and received during the period		352			30			1,007			18
Net cash provided by (used in) operating activities:		995			(2,306)			(2,546)			(5,293)
Cash flows from investing activities:
Proceeds from (purchase of) property and equipment and system components, net		(1,497)			448			(1,431)			1,399
Withdrawal of (investment in) short-term deposits, net		-			40,304			-			40,254
Investment in long-term deposits, net		(14)			(2)			(16)			(5)
Net cash provided by (used in) investing activities		(1,511)			40,750			(1,447)			41,648
Cash flows from financing activities:
Repayment of liability in respect of research and development grants		(345)			-			(345)			(498)
Receipt of government grants		32			-			32			6
Repayment of lease liability		(64)			(150)			(130)			(298)
Issuance of share capital, net		-			-			-			1
Net cash used in financing activities		(377)			(150)			(443)			(789)
Exchange rate differences on cash and cash equivalents		10			(225)			23			(313)
Increase (decrease) in cash and cash equivalents		(883)			38,069			(4,413)			35,253
Cash and cash equivalents at the beginning of the period		44,051			14,105			47,581			16,921
Cash and cash equivalents at the end of the period	$	43,168	$	52,174	$	43,168	$	52,174
(a) Significant non cash transactions:
Recognition of new lease liability and right-of-use		183			123			207			123
Termination of lease liability and right-of-use		59			-			70			-

BRAINSWAY LTD.

A reconciliation of Adjusted EBITDA to net loss, the most directly comparable IFRS measure, is set forth below:

U.S. dollars in thousands (except share and per share data)

	For the three months ended			For the six months ended
		June 30,				June 30,
		2023		2022			2023		2022
		(Unaudited)				(Unaudited)
Net loss and total comprehensive loss	$	(1,663)	$	(2,450)	$	(4,094)	$	(4,443)
Finance (income) expense, net		135		329			(1,272)		653
Income taxes		185		113			356		300
Depreciation and amortization		101		154			194		296
Depreciation of leased systems		239		246			472		491
Cost of share based payment		103		408			52		782
Restructuring and litigation Cost		267		-			802		-
Adjusted EBITDA	$	(633)	$	(1,200)	$	(3,490)	$	(1,921)