0001171843-21-002565 | 20-F | XBRL Viewer

Net loss and total comprehensive loss

(6,479)

Expiration of share options

1,242

(1,242)

Cost of share-based payment

710

Ending Balance at Dec. 31, 2018

171

67,193

3,357

(2,188)

(61,581)

6,952

Net loss and total comprehensive loss

(10,328)

Issuance of shares, net

^[1]

26,271

26,333

Expiration of share options

185

(185)

Cost of share-based payment

1,263

Ending Balance at Dec. 31, 2019

233

93,649

4,435

(2,188)

(71,909)

24,220

Net loss and total comprehensive loss

(5,385)

Forfeiture of share options

^[2]

(187)

Exercise of share options

466

(466)

Expiration of share options

1,020

(1,020)

Cost of share-based payment

986

Ending Balance at Dec. 31, 2020

$ 233

$ 95,135

$ 3,748

$ (2,188)

$ (77,294)

$ 19,634

[1]	Net of issuance expenses of $ 2,290.
[2]	Represents amounts less than $ 1.

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

Significant Accounting Policies [abstract]

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Total comprehensive loss	$ (5,385)	$ (10,328)	$ (6,479)
Adjustments to profit or loss items:
Depreciation, amortization and impairment	1,499	1,741	463
Depreciation of leased systems	1,180	1,054	765
Withdrawal of lease due to termination of contract	(5)
Finance expenses, net	319	1,430	1,157
Cost of share-based payment	799	1,263	710
Income taxes	237	422	209
Total adjustments to reconcile profit (loss)	4,029	5,910	3,304
Changes in asset and liability items:
Increase in trade receivables	(7)	(2,634)	(419)
Decrease (increase) in other accounts receivable	(97)	136	(595)
Decrease in long-term prepaid expenses and other			(217)
Increase (decrease) in trade payables	(552)	175	859
Increase (decrease) in other accounts payable	515	(385)	482
Increase (decrease) in deferred revenues and other liabilities	320	555	(314)
Total changes in asset and liability	179	(2,153)	(204)
Cash paid and received during the year for:
Interest paid	(71)	(296)	(239)
Interest received	61	175	37
Income taxes paid	(249)	(552)	(192)
Total cash paid and received during the year	(259)	(673)	(394)
Net cash used in operating activities	(1,436)	(7,244)	(3,773)
Cash flows from investing activities:
Purchase of property and equipment and system components	(2,470)	(3,311)	(1,972)
Withdrawal of (investment in) short-term deposits, net		(120)	(50)
Withdrawal of long-term deposits, net	5	985	886
Net cash used in investing activities	(2,465)	(2,446)	(1,136)
Cash flows from financing activities:
Receipt (repayment) of loan from bank, net		(3,000)
Receipt of government grants	42	176	149
Repayment of liability in respect of research and development grants	(655)	(601)	(414)
Repayment of lease liability	(417)	(434)
Proceeds from issuance of shares, net		26,333
Net cash (used in) provided by financing activities	(1,030)	22,474	(265)
Exchange rate differences on cash and cash equivalents	218	(78)	(367)
Increase (decrease) in cash and cash equivalents	(4,713)	12,706	(5,541)
Cash and cash equivalents at the beginning of the year	21,674	8,968	14,509
Cash and cash equivalents at the end of the year	16,961	21,674	8,968
(a) Significant non-cash transactions:
Purchase of property and equipment on credit	23	183	280
Recognition of new lease liability and right-of-use	48
Termination of lease liability and right-of-use	(51)
long-term prepaid expenses not yet paid			$ 1,128

General

12 Months Ended

Dec. 31, 2020

General [abstract]

GENERAL

NOTE 1: GENERAL

a.	A general description of the Company and its activity:

Brainsway Ltd. (“the Company”) 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.

In 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 2019, the Company received clearance of marketing authorization by the FDA for the adjunct therapy for the treatment of obsessive compulsive disorder (OCD) in adults.

In 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.

Brainsway Ltd. (“the Company”) and its wholly owned subsidiaries, Brainsway, Inc. (“Inc”), Moach R&D Services Ltd. (“Moach”), Brainsway USA Inc (“USA Inc”), collectively (the “Group”) derive revenues from the sale and lease of its systems.

In an effort to contain and mitigate the spread of COVID-19 global pandemic, many countries around the world, including the U.S. and Israel, have imposed quarantines and restrictions on travel and mass gatherings to slow the spread of the virus and closed non-essential businesses and offices. As many local jurisdictions continue to have such restrictions in place, the Company’s ability to continue to operate its business may also be limited.

To 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.

c.	The Company has negative cash flows from operating activities and an operating loss of $ 1.4 million and $ 4.8 million for the year ended December 31, 2020, respectively. The Company’s management and board of directors believe that the Company has the current funding to finance its business activity according to its plans in the foreseeable future. See also Note 22 (c).

d.	The financial statements of the Company as of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020 were authorized for issuance in accordance with a resolution of the board of directors on April 19, 2021.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been applied consistently in the financial statements for all periods presented, unless otherwise stated.

a.	Basis of presentation of the financial statements:

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

The Company’s financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss.

The Company has elected to present the profit or loss items using the function of expense method.

b.	Consolidated financial statements:

The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (“subsidiaries”). Control is achieved when the Company has power over the subsidiaries, is exposed or has rights to variable returns from its involvement with the subsidiaries and has the ability to affect those returns through its power over the subsidiaries. In assessing control, the effect of potential voting rights is considered only if they are substantive. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases.

The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The accounting policies in the financial statements of the subsidiaries have been applied consistently and uniformly with those applied in the financial statements of the Company. Significant intragroup balances and transactions and gains or losses resulting from transactions between the Company and the subsidiaries are eliminated in full in the consolidated financial statements.

c.	Functional currency, presentation currency and foreign currency:

Functional currency and presentation currency:

The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions, is separately determined for each Group entity and is used to measure its financial position and operating results. The Group determines the functional currency of each Group entity. The Company’s functional and presentation currency is the US Dollar for all reported periods.

Transactions, assets and liabilities in foreign currency:

Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated to the functional currency using the exchange rate prevailing at the date when the fair value was determined.

d.	Cash equivalents:

Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the date of investment or with a maturity of more than three months, but which are redeemable on demand without penalty and which form part of the Group’s cash management.

e.	Short-term deposits:

Short-term deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents.

f.	Revenue recognition:

IFRS 15 “Revenue from Contracts with Customers” (“Standard”) introduces a five-step model that applies to revenue earned from contracts with customers. The accounting policy applied by the Company regarding revenue recognition according to IFRS 15 “Revenue from Contracts with Customers” (“Standard”) is as follows:

The Company generates revenues from the sale and lease of its systems. The Company sells its products mainly to end users and to a lesser extent to third-party distributors outside of the United States and does not provide return rights.

Revenues from sale of systems:

Revenue from sale of systems are recognized at the point in time when control of the system is transferred to the customer, generally upon delivery of the system to the customer.

Revenue from rendering of services:

Revenue from rendering of extended warranty services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company’s performance. The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability. Revenue from services were insignificant for all reported periods.

Contract liabilities:

A contract liability, presented as deferred revenues, is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. The Company elected to apply the practical expedient in IFRS 15 and does not provide disclosure of the remaining unsatisfied performance obligations with respect to contracts that have a term of up to one year. As of December 31, 2020, the Company has no unsatisfied performance obligation with a contract duration of more than one year.

Allocating the transaction price:

For contracts that consist of more than one performance obligation at contract inception, the Company allocates the contract transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer.

Revenues from lease of systems:

The Company generates revenue from leasing its systems usually for a term of up to four years either for a fixed annual fee, or a variable fee, which is determined based on the higher of: fees per treatment (i.e. usage based fees) or an annual minimum fee as stated in the contract. The classification of a lease as a finance lease or operating lease is determined based on the substance of the lease agreement, and the assessment is made at the inception date of the lease pursuant to the provisions of the Standard. Leases in which substantially all the risks and rewards incidental to ownership of the leased asset are not transferred to the lessee are classified as operating leases. Revenue from operating leases are recognized on a straight-line basis over the lease term. Usage based fees are recognized as revenue when the Company is entitled to receive such revenue.

g.	Government grants:

Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions.

Government grants received from the Israel Innovation Authority (“IIA”) and repayable to the IIA through royalty-bearing sales are recognized upon receipt as a liability if future economic benefits are expected to be derived from the research project, resulting in royalty-bearing sales due to the IIA.

A liability for the grant is first measured at fair value using a discount rate that reflects a market rate of interest. The difference between the amount of the grant received and the fair value of the liability is accounted for as a government grant and recognized as a reduction of research and development expenses. After initial recognition, the liability is measured at amortized cost using the effective interest method. Royalty payments are recorded as a reduction of the liability.

If no economic benefits are expected from the research activity, the grant received are recognized as a reduction of the related research and development expenses. In that event, the royalty obligation is treated as a contingent liability in accordance with IAS 37.

In each reporting date, the Company evaluates whether there is reasonable assurance that the liability recognized, in whole or in part, will not be repaid based on the best estimate of future sales and using the original effective interest method and, if so, the appropriate amount of the liability is derecognized against a corresponding reduction in research and development expenses.

Grants received from the IIA prior to January 1, 2009, which are recognized as a liability, are accounted for as forgivable loans in accordance with IAS 20, based on the original terms of the loan.

A forgivable loan from government is treated as government grant when there is reasonable assurance that the grant will be received and that the entity will meet the conditions for forgiveness of the full loan amount. Claims under the government grant relating to eligible expenses are presented as a reduction to the related expense.

Leases:

On January 1, 2019, the Company first applied IFRS 16, "Leases" ("the Standard"). The Company elected to apply the provisions of the Standard using the modified retrospective method (without restatement of comparative data).

The accounting policy for leases applied effective from January 1, 2019, is as follows:

The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration.

For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract.

Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases.

On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method.

On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term.

Following are the amortization periods of the right-of-use assets by class of underlying asset:

	Years
Lease facilities	2	to	3
Motor vehicles		3

The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36.

The accounting policy for leases applied until December 31, 2018, is as follows:

The criteria for classifying leases as finance or operating leases depend on the substance of the agreements and is determined at the inception of the lease in accordance with IAS 17.

Leases in which substantially all the risks and rewards of ownership of the leased asset are not transferred are classified as operating leases. Operating lease payments are recognized as an expense in profit or loss on a straight-line basis over the lease term.

i.	Taxes on income:

Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity.

Current taxes:

The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date, as well as adjustments required in connection with the tax liability in respect of previous years.

Deferred taxes:

Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes.

Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Temporary differences that can be deducted for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that utilization is probable.

Taxes that would apply in the event of the disposal of investments in subsidiaries have not been taken into account in computing deferred taxes, as long as the disposal of the investments in subsidiaries is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by subsidiaries as dividends have not been taken into account in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company’s policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability.

Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority.

j.	Leased systems, system components and other property and equipment, net:

The cost of self-constructed systems (leased systems) includes the cost of materials, direct labor and share-based payment, as well as any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

System components are stated at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Net realizable value is based on estimated selling prices less estimated costs to be incurred to completion and disposal. The impairment of leased systems and system components recognized in cost of revenues was $1,061, $1,191 and $340 for the years ended December 31, 2020, 2019 and 2018, respectively.

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

	%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment	6	-	15
Leasehold improvements		(*)

(*) Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.

The useful life and depreciation method of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate.

k.	Impairment of non-financial assets:

The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable.

If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset.

The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss.

An impairment loss of an asset is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss.

l.	Financial instruments:

Impairment of financial assets:

The Company evaluates at the end of each reporting period the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. The Company distinguishes between two types of loss allowances:

Debt instruments whose credit risk has not increased significantly since initial recognition, or whose credit risk is low - the loss allowance recognized in respect of this debt instrument is measured at an amount equal to the expected credit losses within 12 months from the reporting date; or

An impairment loss on debt instruments measured at amortized cost is recognized in profit or loss with a corresponding loss allowance that is offset from the carrying amount of the financial asset, whereas the impairment loss on debt instruments measured at fair value through other comprehensive income is recognized in profit or loss with a corresponding loss allowance that is recorded in other comprehensive income and not as a reduction of the carrying amount of the financial asset in the statement of financial position.

The Company has short-term financial assets such as trade receivables in respect of which the Company applies a simplified approach and measures the loss allowance in an amount equal to the lifetime expected credit losses.

Derecognition of financial assets:

A financial asset is derecognized only when the following criteria are met:

The contractual rights to the cash flows from the financial asset expire; or

The Company has transferred substantially all the risks and rewards deriving from the contractual rights to receive cash flows from the financial asset or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset; or

The Company has retained its contractual rights to receive cash flows from the financial asset but has assumed a contractual obligation to pay the cash flows in full without material delay to a third party.

Financial liabilities:

Financial liabilities within the scope of the standard are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability, excluding financial liabilities measured at fair value through profit or loss whose transaction costs are carried to profit or loss.

On the date of initial recognition, the Company classified financial liabilities measured at fair value through profit or loss. Changes in their fair value which can be attributed to changes in the Company’s credit risk profile are carried to other comprehensive income.

After initial recognition, the Company measures all financial liabilities at amortized cost, except for financial liabilities at fair value through profit or loss such as derivatives.

Derecognition of financial liabilities:

A financial liability is derecognized only when it is extinguished, that is when the obligation is discharged, cancelled or expires. A financial liability is extinguished when the debtor discharges the liability by paying in cash, other financial assets, goods or services; or is legally released from the liability.

Issue of a unit of securities:

The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit.

m.	Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement:

Level 1	—	quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	—	inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.

Level 3	—	inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data).

n.	Provisions:

A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

o.	Employee benefit liabilities:

Short-term employee benefits:

Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services. These benefits include salaries, paid annual and sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made.

Post-employment benefits:

The Group has defined contribution plans pursuant to Section 14 of the Severance Pay Law (“Section 14”) under which the Group pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods.

The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company’s liability for severance pay is covered by the provisions of. Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made on behalf of the employee with insurance companies. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheet.

Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense when contributed concurrently with performance of the employee’s services and no additional provision is required in the financial statements. See also Note 14.

p.	Share-based payment transactions:

The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment.

The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest.

The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option.

No expense is recognized for awards that do not ultimately vest.

q.	Research and development expenses:

Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the Company’s ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company’s ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2020, the Company has not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss.

r.	Net loss per share:

Net loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of Ordinary shares outstanding during the period.

Basic net loss per share includes only shares that are outstanding during the period.

Potential Ordinary shares are included in the computation of diluted net loss per share when such shares are dilutive. Potential Ordinary shares that are converted during the period are included in diluted net loss per share only until the conversion date and from that date in basic net loss per share.

Changes in accounting policies – initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards:

Amendments to IFRS 10 and IAS 28 regarding sale or transfer of assets between an investor and its associate or joint venture:

In September 2014, the IASB issued amendments to IFRS 10 and IAS 28 ("the Amendments") regarding the accounting treatment of the sale or transfer of assets (an asset, a group of assets or a subsidiary) between an investor and its associate or joint venture.

According to the Amendments, when the investor loses control of a subsidiary or a group of assets that are not a business in a transaction with its associate or joint venture, the gain will be partially eliminated such that the gain to be recognized is the gain from the sale to the other investors in the associate or joint venture. According to the Amendments, if the remaining rights held by the investor represent a financial asset as defined in IFRS 9, the gain will be recognized in full.

If the transaction with an associate or joint venture involves loss of control of a subsidiary or a group of assets that are a business, the gain will be recognized in full.

The Amendments are to be applied prospectively. A mandatory effective date has not yet been determined by the IASB but early adoption is permitted.

Amendment to IAS 16, "Property, Plant and Equipment":

In May 2020, the IASB issued an amendment to IAS 16, "Property, Plant and Equipment" ("the Amendment"). The Amendment prohibits a company from deducting from the cost of property, plant and equipment ("PP&E") consideration received from the sales of items produced while the company is preparing the asset for its intended use. Instead, the company should recognize such consideration and related costs in profit or loss.

The Amendment is effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The Amendment is to be applied retrospectively, but only to items of PP&E made available for use on or after the beginning of the earliest period presented in the financial statements in which the company first applies the Amendment. The company should recognize the cumulative effect of initially applying the Amendment as an adjustment to the opening balance of retained earnings at the beginning of the earliest period presented.

The Company estimates that the application of the Amendment is not expected to have a material impact on the financial statements.

Amendment to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets":

In May 2020, the IASB issued an amendment to IAS 37, regarding which costs a company should include when assessing whether a contract is onerous ("the Amendment"). According to the Amendment, costs of fulfilling a contract include both the incremental costs (for example, raw materials and direct labor) and an allocation of other costs that relate directly to fulfilling a contract (for example, depreciation of an item of property, plant and equipment used in fulfilling the contract).

The Amendment is effective for annual periods beginning on or after January 1, 2022 and applies to contracts for which all obligations in respect thereof have not yet been fulfilled as of January 1, 2022. Early application is permitted.

The Company estimates that the application of the Amendment is not expected to have a material impact on the financial statements.

Amendments to IFRS 9, IFRS 7, IFRS 16, IFRS 4 and IAS 39 regarding the IBOR reform:

In September 2019, the IASB published amendments to IFRS 9, "Financial Instruments", IFRS 7, "Financial Instruments: Disclosures" and IAS 39," Financial Instruments: Recognition and Measurement" (collectively - "the Amendment").

The Amendment permits certain temporary reliefs for entities applying hedge accounting for IBOR-based instruments which are affected by the uncertainty involving the expected interest rate benchmark reform. This reform has caused uncertainty relating to the timing and amounts of future cash flows from both hedging instruments and hedged items.

The Amendment is applicable for annual periods beginning on January 1, 2020.

The adoption of the Amendment did not have an effect on the Company's financial statements as of January 1, 2020. See Note 13.

Significant Accounting Judgments, Estimates and Assumptions Used In the Preparation of the Financial Statements

12 Months Ended

Dec. 31, 2020

Significant Accounting Judgments, Estimates and Assumptions Used In the Preparation of the Financial Statements [abstract]

SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS

NOTE 3: SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS

In the process of applying the significant accounting policies in the financial statements, the Group has made the following judgments, estimates and assumptions, which have the most significant effect on the amounts recognized in the financial statements:

a.	Judgments:

Classification of leases:

Evaluation 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.

b.	Estimates and assumptions:

The 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.

The key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed by the Group that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

●

Grants from the IIA:

Government 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.

●

Provision for allowance for doubtful accounts on trade receivables:

The 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. The information about the ECLs on the Group’s trade receivables is disclosed in Note 6.

●

Determining the fair value of share-based payment transactions:

The 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.

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2020

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

NOTE 4: CASH AND CASH EQUIVALENTS

	December 31,
	2020		2019
Cash for immediate withdrawal	$	15,457	$	11,640
Cash equivalents—short-term deposits (1)		1,504		10,034
	$	16,961	$	21,674

(1)	The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Short-Term Deposits

12 Months Ended

Dec. 31, 2020

Short-term Deposits [abstract]

SHORT-TERM DEPOSITS

NOTE 5: SHORT-TERM DEPOSITS

	December 31,
	2020		2019
Bank deposits (1)	$	221	$	221

(1)	Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Trade Receivables, Net

12 Months Ended

Dec. 31, 2020

Trade and other receivables [abstract]

TRADE RECEIVABLES, NET

NOTE 6: TRADE RECEIVABLES, NET

a.	Trade receivables, net:

	December 31,
	2020			2019
Open accounts (1)	$	6,906		$	6,279
Credit cards		108			158
Less—allowance for doubtful accounts		(1,432	)		(930	)
Trade receivables, net	$	5,582		$	5,507

(1)	Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Impaired debts are accounted for through recording an allowance for doubtful accounts.

b.	Movement in allowance for doubtful accounts:

	U.S. dollars in thousands
Balance as of January 1, 2019	$	335
Provision for the year		835
Derecognition of bad debts		(240	)
Balance as of December 31, 2019		930
Provision for the year		1,058
Derecognition of bad debts		(556	)
Balance as of December 31, 2020	$	1,432

Following is information about the credit risk exposure of the Company’s trade receivables:

December 31, 2020:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	1,757	$	978	$	673	$	670	$	418	$	2,518	$	7,014
Allowance for doubtful accounts	$	4	$	5	$	7	$	33	$	159	$	1,224	$	1,432
Trade receivables, net		1,753		973		666		637		259		1,294	$	5,582

December 31, 2019:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	2,619	$	1,133	$	544	$	461	$	247	$	1,433	$	6,437
Allowance for doubtful accounts	$	7	$	11	$	8	$	32	$	69	$	803	$	930
Trade receivables, net		2,612		1,122		536		429		178		630	$	5,507

As of December 31, 2020, the Company has over 90 days past due trade receivables, net of $ 1,553, of which $ 1,517 were paid between the reporting date and the date of the approval of the financial statements. The Company expects to collect the entire net amount of these debts.

Other Accounts Receivable

12 Months Ended

Dec. 31, 2020

Other Accounts Receivable [Abstract]

OTHER ACCOUNTS RECEIVABLE

NOTE 7: OTHER ACCOUNTS RECEIVABLE

	December 31,
	2020		2019
Government authorities	$	212	$	378
Accrued income-IIA		208		71
Consumables		442		306
Prepaid expenses and other		672		672
	$	1,534	$	1,427

Property and Equipment, Net

12 Months Ended

Dec. 31, 2020

Property, plant and equipment [abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 8: PROPERTY AND EQUIPMENT, NET

December 31, 2020:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets			Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2020	$	8,151			3,117			831		1,414			90		52			13,655
Additions		—			3,989			14		48			6		—			4,057
Transfer to Leased systems		1,580			(1,580	)		—		—			—		—			—
Reductions		(1,111	)(**)		(1,884	)(***)		—		(127	)		—		—			(3,122	)
Balance at December 31, 2020		8,620			3,642			845		1,335			96		52			14,590

Accumulated depreciation:
Balance at January 1, 2020		2,660		$	—		$	694	$	460		$	50	$	52		$	3,916
Additions		1,180			—			81		351			6		—			1,618
Reductions		(418	)		—			—		(76	)		—		—			(494	)

Balance at December 31, 2020		3,422			—			775		735			56		52			5,040

Depreciated cost at December 31, 2020	$	5,198		$	3,642		$	70	$	600		$	40	$	—	(*)	$	9,550

December 31, 2019:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2019	$	6,369		$	2,717		$	794	$	1,414	$	82	$	52		$	11,428
Additions		—			5,521			37		—		8		—			5,566
Transfer to Leased systems		2,150			(2,150	)		—		—		—		—			—
Reductions		(368	)(**)		(2,971	)		—		—		—		—			(3,339	)
Balance at December 31, 2019		8,151			3,117			831		1,414		90		52			13,655

Accumulated depreciation:
Balance at January 1, 2019		1,679			—			613		—		44		52			2,388
Additions		1,054			—			81		460		6		—			1,602
Reductions		(73	)		—			—		—		—		—			(73	)

Balance at December 31, 2019		2,660			—			694		460		50		52			3,916

Depreciated cost at December 31, 2019	$	5,491		$	3,117		$	137	$	954	$	40	$	—	(*)	$	9,739

(*)

Represents an amount lower than $ 1

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $1,061 for the year ended December 31, 2020.

Fair Value Measurement

12 Months Ended

Dec. 31, 2020

Fair Value Measurement [abstract]

FAIR VALUE MEASUREMENT

NOTE 9: FAIR VALUE MEASUREMENT

The following table presents the fair value measurement hierarchy for the Group’s assets and liabilities.

Quantitative disclosures of the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2020 and 2019:

		Fair value hierarchy
	Valuation date	Level 1		Level 2		Level 3		Total
Liabilities measured at fair value:
Liability in respect of warrants	31.12.2020	$	—	$	38	$	—	$	38

Liability in respect of warrants	31.12.2019	$	—	$	78	$	—	$	78

The fair value of the warrants for the years ended December 31, 2020 and 2019 was estimated using the Binomial model with the following assumptions:

	Year ended December 31,
	2020			2019
Dividend yield (%)		0			0
Expected volatility (%)		56.58	%		40.24	%
Risk-free interest rate (%)		0.12	%		1.61	%
Expected life (years)		1.75			2.76

Trade Payables

12 Months Ended

Dec. 31, 2020

Trade and other payables [abstract]

TRADE PAYABLES

NOTE 10: TRADE PAYABLES

	December 31,
	2020		2019
Open debt	$	781	$	1,320

Trade payables are non-interest bearing and are normally settled on up to 90 day terms.

Other Accounts Payable

12 Months Ended

Dec. 31, 2020

Other Accounts Payable [abstract]

OTHER ACCOUNTS PAYABLE

NOTE 11: OTHER ACCOUNTS PAYABLE

	December 31,
	2020		2019
Employee and payroll accruals	$	972	$	1,216
Accrued expenses		2,266		1,620
Tax payable		—		1
Liabilities to related parties (1)		102		128
Lease liabilities		429		414

	$	3,769	$	3,379

(1)

A current non-interest bearing account.

Non-Current Liabilities

12 Months Ended

Dec. 31, 2020

Non-Current Liabilities [Abstract]

NON-CURRENT LIABILITIES

NOTE 12: NON-CURRENT LIABILITIES

Composition:

	December 31,
	2020		2019
Warrants (c)	$	38	$	78
Liability in respect of research and development grants(d)		5,524		5,367
Deferred revenues and other liabilities		1,772		1,690
Lease liabilities(b)		243		663

	$	7,577	$	7,798

Lease liabilities:

	December 31, 2020
Maturity analysis:
Less than one year		463
One to five years		312
Total lease commitments		775
Impact of discounting remaining lease payments		(103	)
Total lease liabilities as of December 31, 2020		672

Lease liabilities as of December 31, 2020:		672
Current		429
Non-current		243

Total	$	672

	December 31, 2019
Maturity analysis:
Less than one year		525
One to five years		1,106
Total lease commitments		1,631
Impact of discounting remaining lease payments		(217	)
Total lease liabilities as of January 1, 2019		1,414

Lease liabilities as of December 31, 2019:		1,077
Current		414
Non-current		663

Total	$	1,077

Loan from bank:

On August 17, 2017, the Company entered into an agreement for the receipt of a bank credit facility of up to $ 6,000 (the “Bank Credit Facility”). $ 3,000 was withdrawn during 2018 (“the first facility”) and bear annual interest of 3-months LIBOR plus 6%. The remaining credit facility (“the second facility”) may be withdrawn until March 15, 2018 bearing annual interest 3-months LIBOR plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively. Also, according to the agreement, the Company will grant the bank warrants to purchase its ordinary shares for the total exercise price of up to $ 600. The warrants are exercisable for a period of five years from the date of any grant at an exercise price of $ 5.02 per share to be settled in cash or a cashless exercise mechanism.

On October 3, 2017, the Company granted the bank 59,761 warrants at an aggregate exercise price of $300 as a condition for receiving the first facility.

The fair value of the warrants at the grant date was estimated at $ 150 and the remaining balance of $2,850 was attributed to the loan. Transaction costs of $ 156 were allocated based on to the relative fair value of the warrants and loan. The warrants are classified as a financial liability and measured at fair value through profit or loss.

The remaining warrants will be granted on the date of withdrawal of the loan from the second facility, so that the exercise amount will constitute 10% of the loan actually withdrawn from the second facility. The Company is entitled to make an early repayment of all or part of the loans. In such a case, the Company will pay the bank an early repayment fee as detailed in the agreement.

As part of the agreement, and as a condition for using the first and second facilities, the Group undertook to provide the bank fixed and floating charges on all its assets, including property, cash, goodwill, intellectual property, rights and assets of any kind. In addition, the Group undertook to sign a guarantee letter, unlimited in amount, to secure the loans that will be provided by virtue of the agreement. Also, a senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited (“the deposited amount”). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date.

In accordance with the amendments to the agreement signed up to March 14, 2019, loans under the Second facility may be withdrawn until May 30, 2019. The other terms of the first and second facility remain unchanged.

On May 5, 2019, following the Company's initial public offering, the Company repaid the balance of the loan.

Government grants:

In July 2020, the Company received $638 as a loan from the Paycheck Protection Program in the United States (the “Program”). The terms of the Program provide that a portion of the loan may be forgiven, to the extent that the amounts spent during the eight-week period were on qualifying expenses (“Program Expenses”). The unforgiven part of the loan must be repaid within two years and bears interest at 1% per annum. The Company used the entire proceeds to pay Program Expenses and received approval for the loan forgiveness. Therefore, the loan has been recorded as a grant against the related Program Expenses.

Moach received from the Israeli Government participation grants in research and development and, in return, it is currently obligated to pay royalties amounting to 3% of sales of products from such grants up to 100% of total grants received.

As of December 31, 2020, the maximum royalties payable by the Company in the future in respect of active projects is $12,548, including interest at the LIBOR rate. Through December 31, 2020, royalties paid were $2,624.

Financial Instruments

12 Months Ended

Dec. 31, 2020

Disclosure of detailed information about financial instruments [abstract]

FINANCIAL INSTRUMENTS

NOTE 13: FINANCIAL INSTRUMENTS

Classification of financial assets and financial liabilities:

The financial assets and financial liabilities in the statement of financial position are measured at amortized cost, except financial liabilities in respect of warrants at fair value through profit or loss. The balance of financial liabilities in respect of warrants as of December 31, 2020 and 2019 was $ 38 and $78, respectively.

Financial risks factors:

The Group’s activities expose it to various financial risks such as market risks (foreign currency risk, interest risk), credit risk and liquidity risk. The Group’s comprehensive risk management plan focuses on activities that reduce to a minimum any possible adverse effects on the Group’s financial performance.

The Company’s Chief Financial Officer oversees the management of these risks in accordance with the policies approved by the board of directors.

Market risks:

Foreign currency risk:

The currency exposure arises from current accounts and deposits that are mainly managed in NIS and from liability in respect of employee payroll accruals that are paid in NIS.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term liabilities in respect of government grants received from IIA.

Regulators in many countries are in the process of replacing benchmark Interbank Offered Rates (IBORs), of which one of the most common is the LIBOR, with risk-free interest rate alternatives (RFRs). The replacement of IBORs with RFRs is expected to occur gradually until the end of 2021.

The repayment of grants received by the Company from 2020 have interest rate that reference LIBOR and are expected to be repaid after 2021. As of December 31, 2020, the carrying amount of the financial liabilities is $300. Since an alternative interest rate was not determined by the IIA yet, at this stage the Company is unable to determine the effects, if any, that the discontinuance of IBORs will have on its financial instruments that reference the IBORs.

Credit risk:

Credit risk is the risk that a counterparty will not meet its obligations as a customer or under a financial instrument leading to a loss to the Group. The Group is exposed to credit risk from its operating activity (primarily trade receivables).

Liquidity risk:

The Group monitors its risk of a shortage of cash using a quarterly budget.

The table below presents the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

December 31, 2020:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	781	$	—	$	—	$	—	$	—	$	—	$	781
Other accounts payable		3,340		—		—		—		—		—		3,340
Liability in respect of research and development grants		388		713		893		1,261		1,793		8,108		13,156
Lease liability		463		299		13		—		—		—		775

	$	4,972	$	1,012	$	906	$	1,261	$	1,793	$	8,108	$	18,052

December 31, 2019:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	1,320	$	—	$	—	$	—	$	—	$	—	$	1,320
Other accounts payable		2,965		—		—		—		—		—		2,965
Long-term liabilities		1		1		—		—		—		—		2
Liability in respect of research and development grants		810		1,050		1,335		1,635		1,980		6,792		13,602
Lease liability		572		449		271		—		—		—		1,292

	$	5,668	$	1,500	$	1,606	$	1,635	$	1,980	$	6,792	$	19,181

Fair value:

The carrying amount of cash and cash equivalents, short-term deposits, trade receivables, other accounts receivable, trade payables, other accounts payable, warrants, long-term liabilities approximate their fair value.

Financial liabilities measured at fair value:

December 31, 2020:

	Level 2
Opening balance at January 1, 2020	$	78
Amounts transferred to the statement of comprehensive loss as finance income		(40	)

Closing balance at December 31, 2020	$	38

During 2020, 2019 and 2018, there were no transfers between levels of the fair value hierarchy.

Sensitivity tests relating to changes in foreign currency:

	December 31,
	2020			2019
Sensitivity test to changes in the NIS exchange rate:
Gain (loss) from the change:
Increase of 5% in exchange rate		(50	)		(88	)
Decrease of 5% in exchange rate		50			88

As of December 31, 2020, the Company has excess of financial assets over financial liabilities in NIS in relation to US dollar of $ 2,001.

As of December 31, 2020, the Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $ 3,198 and $ 437, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company.

Sensitivity tests and principal work assumptions:

The selected changes in the relevant risk variables were determined based on management’s estimate as to reasonable possible changes in these risk variables.

The Company has performed sensitivity tests of principal market risk factors that are liable to affect its reported operating results or financial position. The sensitivity tests present the profit or loss in respect of each financial instrument for the relevant risk variables chosen for that instrument as of each reporting date. The test of risk factors was determined based on the materiality of the exposure of the operating results or financial condition of each risk with reference to the functional currency and assuming that all the other variables are constant.

Employee Benefits and Liabilities

12 Months Ended

Dec. 31, 2020

Employee Benefits and Liabilities [Abstract]

EMPLOYEE BENEFITS AND LIABILITIES

NOTE 14: EMPLOYEE BENEFITS AND LIABILITIES

Employee benefits consist of short-term and post-employment benefits.

Defined contribution plans:

Section 14 to the Severance Pay Law, 1963 applies to all of the Company’s employees pursuant to which the fixed contributions paid by the Group into pension funds and/or policies of insurance companies release the Group from any additional liability to employees for whom said contributions were made. These contributions benefits represent defined contribution plans.

Expense in respect of defined contribution plans was $258 and $325 for the years ended December 31, 2020 and 2019, respectively.

Taxes on Income

12 Months Ended

Dec. 31, 2020

Taxes on Income [Abstract]

TAXES ON INCOME

NOTE 15: TAXES ON INCOME

Tax rates applicable to the Company and subsidiaries:

Tax rate applicable to Company and Moach:

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2018 and 2019 Budget Years), 2018 was approved, which reduces the corporate income tax rate to 24% (from 25%) effective from January 1, 2018 and to 23% effective from January 1, 2019.

The Israeli corporate income tax rate was 23% for 2018 and thereafter.

A company is taxable on its real capital gains at the corporate income tax rate in the year of sale.

Tax rate applicable to USA Inc and Inc:

The weighted tax rate for 2018 and thereafter for companies incorporated in the US was 27% and 35%-40% (Federal, State and City tax of the city where the company operates), respectively.

On December 22, 2018, the Tax Cuts and Jobs Act (the “Act”) was enacted into law. The income tax effects of changes in tax laws are recognized in the period when enacted. The Act provides for numerous significant tax law changes and modifications with varying effective dates, which include reducing the corporate federal income tax rate from 35% to 21%, creating a semi-territorial tax system (with a one-time mandatory tax on previously deferred foreign earnings), broadening the tax base and allowing for immediate capital expensing of certain qualified property.

The Act also changed to a semi-territorial system. As a result, a one-time transition tax is imposed on the accumulated earnings and profits of the foreign subsidiaries of the US entities. The Company’s subsidiaries in the United States do not have any profitable foreign subsidiaries and, therefore, the remaining provisions of the Act have no material impact on the Company’s results of operations.

The main differences between the statutory corporate tax rate and the effective tax rate are carryforward losses in Israel in respect of which no deferred taxes were recorded and a current tax expense in respect of income of USA Inc and Inc.

Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 (“Law”) and Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 73):

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2018 and 2019 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the amendment”) was published. According to the amendment, a “beneficiary enterprise” located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2018 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).

The amendment also prescribes special tax tracks for technological enterprises, which became effective in 2018, as follows:

Technological preferred enterprise—an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the amendment, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - 7.5%).

Any dividends distributed to a “foreign company”, as defined in the amendment, deriving from income from the technological preferred enterprise will be subject to tax at a rate of 4%.

The Law for the Encouragement of Industry (Taxation), 1969:

Moach has the status of an “industrial company”, as defined by this law. According to this status and by virtue of regulations published thereunder, the Company is entitled to claim a deduction of accelerated depreciation on equipment used in industrial activities, as determined in the regulations issued under the Inflationary Law. The Company is also entitled to amortize a patent or rights to use a patent or intellectual property that are used in the enterprise’s development or advancement, to deduct issuance expenses for shares listed for trading and to file a consolidated report under certain conditions.

Subject to meeting criteria determined in the Law and amendment, at the time Moach becomes profitable for tax purposes, Moach will be entitled to various corporate tax benefits, as implied by the Law and amendment.

Tax assessments:

The Company received final tax assessments through the 2015 tax year. The subsidiary, Moach, received final tax assessments through 2015. The subsidiary, Inc, received final tax assessments through the 2017 tax year.

Carryforward losses for tax purposes:

Carryforward losses for tax purposes as of December 31, 2020 are approximately $4.0 million in Brainsway Ltd. and approximately $49.3 million in Moach.

Deferred taxes:

As it is not probable that taxable income will be derived in the next years, a valuation allowance was established in respect of deferred taxes of the above carryforward losses.

Contingent Liabilities, Commitments and Charges

12 Months Ended

Dec. 31, 2020

Disclosure of contingent liabilities [abstract]

CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES

NOTE 16: CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES

As for contingent liability in respect of payment of royalties to the IIA, see Note 12d.

The Company entered into a few distribution agreements with third parties regarding different territories around the world. According to these distribution agreements, the third parties are granted the exclusive right to market, distribute, lease and/or sale, use and promote sales of the systems in the different territories up to a 15 year period. The Company will supply the systems to the distributors and they will install, train and maintain the systems in the territory they operate. The different distributors are committed to minimum quantities as stated in the agreements.

In September 2013, the Company entered into a distribution agreement in Japan with Century Medical Inc., a member of the Itochu concern, which specializes in the import and distribution of medical systems and equipment in Japan. According to the agreement, the distributor was granted the exclusive right to market the Company’s system for the treatment of major depression in patients in Japan for a ten year period which begins after the required regulatory approvals for marketing the system in Japan and after either obtaining reimbursement or deployment of a commercial product to a clinical site. If the distributor meets the minimum quantities which it has committed during the contractual term, the agreement will be extended for an additional five years period. The distributor is granted a right of first offer to distribute the Company’s system in Japan without further codification.

In consideration for the above, the distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen (approximately $1 million as of December 31, 2020) paid in September 2013 and 90 million Yen (approximately $0.8 million as of December 31, 2020) paid in 2019.

In each year of the agreement in which the distributor meets the respective annual predetermined revenue target, 10% of the distribution fees are returned to the distributor. The distribution fee which the Company expects to be entitled to is presented in deferred revenues and is recognized as revenue during the estimated exclusivity term. The distributor will pay the Company for any treatment made with the Company’s system (pay-per-use), but in no case less than the pre-determined annual amount. The agreement prescribes conditions in which the Company or the distributor can cancel the agreement, including the authorities’ demand to require a clinical trial and non-compliance with the requirement to purchase minimum predetermined quantities.

The agreement sets a minimum payment threshold to the Company that is examined every few years throughout the contractual term. If the distributor does not qualify for the minimum payment threshold at the end of each period, the Company will be entitled to terminate the distribution agreement, unless the parties reach another agreement between them. The agreement further determines that the distributor will act on its account to receive the regulatory approvals that are required to market the Company’s system for the treatment of depression in patients in Japan and to receive reimbursement coverage at the price range established in the agreement.

On January 22, 2018, the distributor in Japan applied to the Pharmaceutical and Medical Devices Agency (“PMDA”), which is responsible for all import and export licenses of pharmaceuticals and medical equipment to Japan, for approval of marketing and selling the Company’s systems in Japan. On January 2019, approval of the PMDA was received.

The Company is currently working through its distributor in Japan with the relevant bodies in Japan to update the local society guidelines to include Deep TMS in order to obtain reimbursement coverage under the Japanese National Health Insurance Plan.

On August 25, 2013, the Company received the approval of the MAGNET committee of the IIA for the development plan of the BSMT tool (brain stimulate and monitor tool). The plan was approved for three years and extended up to five years, in the framework of which the Company was approved work plans with participation rate of up to 66% of a non-royalty bearing grant.

In September 2017 and October 2018, the MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date. The execution of this plan was completed by December 31, 2018.

In March 2014, the Company entered into an exclusive marketing and distribution agreement of the Company’s system with a third party in Israel for a maximum period of 15 years, subject to meeting minimum sales targets as set in the agreement. In April 2014, the distributor paid the Company a one-time exclusivity fee of NIS 1 million. Effective July 2019, the Company assumed direct operations for customers in Israel, after terminating its distribution agreement with the third-party distributor, pursuant to which a portion of the exclusivity fee (up to NIS 600) was determined to be refundable depending on future sales.

License agreements:

In July 2003, Inc signed a license agreement with the agencies of the U.S. Public Health Service within the U.S. Department of Health and Human Services (“PHS”), according to which the Company was granted an exclusive license to develop, manufacture, make use of, market, sell and import products and processes to be developed in the framework of the license agreement with respect to TMS and a right to enter into sublicense agreements, subject to approval of the PHS. In return, Inc is committed to pay PHS royalties at fixed annual amount of $2 from January 1, 2004 and royalties of 2% of net sales beyond this amount as defined in the agreement.

In addition, if Inc enters into a sub-license agreement, it is committed to pay royalties of 8% of the net consideration received for the grant of the sub-license. The current provision for royalties as of December 31, 2020 is $259.

The agreement is valid until the expiration of the last to expire of the licensed patent rights under the agreement. PHS is entitled to cancel the agreement if Inc does not comply with the conditions detailed in the agreement.

In June 2005 and March 2010, Inc signed a research and licensing agreement and addendum with Yeda Research and Development Company Ltd. (“Yeda”), according to which Inc was granted an exclusive license to intellectual property that can be used for research, development, marketing and manufacturing of products in the field of TMS treatment and may have the right to grant sublicenses subject to conditions specified in the agreement in consideration of royalty payment as follows:

1% of net sales systems based upon certain patents (which include technology licensed from PHS);

3% for the first $10,000 of net sales, and 2% for net sales over $10,000, for all other Deep TMS products solely based on certain patents licensed exclusively from Yeda provided however in the event that the products are sold to a sublicensee and are thereafter sold by such sublicensee, the royalties paid to Yeda will be based on the higher of the net sales by the licensee or the net sales of the sale by the sublicensee.

4%-8% of the net cash proceeds that the Company receives in respect of granting sublicenses or options for sublicenses dependent on the patents licensed.

The balance of provision for royalties as of December 31, 2019 and 2020 is $ 124 and $ 226, respectively.

Royalties are payable at the later of 15 years after the first commercial sale or the patent life (20 years through October 2021). The agreement expires at the later of: the expiration of the last patent, 15 years after Inc starts to sell products integrating the patent and after a period of 20 years during which no sales are made.

The license agreement with Yeda may be subject to modifications in the event that the license agreement with PHS is modified (see 1, above) and may be cancelled based on various conditions, including the cancellation of the PHS agreement.

On February 22, 2018, Inc and Yeda signed an additional addendum to the agreement (“the fifth addendum”), according to which Inc received the right to examine an additional invention based upon the patent issued in connection with research in the field of rotational electrical fields owned by Yeda. Under the fifth addendum, the Company has the right to include the aforementioned invention and the intellectual property accompanying it under the Yeda license agreement. While initially valid up to the earlier of December 31, 2018 or 30 days after completion of all the milestones agreed between the parties, in order to provide more time for the defined milestones, the parties extended this date until December 31, 2019. In respect of the performance of the milestones under the fifth addendum, in December 2017, the Company received the approval of the MAGNET committee of the IIA (“Magneton”) for a development plan to be performed jointly with Yeda. The Company’s approved budget for the development plan is NIS 1.1 million, of which 66% (approximately NIS 0.7 million) which will be provided to the Company as a non-royalty bearing grant over the term of the plan.

In January 2020, the Company exercised the right granted to it under the fifth addendum, and accordingly royalties on net sales of products which are based on the use of the invention and know-how subject to the fifth addendum will be paid to Yeda at increased rates of 1.6%-2% in addition to the royalties described above and, in certain cases, at a flat rate of 2%. In respect of products under the fifth addendum that are not based on patents or research results for which the license was granted according to the original agreement (excluding the fifth addendum), royalties on net sales will be at the fixed rate of 5%.

Equity

12 Months Ended

Dec. 31, 2020

Equity

EQUITY

NOTE 17: EQUITY

Composition of share capital:

December 31, 2020

December 31, 2019

Authorized

Issued and
outstanding

Authorized

Issued and
outstanding

Number of shares

Ordinary shares of NIS 0.04 par value each

25,000,000

22,250,534

25,000,000

22,236,368

Movement in share capital:

Issued and outstanding capital:

	Number of shares		NIS par value
Balance at January 1, 2020		22,236,368		233,167
Exercise of share options		14,166		164

Balance at December 31, 2020		22,250,534		233,331

Balance at December 31, 2019		22,236,368		233,167

Rights attached to shares:

Ordinary shares confer their holders rights to receive dividends in cash and in Company’s shares, right to nominate the Company’s directors and rights to participate in distribution of dividends upon liquidation in proportion to their holdings. Also, Ordinary shareholders have one vote at the shareholders’ meeting such that each share confers one vote to its holder.

In April 2019, the Company closed its initial public offering in Nasdaq of 2,500,000 American Depositary Shares (“ADSs”), each representing two ordinary shares of Brainsway, at a public offering price of $11.00 per ADS. The gross proceeds to the Company from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses, are approximately $27.5 million.

Capital management in the Company:

The Company’s capital management objectives are to preserve the Group’s ability to ensure business continuity thereby creating a return for the shareholders, investors and other interested parties.

The Company is not under any minimal equity requirements nor is it required to attain a certain level of capital return.

See Note 22, events after the reporting period.

Share-Based Payment

12 Months Ended

Dec. 31, 2020

Share-Based Payment [Abstract]

SHARE-BASED PAYMENT

NOTE 18: SHARE-BASED PAYMENT

The expense recognized in the financial statements for services received is shown in the following table:

	Year ended December 31,
	2020		2019		2018
Equity-settled share-based payment plans to employees, directors and consultants	$	799	$	1,263	$	710

The share-based payment transactions that the Company granted to its employees, directors and consultants are shown in the following table:

Issuance Date	Grantee	Options outstanding as of December 31, 2020		Exercise price NIS				Exercise price $*)				Exercisable as of December 31, 2020		Exercisable Through	Total Fair Value $
December 8, 2015	Employees and Consultant		292,250		25.99				6.70				292,250	December 8, 2025		1,053
December 8, 2015	Employees and Consultant		270,000		31.19				8.04				270,000	December 8, 2025		1,247
April 1, 2017	Chief Executive Officer and Director		566,262		19.97				5.47				566,262	April 1, 2025		1,100
December 3, 2017	Director		27,500		21.37				6.12				9,167	December 3, 2027		54
November 12, 2018	Directors		110,000		23.39				6.36				—	November 12, 2026		298
November 12, 2018	Employees and officers		672,600		23.39	-	24.22		6.36	-	6.59		—	November 12, 2026		2,299
October 1, 2019	Chief Financial and Operating Officer		50,000		19.08				5.48				—	October 1, 2027		100

January 13,2020	Director		55,008		18.52				5.30				---	January 13, 2028		133

May 11, 2020	Chief Financial Officer		100,000						5.58					May 11, 2028		158
June 1, 2020	VP Global Marketing		60,000						5.58					June 1, 2028		177
November 19, 2020	Director of Market Access, Director of Analytics		70,000						3.40					November 19, 2030		228

As of grant date.

The fair value of the Company’s options granted for the years ended December 31, 2020, 2019 and 2018 was estimated using the Binomial model with the following assumptions:

	Year ended December 31,
	2020			2019			2018
Dividend yield (%)		0			0			0
Expected volatility (%)	48.00	-	76.78	40.06	-	48.09	40.51	-	48.25
Risk-free interest rate (%)	0.14	–	0.62	1.61	–	1.73	0.28	-	2.22
Expected exercise factor		2.8			2.8			2.8
Post-vesting forfeiture rate (%)		5			5			5

Movement during the year:

	Year ended December 31,
	2020					2019
	Number of options			Weighted average exercise price(*)		Number of options			Weighted average exercise price(*)
				$					$
Outstanding at January 1,		2,213,812		$	7.1		2,425,192		$	6.6
Granted		285,008			5.4		50,000			5.5
Exercised		(246,262	)		(**)5.8		-			-
Expired		(535,667	)		7.4		(59,765	)		7.5
Forfeited		(193,916	)		6.7		(201,615	)		7.0

Outstanding at December 31,		1,522,975		$	7.5		2,213,812		$	7.1

Exercisable at December 31,		839,418		$	9.5		1,362,879		$	7.38

(*)

The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2020 and 2019, respectively.

The weighted average remaining contractual life for the options outstanding as of December 31, 2020 and 2019 was approximately six years.

The range of exercise prices for options outstanding as of December 31, 2020 and 2019 was USD 4.0-18.5.

In January 2020, the Company granted the Company’s Chief Executive Officer (“CEO”) upon his employment, 240,000 restricted stock units (“RSUs”) of which 60,000 RSUs were granted through January 26, 2021, and 180,000 RSUs have been committed to be provided in three future grants of 60,000 RSUs upon each anniversary of the employment start date of the CEO with the Company. The terms of the 180,000 committed CEO RSU’s were amended subsequent to balance sheet date - See Note 22(b).

(**)

The options were exercised by way of a cashless exercise.

Additional Information to the Statements of Comprehensive Loss

12 Months Ended

Dec. 31, 2020

Additional Information to the Statements of Comprehensive Loss [Abstract]

ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS

NOTE 19: ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS

Additional information on revenues:

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

	Year ended December 31,
	2020		2019		2018
Revenues from lease	$	13,628	$	13,218	$	9,569
Revenues from sale		8,429		9,883		6,828

	$	22,057	$	23,101	$	16,397

Geographic information:

Revenues 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:

	Year ended December 31,
	2020		%		2019		%		2018		%
U.S.	$	19,330		88	$	20,636		89	$	14,478		88
Europe		1,847		8		1,353		6		1,102		7
Israel		150		1		845		1		371		2
Other		730		3		267		4		446		3

	$	22,057		100	$	23,101		100	$	16,397		100

The total amounts of future minimum lease payments to be received under non-cancellable operating leases as of December 31, 2020 and 2019 are as follows:

	Year ended December 31,
	2020		2019
Not later than one year	$	9,684	$	8,527
Later than one year and not later than five years		15,875		12,723
Later than five years		32		571

Total future minimum lease payments under non-cancellable operating leases	$	25,591	$	21,821

b.	Cost of revenues:

	Year ended December 31,
	2020		2019		2018
Cost of revenues—lease	$	3,201	$	2,656	$	1,923
Cost of revenues—sales		1,857		2,473		1,666

	$	5,058	$	5,129	$	3,589

Research and development expenses, net:

	Year ended December 31,
	2020			2019			2018
Salaries and related benefits	$	3,289		$	3,338		$	3,365
Subcontractors		1,530			2,620			2,241
Laboratory materials		275			687			491
Patents		288			334			198
Share-based payment		182			399			31
Travel		2			112			65
Depreciation		87			39			31
Other		383			604			658
Less—Government grants		(213	)		(257	)		(924	)

	$	5,823		$	7,876		$	6,156

Selling and marketing expenses:

	Year ended December 31,
	2020		2019		2018
Salaries and related benefits	$	6,458	$	6,419	$	4,252
Agent commissions		335		221		215
Marketing		3,627		5,239		2,891
Travel		611		1,176		865
Share-based payment		252		214		122

	$	11,283	$	13,269	$	8,345

General and administrative expenses:

	Year ended December 31,
	2020		2019		2018
Salaries and related benefits	$	1,339	$	1,774	$	1,235
Professional fees and office expenses		1,609		1,770		1,176
Depreciation		351		81		30
Travel		17		222		127
Bad debts and allowance for doubtful accounts		1,058		835		296
Share-based payment		348		621		557

	$	4,722	$	5,303	$	3,421

Finance income and expense:

	Year ended December 31,
	2020		2019		2018
Finance income:
Interest-income revaluation of bank deposits	$	61	$	175	$	44
Revaluation of warrants		40		62		—
Exchange rate differences, net		448		—		—

	$	549	$	237	$	44

Finance expense:
Liability in respect of research and development grants	$	762	$	969	$	519
Interest expense and amortization of deferred costs- loan from bank		—		283		354
Bank commissions		40		108		41
Revaluation of warrants		—		—		28
Exchange rate differences, net		—		192		258
Interest expense of lease liability		66		115		—

	$	868	$	1,667	$	1,200

Net Loss Per Share

12 Months Ended

Dec. 31, 2020

Earnings per share [abstract]

NET LOSS PER SHARE

NOTE 20: NET LOSS PER SHARE

Number of shares and loss used in the computation of net loss per share:

	Year ended December 31,
	2020				2019				2018
	Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company
Used in the computation of basic and diluted net loss		22,453,025	$	5,385		20,506,202	$	10,328		16,640,446	$	6,479

Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

Balances and Transactions With Related Parties

12 Months Ended

Dec. 31, 2020

Balances and Transactions With Related Parties [Abstract]

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

NOTE 21: BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Balances with interested and related parties:

Composition:

As of December 31, 2020

	Key management personnel		Other interested and related parties
Other accounts payable	$	64	$	38

As of December 31, 2019

	Key management personnel		Other interested and related parties
Other accounts payable	$	102	$	26

Benefits to interested and related parties:

	Year ended December 31,
	2020		2019		2018
Salary to those employed by the Company or on its behalf	$	769	$	945	$	654

Directors’ fees to those not employed by the Company or on its behalf	$	60	$	90	$	100

Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf		2		3		4
Directors not employed by the Company		6		8		6

		8		11		10

Key management personnel:

	Year ended December 31,
	2020		2019		2018
Short-term benefits	$	-	$	3	$	16

Share-based payment to those employed by the Company or on its behalf	$	182	$	190	$	394

Share-based payment to those not employed by the Company or on its behalf	$	150	$	147	$	41

Transactions with interested and related parties:

Year ended December 31, 2020

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	236	$	-
General and administrative expenses		619		201
Sales and marketing expenses		150		-

	$	1,005	$	201

Year ended December 31, 2019

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	113	$	81
General and administrative expenses		943		238

	$	1,056	$	319

Year ended December 31, 2018

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	207	$	81
General and administrative expenses		776		140
	$	983	$	221

*) Some of the key management personnel are interested parties by virtue of holdings.

Mr. Yaakov Michlin commenced his role as the Company’s Chief Executive Officer (CEO) on April 1, 2017. On February 12, 2017, (the general shareholders meeting), his employment terms, including bonuses incremental to his monthly compensation were approved as follows: (1) bonuses of NIS 1 million based on target achievements as outlined in his agreement.; (2) an annual bonus based on the Company’s remuneration policy according to the decision of the Company’s Board of directors.

In addition, upon commencement of his role, Mr. Michlin was granted 566,262 options to purchase Ordinary shares of the Company at an exercise price of NIS 19.97, representing 3.6% and 3.1% of the Company’s issued and outstanding capital on a fully diluted basis as of January 5, 2017, the date on which the board of directors approved the employment terms, and December 31, 2018, respectively. The price was determined according to the average closing market price of the Ordinary share 30 days before the date of grant. The options vest over four years from the date of grant as outlined in the agreement. In September 2019, Yaacov Michlin resigned as CEO.

For information regarding the fair value of the options granted to Mr. Michlin, see Note 18b.

Mr. Christopher R. von Jako, PhD commenced his role as the Company’s President and Chief Executive Officer (CEO) effective January 1, 2020. Key employment terms include an annual gross base salary and an annual performance-based bonus of up to six months of his base salary and equity grant of RSUs as further detailed in Note 18d.

For information regarding the fair value of the options granted to directors, see Note 18b.

Events After the Reporting Period

12 Months Ended

Dec. 31, 2020

Events After the Reporting Period [Abstract]

EVENTS AFTER THE REPORTING PERIOD

NOTE 22: EVENTS AFTER THE REPORTING PERIOD

On January 26, 2021, the Board of Directors and on March 4, 2021 the shareholders (with respect to the directors), respectively, approved the repricing, by way of an exchange offer, of approximately 1.474 million Ordinary Shares (“Ordinary Shares”) that had previously been granted to officers, independent Board members, employees and consultants of the Company the pursuant to the Brainsway 2014 Share Incentive Plan, and the Brainsway Amended and Restated 2019 Share Incentive Plan (the “2014 Plan” and the “2019 Plan”, respectively) to an exercise price of $4.675 ($9.35 per ADS), being a price equal to the closing price per Ordinary Share on January 25, 2021, provided, however, that: (1) with respect to directors’ options, the repricing of each option will ,be subject to shareholders approval at an exercise price equal to the higher of (a) $4.675 ($9.35 per ADS) (b) the closing price per Ordinary Share on the last trading date before the date of approval by the shareholders and (2) the exercise price offered to U.S Taxpayers within the proposed exchange offer shall be the higher of (i) the exercise price above and (ii) the fair market value of the Company's ADSs on the last trading date before the filing of the exchange offer.

The equity compensation package that the Company granted to the Company’s Chief Executive Officer (“CEO”) upon his employment, comprised of 240,000 performance-based restricted stock units (“RSUs”) of which 60,000 RSUs were granted through to January 26, 2021, and 180,000 RSUs have been committed to be provided in three future grants of 60,000 RSUs upon each anniversary of the employment start date of the CEO with the Company. These future grants, as originally contemplated, would have been subject to satisfaction of certain individual and corporate performance-based criteria as defined in the CEO’s employment agreement. The Board of Directors and shareholders approved 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.

The Company announced on March 1, 2021, the closing of its underwritten public offering of 5,315,300 American Depositary Shares (“ADSs”), upsized to include 693,300 ADSs sold pursuant to the underwriters’ exercise in full of their option to purchase additional ADSs, at a price to the public of $8.50 per ADS. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, were approximately $45.2 million.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Significant Accounting Policies [abstract]

Basis of presentation of the financial statements

a.	Basis of presentation of the financial statements:

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

The Company’s financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss.

The Company has elected to present the profit or loss items using the function of expense method.

Consolidated financial statements

b.	Consolidated financial statements:

Functional currency, presentation currency and foreign currency

c.	Functional currency, presentation currency and foreign currency:

Functional currency and presentation currency:

Transactions, assets and liabilities in foreign currency:

Cash equivalents

d.	Cash equivalents:

Short-term deposits

e.	Short-term deposits:

Short-term deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents.

Revenue recognition

f.	Revenue recognition:

Revenues from sale of systems:

Revenue from sale of systems are recognized at the point in time when control of the system is transferred to the customer, generally upon delivery of the system to the customer.

Revenue from rendering of services:

Contract liabilities:

Allocating the transaction price:

Revenues from lease of systems:

Government grants

g.	Government grants:

Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions.

Grants received from the IIA prior to January 1, 2009, which are recognized as a liability, are accounted for as forgivable loans in accordance with IAS 20, based on the original terms of the loan.

Leases

Leases:

The accounting policy for leases applied effective from January 1, 2019, is as follows:

The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration.

Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases.

Following are the amortization periods of the right-of-use assets by class of underlying asset:

	Years
Lease facilities	2	to	3
Motor vehicles		3

The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36.

The accounting policy for leases applied until December 31, 2018, is as follows:

The criteria for classifying leases as finance or operating leases depend on the substance of the agreements and is determined at the inception of the lease in accordance with IAS 17.

Taxes on income

i.	Taxes on income:

Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity.

Current taxes:

Deferred taxes:

Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes.

Leased systems, system components and other property and equipment, net

j.	Leased systems, system components and other property and equipment, net:

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

	%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment	6	-	15
Leasehold improvements		(*)

The useful life and depreciation method of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate.

Impairment of non-financial assets

k.	Impairment of non-financial assets:

The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable.

Financial instruments

l.	Financial instruments:

Impairment of financial assets:

Derecognition of financial assets:

A financial asset is derecognized only when the following criteria are met:

The contractual rights to the cash flows from the financial asset expire; or

Financial liabilities:

After initial recognition, the Company measures all financial liabilities at amortized cost, except for financial liabilities at fair value through profit or loss such as derivatives.

Derecognition of financial liabilities:

Issue of a unit of securities:

Fair value measurement

m.	Fair value measurement:

Level 1	—	quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	—	inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.

Level 3	—	inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data).

Provisions

n.	Provisions:

Employee benefit liabilities

o.	Employee benefit liabilities:

Short-term employee benefits:

Post-employment benefits:

Share-based payment transactions

p.	Share-based payment transactions:

The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment.

No expense is recognized for awards that do not ultimately vest.

Changes in accounting policies - initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards

q.	Research and development expenses:

Net loss per share

r.	Net loss per share:

Net loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of Ordinary shares outstanding during the period.

Basic net loss per share includes only shares that are outstanding during the period.

Changes in accounting policies – initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards:

Amendments to IFRS 10 and IAS 28 regarding sale or transfer of assets between an investor and its associate or joint venture:

If the transaction with an associate or joint venture involves loss of control of a subsidiary or a group of assets that are a business, the gain will be recognized in full.

The Amendments are to be applied prospectively. A mandatory effective date has not yet been determined by the IASB but early adoption is permitted.

Amendment to IAS 16, "Property, Plant and Equipment":

The Company estimates that the application of the Amendment is not expected to have a material impact on the financial statements.

Amendment to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets":

The Company estimates that the application of the Amendment is not expected to have a material impact on the financial statements.

Amendments to IFRS 9, IFRS 7, IFRS 16, IFRS 4 and IAS 39 regarding the IBOR reform:

The Amendment is applicable for annual periods beginning on January 1, 2020.

The adoption of the Amendment did not have an effect on the Company's financial statements as of January 1, 2020. See Note 13.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Significant Accounting Policies [abstract]

Schedule of amortization of right-of-use assets

Following are the amortization periods of the right-of-use assets by class of underlying asset:

	Years
Lease facilities	2	to	3
Motor vehicles		3

Schedule of useful life of the assets at annual rates

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

	%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment	6	-	15
Leasehold improvements		(*)

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2020

Cash and cash equivalents [abstract]

Schedule of cash and cash equivalents

	2020		2019
Cash for immediate withdrawal	$	15,457	$	11,640
Cash equivalents—short-term deposits (1)		1,504		10,034
	$	16,961	$	21,674

(1)	The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Short-Term Deposits (Tables)

12 Months Ended

Dec. 31, 2020

Short-term Deposits [abstract]

Schedule of short-term deposits at banks

Bank deposits (1)

221

(1)	Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Trade Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2020

Trade and other receivables [abstract]

Schedule of trade receivables, net

Trade receivables, net:

	December 31,
	2020			2019
Open accounts (1)	$	6,906		$	6,279
Credit cards		108			158
Less—allowance for doubtful accounts		(1,432	)		(930	)
Trade receivables, net	$	5,582		$	5,507

(1)	Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Schedule of allowance for doubtful account

Movement in allowance for doubtful accounts:

	U.S. dollars in thousands
Balance as of January 1, 2019	$	335
Provision for the year		835
Derecognition of bad debts		(240	)
Balance as of December 31, 2019		930
Provision for the year		1,058
Derecognition of bad debts		(556	)
Balance as of December 31, 2020	$	1,432

Schedule of credit losses exposure

Following is information about the credit risk exposure of the Company’s trade receivables:

December 31, 2020:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	1,757	$	978	$	673	$	670	$	418	$	2,518	$	7,014
Allowance for doubtful accounts	$	4	$	5	$	7	$	33	$	159	$	1,224	$	1,432
Trade receivables, net		1,753		973		666		637		259		1,294	$	5,582

December 31, 2019:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	2,619	$	1,133	$	544	$	461	$	247	$	1,433	$	6,437
Allowance for doubtful accounts	$	7	$	11	$	8	$	32	$	69	$	803	$	930
Trade receivables, net		2,612		1,122		536		429		178		630	$	5,507

Other Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2020

Other Accounts Receivable [Abstract]

Schedule of other accounts receivable

	December 31,
	2020		2019
Government authorities	$	212	$	378
Accrued income-IIA		208		71
Consumables		442		306
Prepaid expenses and other		672		672
	$	1,534	$	1,427

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2020

Property, plant and equipment [abstract]

Schedule of property and equipment, net

December 31, 2020:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets			Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2020	$	8,151			3,117			831		1,414			90		52			13,655
Additions		—			3,989			14		48			6		—			4,057
Transfer to Leased systems		1,580			(1,580	)		—		—			—		—			—
Reductions		(1,111	)(**)		(1,884	)(***)		—		(127	)		—		—			(3,122	)
Balance at December 31, 2020		8,620			3,642			845		1,335			96		52			14,590

Accumulated depreciation:
Balance at January 1, 2020		2,660		$	—		$	694	$	460		$	50	$	52		$	3,916
Additions		1,180			—			81		351			6		—			1,618
Reductions		(418	)		—			—		(76	)		—		—			(494	)

Balance at December 31, 2020		3,422			—			775		735			56		52			5,040

Depreciated cost at December 31, 2020	$	5,198		$	3,642		$	70	$	600		$	40	$	—	(*)	$	9,550

December 31, 2019:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2019	$	6,369		$	2,717		$	794	$	1,414	$	82	$	52		$	11,428
Additions		—			5,521			37		—		8		—			5,566
Transfer to Leased systems		2,150			(2,150	)		—		—		—		—			—
Reductions		(368	)(**)		(2,971	)		—		—		—		—			(3,339	)
Balance at December 31, 2019		8,151			3,117			831		1,414		90		52			13,655

Accumulated depreciation:
Balance at January 1, 2019		1,679			—			613		—		44		52			2,388
Additions		1,054			—			81		460		6		—			1,602
Reductions		(73	)		—			—		—		—		—			(73	)

Balance at December 31, 2019		2,660			—			694		460		50		52			3,916

Depreciated cost at December 31, 2019	$	5,491		$	3,117		$	137	$	954	$	40	$	—	(*)	$	9,739

(*)

Represents an amount lower than $ 1

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $1,061 for the year ended December 31, 2020.

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Measurement [abstract]

Schedule of fair value measurement hierarchy of the assets and liabilities

The following table presents the fair value measurement hierarchy for the Group’s assets and liabilities.

Quantitative disclosures of the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2020 and 2019:

		Fair value hierarchy
	Valuation date	Level 1		Level 2		Level 3		Total
Liabilities measured at fair value:
Liability in respect of warrants	31.12.2020	$	—	$	38	$	—	$	38

Liability in respect of warrants	31.12.2019	$	—	$	78	$	—	$	78

Schedule of assumptions

The fair value of the warrants for the years ended December 31, 2020 and 2019 was estimated using the Binomial model with the following assumptions:

	Year ended December 31,
	2020			2019
Dividend yield (%)		0			0
Expected volatility (%)		56.58	%		40.24	%
Risk-free interest rate (%)		0.12	%		1.61	%
Expected life (years)		1.75			2.76

Trade Payables (Tables)

12 Months Ended

Dec. 31, 2020

Trade and other payables [abstract]

Schedule of trade payable

	December 31,
	2020		2019
Open debt	$	781	$	1,320

Other Accounts Payable (Tables)

12 Months Ended

Dec. 31, 2020

Other Accounts Payable [abstract]

Schedule of other accounts payable

	December 31,
	2020		2019
Employee and payroll accruals	$	972	$	1,216
Accrued expenses		2,266		1,620
Tax payable		—		1
Liabilities to related parties (1)		102		128
Lease liabilities		429		414

	$	3,769	$	3,379

(1)

A current non-interest bearing account.

Non-Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Non-Current Liabilities [Abstract]

Schedule of non-current liabilities

Composition:

	December 31,
	2020		2019
Warrants (c)	$	38	$	78
Liability in respect of research and development grants(d)		5,524		5,367
Deferred revenues and other liabilities		1,772		1,690
Lease liabilities(b)		243		663

	$	7,577	$	7,798

Schedule of lease liabilities

Lease liabilities:

	December 31, 2020
Maturity analysis:
Less than one year		463
One to five years		312
Total lease commitments		775
Impact of discounting remaining lease payments		(103	)
Total lease liabilities as of December 31, 2020		672

Lease liabilities as of December 31, 2020:		672
Current		429
Non-current		243

Total	$	672

	December 31, 2019
Maturity analysis:
Less than one year		525
One to five years		1,106
Total lease commitments		1,631
Impact of discounting remaining lease payments		(217	)
Total lease liabilities as of January 1, 2019		1,414

Lease liabilities as of December 31, 2019:		1,077
Current		414
Non-current		663

Total	$	1,077

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of detailed information about financial instruments [abstract]

Schedule of financial liabilities based on contractual undiscounted payments

The table below presents the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

December 31, 2020:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	781	$	—	$	—	$	—	$	—	$	—	$	781
Other accounts payable		3,340		—		—		—		—		—		3,340
Liability in respect of research and development grants		388		713		893		1,261		1,793		8,108		13,156
Lease liability		463		299		13		—		—		—		775

	$	4,972	$	1,012	$	906	$	1,261	$	1,793	$	8,108	$	18,052

December 31, 2019:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	1,320	$	—	$	—	$	—	$	—	$	—	$	1,320
Other accounts payable		2,965		—		—		—		—		—		2,965
Long-term liabilities		1		1		—		—		—		—		2
Liability in respect of research and development grants		810		1,050		1,335		1,635		1,980		6,792		13,602
Lease liability		572		449		271		—		—		—		1,292

	$	5,668	$	1,500	$	1,606	$	1,635	$	1,980	$	6,792	$	19,181

Schedule of financial liabilities measured at fair value

Financial liabilities measured at fair value:

December 31, 2020:

	Level 2
Opening balance at January 1, 2020	$	78
Amounts transferred to the statement of comprehensive loss as finance income		(40	)

Closing balance at December 31, 2020	$	38

Schedule of sensitivity tests relating to changes in foreign currency

Sensitivity tests relating to changes in foreign currency:

	December 31,
	2020			2019
Sensitivity test to changes in the NIS exchange rate:
Gain (loss) from the change:
Increase of 5% in exchange rate		(50	)		(88	)
Decrease of 5% in exchange rate		50			88

Equity (Tables)

12 Months Ended

Dec. 31, 2020

Equity

Schedule of ordinary shares

Composition of share capital:

December 31, 2020

December 31, 2019

Authorized

Issued and
outstanding

Authorized

Issued and
outstanding

Number of shares

Ordinary shares of NIS 0.04 par value each

25,000,000

22,250,534

25,000,000

22,236,368

Schedule of issued and outstanding share capital

Issued and outstanding capital:

	Number of shares		NIS par value
Balance at January 1, 2020		22,236,368		233,167
Exercise of share options		14,166		164

Balance at December 31, 2020		22,250,534		233,331

Balance at December 31, 2019		22,236,368		233,167

Share-Based Payment (Tables)

12 Months Ended

Dec. 31, 2020

Share-Based Payment [Abstract]

Schedule of expense recognized in the financial statements for services

The expense recognized in the financial statements for services received is shown in the following table:

	Year ended December 31,
	2020		2019		2018
Equity-settled share-based payment plans to employees, directors and consultants	$	799	$	1,263	$	710

Schedule of share-based payment transactions granted to its employees, directors and consultants

The share-based payment transactions that the Company granted to its employees, directors and consultants are shown in the following table:

Issuance Date	Grantee	Options outstanding as of December 31, 2020		Exercise price NIS				Exercise price $*)				Exercisable as of December 31, 2020		Exercisable Through	Total Fair Value $
December 8, 2015	Employees and Consultant		292,250		25.99				6.70				292,250	December 8, 2025		1,053
December 8, 2015	Employees and Consultant		270,000		31.19				8.04				270,000	December 8, 2025		1,247
April 1, 2017	Chief Executive Officer and Director		566,262		19.97				5.47				566,262	April 1, 2025		1,100
December 3, 2017	Director		27,500		21.37				6.12				9,167	December 3, 2027		54
November 12, 2018	Directors		110,000		23.39				6.36				—	November 12, 2026		298
November 12, 2018	Employees and officers		672,600		23.39	-	24.22		6.36	-	6.59		—	November 12, 2026		2,299
October 1, 2019	Chief Financial and Operating Officer		50,000		19.08				5.48				—	October 1, 2027		100

January 13,2020	Director		55,008		18.52				5.30				---	January 13, 2028		133

May 11, 2020	Chief Financial Officer		100,000						5.58					May 11, 2028		158
June 1, 2020	VP Global Marketing		60,000						5.58					June 1, 2028		177
November 19, 2020	Director of Market Access, Director of Analytics		70,000						3.40					November 19, 2030		228

As of grant date.

Schedule of fair value of options granted

The fair value of the Company’s options granted for the years ended December 31, 2020, 2019 and 2018 was estimated using the Binomial model with the following assumptions:

	Year ended December 31,
	2020			2019			2018
Dividend yield (%)		0			0			0
Expected volatility (%)	48.00	-	76.78	40.06	-	48.09	40.51	-	48.25
Risk-free interest rate (%)	0.14	–	0.62	1.61	–	1.73	0.28	-	2.22
Expected exercise factor		2.8			2.8			2.8
Post-vesting forfeiture rate (%)		5			5			5

Schedule of share-based payment movement during the year

Movement during the year:

	Year ended December 31,
	2020					2019
	Number of options			Weighted average exercise price(*)		Number of options			Weighted average exercise price(*)
				$					$
Outstanding at January 1,		2,213,812		$	7.1		2,425,192		$	6.6
Granted		285,008			5.4		50,000			5.5
Exercised		(246,262	)		(**)5.8		-			-
Expired		(535,667	)		7.4		(59,765	)		7.5
Forfeited		(193,916	)		6.7		(201,615	)		7.0

Outstanding at December 31,		1,522,975		$	7.5		2,213,812		$	7.1

Exercisable at December 31,		839,418		$	9.5		1,362,879		$	7.38

Additional Information to the Statements of Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2020

Additional Information to the Statements of Comprehensive Loss [Abstract]

Schedule of additional information on revenues

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

	Year ended December 31,
	2020		2019		2018
Revenues from lease	$	13,628	$	13,218	$	9,569
Revenues from sale		8,429		9,883		6,828

Schedule of geographic information

Revenues 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:

	Year ended December 31,
	2020		%		2019		%		2018		%
U.S.	$	19,330		88	$	20,636		89	$	14,478		88
Europe		1,847		8		1,353		6		1,102		7
Israel		150		1		845		1		371		2
Other		730		3		267		4		446		3

	$	22,057		100	$	23,101		100	$	16,397		100

Schedule of future minimum lease payments to be received under non-cancellable operating leases

The total amounts of future minimum lease payments to be received under non-cancellable operating leases as of December 31, 2020 and 2019 are as follows:

	Year ended December 31,
	2020		2019
Not later than one year	$	9,684	$	8,527
Later than one year and not later than five years		15,875		12,723
Later than five years		32		571

Total future minimum lease payments under non-cancellable operating leases	$	25,591	$	21,821

Schedule of cost of revenues

Cost of revenues:

	Year ended December 31,
	2020		2019		2018
Cost of revenues—lease	$	3,201	$	2,656	$	1,923
Cost of revenues—sales		1,857		2,473		1,666

	$	5,058	$	5,129	$	3,589

Schedule of research and development expenses, net

Research and development expenses, net:

	Year ended December 31,
	2020			2019			2018
Salaries and related benefits	$	3,289		$	3,338		$	3,365
Subcontractors		1,530			2,620			2,241
Laboratory materials		275			687			491
Patents		288			334			198
Share-based payment		182			399			31
Travel		2			112			65
Depreciation		87			39			31
Other		383			604			658
Less—Government grants		(213	)		(257	)		(924	)

	$	5,823		$	7,876		$	6,156

Schedule of selling and marketing expenses

Selling and marketing expenses:

	Year ended December 31,
	2020		2019		2018
Salaries and related benefits	$	6,458	$	6,419	$	4,252
Agent commissions		335		221		215
Marketing		3,627		5,239		2,891
Travel		611		1,176		865
Share-based payment		252		214		122

	$	11,283	$	13,269	$	8,345

Schedule of general and administrative expenses

General and administrative expenses:

	Year ended December 31,
	2020		2019		2018
Salaries and related benefits	$	1,339	$	1,774	$	1,235
Professional fees and office expenses		1,609		1,770		1,176
Depreciation		351		81		30
Travel		17		222		127
Bad debts and allowance for doubtful accounts		1,058		835		296
Share-based payment		348		621		557

	$	4,722	$	5,303	$	3,421

Schedule of finance income and expense

Finance income and expense:

	Year ended December 31,
	2020		2019		2018
Finance income:
Interest-income revaluation of bank deposits	$	61	$	175	$	44
Revaluation of warrants		40		62		—
Exchange rate differences, net		448		—		—

	$	549	$	237	$	44

Finance expense:
Liability in respect of research and development grants	$	762	$	969	$	519
Interest expense and amortization of deferred costs- loan from bank		—		283		354
Bank commissions		40		108		41
Revaluation of warrants		—		—		28
Exchange rate differences, net		—		192		258
Interest expense of lease liability		66		115		—

	$	868	$	1,667	$	1,200

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings per share [abstract]

Schedule of net loss per share

Number of shares and loss used in the computation of net loss per share:

	Year ended December 31,
	2020				2019				2018
	Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company
Used in the computation of basic and diluted net loss		22,453,025	$	5,385		20,506,202	$	10,328		16,640,446	$	6,479

Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

Balances and Transactions With Related Parties (Tables)

12 Months Ended

Dec. 31, 2020

Balances and Transactions With Related Parties [Abstract]

Schedule of balances with interested and related parties

Balances with interested and related parties:

Composition:

As of December 31, 2020

	Key management personnel		Other interested and related parties
Other accounts payable	$	64	$	38

As of December 31, 2019

		Key management personnel				Other interested and related parties
Other accounts payable		$	102			$	26

Schedule of benefits to interested and related parties

Benefits to interested and related parties:

	Year ended December 31,
	2020		2019		2018
Salary to those employed by the Company or on its behalf	$	769	$	945	$	654

Directors’ fees to those not employed by the Company or on its behalf	$	60	$	90	$	100

Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf		2		3		4
Directors not employed by the Company		6		8		6

		8		11		10

Schedule of key management personnel

Key management personnel:

	Year ended December 31,
	2020		2019		2018
Short-term benefits	$	-	$	3	$	16

Share-based payment to those employed by the Company or on its behalf	$	182	$	190	$	394

Share-based payment to those not employed by the Company or on its behalf	$	150	$	147	$	41

Schedule of transactions with interested and related parties

Transactions with interested and related parties:

Year ended December 31, 2020

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	236	$	-
General and administrative expenses		619		201
Sales and marketing expenses		150		-

	$	1,005	$	201

Year ended December 31, 2019

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	113	$	81
General and administrative expenses		943		238

	$	1,056	$	319

Year ended December 31, 2018

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	207	$	81
General and administrative expenses		776		140
	$	983	$	221

General (Details Narrative) $ in Thousands	12 Months Ended
General (Details Narrative) $ in Thousands	Dec. 31, 2020 USD ($)
General [abstract]
Negative cash flows from operating activities	$ 1,400
Operating loss	$ 4,800

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Dec. 31, 2020
Lease facilities [Member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Amortization period right-of-use assets	2 years
Lease facilities [Member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Amortization period right-of-use assets	3 years
Motor vehicles [Member]
IfrsStatementLineItems [Line Items]
Amortization period right-of-use assets	3 years

Significant Accounting Policies (Details 1)

12 Months Ended

Dec. 31, 2020

Leased systems [Member]

Laboratory equipment [Member]

15.00%

15.00%

Computers [Member]

Office furniture and equipment [member] | Bottom of range [member]

33.00%

Office furniture and equipment [member] | Top of range [member]

6.00%

Leasehold improvements [Member]

15.00%

Cash and cash equivalents [abstract]

0.00%

^[1]

[1]	Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the expected life of the improvement.

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant Accounting Policies [abstract]
Percentage of monthly deposit at a rate	8.33%
Impairment of leased systems and system components recognized in cost of revenues	$ 1,061	$ 1,191	$ 340

Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Cash for immediate withdrawal

$ 15,457

$ 11,640

Cash equivalents-short-term deposits

^[1]

1,504

10,034

Total

$ 16,961

$ 21,674

[1]	The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Short-Term Deposits (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Short-term Deposits [abstract]

Bank deposits

^[1]

$ 221

[1]	Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 0.5%.

Trade Receivables, Net (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Trade and other receivables [abstract]

Open accounts

^[1]

$ 6,906

$ 6,279

Credit cards

108

158

Less-allowance for doubtful accounts

(1,432)

(930)

Trade receivables, net

$ 5,582

$ 5,507

[1]	Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Trade Receivables, Net (Details 1) - USD ($) $ in Thousands	12 Months Ended
Trade Receivables, Net (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Trade and other receivables [abstract]
Beginning balance	$ 930	$ 335
Provision for the year	1,058	835
Derecognition of bad debts	(556)	(240)
Ending balance	$ 1,432	$ 930

Trade Receivables, Net (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
IfrsStatementLineItems [Line Items]
Gross carrying amount	$ 7,014	$ 6,437
Allowance for doubtful accounts	1,432	930	$ 335
Trade receivables, net	5,582	5,507
Less Than 30 Days [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	978	1,133
Allowance for doubtful accounts	5	11
Trade receivables, net	973	1,122
30 - 60 Days [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	673	544
Allowance for doubtful accounts	7	8
Trade receivables, net	666	536
61 - 90 Days [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	670	461
Allowance for doubtful accounts	33	32
Trade receivables, net	637	429
91 - 120 Days [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	418	247
Allowance for doubtful accounts	159	69
Trade receivables, net	259	178
Greater Than 120 Days [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	2,518	1,433
Allowance for doubtful accounts	1,224	803
Trade receivables, net	1,294	630
Not Past Due [Member]
IfrsStatementLineItems [Line Items]
Gross carrying amount	1,757	2,619
Allowance for doubtful accounts	4	7
Trade receivables, net	$ 1,753	$ 2,612

Trade Receivables, Net (Details Narrative) $ in Thousands	Dec. 31, 2020 USD ($)
IfrsStatementLineItems [Line Items]
Past due trade receivables	$ 1,517
91 - 120 Days [Member]
IfrsStatementLineItems [Line Items]
Past due trade receivables	$ 1,553

Other Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Accounts Receivable [Abstract]
Government authorities	$ 212	$ 378
Accrued income-IIA	208	71
Consumables	442	306
Prepaid expenses and other	672	672
Other accounts receivable	$ 1,534	$ 1,427

Property and Equipment, Net (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

$ 4,248

4,352

$ 4,248

9,550

9,739

Leased systems [Member]

System Components [Member]

5,198

5,491

Laboratory equipment [Member]

3,642

3,117

Right of use assets [Member]

137

Office furniture and equipment [member]

600

954

Leasehold improvements [Member]

^[1]

Cost [Member]

13,655

11,428

4,788

5,566

(3,339)

Cost [Member] | Leased systems [Member]

13,655

8,151

6,369

2,150

^[2]

(368)

Cost [Member] | System Components [Member]

8,151

3,117

2,717

5,521

(2,150)

(1,590)

^[3]

(2,971)

Cost [Member] | Laboratory equipment [Member]

3,117

831

794

Cost [Member] | Right of use assets [Member]

831

1,414

(76)

Cost [Member] | Office furniture and equipment [member]

1,386

1,414

Cost [Member] | Leasehold improvements [Member]

Accumulated depreciation [Member]

3,916

2,388

3,493

1,602

(73)

Accumulated depreciation [Member] | Leased systems [Member]

3,916

2,660

1,679

1,054

(73)

Accumulated depreciation [Member] | System Components [Member]

2,660

Accumulated depreciation [Member] | Laboratory equipment [Member]

694

613

Accumulated depreciation [Member] | Right of use assets [Member]

694

460

326

460

Accumulated depreciation [Member] | Office furniture and equipment [member]

786

460

Accumulated depreciation [Member] | Leasehold improvements [Member]

Employee and payroll accruals

$ 52

[1]	Represents an amount lower than $1
[2]	Derived mainly from systems leased to customers and sold
[3]	Includes impairment charge of $1,061 for the year ended December 31, 2020.

Property and Equipment, Net (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Property, plant and equipment [abstract]
Represents an amount	$ 1
Impairments charge	$ 1,061

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Liabilities measured at fair value:
Liability in respect of warrants	$ 38	$ 78
Level 1 [Member]
Liabilities measured at fair value:
Liability in respect of warrants
Level 2 [Member]
Liabilities measured at fair value:
Liability in respect of warrants	38	78
Level 3 [Member]
Liabilities measured at fair value:
Liability in respect of warrants

Fair Value Measurement (Details 1)	12 Months Ended
Fair Value Measurement (Details 1)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value Measurement [abstract]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	56.58%	40.24%
Risk-free interest rate	0.12%	1.61%
Expected life	1 year 9 months	2 years 9 months 3 days

Trade Payables (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Trade and other payables [abstract]
Open debt	$ 781	$ 1,320

Other Accounts Payable (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Other Accounts Payable [abstract]

$ 972

$ 1,216

Accrued expenses

2,266

1,620

Tax payable

Liabilities to related parties

^[1]

102

128

Lease liabilities

429

414

Other accounts payable, total

$ 3,769

$ 3,379

[1]	A current non-interest bearing account

Non-Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Non-Current Liabilities [Abstract]
Loan from bank
Warrants	38	78
Liability in respect of research and development grants	5,524	5,367
Deferred revenues and other liabilities	1,772	1,690
Lease liabilities	243	663
Total non-current liabilities	$ 7,577	$ 7,798

Non-Current Liabilities (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Maturity analysis:
Less than one year	$ 463	$ 525
One to five years	312	1,106
Total lease commitments	775	1,631
Impact of discounting remaining lease payments	(103)	(217)
Total lease liabilities as of January 1, 2020	672	1,414
Lease liabilities as of December 31, 2020	672	1,077
Current	429	414
Non-current	243	663
Total	$ 672	$ 1,077

Non-Current Liabilities (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Mar. 15, 2018	Jul. 31, 2020	Aug. 17, 2017	Dec. 31, 2020	Dec. 31, 2018	Oct. 03, 2017
Non-Current Liabilities [Abstract]
Bank credit facility			$ 6,000			$ 300
Withdrawn from bank					$ 3,000
Bear annual interest	6.75%		6.00%
Ordinary shares of total exercise price			$ 600
Exercise price			$ 5.02
Credit facility, description				The remaining credit facility ("the second facility") may be withdrawn until March 15, 2018 bearing annual interest 3-months Libor plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively.
Bank warrants						59,761
Maximum royalties payable including interest				$ 12,548
Royalties paid				2,624
Fair value of the warrants				150
Remaining loan				2,850
Transaction costs				$ 156
Credit facility agreement, description				A senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited ("the deposited amount"). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date.
Loan		$ 12,548
Term		2 years
Interest rate		1.00%

Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Trade payables	$ 781	$ 1,320
Other accounts payable	3,340	2,965
Long-term liabilities		2
Liability in respect of research and development grants	13,156	13,602
Lease liability	775	1,292
Total financial instruments	18,052	19,181
Less than one year [Member]
IfrsStatementLineItems [Line Items]
Trade payables	781	1,320
Other accounts payable	3,340	2,965
Long-term liabilities		1
Liability in respect of research and development grants	388	810
Lease liability	463	572
Total financial instruments	4,972	5,668
1 to 2 years [Member]
IfrsStatementLineItems [Line Items]
Trade payables
Other accounts payable
Long-term liabilities		1
Liability in respect of research and development grants	713	1,050
Lease liability	299	449
Total financial instruments	1,012	1,500
2 to 3 years [Member]
IfrsStatementLineItems [Line Items]
Trade payables
Other accounts payable
Long-term liabilities
Liability in respect of research and development grants	893	1,335
Lease liability	13	271
Total financial instruments	906	1,606
3 to 4 years [Member]
IfrsStatementLineItems [Line Items]
Trade payables
Other accounts payable
Long-term liabilities
Liability in respect of research and development grants	1,261	1,635
Lease liability
Total financial instruments	1,261	1,635
4 to 5 years [Member]
IfrsStatementLineItems [Line Items]
Trade payables
Other accounts payable
Long-term liabilities
Liability in respect of research and development grants	1,793	1,980
Lease liability
Total financial instruments	1,793	1,980
Greater Than 5 years [Member]
IfrsStatementLineItems [Line Items]
Trade payables
Other accounts payable
Long-term liabilities
Liability in respect of research and development grants	8,108	6,792
Lease liability
Total financial instruments	$ 8,108	$ 6,792

Financial Instruments (Details 1) - Level 2 [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
IfrsStatementLineItems [Line Items]
Opening balance at January 1, 2020	$ 78
Amounts transferred to the statement of comprehensive loss as finance income	(40)
Closing balance at December 31, 2020	$ 38

Financial Instruments (Details 2) - USD ($) $ in Thousands	12 Months Ended
Financial Instruments (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Gain (loss) from the change:
Increase of 5% in exchange rate	$ (50)	$ (88)
Decrease of 5% in exchange rate	$ 50	$ 88

Financial Instruments (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about financial instruments [abstract]
Balance of financial liabilities	$ 38	$ 78
Excess of financial assets over financial liabilities	$ 2,001
Financial instruments, description	The Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $3,198 and $437, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company.
Financial liabilities	$ 300

December 8, 2015 [Member]

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Employee Benefits and Liabilities (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Employee Benefits and Liabilities [Abstract]
Expense in defined contribution plans	$ 258	$ 325

Taxes on Income (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 22, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2016
IfrsStatementLineItems [Line Items]
Corporate federal income tax rate				4.00%
Carryforward losses for tax purposes		$ 4,000
Description of amendment income tax rate				Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the amendment, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - 7.5%).	According to the amendment, a “beneficiary enterprise” located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2018 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).
Moach [Member]
IfrsStatementLineItems [Line Items]
Income tax rate		23.00%	23.00%	23.00%
Carryforward losses for tax purposes		$ 49,300
USA Inc [Member]
IfrsStatementLineItems [Line Items]
Income tax rate				27.00%
USA Inc [Member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Income tax rate				35.00%
Corporate federal income tax rate	21.00%
USA Inc [Member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Income tax rate				40.00%
Corporate federal income tax rate	35.00%

Contingent Liabilities, Commitments and Charges (Details Narrative) - USD ($) $ in Thousands	1 Months Ended							12 Months Ended
	Oct. 31, 2018	Feb. 22, 2018	Sep. 30, 2017	Jul. 31, 2015	Apr. 30, 2014	Mar. 31, 2014	Aug. 25, 2013	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Description of distribution fees payment								The distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen (approximately $1 million as of December 31, 2020) paid in September 2013 and 90 million Yen (approximately $0.8 million as of December 31, 2020) paid in 2019.
Revenue target								10.00%
Description of development plan		The Company's approved budget for the development plan is NIS 1.1 million, of which 66% (approximately NIS 0.7 million) which will be provided to the Company as a non-royalty bearing grant over the term of the plan.					The plan was approved for three years and extended up to five years, in the framework of which the Company was approved work plans with participation rate of up to 66% of a non-royalty bearing grant.
Description of annual work plan	The MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date.		The MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date.
Exclusivity fee					$ 1,000
Royalties fixed annual amount								$ 2
Current provision for royalties								$ 226	$ 124
Description of royalty payment								a)1% of net sales systems based upon certain patents (which include technology licensed from PHS); b)3% for the first $10,000 of net sales, and 2% for net sales over $10,000, for all other Deep TMS products solely based on certain patents licensed exclusively from Yeda provided however in the event that the products are sold to a sublicensee and are thereafter sold by such sublicensee, the royalties paid to Yeda will be based on the higher of the net sales by the licensee or the net sales of the sale by the sublicensee.c)4%-8% of the net cash proceeds that the Company receives in respect of granting sublicenses or options for sublicenses dependent on the patents licensed.
Fixed rate								5.00%
Refundable fees				$ 600
Marketing and Distribution Agreement [Member]
IfrsStatementLineItems [Line Items]
Marketing and distribution agreement, description						In March 2014, the Company entered into an exclusive marketing and distribution agreement of the Company's system with a third party in Israel for a maximum period of 15 years, subject to meeting minimum sales targets as set in the agreement. In April 2014, the distributor paid the Company a one-time exclusivity fee of NIS 1 million. Effective July 2019, the Company assumed direct operations for customers in Israel, after terminating its distribution agreement with its Israeli distributor, pursuant to which a portion of the exclusivity fee (up to NIS 600) was determined to be refundable depending on future sales.
Sub-license agreement [Member]
IfrsStatementLineItems [Line Items]
Revenue target								8.00%
Current provision for royalties								$ 259
Description of royalty payment								In return, Inc is committed to pay PHS royalties at fixed annual amount of $2 from January 1, 2004 and royalties of 2% of net sales beyond this amount as defined in the agreement.
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Royalties rates								1.60%
Top of range [member]
IfrsStatementLineItems [Line Items]
Royalties rates								2.00%

Equity (Details) - shares	Dec. 31, 2020	Dec. 31, 2019
Equity
Number of shares, Authorized	25,000,000	25,000,000
Number of shares, Issued and outstanding	22,250,534	22,236,368

Equity (Details 1) $ in Thousands	12 Months Ended
Equity (Details 1) $ in Thousands	Dec. 31, 2020 USD ($) shares
IfrsStatementLineItems [Line Items]
Balance, shares \| shares	22,236,368
Exercise of share option, shares \| shares	14,166
Balance, shares \| shares	22,250,534
Dekel [Member]
IfrsStatementLineItems [Line Items]
Balance \| $	$ 233,167
Exercise of share option \| $	164
Balance \| $	$ 233,331

Equity (Details Narrative)	12 Months Ended
Equity (Details Narrative)	Dec. 31, 2020 $ / shares
IfrsStatementLineItems [Line Items]
Description of initial publlic offering	Company closed its initial public offering in Nasdaq of 2,500,000 American Depositary Shares (“ADSs”), each representing two ordinary shares of Brainsway, at a public offering price of $11.00 per ADS. The gross proceeds to the Company from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses, are approximately $27.5 million.
Dekel [Member]
IfrsStatementLineItems [Line Items]
Shares par value	$ 0.3

Share-Based Payment (Details) - USD ($) $ in Thousands	12 Months Ended
Share-Based Payment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Payment [Abstract]
Equity-settled share-based payment plans to employees, directors and consultants	$ 799	$ 1,263	$ 710

Share-Based Payment (Details 1) - Share-based payment arrangements [member]
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2020

USD ($)

$ / shares

December 8, 2015

Employees and Consultant

292,250

$ 6.7

^[1]

292,250

December 8, 2025

December 8, 2015 [Member] | Dekel [Member]

$ 1,053

December 8, 2015 [Member]

$ 25.99

December 8, 2015

Employees and Consultant

270,000

$ 8.04

^[1]

270,000

December 8, 2025

December 8, 2015 [Member] | Dekel [Member]

$ 1,247

$ 31.19

April 1, 2017 [Member]

April 1, 2017

Chief Executive Officer and Director

566,262

$ 5.47

^[1]

566,262

April 1, 2025

April 1, 2017 [Member] | Dekel [Member]

$ 1,100

December 3, 2017 [Member]

$ 19.97

December 3, 2017

Director

27,500

$ 6.12

^[1]

9,167

December 3, 2027

December 3, 2017 [Member] | Dekel [Member]

$ 54

November 12, 2018 [Member]

$ 21.37

November 12, 2018

Directors

110,000

$ 6.36

^[1]

November 12, 2026

November 12, 2018 [Member] | Dekel [Member]

$ 298

November 12, 2018 [Member]

$ 23.39

November 12, 2018

Employees and officers

672,600

November 12, 2026

November 12, 2018 [Member] | Bottom of range [member]

$ 2,299

November 12, 2018 [Member] | Bottom of range [member] | Dekel [Member]

$ 6.36

^[1]

November 12, 2018 [Member] | Top of range [member]

23.39

November 12, 2018 [Member] | Top of range [member] | Dekel [Member]

6.59

^[1]

$ 24.22

October 1, 2019 [Member]

October 1, 2019

Chief Financial and Operating Officer

50,000

$ 5.48

^[1]

October 1, 2027

October 1, 2019 [Member] | Dekel [Member]

$ 100

$ 19.08

January 13,2020 [Member]

January 13,2020

Director

55,008

$ 5.30

^[1]

January 13,2020

January 13,2020 [Member] | Dekel [Member]

$ 133

$ 18.52

May 11, 2020 [Member]

May 11, 2020

Chief Financial Officer

100,000

$ 5.58

^[1]

May 11, 2028

$ 158

June 1, 2020 [Member]

June 1, 2020

VP Global Marketing

60,000

$ 5.58

^[1]

June 1, 2028

November 19, 2020 [Member]

$ 177

November 19, 2020

Director of Market Access, Director of Analytics

70,000

$ 3.4

^[1]

November 19, 2030

Number of options, Outstanding at beginning of year

$ 228

[1]	As of grant date

Share-Based Payment (Details 2) - $ / shares	12 Months Ended
Share-Based Payment (Details 2) - $ / shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
IfrsStatementLineItems [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected exercise factor	$ 2.8	$ 2.8	$ 2.8
Post-vesting forfeiture rate	5.00%	5.00%	5.00%
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Expected volatility	48.00%	40.06%	40.51%
Risk-free interest rate	0.14%	1.61%	0.28%
Top of range [member]
IfrsStatementLineItems [Line Items]
Expected volatility	76.78%	48.09%	48.25%
Risk-free interest rate	0.62%	1.73%	2.22%

Share-Based Payment (Details 3) - $ / shares

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Share-Based Payment [Abstract]

2,213,812

2,425,192

Number of options, Granted

285,008

50,000

Number of options, Exercised

(246,262)

Number of options, Expired

(535,667)

(59,765)

Number of options, Forfeited

(193,916)

(201,615)

Number of options, Outstanding at year end

1,522,975

2,213,812

Number of options, Exercisable at year end

839,418

1,362,879

Weighted average of exercise price, Outstanding at the beginning of year

^[1]

$ 7.1

$ 6.6

Weighted average of exercise price, Granted

^[1]

5.4

5.5

Weighted average of exercise price, Exercised

^[1]

5.8

^[2]

Weighted average of exercise price, Expired

^[1]

7.4

7.5

Weighted average of exercise price, Forfeited

^[1]

6.7

7.0

Weighted average of exercise price, Outstanding at year end

^[1]

7.5

7.1

Weighted average of exercise price, Exercisable at year end

^[1]

$ 9.5

$ 7.38

[1]	The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2020 and 2019, respectively.
[2]	The options were exercised by way of a cashless exercise.

Share-Based Payment (Details Narrative) - $ / shares	12 Months Ended
Share-Based Payment (Details Narrative) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Weighted average remaining contractual life	6 years
Employment compensation, description	The Company granted to the Company’s Chief Executive Officer (“CEO”) upon his employment, 240,000 restricted stock units (“RSUs”) of which 60,000 RSUs were granted through to January 26, 2021, and 180,000 RSUs have been committed to be provided in three future grants of 60,000 RSUs upon each anniversary of the employment start date of the CEO with the Company. The terms of the 180,000 committed CEO RSU’s were amended subsequent to balance sheet date
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Exercise Price	$ 4.0	$ 4.0
Top of range [member]
IfrsStatementLineItems [Line Items]
Exercise Price	$ 18.5	$ 18.5

Additional Information to the Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional Information to the Statements of Comprehensive Loss [Abstract]
Revenues from lease	$ 13,628	$ 13,218	$ 9,569
Revenues from sale	8,429	9,883	6,828
Revenue total	$ 22,057	$ 23,101	$ 16,397

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
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-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2020-01-01

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URIDate 2020-01-01

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name IFRS
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-URIDate 2020-01-01

+ Details

Additional Information to the Statements of Comprehensive Loss (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
IfrsStatementLineItems [Line Items]
Revenues	$ 22,057	$ 23,101	$ 16,397
Percentage of revenues	100.00%	100.00%	100.00%
USA [Member]
IfrsStatementLineItems [Line Items]
Revenues	$ 19,330	$ 20,636	$ 14,478
Percentage of revenues	88.00%	89.00%	88.00%
Europes [Member]
IfrsStatementLineItems [Line Items]
Revenues	$ 1,847	$ 1,353	$ 1,102
Percentage of revenues	8.00%	6.00%	7.00%
Israel [Member]
IfrsStatementLineItems [Line Items]
Revenues	$ 150	$ 845	$ 371
Percentage of revenues	1.00%	1.00%	2.00%
Others [Member]
IfrsStatementLineItems [Line Items]
Revenues	$ 730	$ 267	$ 446
Percentage of revenues	3.00%	4.00%	3.00%

Weighted number of shares

+ References

+ Details

Additional Information to the Statements of Comprehensive Loss (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Additional Information to the Statements of Comprehensive Loss [Abstract]
Not later than one year	$ 9,684	$ 8,527
Later than one year and not later than five years	15,875	12,723
Later than five years	32	571
Total future minimum lease payments under non cancellable operating leases	$ 25,591	$ 21,821

Additional Information to the Statements of Comprehensive Loss (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
IfrsStatementLineItems [Line Items]
Cost of revenues	$ 5,058	$ 5,129	$ 3,589
Cost of Sales Revenue [Member]
IfrsStatementLineItems [Line Items]
Cost of revenues	3,201	2,473	1,666
Cost of Lease Revenue [Member]
IfrsStatementLineItems [Line Items]
Cost of revenues	$ 1,857	$ 2,656	$ 1,923

Additional Information to the Statements of Comprehensive Loss (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional Information to the Statements of Comprehensive Loss [Abstract]
Salaries and related benefits	$ 3,289	$ 3,338	$ 3,365
Subcontractors	1,530	2,620	2,241
Laboratory materials	275	687	491
Patents	288	334	198
Share-based payment	182	399	31
Travel	2	112	65
Depreciation	87	39	31
Other	383	604	658
Less-Government grants	(213)	(257)	(924)
Research and development expenses, net	$ 5,823	$ 7,876	$ 6,156

Additional Information to the Statements of Comprehensive Loss (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional Information to the Statements of Comprehensive Loss [Abstract]
Salaries and related benefits	$ 6,458	$ 6,419	$ 4,252
Agent commissions	335	221	215
Marketing	3,627	5,239	2,891
Travel	611	1,176	865
Share-based payment	252	214	122
Selling and marketing expenses	$ 11,283	$ 13,269	$ 8,345

Additional Information to the Statements of Comprehensive Loss (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
IfrsStatementLineItems [Line Items]
General and administrative expenses	$ 4,722	$ 5,303	$ 3,421
Salaries and related benefits [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	1,339	1,774	1,235
Professional fees and office expenses [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	1,550	1,770	1,176
Depreciation [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	411	81	30
Travel [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	17	222	127
Allowance for doubtful account [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	844	835	296
Share based payment [Member]
IfrsStatementLineItems [Line Items]
General and administrative expenses	$ 348	$ 621	$ 557

Additional Information to the Statements of Comprehensive Loss (Details 7) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finance income:
Interest-income revaluation of bank deposits	$ 61	$ 175	$ 44
Revaluation of warrants	40	62
Exchange rate differences, net	448
Finance income	549	237	44
Finance expense:
Liability in respect of research and development grants	762	969	519
Interest expense and amortization of deferred costs- loan from bank		283	354
Bank commissions	40	108	41
Revaluation of warrants			28
Exchange rate differences, net		192	258
Interest expense of lease liability	66	115
Finance expense	$ 868	$ 1,667	$ 1,200

Net Loss Per Share (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Earnings per share [abstract]

^[1]

22,453,025

20,506,202

16,640,446

Loss attributable to equity holders of the Company

$ 5,385

$ 10,328

$ 6,479

[1]	Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
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-Name IFRS
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Key Management Personnel [Member]
IfrsStatementLineItems [Line Items]
Other accounts payable	$ 64	$ 102
Related parties [member]
IfrsStatementLineItems [Line Items]
Other accounts payable	$ 38	$ 26

Balances and Transactions with Related Parties (Details 1) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) Integer	Dec. 31, 2019 USD ($) Integer	Dec. 31, 2018 USD ($) Integer
Balances and Transactions With Related Parties [Abstract]
Salary to those employed by the Company or on its behalf \| $	$ 769	$ 945	$ 654
Directors' fees to those not employed by the Company or on its behalf \| $	$ 60	$ 90	$ 100
Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf	2	3	4
Directors not employed by the Company	6	8	6
Benefits to interested and related parties	8	11	10

Balances and Transactions with Related Parties (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Balances and Transactions With Related Parties [Abstract]
Short-term benefits		$ 3	$ 16
Share-based payment to those employed by the Company or on its behalf	182	190	394
Share-based payment to those not employed by the Company or on its behalf	$ 150	$ 147	$ 41

Balances and Transactions with Related Parties (Details 3) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

General and administrative expenses

$ 5,823

$ 7,876

$ 6,156

4,722

5,303

3,421

Sales and marketing expenses

11,283

13,269

8,345

Key Management Personnel [Member]

General and administrative expenses

^[1]

236

113

207

^[1]

619

943

776

Sales and marketing expenses

^[1]

150

Interested and related parties

^[1]

1,005

1,056

983

Related parties [member]