Page 1

Brains Way BrainsWay Reports First Quarter 2021 Financial Results and Operational Highlights May 20 , 2021 Strong Revenue Growth of 47 % Year - over - Year in Q1 2021 Successfully Executed Initial U.S. Controlled Market Release of Deep TMS for Smoking Addiction Strengthened Balance Sheet Through Successful Equity Offering ; Ended Q1 2021 with $ 58.5 Million in Cash Conference Call to be held Today at 8:30 AM ET CRESSKILL , N.J. and JERUSALEM , May 20 , 2021 ( GLOBE NEWSWIRE ) -- BrainsWay Ltd. ( NASDAQ & TASE : BWAY ) ( " BrainsWay " or the " Company " ) , a global leader in advanced noninvasive neurostimulation treatments for mental health disorders , today reported first quarter 2021 financial results and provided an operational update . Recent Financial and Operational Highlights • For the three months ended March 31 , 2021 , revenues were $ 6.1 million , a 47 % increase as compared to the same period in 2020 . Operating loss for the first quarter of 2021 was $ 2.1 million , which included a one - time $ 2.0 million expense for stock - related compensation , as compared to $ 3.6 million for the first quarter of 2020 . • As of March 31 , 2021 , BrainsWay's Deep TMS installed base was 652 total systems , a 19 % increase from the installed base at the same point in the prior year . During the first quarter 2021 , the Company shipped 9 OCD coils as add - on helmets to certain of BrainsWay's new and existing systems , increasing the total number of OCD add - on helmets to 225 . • Surpassed 100,000 patients treated with Deep TMS therapy . • Launched Deep TMS as an aid for short - term smoking cessation in the U.S. • Received 510 ( k ) clearance from the U.S. Food and Drug Administration ( FDA ) for the Company's Theta Burst three - minute protocol utilizing Deep TMS for the treatment of major depressive disorder ( MDD ) . • Appointed seasoned healthcare industry finance executive R. Scott Areglado as Senior Vice President and Chief Financial Officer . " We are extremely pleased with the overall trends in our business , and are working to continue the strong momentum achieved late in 2020 and during the first quarter throughout the year , " stated Christopher von Jako , Ph.D. , President and Chief Executive Officer of BrainsWay . " Our revenues of $ 6.1 million represented a significant 47 % increase over our first quarter of 2020 , demonstrating the resiliency of our business and continued emergence from the COVID - 19 pandemic . We marked a true milestone for our revolutionary approach to mental health treatment with the recent treatment of our 100,000th patient , and this was complemented by impressive commercial and regulatory achievements , including our successful follow - on raise of $ 45.2 million in gross proceeds , the controlled market release of our smoking addiction system , and the FDA's clearance of our three - minute Theta Burst depression protocol . We believe these accomplishments position us well to generate long - term shareholder value and to advance in our mission to improve health and transform lives . " First Quarter 2021 Financial Results • Total revenues for the first quarter of 2021 were $ 6.1 million , compared to $ 4.2 million in the first quarter of 2020 , an increase of 47 % . Quarterly recurring lease revenues were $ 3.5 million , remaining consistent with the first quarter of 2020 , and comprising approximately 56 % of total revenues . • Gross margin for the first quarter of 2021 was 75 % , compared to 76 % for the first quarter of 2020 . Operating expenses for the first quarter of 2021 were $ 6.8 million , including a one - time $ 2.0 million expense for stock - related compensation , compared to $ 6.8 million for the first quarter of 2020 . • For the three months ended March 31 , 2021 , operating loss was $ 2.1 million , of which $ 2.0 million was a one - time expense for stock - related compensation . This is compared to an operating loss of $ 3.6 million during the same period in the prior year . • As of March 31 , 2021 , the Company had cash and short - term deposits of approximately $ 58.5 million , compared to $ 17.2 million at December 31 , 2020. The significantly increased cash position reflects the completion of the Company's public offering , which was closed in March 2021 and generated gross proceeds of $ 45.2 million . Conference Call and Webcast BrainsWay's management will host a conference call today , May 20 , 2021 , at 8:30 a.m. Eastern Time to discuss these results and answer questions . Thursday , May 20. at 8:30 AM Eastern Time : United States : Israel : International : Conference ID : Webcast : 877-407-3982 1 809 406 247 201-493-6780 13719155 http://public.viavid.com/index.php?id=144607 To listen to a live webcast , please visit the Investors section of the BrainsWay website at www.BrainsWay.com . Please access the Company's website at least 10 minutes ahead of the conference call to register . The webcast replay will be available on the website for two weeks following the completion of the call . About BrainsWay Brains Way is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders . The Company is boldly advancing neuroscience with its proprietary Deep Transcranial Magnetic Stimulation ( Deep TMS ) platform technology to improve health and transform lives . BrainsWay is the first and only TMS company to obtain three FDA - cleared indications backed by pivotal studies demonstrating clinically proven efficacy . Current indications include major depressive disorder , obsessive - compulsive disorder , and smoking addiction . The Company is dedicated to leading through superior science and building on its unparalleled body of clinical evidence . Additional clinical trials of Deep TMS in various psychiatric , neurological , and addiction disorders are underway . Founded in 2003 , with offices in Cresskill , NJ and Jerusalem , Israel , Brains Way is committed to increasing global awareness and broad access to Deep TMS . For the latest news and information about BrainsWay , please visit www.brainsway.com . Forward Looking Statements This press release contains " forward - looking statements " within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words