Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 172

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 172
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  2,222,222 series C warrants with exercise price                                                                                           

  370,370 series D warrants with exercise price                                                                                              

In case that the Company will not exercise the
funding or a portion of it, with respect to Tranches 3-8, until September 1, 2023, then up to50% of each of the series C warrants and
series D warrants will be cancelled, pro rata, to the amounts of funding not withdrawn. In addition, the Company shall have the right
to require the exercise of all or any portion of the warrants if the closing price of the Company’s ordinary shares exceeds150%
of the respective exercise price of each series of warrants for three consecutive trading days.

The Company accounted for the above warrants,
which represent the consideration for providing the cash commitment, in accordance with the provisions of IFRS 2 “ Share-based payment”
(“ IFRS 2”). As such, the fair value of these warrants was accounted for as transaction costs. Total transaction costs recognized
by the Company at the initial date totaled $596thousand, representing the fair value of series A and B warrants, and50% of the fair
value of series C and D warrants, due to the fact that up to50% of each of them are subject to cancellation in the case that the Company
will not exercise the funding or a portion of it, with respect to Tranches 3-8.

These transaction costs were recorded under “other
non-current assets” in the consolidated statement of financial position and are allocated to each tranche drawdown on a pro rata
basis, while the remaining50% of the fair value of series C and D warrants will be allocated to each tranche on a pro rata basis at the
drawdown date. The fair value of these warrants was determined using the Monte-Carlo model using the following principal assumptions:
risk-free interest rate3.14%-4.30%, expected term (in years)3.01-3.85, expected volatility95.76%-99.96%.

On January 30, 2023, the Company signed a second
amendment to the O. R. B. agreement, according to which, O. R. B. will fund the Company with 18 tranches of $111thousand (an unchanged
total amount of $2million) from February 2023 through July 2024, instead of the 6 original tranches (Tranches 3