Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 132

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 132
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 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

In the ordinary course of
our operations, we are exposed to certain market risks, primarily changes in foreign currency exchange rates and interest rates.

Quantitative and Qualitative Disclosure About
Market Risk

We are exposed to market risks
in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse
changes in financial market prices and rates. Our current investment policy is to invest available cash in bank deposits with banks that
have a credit rating of at least A-minus. Accordingly, a substantial majority of our cash is held in deposits that bear interest. Given
the current low rates of interest we receive, we will not be adversely affected if such rates are reduced. Our market risk exposure is
primarily a result of NIS/U. S. dollar exchange rates, which is discussed in detail in the following paragraph.

Foreign Currency Exchange Risk

Our sales contracts are primarily
denominated in U. S. dollars. A material portion of our operating expenses is incurred outside the United States and can be denominated
in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the NIS.
Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement
of profit or loss. The effect of a hypothetical 10% adverse change in foreign exchange rates on monetary assets and liabilities on December
31, 2024, can be material to our financial condition or results of operations. To date, foreign currency transaction gains and losses
and exchange rate fluctuations have not been material to our consolidated financial statements, and we have not engaged in any foreign
currency hedging transactions.

As our international operations
grow, our risks associated with fluctuation in currency rates will become greater, and we will continue to reassess our approach to managing
this risk. In addition, currency fluctuations or a weakening U. S. dollar can increase the costs of our non-U. S. expansion as well as the
Israeli headquarters costs.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN
EQUITY SECURITIES

A. Debt Securities.

Not applicable.

B. Warrants and Rights.

Not applicable.

C. Other Securities.

Not applicable.

D. American Depositary Shares

Fees and Expenses

  Persons depositing or withdrawing shares or ADS holders must pay:                                                                                                                          For:                                                                                                                                                 
  $5