Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 41

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 3
Chunk 41
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 we predict how this war will ultimately affect Israel’s
economy in general and we continue to monitor the situation closely and examine the potential disruptions that could adversely affect
our operations.

Our
insurance policies do not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeli government
currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot assure you
that this government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damages incurred
by us could have a material adverse effect on our business. Any armed conflicts or political instability in the region would likely negatively
affect business conditions and could harm our results of operations.

Several
countries, principally in the Middle East, still restrict doing business with Israel and Israeli companies, and additional countries
may impose restrictions on doing business with Israel and Israeli companies, whether as a result of hostilities in the region or otherwise.
Also, the Israeli government imposes restrictions on doing business with certain countries. In addition, there have been increased efforts
by activists to cause companies and consumers to boycott Israeli goods and cooperation with Israeli-related entities based on Israeli
government policies. Such actions, particularly if they become more widespread, may adversely impact our ability to collaborate with
other third parties. Any hostilities involving Israel, any interruption or curtailment of trade or scientific cooperation between Israel
and its present partners, or a significant downturn in the economic or financial condition of Israel could adversely affect our business,
financial condition and operations. Moreover, we cannot predict how this war will ultimately affect Israel’s economy in general,
which may involve a downgrade in Israel’s credit rating by rating agencies (such as the downgrade by Moody’s of its credit
rating of Israel from A1 to A2 in October 2023 and further downgrade to Baa1 with a negative outlook in September 2024, as well as the
downgrade of its outlook rating from “stable” to “negative”). We may also be targeted by cyber terrorists specifically
because we are an Israeli-related company.

Furthermore,
the Israeli government is currently pursuing extensive changes to Israel’s judicial system, which sparked extensive political debate.
In response to the foregoing developments, a series of civil unrests and demonstrations throughout Israel took place. Additionally, individuals,
organizations, and institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively impact
the business environment in Israel including due to reluctance of foreign investors to invest or conduct business in