Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 167

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 167
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uses cash flow projections covering a5-year period and terminal growth rate of3% thereafter, and a discount rate of25.5%. The terminal
growth rate represents the long-term average growth prospects of the web data collection market. Based on the impairment test performed,
the estimated recoverable amount was determined to be substantially higher than its carrying amount. A hypothetical decrease in the terminal
growth rate of1% or an increase of1% to the discount rate would reduce the value-in-use by $2,236thousand and $4,150thousand, respectively,
and would not result in an impairment.

F-19

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the year ended December 31, 2023

NetNut CGU

The Company performed the annual goodwill impairment
test for its NetNut CGU at December 31, 2023. The recoverable amount was assessed by management based on value-in-use calculation which
uses cash flow projections covering a 5 year period and terminal growth rate of3% thereafter, and a discount rate of25.5%. The terminal
growth rate represents the long-term average growth prospects of the web data collection market.

Based on the impairment test performed, the estimated
recoverable amount was determined to be substantially higher than its carrying amount. A hypothetical decrease in the terminal growth
rate of1% or an increase of1% to the discount rate would reduce the value-in-use by $1,861thousand and $3,699thousand, respectively,
and would not result in an impairment.

CyberKick CGU

During the second quarter of 2023, the Company
identified triggering events for potential impairment in its CyberKick CGU. The triggering events include a purchase pause by CyberKick’s
largest customer as well as higher customer churn rates, which resulted in a material decrease in forecasted operating results. As a result,
the Company decided to scale down the operations of CyberKick, with material reductions of expenses and headcount, and to continue to
maintain its operations only to current paying customers. Accordingly, the Company performed an impairment test for the intangible assets
constituting its CyberKick CGU and thereafter for the entire CGU at June 30, 2023. The recoverable amount of the customer relations was
assessed by management based on value-in-use calculation which uses cash flow projections covering a3-year period, assuming probability
of customers resuming purchases during