Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 67

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 5
Chunk 67
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costs for facilities, IT and depreciation.

  Research and development. Research and development expenses consist primarily of personnel costs and allocated overheads, as well as the costs of subcontractors assisting our research and devel...  

  Sales and marketing. Sales and marketing expenses consist primarily of personnel costs, incentive commission costs, payment processing fees and allocated overhead. We expense commission costs a...  
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  General and administrative. General and administrative expenses consist mainly of personnel costs, professional services and allocated overhead. General and administrative personnel include our...  

Financial Expense/Income

Finance expense/income derives
primarily from changes in the fair value of derivative financial instruments, mainly warrants issued to investors in 2019 and 2020. We
also have interest income from cash deposits balances and exchange rate differences, which can impact our finance expense/income. We report
our financial results in dollars and most of our revenues are recorded in dollars, while most of the research and development expenses,
a portion of the sales and marketing and general and administrative expenses, and a small portion of our cost of revenue expenses are
incurred in NIS. As a result, we are exposed to fluctuations in exchange rates which affect our finance expense or finance income.

Comparison of the year ended December 31, 2024,
to the year ended December 31, 2023

Results of Operations from Continuing Operations

                                                                    Year ended            
                                                                  December 31,            
  U. S. dollars in millions                                               2024            
 ──────────────────────────────────────────────────────────────────────────────────────────
  Consolidated Statements of Profit or Loss                                               
  Revenues                                                                31.8      26.5  
  Cost of revenues                                                         7.9       7.7  
  Gross profit                                                            23.9      18.8  
  Operating Expenses:                                                                     
  Research and development expenses                                        4.5       3.6  
  Selling and marketing expenses                                           7.0      10.0  
  General and administrative expenses                                      5.7       4.4  
  Impairment of goodwill                                                     -       6.3  
  Total operating expenses                                                17.2      24.3  
  Operating profit (loss)                                                  6.7      (5.5  
  Finance income, net                                                      0.3      (