Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 69

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 5
Chunk 69
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       0.4  
  Networks and servers                                                            1.2       0.8  
  Platform providers fees                                                         0.2       0.7  
  Other                                                                           0.1         *  
  Total cost of revenues                                                          7.9       7.7  
  Gross profit                                                                   23.9      18.8  
  Gross profit out of revenues %                                                   75        71  

  Less than $0.1  

Our cost of revenues for the
year ended December 31, 2024, amounted to $7.9 million, representing an increase of $0.2 million or 3% compared to $7.7 million for the
year ended December 31, 2023. The increase is primarily attributed to a $2.1 million increase in the web data collection segment cost
of revenues that supported the increase in this segment’s revenues. It was partially offset by a $1.6 million reduction in the consumer
internet access cost of revenues, mainly traffic acquisition costs related to the cessation of operation of the advertising services which
amounted to $1.1 million in 2023 compared to $0 in 2024, and a reduction of platform providers fees as a result of the scale down of the
products sales under this segment.

Gross Profit

As a result of a higher increase
in revenues compared to cost of revenues, gross profit grew by $5.1 million to $23.9 million, representing an 27% increase during 2024,
compared to gross profit in 2023.

Research and Development Expenses

The following table summarizes
our research and development costs for the periods presented. The period-to-period comparison of results is not necessarily indicative
of results for future periods.

                                                           Year ended                              
                                                         December 31,                              
  U. S. dollars in millions                                      2024               2023           
 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Payroll, related expenses and share-based payment                        3.7                2.9  
  Subcontractors                                                           0.3                0.2  
  Other                                                                    0.5                0.5  
  Total Research and development expenses                                  4.5                3.6  

Our research and development
costs for the year ended December 31, 2024, amounted to $4.5 million, representing an increase of $0.9 million,