Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 159

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 159
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 differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated
financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by
the financial position date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax
liability is settled. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilized.

Share-based payments

The Company operates a number of equity-settled,
share-based compensation plans, under which the Company receives services from employees as consideration for equity instruments (options
and restricted share units or “ RSUs”) of the Company. The fair value of the employee services received in exchange for the
grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the
options granted excluding the impact of any service and non-market performance vesting conditions. The total expense is recognized over
the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the date of each financial
position, the Company revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions.
It recognizes the impact of the revision to original estimates, if any, in the consolidated statements of profit or loss and other comprehensive
income (loss), with a corresponding adjustment to equity.

Profit (loss) per share

Basic profit (loss) per share is calculated by
dividing net profit (loss) for the year by the weighted average number of ordinary shares, including pre-funded warrants, vested RSUs
and vested options with zero-exercise price. When calculating the diluted profit (loss) per share, the Company adjusts the profit (loss)
attributable to holders of ordinary shares and the weighted average number of shares in issue, to reflect the effect of all potentially
dilutive ordinary shares.

Revenue recognition

The Company derives its revenues mainly from the
following sources:

Software as a Service

The Company generates revenue from the sale of
subscriptions to customers who access the Company’s platforms.

The Company’s subscription contracts are
generally offered on a periodical basis, generally monthly, and include a fixed price. Customers do not have the ability to take possession
of the software, and instead receive continuous access to the platform throughout the contract period. Therefore, these arrangements are
account