Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 157

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 157
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 fair value through other
comprehensive income

Debt investments consist of debt marketable securities
which the Company classifies as financial assets measured at fair value through other comprehensive income (“ OCI”). Financial
assets measured at fair value through OCI are financial assets held within a business model whose purpose is both to collect contractual
cash flows and to sell the financial assets, where the cash flows of the assets represent solely payments of principal and interest. Financial
assets measured at fair value through OCI are initially recognized at fair value plus transaction costs. Gains or losses arising from
changes in the fair value of the financial assets are taken through OCI, except for the recognition of impairment gains or losses, interest
income using the effective rate method and foreign exchange gains and losses, which are recognized in profit or loss.

F-10

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

When the financial asset is derecognized, the
cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss. Foreign exchange gains and losses,
impairment expenses as well as interest income from these financial assets are included in financial income (expense) in the consolidated
statements of profit or loss and other comprehensive income (loss).

Intangible assets

Research and development

Through December 31, 2024 and 2023, the Company
has not met the criteria for capitalizing development expenses as intangible assets, and accordingly, no asset has so far been recognized
in the consolidated financial statements in respect of capitalized development expenses. Consequently, the research and development expenses
of the Company are fully recognized as incurred.

Technologies

Technologies which were acquired either separately
or as part of a business combination are initially measured at fair value at the acquisition date and amortized over a period of2-4years
using the straight-line method, with such amortization classified as cost of revenues.

Customer relations

Customer relations which were acquired as part
of a business combination are initially measured at fair value at the acquisition date and amortized over a period5years using the straight-line
method, with such amortization classified as selling and marketing expenses.

Goodwill

Goodwill arising from a business combination represents
the excess of the overall amount of the consideration transferred, the amount of any non-controlling interests in the acquired company
over the net amount as of acquisition date of the identifiable assets acquired and the liabilities assumed. Impairment reviews of the
cash-generating-unit (“ CG