Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 14

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 3
Chunk 14
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 our business, results of operations, financial
condition and the Company’s Ordinary Shares or ADSs price. If the negative economic conditions persist or worsen, it could lead
to increased political and financial uncertainty, which could result in regime or regulatory changes in the jurisdictions in which we
operate. High levels of volatility and market turmoil could have an adverse effect on our business, results of operations, financial
condition and the Company share price.

If
we are unable to hire, retain and motivate qualified personnel, our business will suffer.

Our
future success depends, in part, on our ability to continue to attract and retain highly skilled personnel. Our inability to attract
or retain qualified personnel or delays in hiring required personnel, particularly in sales and software engineering, may seriously harm
our business, financial condition and results of operations. Any of our employees may terminate their employment at any time. Competition
for highly skilled personnel is frequently intense, especially in Israel, where we are headquartered. Moreover, certain of our competitors
or other technology businesses may seek to hire our employees. There is no assurance that any equity or other incentives that we grant
to our employees will be adequate to attract, retain and motivate employees in the future. If we fail to attract, retain and motivate
highly qualified personnel, our business will suffer. In addition, to the extent we hire personnel from competitors, we may be subject
to allegations that they have been improperly solicited or divulged proprietary or other confidential information.

We
are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and results of operations.

Our
functional and reporting currency is the U. S. dollar, and we generate a majority of our revenues in U. S. dollars. A material portion
of our operating expenses is incurred outside the United States, mainly in NIS and are subject to fluctuations due to changes in foreign
currency exchange rates, particularly changes in NIS. Our foreign currency-denominated expenses consist primarily of personnel, rent
and other overhead costs. Since a significant portion of our expenses is incurred in NIS and is substantially greater than our revenues
in NIS, any appreciation of the NIS relative to the U. S. dollar would adversely impact our net income or net loss, as relevant. During
2024, the NIS depreciated by 0.6% against the dollar in comparison to its appreciation in prior years. We are therefore exposed to foreign
currency risk due to fluctuations in exchange rates. This may result in gains or