Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 173

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 173
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-8) of $333thousand each
from February 2023 through July 2023.

F-23

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

On September 7, 2023, the Company signed a third
amendment to the O. R. B. agreement., according to which O. R. B. agreed to waive all rights to future revenue share after100% repayment
of each tranche withdrawn, to extend the repayment duration of up to100% of the original tranches to30months instead of24months and
to cancel all outstanding warrants granted, in exchange for total consideration of $500thousand, out of which, $366thousand was allocated
for the cancellation all outstanding warrants granted based on their fair value. The fair value was determined using the Monte-Carlo model
with the following principal assumptions: risk-free interest rate4.66-4.99%, expected term (in years)1.93-2.98, expected volatility77.29-79.22%. As a result, the Company classified $274thousand from other equity reserves to share premium. In addition, the Company
accounted for this amendment as an extinguishment of the agreement. Accordingly, the difference in the amount of$349thousand between
the carrying amount of the original liability and the new liability (which was calculated using an effective interest rate of18.7%) and
the consideration paid, was recorded in profit or loss as financial expense.

Reconciliation of movements of long-term loans
to cash flow from financing activities is as follows:

                                                             December 31                                       
                                                             2024                                              
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                             U. S. dollars in thousands                        
  Balance at the beginning of year                                                           1,092      1,223  
  Changes from financing cash flows:                                                                           
  Long-term loans received                                                                   -            888  
  Long-term loans payments (interest and principal)                                          ( 324      ( 915  
  Payments related to extinguishment of long-term loans                                      -          ( 134  
  Non-cash changes:                                                                                            
  Allocation of transaction costs to equity                                                  -          ( 158  
  Financial expense, net                                                                     202          188  
  Balance at the end of year                                                                 970        1,092  

NOTE 10 - LEASES:

The Company’s leases include property and