Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 32

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 3
Chunk 32
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These
exemptions and leniencies will reduce the frequency and scope of information and protections to which you are entitled as an investor.

We
may be a “passive foreign investment company”, or PFIC, for U. S. federal income tax purposes in the current taxable year
or may become one in any subsequent taxable year. There generally would be negative tax consequences for U. S. taxpayers that are holders
of our ADSs or Ordinary Shares if we are or were to become a PFIC.

Based
on the projected composition of our income and valuation of our assets, we do not expect to be a PFIC for 2024, and we do not expect
to become a PFIC in the future, although there can be no assurance in this regard. The determination of whether we are a PFIC is made
on an annual basis and will depend on the composition of our income and assets from time to time. We will be treated as a PFIC for U. S.
federal income tax purposes in any taxable year in which either (1) at least 75% of our gross income is “passive income”
or (2) on average at least 50% of our assets by value produce passive income or are held to produce passive income. Passive income for
this purpose generally includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities
transactions and from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived
by reason of the temporary investment of funds, including those raised in a public offering. In determining whether a non-U. S. corporation
is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25%
interest (by value) is considered. The tests for determining PFIC status are applied annually, and it is difficult to make accurate projections
of future income and assets which are relevant to this determination. In addition, our PFIC status may depend in part on the market value
of our ADSs or Ordinary Shares. Accordingly, there can be no assurance that we currently are not or will not become a PFIC in the future.
If we are a PFIC in any taxable year during which a U. S. taxpayer holds our ADSs or Ordinary Shares, such U. S. taxpayer would be subject
to certain adverse U. S. federal income tax rules. In particular, if the