Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 126

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 126
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 be deemed
to sell the Ordinary Shares it holds at their fair market value on the last day of the last taxable year in which we qualified as a PFIC,
and any gain recognized from such deemed sale would be taxed under the PFIC excess distribution regime. After the deemed sale election,
the U. S. Holder’s Ordinary Shares would not be treated as shares of a PFIC unless we subsequently become a PFIC.

If we are a PFIC for any taxable
year during which a U. S. Holder holds Ordinary Shares and one of our non-U. S. corporate subsidiaries is also a PFIC (i. e., a lower-tier
PFIC), such U. S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC and would be
taxed under the PFIC excess distribution regime on distributions by the lower-tier PFIC and on gain from the disposition of shares of
the lower-tier PFIC even though such U. S. Holder would not receive the proceeds of those distributions or dispositions. Each U. S. Holder
is advised to consult its tax advisors regarding the application of the PFIC rules to our non-U. S. subsidiaries.

If we are a PFIC, a U. S. Holder
will not be subject to tax under the PFIC excess distribution regime on distributions or gain recognized on Ordinary Shares if such U. S.
Holder makes a valid “mark-to-market” election for our Ordinary Shares. A mark-to-market election is available to a U. S. Holder
only for “marketable stock.” Our Ordinary Shares will be marketable stock as long as they remain listed on the Nasdaq Capital
Market and are regularly traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. If a mark-to-market
election is in effect, a U. S. Holder generally would take into account, as ordinary income for each taxable year of the U. S. holder, the
excess of the fair market value of Ordinary Shares held at the end of such taxable year over the adjusted tax basis of such Ordinary Shares.
The U. S. Holder would also take into account, as an ordinary loss each year, the excess of the adjusted tax basis of such Ordinary Shares
over their fair market value at the end of the taxable year, but only to the extent of the excess of amounts previously included in income
over ordinary losses deducted as a result of the mark-to-market