Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 171

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 171
---
,
made through a series of cash installments through July 2023, will be allocated specifically towards the Company’s customer acquisition
program for its consumer internet access solution.

On October 27, 2022, the Company signed an amendment
to the O. R. B. agreement which provides for a cancellation of the milestone, as defined in the O. R. B. agreement, as well as removed any
discretion previously granted to O. R. B. in connection with the additional $2million funding. As a result, the O. R. B. cash commitment
increased to $4million. Also, the parties agreed that Tranche 2 at the amount of $1million which was planned to be funded in November
2022, will be divided to 3 sub-tranches of $333thousand each, to be funded equally in November 2022, December 2022 and January 2023.

F-22

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company will repay the funding using a revenue
share model that is based on sales generated only from customers of the new consumer internet access solution acquired with each funding
installment. Each such funding installment shall be repaid within 24 months and if the repayments does not cover100% of the installments,
then the Company will cover the remaining amounts, in cash or shares, at its sole discretion. Once the investment amount has been repaid
in full, the Company and O. R. B. shall share the attributed revenue in equal parts (50:50) until the lapse of 5 years after the date on
which each installment was received by the Company.

The Company recognized a financial liability for
each tranche upon drawdown, at the amount drawn less transaction costs attributable to that tranche.

Upon initial recognition, the effective interest
rate was calculated by estimating the future cash flows throughout the expected life of that tranche, taking into account the transaction
costs allocated to that tranche. The weighted effective interest rate upon the initial recognition was approximately34.92% per year.

In consideration for the cash commitment, the
Company granted5,006,386warrants that were exercisable for periods of up to 3 years from the vesting dates of the warrants, as detailed
below:

  2,068,966 series A warrants with exercise price                                                                                          

  344,828 series B warrants with exercise price