Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 161

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 161
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 which is the amount of the
customer payment less amounts the Company pays to digital property owners for placing the customers’ products on their digital property,
also known as “traffic acquisition costs”. Traffic acquisition costs are based on a cost-per click or cost-per impression
arrangements and are charged to cost of revenue as incurred. The evaluation to present revenue on a gross versus net basis requires significant
judgment. Management has determined that it acts as the principal and recognizes revenue as it relates to these transactions on a
gross basis as the Company controls the service to the customer and it is the primary obligor in the transaction.

Leases

The Company’s leases include property and
vehicle leases.

At the commencement date, the Company measures
the lease liability at the present value of the lease payments that are not paid at that date, including, inter alia, the exercise price
of a purchase option if the Company is reasonably certain to exercise that option. Simultaneously, the Company recognizes a right-of-use
asset in the amount of the lease liability.

The discount rate applied by the Company is the
rate of interest that the Company would have to pay to borrow over a similar term, and with similar security, the funds necessary to obtain
an asset of a similar value to the right-of-use asset in a similar economic environment.

The lease term is the non-cancellable period for
which the Company has the right to use an underlying asset, together with both the periods covered by an option to extend the lease if
the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably
certain not to exercise that option.

F-13

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

After the commencement date, the Company measures
the right-of-use asset applying the cost model, less any accumulated depreciation and any accumulated impairment losses and adjusted for
any remeasurement of the lease liability. Assets are depreciated by the straight-line method over the lease period, which is3years for
vehicles and property.

Interest on the lease liability is recognized
in profit or loss in each period during the lease term in an amount that produces a constant periodic rate of interest on the remaining
balance of the lease liability.

Payments associated with short-term leases are
not recognized as right-of-use assets or lease liabilities but are recognized on a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease