Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 160

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 160
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ed for as service contracts. The Company’s subscription contracts are primarily charged and paid upfront and are non-cancelable.

F-12

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company considers the terms and conditions
of the contracts and the Company’s customary business practices in identifying its contracts under IFRS 15. The Company determines
it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding
the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to
pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to
pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, credit
and financial information pertaining to the customer.

The Company’s performance obligations consist
of access to its platforms and related support services which are considered one performance obligation.

The transaction price is determined based on the
consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Payment terms are generally
upfront at the time of the transaction, except for certain enterprise customers which are generally up to net 60 days. The Company applied
the practical expedient in IFRS 15 and did not evaluate payment terms of one year or less for the existence of a significant financing
component.

Revenue is recognized ratably over the term of
the subscription contract generally beginning on the date that the platform is made available to a customer. Amounts that have been invoiced
are recorded in trade receivables and in contract liabilities or revenue, depending on whether transfer of control to customers has occurred.

The Company applies the practical expedient in
IFRS 15 for incremental costs of obtaining contracts when the associated revenues are recognized over less than one year.

Advertising

Until the second half of 2023, the Company generated
revenues from the distribution of security and privacy products of third-party developers in various digital properties. Commencing in
the second half of 2023, advertising revenue is immaterial.

Advertising revenue is recognized at the point
in time when a user purchases a product of a customer and is considered a single performance obligation.

Management evaluates whether its revenues should
be presented on a gross basis, which is the amount that a customer pays for the service, or on a net basis,