Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 164

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 164
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3 financial liabilities for each of the three years in the period ended December 31, 2024:

                                                       Derivative               
                                       U. S. dollars in thousands               
  Balance as of January 1, 2024                               109          109  
  Changes within profit or loss                                39           39  
  Balance as of December 31, 2024                             148          148  
  Balance as of January 1, 2023                                26           26  
  Initial recognition                                       1,197        1,197  
  Classification to equity                                ( 1,116      ( 1,116  
  Changes within profit or loss                                 2            2  
  Balance as of December 31, 2023                             109          109  
  Balance as of January 1, 2022                               488          488  
  Changes within profit or loss                             ( 462        ( 462  
  Balance as of December 31, 2022                              26           26  

F-16

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Valuation processes of the Company

The Company used the Black-Scholes model to evaluate
the fair value of derivative financial instruments related to several warrants previously granted to investors as of December 31, 2024
and 2023, using the following principal assumptions:

                                Year ended December 31                      
                                2024                        2023            
 ────────────────────────────────────────────────────────────────────────────
  Risk-free interest rate       4.13%- 4.25%                4.01%- 4.92%    
  Expected term (in years)      0.48 – 1.99                 0.86 – 2.99     
  Expected volatility           110.83%– 116.14%            81.07%– 94.33%  

The Company also used the binomial model to evaluate
the fair value of derivative financial instruments related to warrants previously granted to investors as of December 31, 2023, using
the following principal assumptions:

                                 Year ended  
                                December 31  
                                       2023  
 ─────────────────────────────────────────────
  Risk-free interest rate             5.32%  
  Expected term (in years)             0.43  
  Expected volatility                   91%  

In addition, the Company used