Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 8

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 3
Chunk 8
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We
will not succeed unless the marketplace is confident that we provide effective cybersecurity protection. Further, we may be targeted
by cyber terrorists because we are an Israeli company or otherwise. For example, in January 2023, we experienced an immaterial breach,
which resulted in the hacker gaining temporary access to our database. In response, we secured all exposed servers to prevent further
breaches and engaged a Chief Information Security Officer (CISO) to provide security consultation and strengthen our defenses. Although
such incident did not have an adverse effect on us or our customers and we have not had a cybersecurity incident since then, if we experience
another actual or perceived breach of our network and our internal systems, it could adversely affect the market perception of our products
and services. In addition, we may need to devote more resources to address security vulnerabilities in our solution, and the cost of
addressing these vulnerabilities could reduce our operating margins. If we do not address security vulnerabilities or otherwise provide
adequate security features in our products, certain customers, particularly government customers, may delay or stop purchasing our products.
Further, a security breach could impair our ability to operate our business, including our ability to provide maintenance and support
services to our customers. If this happens, our revenues could decline, and our business could suffer. If we experience short period
hosting/infrastructure failures, or longer periods of disconnection blocking of our network of IPs to access certain websites, and do
not offer our customers various immediate alternatives, some customers may choose to delay or stop purchasing our products.

In
the ordinary course of our business, we rely on information technology systems, networks and services, including internet sites, data
hosting and processing tools, hardware (including laptops and mobile devices), software, and technical platforms and applications, to
process, store and transmit data and to help us manage our business and to collect and store the Company’s sensitive data, including
intellectual property, personal information and proprietary business information. The secure maintenance and transmission of this information
is critical to our operations and business strategy. We rely on commercially available systems, software, tools, and domestically available
monitoring to provide security for processing, transmitting and storing this sensitive data. As part of our implemented efficiency and
cost-saving measures, we are using cloud service providers. While benefits for using cloud computing services are well documented and
are mostly related to resources sharing, on-demand self-services, rapid scalability, improved economies of scale and collaboration, there
are risks that could