Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 158

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 158
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U”) to which goodwill was allocated are undertaken annually and whenever there is any indication
of impairment of a CGU.

Goodwill is tested annually for impairment in
the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that it may be impaired. For the 2024,
2023 and 2022 reporting periods, the recoverable amount of the Company’s CGUs was determined based on value-in-use calculations.
These calculations require the use of assumptions. For further details, see Note 6.

Impairment of non-monetary assets other
than goodwill

An impairment loss is recognized for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair
value, less selling costs and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels of identifiable
cash flows. Non-monetary assets, other than goodwill, that were impaired are reviewed annually for possible reversal of the impairment
recognized at each statement of financial position date. Impairment loss of technologies is recorded under cost of revenue, and of customer
relations under selling and marketing expenses. For further details, see Note 6.

Financial liabilities at amortized cost

Financial liabilities at amortized cost are initially
recognized at their fair value less transaction costs that are directly attributable to the issue of the financial liability and are subsequently
measured at amortized cost. For further information regarding the Company’s accounting policy related to long-term loans, see Note
9.

F-11

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Employee benefits

Vacation and recreation pay

Every employee is legally entitled to vacation
and recreation benefits, which are computed on an annual basis. This entitlement is based on the term of employment. The Company charges
liability and expense due to vacation and recreation pay, based on the benefits that have been accumulated for each employee.

Income taxes

Tax benefit (expense) for the reported years comprise current and deferred
taxes.

The current income tax charge is calculated on
the basis of the tax laws enacted or substantively enacted at the financial position date in the countries where the Company operates
and generates taxable income. The Company’s management periodically evaluates the tax aspects applicable to its taxable income based
on the relevant tax laws and makes provisions in accordance with the amounts payable to the applicable authorities.

Deferred income tax is provided using the liability
method, on temporary