Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 168

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 168
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 next year of50% and a discount rate of22.0%. As a result, the Company recorded an impairment
loss of $2,190thousand within selling and marketing expenses. The recoverable amount of the technologies was assessed by management based
on value-in-use calculation which uses cash flow projections covering a3-year period and a discount rate of22.0%. As a result, the Company
recorded an impairment loss of $305thousand within cost of revenue. In addition, during the third quarter of 2023, the remaining customer
relations balance of $185thousand was fully impaired. Following the above impairments, the recoverable amount of the entire CGU was assessed
by management based on its fair value less costs of disposal (level 3 measurement). As a result, the entire goodwill balance of $6,311thousand was impaired. As of December 31, 2023, the remaining technology balance in respect of the CyberKick CGU was $247thousand.

As of December 31, 2024 and 2023, the entire carrying amount of goodwill
of $4,118thousand is related to the NetNut CGU.

NOTE 7 - TAXES ON INCOME:

Corporate taxation

The taxable income of Alarum, Safe-T Data A. R
Ltd. (“ Safe-T Data”) and CyberKick is subject to the Israeli regular corporate tax rate of23%.

The taxable income of NetNut, based on management
assessment, meets the criteria of a Preferred Technological Enterprise (“ PTE”) under the Law for the Encouragement of Capital
Investments and accordingly, is eligible for a reduced tax rate of12%. Taxable income other than taxable income from the PTE regime is
subject to the Israeli regular corporate tax rate.

The taxable income of NetNut Networks Inc. (“ NetNut
Networks”) is subject to a regular U. S. federal tax rate of21%.

Tax assessments

Tax assessments filed by the Company, NetNut and
Safe-T Data through 2019 are considered final.

Tax assessments filed by NetNut Networks through
2020 are considered final.

CyberKick has not been assessed since its incorporation.

F-20

ALARUM TECHNOLOGIES LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Carryforward tax losses

Carryforward tax losses in Israel of the Company
amounted to $14.8million and $11.2million as of December 31,