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Taxes on Income | 12 Months Ended
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Dec. 31, 2023
Taxes on Income [Abstract] |
TAXES ON INCOME | 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 of 23%. The taxable income of NetNut, based on management opinion, meets the criteria of a Preferred Technological Enterprise under the Law for the Encouragement of Capital Investments and accordingly, is eligible for a reduced tax rate of 12%. However, as of December 31, 2023, NetNut has carryforward tax losses and therefore not yet utilized any benefits associated with the Preferred Technological Enterprise. Taxable income other than taxable income from the Preferred Technological Enterprise regime is subject to the Israeli regular corporate tax rate. The taxable income of NNNW is subject to a regular U.S. federal tax rate of 21%. Tax assessments Tax assessments filed by the Company and Safe-T Data through 2018 are considered final. Tax assessments filed by NetNut through 2017 are considered final. Tax assessments filed by NNNW through 2019 are considered final. CyberKick has not been assessed since its incorporation. Carryforward tax losses Carryforward tax losses in Israel of the Company amounted to $13.81 million and $8.9 million as of December 31, 2023 and 2022, respectively. Carryforward tax losses in Israel of Safe-T Data amounted to $37.4 million and $37.6 million as of December 31, 2023 and 2022, respectively. Carryforward tax losses in Israel of NetNut amounted to $0.1 million and $7.2 million as of December 31, 2023 and 2022, respectively. Carryforward tax losses in Israel of CyberKick amounted to $3.2 million and $3.3 million as of December 31, 2023 and 2022, respectively. Carryforward tax losses in Israel have no expiration date. Deferred tax assets on losses for tax purposes carried forward to subsequent years are recognized if utilization of the related tax benefit against a future taxable income is expected. Deferred taxes
|  | Property and equipment, net |  |  | Intangible assets, net |  |  | Carryforward tax losses |  |  | Carryforward research and development expenses |  |  | Other |  |  | Total |
|  | U.S. dollar in thousands |
Balance as of January 1, 2023 |  |  | - |  |  |  | (852 | ) |  |  | 551 |  |  |  | - |  |  |  | - |  |  |  | (301 | )
Changes during the year: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charged to the statement of profit or loss |  |  | - |  |  |  | 688 |  |  |  | (509 | ) |  |  | 285 |  |  |  | 18 |  |  |  | 482 |
Balance as of December 31, 2023 |  |  | - |  |  |  | (164 | ) |  |  | 42 |  |  |  | 285 |  |  |  | 18 |  |  |  | 181 |
Balance as of January 1, 2022 |  |  | - |  |  |  | (1,067 | ) |  |  | 422 |  |  |  | - |  |  |  | - |  |  |  | (645 | )
Changes during the year: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charged to the statement of profit or loss |  |  | - |  |  |  | 215 |  |  |  | 129 |  |  |  | - |  |  |  | - |  |  |  | 344 |
Balance as of December 31, 2022 |  |  | - |  |  |  | (852 | ) |  |  | 551 |  |  |  | - |  |  |  | - |  |  |  | (301 | )
Balance as of January 1, 2021 |  |  | (10 | ) |  |  | (783 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (793 | )
Changes during the year: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Initial recognition due to business combination |  |  | - |  |  |  | (825 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (825 | )
Charged to the statement of profit or loss |  |  | 10 |  |  |  | 541 |  |  |  | 422 |  |  |  | - |  |  |  | - |  |  |  | 973 |
Balance as of December 31, 2021 |  |  | - |  |  |  | (1,067 | ) |  |  | 422 |  |  |  | - |  |  |  | - |  |  |  | (645 | )
Theoretical tax reconciliation Following is a reconciliation of the theoretical taxes on income, assuming all income is taxed at the regular tax rates applicable to companies in Israel (see above) and the actual tax expense:
|  | Year ended December 31 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | % |  |  | U.S. dollars in thousands |  |  | % |  |  | U.S. dollars in thousands |  |  | % |  |  | U.S. dollars in thousands |
Loss before taxes on income, as reported in the statement of profit or loss |  |  | 23 |  |  |  | 6,089 |  |  |  | 23 |  |  |  | 12,783 |  |  |  | 23 |  |  |  | 9,470 |
Theoretical tax benefit |  |  |  |  |  |  | (1,400 | ) |  |  |  |  |  |  | (2,940 | ) |  |  |  |  |  |  | (2,178 | )
Increase (decrease) in effective tax rate due to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax benefits arising from reduced tax rate under Preferred Technological Enterprise |  |  |  |  |  |  | (590 | ) |  |  |  |  |  |  | 441 |  |  |  |  |  |  |  | 497 |
Decrease in taxes resulting from utilization of losses in the reported year for which deferred taxes were not recognized in prior years |  |  |  |  |  |  | (843 | ) |  |  |  |  |  |  | - |  |  |  |  |  |  |  | - |
Increase in taxes resulting from permanent differences - non-deductible expenses |  |  |  |  |  |  | 2,206 |  |  |  |  |  |  |  | 261 |  |  |  |  |  |  |  | 214 |
Increase in taxes resulting from losses in the reported year for which deferred taxes were not recognized |  |  |  |  |  |  | 145 |  |  |  |  |  |  |  | 1,911 |  |  |  |  |  |  |  | 522 |
Tax benefit |  |  |  |  |  |  | (482 | ) |  |  |  |  |  |  | (327 | ) |  |  |  |  |  |  | (945 | )

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