Tel Aviv-based software company, Alarum Technologies, saw a significant increase in its stock value following the acquisition of a patent for a groundbreaking approach to concealing users' internet traffic. Share prices rose by 12% on Wednesday morning, reaching $4.54 per share. This year alone, the stock has climbed by an impressive 89%.
The patent, titled "Anonymous Proxying" and numbered U.S. Patent No. 11,818,104, was granted to Alarum Technologies' subsidiary, NetNut. The breakthrough method, known as the "reflector" technique, effectively hides users' IP addresses by establishing a connection through an intermediate device and subsequently sending client requests directly to the target server.
Unlike conventional methods that reroute proxy service client requests through an intermediate proxy device – resulting in slower connections and potential security vulnerabilities for local networks – this method offers the advantages of using a proxy while maintaining anonymity and bypassing traffic bottlenecks.
Amid these advancements, Alarum Technologies' stock experienced a sharp surge last month when the company disclosed its expectation of third-quarter cash flow to exceed $1.5 million. This represents a remarkable turnaround from negative cash flow of $1.4 million recorded during the same period last year.
Alarum Technologies is set to report the financial results for the third quarter, ending on September 30, on November 28, prior to market opening. This announcement has sparked further anticipation within the industry.