SEC Filing Document

Company: DUKE Robotics Corp.
Ticker: DUKR
CIK: 1638911
Filing Type: DRS
Document Type: DRS
Date Filed: 2025-12-22
Accession Number: 0001213900-25-124553
Exchange: OTC
SIC Code: 3721
SIC Description: Aircraft
URL: https://www.sec.gov/Archives/edgar/data/1638911/000121390025124553/filename1.htm

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Word Count: 1434
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DUKE ROBOTICS CORP. (FORMERLY UAS DRONE CORP.) CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 DUKE ROBOTICS CORP. CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 TABLE OF CONTENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Firm Name: Somekh Chaikin / PCAOB ID No. 1057/ Location: Tel Aviv, Israel) F-3 CONSOLIDATED FINANCIAL STATEMENTS: Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023 F-4 Consolidated Statements of Comprehensive Loss for the years ended December 31, 2024 and 2023 F-5 Statements of Changes in Shareholders’ Equity for the years ended December 31, 2024 and 2023 F-6 Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023 F-7 Notes to Consolidated Financial Statements F-8 – F- 2 5 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and Board of Directors Duke Robotics Corp. (formerly: UAS Drone Corp.): Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated
balance sheets of Duke Robotics Corp. (formerly: UAS Drone Corp.) and its subsidiaries (the Company) as of December 31, 2024 and
2023, the related consolidated statements of comprehensive loss, changes in stockholders’ equity, and cash flows for each of the
years in the two-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the two-year period
ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from
the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee
and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially
challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Somekh Chaikin

Member Firm of KPMG International

We have served as the Company’s auditor since 2023.

Tel Aviv, Israel

March 20, 2025

DUKE ROBOTICS CORP.

CONSOLIDATED
BALANCE SHEETS

(USD in thousands except share and per share data)

December 31, December 31,

Assets

Current Assets

Cash and cash equivalents 1,256 2,281

Restricted Cash 31 -

Trade receivables 37 -

Other current assets (Note 3) 31 41

Total Current Assets 1,355 2,322

Operating lease right-of-use asset and lease deposit (Note 4) 184 117

Property and equipment, net (Note 5) 88 40

Total Assets 1,627 2,479

Liabilities and Shareholders’ Equity

Current Liabilities

Accounts payable 92 98

Operating lease liability 60 52

Other liabilities (Note 6) 193 161

Total current liabilities 345 311

Related parties loans (Note 7) 322 314

Operating lease liability (Note 4) 109 46

Total Liabilities 776 671

Stockholders’ Equity (Note 8)

Common stock of US$ 0.0001 par value each (“Common Stock”): 100,000,000 shares authorized as of December 31, 2024 and 2023; issued and outstanding 54,218,813 shares as of December 31, 2024 and 2023. 5 5

Additional paid-in capital 12,008 11,750

Accumulated deficit (11,162	) (9,947	)

Total Stockholders’ Equity 851 1,808

Total liabilities and stockholders’ Equity 1,627 2,479

The accompanying notes
are an integral part of the consolidated financial statements.

DUKE ROBOTICS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(USD in thousands except share and per share data)

Year ended

December 31,

Revenues (Note 11(2)) 108 300

Cost of revenues (71	) (273	)

Gross profit 37 27

Research and development expenses (157	) (3	)

General and administrative expenses (Note 10) (905	) (826	)

Operating loss (1,025	) (802	)

Financial income, net 40 76

Net loss (985	) (726	)

Loss per share (basic and diluted) (Note 13) (0.02	) (0.02	)

Basic and diluted weighted average number of shares of Common Stock outstanding 54,651,600 54,530,423

The accompanying notes are
an integral part of the consolidated financial statements.

DUKE ROBOTICS CORP.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(USD in thousands, except share and per share data)

Number of Shares Amount Additional paid-in capital Accumulated deficit Total stockholders’ equity (deficit)

BALANCE AT DECEMBER 31, 2022 54,218,813 5 11,437 (9,016	) 2,426

Stock-based compensation for services - - 108 - 108

Warrants modification (note 8) - - 205 (205	) -

Net loss for the year - - - (726	) (726	)

BALANCE AT DECEMBER 31, 2023 54,218,813 5 11,750 (9,947	) 1,808

Stock-based compensation for services - - 28 - 28

Warrants modification (note 8) - - 230 (230	) -

Net loss for the year - - - (985	) (985	)

BALANCE AT DECEMBER 31, 2024 54,218,813 5 12,008 (11,162	) 851

The accompanying notes are an integral part
of the consolidated financial statements.

DUKE ROBOTICS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(USD in thousands,
except share and per share data)

Year ended

December 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss for the year (985	) (726	)

Adjustments required to reconcile net loss for the year to net cash used in operating activities:

Depreciation 29 20

Stock-based compensation 28 108

Interest on loans from related parties 8 9

Decrease in the carrying amount of right-of-use assets 51 43

Change in operating lease liability (48	) (47	)

Increase in trade receivable (37	) -

Decrease in other current assets 10 47

Increase (decrease) in accounts payable (6	) 13

Increase (decrease) in other liabilities 32 (15	)

Net cash used in operating activities (918	) (548	)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment (77	) (18	)

Net cash used in investing activities (77	) (18	)

Effect of exchange rate changes on cash and cash equivalents 1 (2	)

DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (994	) (568	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR 2,281 2,849

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR 1,287 2,281

Supplemental disclosure of cash flow information:

Non cash transactions:

Initial recognition of operating lease 119 146

The accompanying notes are an integral part
of the consolidated financial statements.

DUKE ROBOTICS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(USD in thousands, except share and per share data)

NOTE 1 –
GENERAL

A.	DUKE ROBOTICS CORP. ( FORMERLY UAS DRONE CORP .)
(“the Company”) was incorporated under the laws of the State of Nevada on February 4, 2015.

On March 9, 2020, the Company closed
on the Share Exchange Agreement (as defined hereunder), pursuant to which, Duke Robotics, Inc. (“Duke Inc.”) a corporation
incorporated under the laws of the state of Delaware, became a majority-owned subsidiary of the Company. Duke Inc. has a wholly-owned
subsidiary, Duke Airborne Systems Ltd. (“Duke Israel,” and collectively with Duke Inc., “Duke”), which was formed
under the laws of the State of Israel in March 2014 and became the sole subsidiary of Duke after its incorporation.