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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on sites belonging to Hezbollah in southern Lebanon. It is possible that other terrorist organizations, including Palestinian military organizations in the West Bank, as well as other hostile countries, such as Iran, will join the hostilities. Such hostilities may include terror and missile attacks. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect our operations and results of operations. Although the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that this government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damages incurred by us could have a material adverse effect on our business. Any armed conflicts or political instability in the region would likely negatively affect business conditions and could harm our results of operations.

In April 2024 and October
2024, Iran launched direct attacks on Israel involving hundreds of drones and missiles and has threatened to continue to attack Israel.
Relations between Israel and Iran continue to be hostile, due to the fact that Iran is a state sponsor of Hamas and Hezbollah, maintains
a military presence in Syria and Lebanon, alongside Israel’s northern border, and is viewed as a strategic threat to Israel in light
of its nuclear program. On June 13, 2025, in light of continued nuclear threats and intelligence assessments indicating imminent attacks,
Israel launched a preemptive strike directly targeting military and nuclear infrastructure inside Iran aimed to disrupt Iran’s capacity
to coordinate or launch further hostilities against Israel, as well as disrupt its nuclear program. The United States joined Israel in
this military action. A ceasefire between Israel and Iran was declared by the United States on June 24, 2025. Certain ceasefire agreements
have also been reached with Hamas and Lebanon (with respect to Hezbollah), however, these agreements have failed to be fully upheld and
military activity and hostilities continue to exist at varying levels of intensity, and the situation remains volatile, with the potential
for escalation into a broader regional conflict.

On September 10, 2025, a ceasefire
agreement was reached between Israel and Hamas, effectively ending the large-scale military operations in the Gaza Strip. As part of the
agreement, all remaining living Israeli hostages have been released and returned to Israel. A number of deceased hostages remains are
to be returned, and the parties continue to cooperate in that process. The ceasefire has generally held as of the date of these financial
statements, although the security situation remains fragile, and the risk of renewed hostilities persists.

In connection with the Israeli
security cabinet’s declaration of war against Hamas and possible hostilities with other organizations, several hundred thousand
Israeli military reservists were drafted to perform immediate military service. During the quarter ended September 30, 2025, several of
our contractors and regular consultants (and their spouses or partners) as well as employees of our customers in Israel have been called
for reserve service, resulting in temporary disruptions to our regular business operations during the third quarter of 2025. Additional
employees (or their spouses or partners) or contractors may be called, for service in the current or future wars or other armed conflicts
with Hamas, and such persons may be absent for an extended period of time. As a result, our operations in Israel may be disrupted by such
absences, which disruption may materially and adversely affect our business, prospects, financial condition and results of operations.

Further, in the past, the
State of Israel and Israeli companies have been subjected to economic boycotts. Several countries still restrict business with the State
of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on our operating results, financial
condition or the expansion of our business. A campaign of boycotts, divestment and sanctions has been undertaken against Israel, which
could also adversely impact our business. Moreover, we cannot predict how this war will ultimately affect Israel’s economy in general,
which may involve a downgrade in Israel’s credit rating by rating agencies (such as the recent downgrade by Moody’s of its
credit rating of Israel from A1 to A2, as well as the downgrade of its outlook rating from “stable” to “negative”).
We may also be targeted by cyber terrorists specifically because we are an Israeli-related company.

Prior to the Hamas attack
in October 2023, the Israeli government pursued extensive changes to Israel’s judicial system. In response to the foregoing developments,
individuals, organizations and institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively
impact the business environment in Israel including due to reluctance of foreign investors to invest or transact business in Israel as
well as to increased currency fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities
markets, and other changes in macroeconomic conditions. The risk of such negative developments has increased in light of the recent Hamas
attacks and the war against Hamas declared by Israel, regardless of the proposed changes to the judicial system and the related debate.
To the extent that any of these negative developments do occur, they may have an adverse effect on our business, our results of operations
and our ability to raise additional funds, if deemed necessary by our management and board of directors.

Our operations are subject
to currency and interest rate fluctuations.

We incur expenses in U.S.
dollars, Euro and NIS, but our financial statements are denominated in U.S. dollars. The U.S. dollar is our functional currency. However,
as we also incur expenses in NIS and Euro, we are affected by foreign currency exchange fluctuations through both translation risk and
transaction risk. As a result, we are exposed to the risk that the NIS may appreciate relative to the dollar, or, if the NIS instead devalues
relative to the dollar or the Euro, that the inflation rate in Israel may exceed such rate of devaluation of the NIS, or that the timing
of such devaluation may lag behind inflation in Israel. In any such event, the dollar cost of our operations in Israel would increase
and our dollar-denominated results of operations would be adversely affected.

It may be difficult
to enforce a judgment of a United States court against us and our officers and directors to assert United States securities laws claims
in Israel or to serve process on our officers and directors and these experts.

Our executive office, corporate
headquarters and manufacturing facilities are located in Israel. In addition, all of our officers and directors are residents of Israel.
All of our assets and most of the assets of these persons are located in Israel. Service of process upon us or our non-U.S. resident directors
and officers and enforcement of judgments obtained in the United States against us or our non-U.S. our directors and executive officers
may be difficult to obtain within the United States. We have been informed by our legal counsel in Israel that it may be difficult to
assert claims under U.S. securities laws in original actions instituted in Israel, or obtain a judgment based on the civil liability provisions
of U.S. federal securities laws. Israeli courts may refuse to hear a claim based on a violation of U.S. securities laws against us or
our non-U.S. officers and directors because Israel may not be the most appropriate forum to bring such a claim. In addition, even if an
Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S. law is found
to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly process. Certain
matters of procedure will also be governed by Israeli law. There is little binding case law in Israel addressing the matters described
above. Israeli courts might not enforce judgments rendered outside Israel, which may make it difficult to collect on judgments rendered
against us or our non-U.S. officers and directors.

Moreover, an Israeli court
will not enforce a non-Israeli judgment if it was given in a state whose laws do not provide for the enforcement of judgments of Israeli
courts (subject to exceptional cases), if its enforcement is likely to prejudice the sovereignty or security of the State of Israel, if
it was obtained by fraud or in the absence of due process, if it is at variance with another valid judgment that was given in the same
matter between the same parties, or if a suit in the same matter between the same parties was pending before a court or tribunal in Israel
at the time the foreign action was brought.

General
Risk Factors

We operate in a competitive industry.