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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Document Content:

STATEMENTS (USD in thousands, except share and per share data) NOTE 4 – LEASES (continue) D. Supplemental balance sheet information related to operating leases was as follows: Year ended December 31, Operating leases: Operating leases right-of-use asset and lease deposit 184 117 Current operating lease liabilities 60 52 Non-current operating lease liabilities 109 46 Total operating lease liabilities 169 98 Weighted average remaining lease term (years) 3.08 2.09 Weighted average discount rate 8.75 % 8.75 % E. Future minimum lease payments under leases as of December 31, 2024 are as follows: Total operating lease payments 191 Less: imputed interest (22 ) Present value of lease liabilities 169 NOTE 5 – PROPERTY AND EQUIPMENT, NET December 31, Computers 10 10 Furniture and office equipment 14 14 Drones 52 - Vehicles 25 - Leasehold improvements 66 66 Less - accumulated depreciation (79 ) (50 ) Total property and equipment, net 88 40

In the years ended December 31, 2024
and 2023, depreciation expenses amounted to $29 and $20 respectively, and additional property and equipment were purchased for cash in
an amount of $77 and $18 during the years ended December 31, 2024 and 2023, respectively.

DUKE ROBOTICS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 6
– OTHER LIABILITIES

December 31,

Accrued expenses 180 148

Other (note 8) 13 13

NOTE 7
– RELATED PARTIES LOANS

The Company has outstanding loans with related parties. The loans bear
an annual fixed interest rate of 3% and shall be repaid (principal and interest) at the date upon which the Company has raised at least
$15 million and has achieved earnings before interest, tax, depreciation and amortization of $3 million.

NOTE 8 – SHAREHOLDERS’
EQUITY

Description
of the rights attached to the Shares in the Company:

Common
stock:

The holders of shares of Common
Stock vote together as one class on all matters as to which holders of Common Stock are entitled to vote. Except as otherwise
required by applicable law and subject to the preferential rights of any outstanding preferred stock, all voting rights are vested
in and exercised by the holders of Common Stock with each share of our Common Stock being entitled to one vote, including in all
elections of directors. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of Common
Stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of
legally available funds. In the event of the Company’s liquidation, dissolution or winding up, holders of the Common Stock are
entitled to share ratably in all assets remaining after payment of liabilities, subject to prior liquidation rights of preferred
stock, if any, then outstanding. The Common Stock has no cumulative voting rights and no preemptive or other rights to subscribe for
shares of the Company. There is no redemption or sinking fund provisions applicable to the Common Stock. All shares of Common Stock
currently outstanding are fully paid and non-assessable. As of December 31, 2024 and 2023, there were no outstanding preferred stock.

Transactions:

On May 11, 2021, the Company entered into Securities Purchase Agreements
(the “Securities Purchase Agreements”) with eight (8) non-U.S. investors, pursuant to which the Company, in a private placement
offering (the “Offering”), agreed to issue and sell to the investors an aggregate of: (i) 12,500,000 shares of the Company’s
Common Stock, at a price of $0.40 per share; and (ii) warrants (the “Warrants”) to purchase 12,500,000 Company’s Common
Stock. The Warrants were exercisable immediately at the time of issuance for a term of 18 months and have an exercise price of $0.40 per
share. The aggregate gross proceeds from the Offering were approximately $5,000. The Company recorded $1,070 of issuance costs.

DUKE ROBOTICS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 8 –
SHAREHOLDERS’ EQUITY (continue)

On May 11, 2021, the Company signed a service agreement with a non
U.S. third party pursuant to which the service provider agreed to provide the Company with financial and project oversight services with
respect to the Offering. Pursuant to the service agreement, the Company agreed to pay the service provider (1) 6% of the investment amounts
received which amounted to $351 and (2) options to receive a number of units (each unit for a price of $0.40 includes one share and one
warrant with an exercise price of $0.40 per share) equal to 6% of the investment amount received, divided by $0.40 (totaling to 3,000,000
warrants).

In the event that the investors that
participated in the Offering exercise their Warrants, the service provider shall be entitled to receive an additional payment of (1) 6%
of the investment amounts received (2) 6% of the warrants exercised amounts received and (3) options to receive a number of units equal
to 6% of the warrants exercised amounts received, divided by $0.40.

On April 5, 2022, the Company and the
investors executed an extension agreement, such that the term of the Warrants was extended so that they expire on November 11, 2023.

On November 1, 2023, the Company and
the investors executed an addition extension agreement, such that the term of the Warrants was extended so that they expire on November

On June 20, 2024, the Company
entered into a warrant amendment agreement with certain existing warrant holders (the “Holders”) of certain Common Stock
purchase warrants (the “June 2024 Amendment”). According to the June 2024 Amendment agreement, the Company and Holders agreed to (i) extend the warrant exercise
term to May 11, 2026; (ii) amend the warrant exercise price and increase it from $0.40 per share to $0.65 per share; and (iii)
include a beneficial ownership blocker that limits the exercise of such warrants if such exercise would result in the holder
beneficially owning in excess of 19.99% of the number of shares of the Company’s Common Stock immediately after giving effect
to the issuance of shares of Common Stock issuable upon exercise of the warrant.

The Company accounted for the
Warrants amendments as deemed dividends. The fair value of the Warrants modifications was estimated using the
Black-Scholes option-pricing model and is presented within the consolidated statements of changes in shareholders equity as a credit
to additional paid in capital and a debit to the accumulated deficit.

The following are the data and assumptions
used:

November 1,
2023 June 20,

Dividend yield 0 0

Expected volatility (%) 128.44-184.22% 125.58-143.75 %

Risk-free interest rate (%) 5.44-5.56% 4.70-5.37 %

Contractual term of options (years) 0.03-1.11 0.39-1.98

Exercise price (US dollars) 0.4 0.4-0.65

Share price (US dollars) 0.08 0.07

Fair value (USD in thousands) 205 230

DUKE ROBOTICS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 9 –
STOCK BASED COMPENSATION

The following table presents the Company’s
stock option activity:

Number of
Options Weighted
Average
Exercise
Price

Outstanding at December 31,2022 2,426,812 0.81

Granted - -

Exercised - -

Forfeited or expired - -

Outstanding at December 31,2023 2,426,812 0.81

Granted - -

Exercised - -

Forfeited or expired - -

Outstanding on December 31, 2024 2,426,812 0.81

Number of options exercisable on December 31, 2024 2,426,812 0.81

The aggregate intrinsic value of the
awards outstanding as of December 31, 2024 is $67. These amounts represent the total intrinsic value, based on the Company’s stock
price of $0.15 as of December 31, 2024, less the weighted exercise price.

The stock options outstanding as of
December 31, 2024, have been separated into exercise prices, as follows:

Exercise price Stock
options
outstanding Weighted
average
remaining
contractual
life – years Stock
options
exercisable

As of December 31, 2024

The stock options outstanding as of
December 31, 2023, have been separated into exercise prices, as follows:

Exercise price Stock
options
outstanding Weighted
average
remaining
contractual
life – years Stock
options
exercisable

As of December 31, 2023

DUKE ROBOTICS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 9 –
STOCK BASED COMPENSATION (continue)

As of December 31, 2024 and 2023, there
was $0 and $28, respectively of total unrecognized compensation cost related to non-vested options. Compensation expense recorded by the
Company in respect of its stock-based compensation awards for the period ended December 31, 2024 and 2023 was $28 and $108, respectively
and are included in General and Administrative expenses in the Statements of Comprehensive Loss. The income tax benefit for the stock-based
compensation after the valuation allowance is 0.

NOTE 10 –
GENERAL AND ADMINISTRATIVE EXPENSES

Year ended
December 31,

Professional services 686 575

Share base compensation 28 108

Insurance 41 45

Rent and office maintenance 69 60

Levies and tolls 12 8

Depreciation 18 20

Promotions 3 -

Other expenses 48 10

NOTE 11
– AGREEMENTS