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

Chunk 21 of 51
Word Count: 1458
Character Count: 9731

Document Content:

to increase our authorized common stock from 100,000,000 shares of common stock, $0.0001 par value per share, to 350,000,000 shares of common stock, $0.0001 par value per share, and permit the issuance of up to 10,000,000 shares of blank-check preferred stock, effective as of October 15, 2025. Government Regulation We are subject to various federal, state, local and international laws with respect to our receipt, storage and processing of personal information and other customer data. For additional detail, please see “Risk Factors” on page 9 as well as “Our Business - Defense and Military Market - Government Regulation” included above. Employees We engage three (3) executive officers: our Chief Executive Officer, Chief Technology Officer and our Chief Financial Officer. We engage freelance contractors and consultants in order to limit our operating expenses and therefore allowing us to scale as necessary. We maintain long-term relationships with these freelance contractors and consultants.

Some of our consulting agreements
include undertakings with respect to non-competition and assignment to us of intellectual property rights developed in the course of employment
and confidentiality. The enforceability of such provisions is limited for some employees by Israeli law.

We are also currently a “smaller
reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent
company that is not a smaller reporting company and have a public float of less than $75 million and annual revenues of less than $50
million during the most recently completed fiscal year. As a “smaller reporting company” we are able to provide simplified
executive compensation disclosures in their filings; are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley Act”) requiring that independent registered public accounting firms provide an attestation report on
the effectiveness of internal control over financial reporting; and have certain other decreased disclosure obligations in their SEC filings,
including, among other things, only being required to provide two years of audited financial statements in annual reports.

PROPERTIES

Our principal executive office
is currently located at 10 HaRimon Street, Mevo Carmel Science and Industrial Park, Israel, which is approximately 240 square meters (approximately
2,600 square feet). In April 2022, Duke Israel entered into a lease agreement for an office space in Mevo Carmel Science and Industry
Park, Israel for a term of 3 years, with an option to extend the term of the lease agreement for an additional 2 years. The property became
available for the Company’s use on February 1, 2023. The option to extend the lease for additional 2 years, starting February 1,
2026, was exercised. In addition, pursuant to an agreement entered into by Duke, we have the right to use office space and receive other
administrative services at a location in the State of Florida, and pursuant to an agreement entered into by Duke Greece, it has the right
to use office space and receive other administrative services at a location in Athens, Greece.

LEGAL PROCEEDINGS

On March 23, 2025, a complaint
was filed against our wholly owned Israeli subsidiary, Duke Israel, by LOOL T.V. Ltd. (the “Plaintiff”), an Israeli company,
in the Tel Aviv-Yafo Magistrate’s Court (Case No. 60460-03-25). The complaint asserts that pursuant to an agreement of principles
between Duke Israel and the Plaintiff, Duke Israel is in breach of the agreement, specifically with respect to an allegation that the
parties were required to set up a partnership with respect to certain services provided to the IEC. The complaint asserts a claim for
breach of contract, unlawful use of intellectual property that is not exclusively owned by Duke Israel and unjust enrichment with regards
to the agreement of principles. In addition, the Plaintiff’s complaint seeks an order for a permanent injunction to prevent Duke
Israel from continuing providing these services to the IEC, and an order to enforce the agreement of principles ordering Duke Israel to
act as necessary to establish a partnership or joint venture.

We have filed a statement
of defense against the complaint and believe that the allegations are baseless and without merit and intend to vigorously defend our rights.
While at this stage it is too early to assess the likelihood or potential loss, if any, with respect to the complaint, the Company does
not believe the complaint will impact the continued performance of the agreement between Duke Israel and IEC, and we do not believe the
complaint will have a material effect on our business, financial condition or results of operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

You should read the following
discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes
appearing elsewhere in this prospectus. References in this Management’s Discussion and Analysis of Financial Condition and Results
of Operations to “us,” “we,” “our,” and similar terms refer to DUKE Robotics Corp., a Nevada corporation,
and its subsidiaries. This discussion includes forward-looking statements, as that term is defined in the federal securities laws, based
upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations and intentions. Actual results
and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of
factors. Words such as “anticipate,” “estimate,” “plan,” “continuing,” “ongoing,”
“expect,” “believe,” “intend,” “may,” “will,” “should,” “could,”
and similar expressions are used to identify forward-looking statements.

We caution you that these
statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences,
many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements
are based. See “Cautionary Statement Regarding Forward-Looking Statements.” Our actual results could differ materially from
those anticipated in the forward-looking statements as a result of certain factors discussed in “Risk Factors” and elsewhere
in this prospectus. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations
and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could
differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or
revise any forward-looking statements, whether from new information, future events or otherwise.

Company Overview

We are a robotics company
developing advanced robotics and drone-based systems. Our advanced robotic system enables remote, real-time, pinpoint accurate firing
of small arms and light weapons that can achieve pinpoint accuracy regardless of the movement of the weapons platform or the target. We
also introduced an insulator cleaning drone, which is a drone technology for conducting routine maintenance of critical infrastructure
for cleaning electric utility cable insulators.

Critical Accounting Policies

connection with the preparation of our financial statements, we were required to make assumptions and estimates about future events and
apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We base our assumptions,
estimates, and judgments on historical experience, current trends, and other factors that management believes to be relevant at the time
our consolidated financial statements are prepared. Regularly, management reviews the accounting policies, assumptions, estimates, and
judgments to ensure that our financial statements are presented fairly and by accounting principles generally accepted in the United States
of America. However, because future events and their effects cannot be determined with certainty, actual results could differ from our
assumptions and estimates, and such differences could be material.

Please
see Note 2 of our financial statements for the three and nine months ended September 30, 2025 and for the year ended December 31, 2024
included elsewhere in this prospectus concerning our Critical Accounting Policies and Estimates.

Results of Operations

Comparison of the three months ended September
30, 2025 and 2024

Revenues. Revenues
for the three months ended September 30, 2025, totaled $216,000, compared to $72,000 during the three months period ended September 30,
2024. The increase in revenues was primarily attributable to the expansion of our IC Drone service operations, following the successful
launch of the full cleaning season in May 2025. During 2024, the Company commenced its cleaning operations midway through the season,
which limited revenue generation for that period. The increase in revenues during the three months ended September 30, 2025 was partially
offset by temporary disruptions to our regular business operations during the quarter, resulting from the ongoing military operations
in the Gaza Strip.

Cost of revenues. Our
cost of revenues for the three months ended September 30, 2025, totaled $93,000, compared to $41,000 during the three months period ended
September 30, 2024. The increase in cost of revenues was mainly due to the costs associated with
the increase in our IC Drone service operations.