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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designed to be drone-platform agnostic and can be adapted to different drone platforms that meet our defined specifications and regulatory certifications. We currently utilize a commercially available drone (including its batteries and chargers) manufactured by a well-known international drone manufacturer, which has been deployed by us in thousands of flight hours. We have built an in-house laboratory to support assembly, system integration, testing and ongoing commercialization activities. We believe the current size and capacity of this laboratory will be sufficient to support our near-term production and commercialization needs. Pursuant to our Collaboration Agreement with Elbit, manufacturing of the defense-market variant of our technology—branded as the “Bird of Prey”—is conducted by Elbit. Research and development related to the defense variant is likewise carried out by Elbit, while we retain the contractual right to make mutual and unlimited use for civilian applications of any new knowledge developed by Elbit under the collaboration.

Our research and development
capabilities support both ongoing improvements to the ICDS and the development of new applications for utility and infrastructure customers.
In collaboration with the IEC, we continue to develop complementary capabilities such as hydrophobic coating applications for insulators.
In parallel, we are developing AI-based monitoring solutions for power grids and other critical utility infrastructure, including through
collaborations with third parties. These capabilities are expected to integrate with and enhance the performance, safety, and value proposition
of our robotic aerial service systems.

Market Strategy

Civilian Market

We are currently focused on
expanding the commercialization of the IC Drone, a first-of-its-kind robotic, drone-enabled system for cleaning electric utility insulators,
in the civilian market. The unique system, based on our advanced intellectual property and know-how, integrates algorithms, autonomous
systems, and robotic technologies used in mission-critical applications.

On August 15, 2022, we signed
an agreement with the IEC to provide drone-enabled systems for cleaning electric utility cable insulators. During October 2023, we
successfully completed our obligations under our agreement with the IEC by proving the efficiency and safety that comes by using our IC
Drone. Following that successful pilot, in August 2024, we, through Duke Israel, entered into another agreement with the IEC to provide
high-voltage insulator washing services using the IC Drone system.

On February 18, 2025, we announced
that we established Duke Greece, which is focused on expanding our innovative IC Drone technology in Greece. Our IC Drone technology provides
utility companies with a safer, more efficient, and environmentally sustainable solution for maintaining high-voltage electric infrastructure
as well as potential other applications of our technologies and capabilities. The IC Drone’s proven success with the IEC demonstrates
its significant market potential for broader deployment across additional regions and sectors.

We are currently in the initial
phases of our global expansion strategy and remain focused on leveraging our proprietary technologies to unlock new growth opportunities
in the civilian sector. We aim to expand our IC Drone service offerings to additional utility providers worldwide while continuing to
develop new solutions to address evolving industry needs.

Defense and Military Market

We expect that our growth
in the defense and military market, through our Collaboration Agreement with Elbit, will initially derive from sales of robotic technology
mounted on UAS Octocopter platform, and later from sales of our robot mounted on other platforms, such as light all-terrain vehicles and
boats.

●	Focus on sales in the United States. We believe that the United States military will be a lead and reference
customer. The United States alone presents a significant and diverse market opportunity - special operation forces units, various counter-terrorism
(federal, state and city) units, regular local police forces (the use of less-lethal weapons), U.S. Army, National Guard, U.S. Navy, Coast
Guard and the Border Police.

●	Sales to the North Atlantic Treaty Organization (NATO) Countries. We believe adoption of such products
in the United States will open the markets in countries that are U.S. allies such as the NATO countries.

Intellectual Property

Our success depends, at least
in part, on our ability to protect our proprietary technology and intellectual property, and to operate without infringing or violating
the proprietary rights of others. We rely on a combination of patents, trade secrets, know-how, and other contractual rights (including
confidentiality and invention assignment agreements) to protect our intellectual property rights. We also restrict access to our sensitive
intellectual property information to our most senior management.

To protect certain key technologies, we have currently only submitted
a U.S. patent Application for stabilization system patents. On June 15, 2021, we announced that our wholly owned Israeli subsidiary, Duke
Airborne Systems Ltd., received a notice of allowance from the U.S. Patent and Trademark Office for a patent titled “Stabilization
System” regarding its stabilization technology incorporated in its advanced robotic system. We do not know whether any of our current
or future patent applications will result in the issuance of any patents. We currently do not have pending patent applications or approved
patents in any other country.

Sales and Marketing

Civilian Sector

Marketing and sales efforts
are currently concentrated on the IC Drone as well as other potential applications of the Company’s technologies and capabilities,
using company service providers, agent and related electric infrastructure companies. The current marketing efforts increased significantly
following the official launch of the latest version of the IC Drone in June 2025 and the establishment of our wholly owned subsidiary
Duke Greece in February 2025.

Defense and Military Market

On January 29, 2021, we, through
Duke Israel, and Elbit entered in the Collaboration Agreement. Pursuant to the Collaboration Agreement, Duke Israel has granted Elbit
a worldwide exclusive license for the use of Duke Israel’s know-how and intellectual property and the marketing, sales, production,
and further development of the system we marketed under the name TIKAD (“System”) for military, defense, homeland security,
and para-military uses. As consideration for granting the worldwide exclusive license, Elbit will pay Duke Israel royalties from revenues
received from worldwide sales of the System, with royalty rates ranging from low to mid-double-figure percentages, depending on the tiers
of the selling price of System, for a period starting from the date of the Collaboration Agreement until 15 years following receipt of
$50 million in cumulative revenues from sales of System units. In addition, Duke Israel agreed to pay Elbit similar rates of royalties
for revenues received by Duke from sales of its advanced robotic system for civil use, if such systems will include new know-how developed
by Elbit.

Marketing and sales efforts
related to the System are led by Elbit due to our Collaboration Agreement with Elbit, and we are aware that Elbit is marketing drone-mounted
remote weapon systems, including a system in the name of “Bird of Prey”.

Competition

Civilian Sector

To our knowledge there are
several drone based systems for cleaning different types of infrastructures including solar panels, wind turbines, buildings, windows,
etc., using high pressure water. We believe such systems are not designed to handle the challenges that come with cleaning high voltage
power grid insulators due to the high voltage environment that affects the drones.

Competition is based on product
and program performance, price, reputation, reliability, life cycle costs, overall value to the customer and responsiveness to customer
requirements. This includes the ability to respond to rapid changes in technology. In addition, our competitive position sometimes may
be affected by specific requirements in particular geographic and product markets.

We plan to continually adapt
to market conditions by adjusting our business strategy to changing market conditions. In addition, we plan to seek to enter into strategic
partnership and cooperation agreements that we believe can assist us in overcoming the challenges of competing in our industry.

Our competitors, either alone
or through their strategic partners, might have substantially greater name recognition and financial, technical, manufacturing, marketing
and human resources than we do. These entities may also have significantly greater experience and infrastructure in commercializing civilian
or defense products, obtaining regulatory approval for those products and commercializing those products around the world.

Defense and Military Market

While we believe that our
products are novel, and that we have unique knowledge of military operational demands and challenges and years of developing complex military
airborne systems and advanced robotics, the defense industry is a competitive environment.

Government Regulation

Government Contracting
Regulations. We operate under laws, regulations and administrative rules governing defense and other government contracts, mainly
in Israel and the United States. Some of these carry major penalty provisions for non-compliance, including disqualification from participating
in future contracts. In addition, our participation in governmental procurement processes in Israel, the United States and other countries
is subject to specific regulations governing the conduct of the process of procuring defense and homeland security contracts.