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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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.

Research and Development.
Our research and development expenses for the three months ended September 30, 2025, amounted to $34,000, compared to $20,000 for the
three months ended September 30, 2024. The increase in research and development expenses was mainly due to an increase in subcontracting
expenses.

General and Administrative.
Our general and administrative expenses for the three months ended September 30, 2025, which consisted primarily of professional services,
stock-based compensation expenses and legal expenses, amounted to $302,000, compared to $229,000, for the three months ended September
30, 2024. The increase in general and administrative expenses for the three months ended September 30, 2025, was mainly due to an increase
in stock-based compensation expenses offset by a decrease in professional services.

Financial Income (expenses),
net. For the three months ended September 30, 2025, we had financial expenses of $17,000 compared to financial income of $7,000 for
the three months ended September 30, 2024. The reason for the increase in financial expenses for the three months ended September 30,
2025, was mainly due to the decrease in the balance of our cash bank deposits which resulted in a decrease in interest income.

Net Loss. We incurred
a net loss of $230,000 for the three months ended September 30, 2025, as compared to $211,000 for the three months ended September 30,
2024, for the reasons set forth above.

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

Revenues. Revenues
for the nine months ended September 30, 2025 totaled $359,000, compared to $72,000 in revenues during the nine 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 for the nine months ended September 30, 2025 was partially
offset by temporary disruptions to our regular business operations during the third quarter of 2025, resulting from the ongoing military
operations in the Gaza Strip. Revenues also reflect the initial recognition of revenues from royalties derived from sales of the “Bird
of Prey” stabilized weapons drone systems, through our Collaboration Agreement with Elbit, which contributed for the first time
to our revenues for the period, while the majority of the revenues for the period continued to be generated from our IC Drone service
activities.

Cost of revenues. Our
cost of revenues for the nine months ended September 30, 2025, totaled to $156,000, compared to $41,000 in revenues during the nine months
period ended September 30, 2024. The increase is attributable the increase in our IC Drone service activities.

Research and Development.
Our research and development expenses for the nine months ended September 30, 2025, amounted to $79,000, compared to $137,000 for the
nine months ended September 30, 2024. The decrease in research and development expenses was mainly due to allocating more resources to
the execution of our IC Drone insulator service activities, and less on development activities.

General and Administrative.
Our general and administrative expenses for the nine months ended September 30, 2025, which consisted primarily of professional services,
stock-based compensation expenses and legal expenses, amounted to $875,000, compared to $636,000 for the nine months ended September 30,
2024. The increase in general and administrative expenses for the nine months ended September 30, 2025, was mainly due to an increase
in professional services and in stock-based compensation expenses.

Financial Income (expenses),
net. For the nine months ended September 30, 2025, we had financial expenses of $17,000 compared to financial income of $44,000 for
the nine months ended September 30, 2024. The reason for the increase in financial expenses for the nine months ended September 30, 2025,
was mainly due to the decrease in the balance of our cash bank deposits which resulted in a decrease in interest income.

Net Loss. We incurred
a net loss of $778,000 for the nine months ended September 30, 2025, as compared to a net loss of $698,000 for the nine months ended September
30, 2024, for the reasons set forth above.

Comparison of the year
ended December 31, 2024 to the year ended December 31, 2023

Revenues. We had $108,000
in revenues for the year ended December 31, 2024. During the year ended December 31, 2023, we had $300,000 in revenues. The revenues
for the year ended December 31, 2023 were derived from our earlier August 2022 collaboration and development agreement with
IEC to provide drone-enabled systems for high-voltage insulator washing, which we successfully completed during October 2023. The
revenues for the year ended December 31, 2024, were derived from our August 2024 commercial agreement for high-voltage insulator washing
services with the IEC. These services to IEC are seasonal in their nature (spring to fall seasons) and revenues derived from
the 2024 agreement commenced during the mid-season, in August 2024.

Cost of revenues. During
the year ended December 31, 2024, we had $71,000 in cost of revenues expenses, compared to $273,000 for the year ended December 31, 2023.
The cost of revenues in 2024 mainly consists of professional services associated with our agreements with the IEC as detailed above. The
cost of revenues for the year ended December 31, 2023 were derived from our earlier August 2022 collaboration and development agreement
with IEC to provide drone-enabled systems for high-voltage insulator washing, which we successfully completed during October 2023. The
cost of revenues for the year ended December 31, 2024, were derived from our August 2024 commercial agreement for high-voltage insulator
washing services with the IEC commenced during in August 2024.

Research and Development.
During the year ended December 31, 2024, we had $157,000 in research and development expenses, compared to $3,000 in research and development
expenses for the year ended December 31, 2023. The increase in our research and development are mainly due to professional services and
other field tests associated with our continued development of additional capabilities of our IC Drone system.

General and Administrative
Expenses. For the year ended December 31, 2024, our general and administrative expenses amounted to $905,000, of which $685,000 were
related to professional services, such as accounting, auditing, insurance costs, consulting and legal services, and $28,000 were related
to stock-based compensation expenses, and were $826,000 for the year ended December 31, 2023, of which $575,000 were related to professional
services and $108,000 related to stock-based compensation expenses. This increase in general and administrative expenses for the year
ended December 31, 2024, was mainly due to an increase in professional services partially offset by a decrease in stock-based compensation
expenses.

Financial Income, net.
For the year ended December 31, 2024, our financial income amounted to $40,000 as compared to $76,000 for the year ended December 31,
2023. The reason for the decrease in financial income for the year ended December 31, 2024, was mainly due to the decrease in our available
cash which resulted in a decrease in interest income on our bank deposits.

Net Loss. For the year
ended December 31, 2024 and 2023, we recorded a net loss of $985,000 and $726,000, respectively, which represented an increase compared
to the year ended December 31, 2024, of $259,000.

Liquidity and Capital Resources

We had $361,000 in cash on
September 30, 2025, versus $1,436,000 in cash on September 30, 2024. The reason for the decrease in our cash balance was due to the operating
expenses described above. Cash used in operations for the nine months ended September 30, 2025, was $741,000 as compared to cash used
in operations of $739,000 for the nine months ended September 30, 2024.

Net cash used in investing
activities was $152,000 for the nine months ended September 30, 2025, as compared to net cash used in investing activities of $76,000
for the nine months ended September 30, 2024. The increase is mainly related to purchase of property and equipment.