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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or eliminated due to numerous factors, including changes in political leadership, shifting policy priorities, macroeconomic conditions and geo-political events that are beyond our control. The funding of government programs could be reduced or eliminated due to numerous factors, including geo-political events and macro-economic conditions that are beyond our control. Reduction or elimination of government spending under our contracts would imperil the sales of our products and may cause a negative effect on our revenues, results of operations, cash flow and financial condition. In addition, our business is subject to heightened regulatory and compliance requirements applicable to government contractors and suppliers to operators of critical infrastructure, including requirements relating to cybersecurity, data protection, export controls, safety certifications, reporting obligations and audit rights. Compliance with these requirements may increase our operating costs, require significant management attention and expose us to fines, penalties, contract termination, suspension or debarment if we fail to comply.

Our contracts with governmental
and quasi-governmental customers may also limit our ability to pass through cost overruns, inflationary pressures or other pricing increases,
which could adversely affect our margins and profitability.

Political developments, changes
in government policy or international relations and heightened sensitivity around defense, security and critical infrastructure technologies
may further restrict our ability to compete for contracts or may subject our products and operations to increased scrutiny.

The deployment of our products
and technologies in high-risk or mission-critical applications, including critical infrastructure maintenance or security-sensitive environments,
may expose us to increased litigation risk, including claims arising from alleged product failures, malfunctions, property damage, personal
injury or other adverse events. Defending against such claims could be costly and time-consuming and could result in significant damages,
reputational harm or limitations on our ability to deploy our technologies.

Any actual or perceived failure
of our products, or adverse publicity related to their use in high-risk environments, could also result in reputational harm that may
adversely affect our relationships with customers, regulators and other stakeholders.

A substantial portion
of our expected revenues is subject to Israeli export control regulations, and any failure to obtain or maintain required approvals or
licenses could materially and adversely affect our business, results of operations and financial condition.

The sale and export of the
“Bird of Prey” stabilized weapons drone systems by Elbit are subject to extensive regulation by the Israeli Ministry of Defense
(“IMOD”) and other governmental authorities. Israeli law regulates the export of defense-related hardware, software and technology,
as well as certain “dual-use” items, and generally requires the receipt of marketing approvals and export licenses prior to
offering, selling or exporting covered products. We are required to obtain and maintain applicable IMOD approvals for each relevant transaction,
and such approvals may be delayed, conditioned, limited, revoked or not renewed. As a result, our revenues from royalties for sales of
the “Bird of Prey” stabilized weapons drone systems through our collaboration with Elbit are highly dependent on Elbit’s
continued ability to obtain and maintain the necessary approvals and licenses in a timely manner. Any delay, denial, revocation or non-renewal
of required export approvals or licenses, changes in Israeli export policy, geopolitical developments, or heightened regulatory scrutiny
could restrict or prevent marketing, selling or delivering of these products to certain customers or in certain jurisdictions.

In addition, non-compliance
with applicable export control laws or regulations could result in fines, penalties, suspension or revocation of licenses, criminal liability,
reputational harm and restrictions on our ability to conduct future export activities. Any of these outcomes could materially and adversely
affect our business, results of operations and financial condition.

We face other risks
in our expected international sales.

We expect to derive a significant
portion of our revenues ultimately from international sales. Changes in international, political, economic or geographic events could
cause significant reductions in our revenues, which could harm our business, financial condition and results of operations. In addition
to the other risks from international operations set forth elsewhere in these Risk Factors, some of the risks of doing business internationally
include imposition of tariffs and other trade barriers and restrictions, political and economic instability in the countries of our customers
and suppliers, changes in diplomatic and trade relationships and increasing instances of terrorism worldwide. Due to our subsidiary being
located in the State of Israel, some of these risks may be affected by Israel’s overall political situation. (See “Risks
Related to Israeli Law and Our Operations in Israel” below.)

We may experience production
delays if suppliers fail to make compliant or timely deliveries.

The manufacturing process
for some of our products largely consists of the assembly, integration and testing of purchased components. If a supplier stops delivery
of such components, finding another source could result in added cost and manufacturing delays. Our supply chain may also be exposed to
broader risks beyond individual supplier performance, including limited availability of certain specialized or critical components, subcomponents
or raw materials, such as electronics, sensors, batteries, semiconductors or materials that may be sourced from a limited number of suppliers
or geographic regions. Moreover, if our subcontractors fail to meet their design, delivery schedule or other obligations we could be held
liable by our customers, and we may be unable to obtain full or partial recovery from our subcontractors for those liabilities. In addition,
certain components or materials used in our products may be subject to export controls, trade restrictions, tariffs, sanctions or embargoes,
including restrictions related to dual-use technologies, defense-related systems or materials sourced from jurisdictions subject to heightened
regulatory scrutiny. Changes in trade policy, geo-political tensions or the imposition of new sanctions or embargoes could limit our ability
to procure components, require us to redesign products, seek alternative suppliers or obtain governmental approvals, any of which could
result in increased costs, production delays or reduced margins.

Supply chain disruptions may
also arise from macroeconomic conditions, inflation, labor shortages, transportation constraints, natural disasters or other events beyond
our control, which could further impact the availability, quality or cost of components used in our products.

The foregoing risks could
have a material adverse effect on our operating results.

If we fail to manage
growth or to prepare for product scalability effectively, it could have an adverse effect on our employee efficiency, product quality,
working capital levels and results of operations.

Any significant growth in
the market for our products or our entry into new markets may require an expansion of our employee base for managerial, operational, financial,
and other purposes. As of the [_], 2025, we have engaged three (3) executive officers, our Chief Executive Officer (“CEO”),
Chief Technology Officer (“CTO”) and our Chief Financial Officer (“CFO”). During any period of growth, we may face
problems related to our operational and financial systems and controls, including quality control and delivery and service capacities.
We would also need to continue to expand, train and manage our employee base. Continued future growth will impose significant added responsibilities
upon the members of management to identify, recruit, maintain, integrate, and motivate new employees.

Aside from increased difficulties
in the management of human resources, we may also encounter working capital issues, as we will need increased liquidity to finance the
development of new products, and the hiring of additional employees. For effective growth management, we will be required to continue
improving our operations, management, and financial systems and controls. Our failure to manage growth effectively may lead to operational
and financial inefficiencies that will have a negative effect on our profitability. We cannot assure investors that we will be able to
timely and effectively meet that demand and maintain the quality standards required by our existing and potential customers.

We were granted a patent
for certain of our key technologies and may apply for additional patents in the future. Our ability to protect our intellectual property
and proprietary technology is uncertain and may be inadequate, which may have a material and adverse effect on us.

Our success depends significantly
on our ability to protect our proprietary rights to the technologies used in our products. We were granted a patent with the United States
Patent and Trademark Office to protect certain of our key technologies, however, we cannot assure you that we will be able to control
all of the rights for all of our intellectual property. We do not know whether any of our future patent applications, if any, will result
in the issuance of any patents. Even issued patents may be challenged, invalidated or circumvented. Patents may not provide a competitive
advantage or afford protection against competitors with similar technology. Competitors or potential competitors may have filed applications
for, or may have received patents and may obtain additional and proprietary rights to technologies or processes used by or competitive
with ours. Both the patent application process and the process of managing patent disputes can be time-consuming and expensive. Competitors
may be able to design around our patents or develop products which provide outcomes which are comparable or may even be superior to ours.