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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A taxable constructive stock distribution would generally result, for example, if the exercise price is adjusted to compensate holders for distributions of cash or property to our stockholders. Not all changes in the exercise price that result in a holder’s receiving more common stock on exercise, however, would be considered as increasing a holder’s proportionate interest in our earnings and profits or assets. For instance, a change in exercise price could simply prevent the dilution of a holder’s interest upon a stock split or other change in capital structure. Changes of this type, if made pursuant to bona fide reasonable adjustment formula, are not treated as constructive stock distributions for these purposes. Conversely, if an event occurs that dilutes a holder’s interest and the exercise price is not adjusted, the resulting increase in the proportionate interests of our stockholders could be treated as a taxable stock distribution to our stockholders.

Any taxable constructive stock
distributions resulting from a change to, or a failure to change, the exercise price of the warrants that is treated as a distribution
of common stock would be treated for U.S. federal income tax purposes in the same manner as distributions on our common stock paid in
cash or other property, resulting in a taxable dividend to the recipient to the extent of our current or accumulated earnings and profits
(with the recipient’s tax basis in its common stock or warrants, as applicable, being increased by the amount of such dividend),
and with any excess treated as a return of capital or as capital gain. U.S. holders should consult their own tax advisors regarding whether
any taxable constructive stock dividend would be eligible for tax rates applicable to long-term capital gains or the dividends-received
deduction described below above “Consequences to U.S. Holders—Distributions,” as the requisite applicable holding period
requirements might not be considered to be satisfied.

Sale, Exchange or Other Taxable Disposition of Common Stock

A U.S. holder will generally
recognize capital gain or loss on the sale, exchange or other taxable disposition of our common stock. The amount of gain or loss will
equal the difference between the amount realized on the sale and such U.S. holder’s tax basis in such common stock. The amount realized
will include the amount of any cash and the fair market value of any other property received in exchange for such common stock. Gain or
loss will be long-term capital gain or loss if the U.S. holder has held the common stock for more than one year. Long-term capital gains
of non-corporate U.S. holders are generally taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.

Sale, Exchange, Redemption, Lapse or Other Taxable Disposition of
a Warrant

Upon a sale, exchange, redemption,
lapse or other taxable disposition of a warrant, a U.S. holder generally will recognize capital gain or loss in an amount equal to the
difference between the amount realized (if any) on the disposition and such U.S. holder’s tax basis in the warrant. The amount realized
will include the amount of any cash and the fair market value of any other property received in exchange for the warrant. The U.S. holder’s
tax basis in the warrant generally will equal the amount the holder paid for the warrant. Gain or loss will be long-term capital gain
or loss if the U.S. holder has held the warrant for more than one year. Long-term capital gains of non-corporate U.S. holders are generally
taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.

Any taxable constructive stock
distributions resulting from a change to, or a failure to change, the exercise price of the warrants that is treated as a distribution
of common stock would be treated for U.S. federal income tax purposes in the same manner as distributions on our common stock paid in
cash or other property, resulting in a taxable dividend to the recipient to the extent of our current or accumulated earnings and profits
(with the recipient’s tax basis in its common stock or warrants, as applicable, being increased by the amount of such dividend),
and with any excess treated as a return of capital or as capital gain. U.S. holders should consult their own tax advisors regarding whether
any taxable constructive stock dividend would be eligible for tax rates applicable to long-term capital gains or the dividends-received
deduction described below under “Consequences to U.S. Holders—Constructive Distributions,” as the requisite applicable
holding period requirements might not be considered to be satisfied.

Exercise of a Warrant

The exercise of a warrant
for shares of common stock generally will not be a taxable event for the exercising U.S. holder, except with respect to cash, if any,
received in lieu of a fractional share. A U.S. holder will have a tax basis in the shares of common stock received on exercise of a warrant
equal to the sum of the U.S. holder’s tax basis in the warrant surrendered, reduced by any portion of the basis allocable to a fractional
share, plus the exercise price of the warrant. A U.S. holder generally will have a holding period in shares of common stock acquired on
exercise of a warrant that commences on the date of exercise of the warrant.

Consequences to Non-U.S. Holders

The following is a summary
of the U.S. federal income tax consequences that will apply to a non-U.S. holder of our securities. A “non-U.S. holder” is
a beneficial owner of our securities (other than a partnership or an entity or arrangement treated as a partnership for U.S. federal income
tax purposes) that, for U.S. federal income tax purposes, is not a U.S. holder.

Distributions

Subject to the discussion
below regarding effectively connected income, any dividend, including any taxable constructive stock dividend resulting from certain adjustments,
or failure to make adjustments, to the exercise price of a warrant (as described above under “Consequences to U.S. Holders—Constructive
Distributions”), paid to a non-U.S. holder generally will be subject to U.S. withholding tax either at a rate of 30% of the gross
amount of the dividend or such lower rate as may be specified by an applicable income tax treaty. In order to receive a reduced treaty
rate, a non-U.S. holder must provide us with an IRS Form W-8BEN, IRS Form W-8BEN-E or other applicable IRS Form W-8 properly certifying
qualification for the reduced rate. These forms must be updated periodically. A non-U.S. holder eligible for a reduced rate of U.S. withholding
tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund
with the IRS. If a non-U.S. holder holds our securities through a financial institution or other agent acting on the non-U.S. holder’s
behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then may be required to provide
certification to us or our paying agent, either directly or through other intermediaries.

Dividends received by a non-U.S.
holder that are effectively connected with its conduct of a U.S. trade or business (and, if required by an applicable income tax treaty,
attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States) are generally exempt from
such withholding tax if the non-U.S. holder satisfies certain certification and disclosure requirements. In order to obtain this exemption,
the non-U.S. holder must provide us with an IRS Form W-8ECI or other applicable IRS Form W-8 properly certifying such exemption. Such
effectively connected dividends, although not subject to withholding tax, are taxed at the same graduated U.S. federal income tax rates
applicable to U.S. holders, net of certain deductions and credits. In addition, dividends received by a corporate non-U.S. holder that
are effectively connected with its conduct of a U.S. trade or business may also be subject to a branch profits tax at a rate of 30% or
such lower rate as may be specified by an applicable income tax treaty. Non-U.S. holders should consult their own tax advisors regarding
any applicable tax treaties that may provide for different rules.

Gain on Sale, Exchange or Other Taxable Disposition of Common Stock
or Warrants

Subject to the discussion
below regarding backup withholding and foreign accounts, a non-U.S. holder generally will not be required to pay U.S. federal income tax
on any gain realized upon the sale, exchange or other taxable disposition of our common stock or a warrant unless:

●	the gain is effectively connected with the non-U.S. holder’s conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, the gain is attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States);

●	the non-U.S. holder is a non-resident alien individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which the sale or disposition occurs and certain other conditions are met; or