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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companies or other financial institutions; ● tax-exempt organizations or governmental organizations; ● regulated investment companies and real estate investment trusts; ● controlled foreign corporations, passive foreign investment companies and corporations that accumulate earnings to avoid U.S. federal income tax; ● brokers or dealers in securities or currencies; ● traders in securities that elect to use a mark-to-market method of accounting for their securities holdings; ● persons that own, or are deemed to own, more than five percent of our capital stock (except to the extent specifically set forth below); ● tax-qualified retirement plans; ● certain former citizens or long-term residents of the United States; ● partnerships or entities or arrangements classified as partnerships for U.S. federal income tax purposes and other pass-through entities (and investors therein); ● persons who hold our securities as a position in a hedging transaction, “straddle,” “conversion transaction” or other risk reduction transaction or integrated investment;

●	persons who do not hold our securities as a capital asset within the meaning of Section 1221 of the Code; or

●	persons deemed to sell our securities under the constructive sale provisions of the Code.

In addition, if a partnership
(or entity or arrangement classified as a partnership for U.S. federal income tax purposes) holds our securities, the tax treatment of
a partner generally will depend on the status of the partner and upon the activities of the partnership. Accordingly, partnerships that
hold our securities, and partners in such partnerships, should consult their tax advisors.

You are urged to consult
your own tax advisors with respect to the application of the U.S. federal income tax laws to your particular situation, as well as any
tax consequences of the purchase, ownership and disposition of our securities arising under the U.S. federal estate or gift tax laws or
under the laws of any state, local, non-U.S., or other taxing jurisdiction or under any applicable tax treaty.

Allocation of Purchase Price and Characterization of a Unit

No statutory, administrative
or judicial authority directly addresses the treatment of a unit or instruments similar to a unit for U.S. federal income tax purposes
and, therefore, that treatment is not entirely clear. The acquisition of a unit should be treated for U.S. federal income tax purposes
as the acquisition of one share of common stock and one warrant to purchase one share of common stock. For U.S. federal income tax purposes,
each holder of a unit must allocate the purchase price paid by such holder for such unit between such one share of common stock and one
warrant to purchase one share of common stock based on their relative fair market values at the time of issuance. Under U.S. federal income
tax law, each investor must make his or her own determination of such value based on all the relevant facts and circumstances. Therefore,
we strongly urge each investor to consult his or her tax adviser regarding the determination of value for these purposes. The price allocated
to each share of common stock and each warrant should be the stockholder’s tax basis in such share or warrant, as the case may be.
Any disposition of a unit should be treated for U.S. federal income tax purposes as a disposition of the one share of common stock and
one warrant to purchase one share of common stock comprising the unit, and the amount realized on the disposition should be allocated
between the one share of common stock and one warrant to purchase one share of common stock based on their respective relative fair market
values (as determined by each such unit holder on all the relevant facts and circumstances) at the time of disposition. The separation
of the common stock and warrants comprising units should not be a taxable event for U.S. federal income tax purposes.

The foregoing treatment of
the common stock and warrants and a holder’s purchase price allocation are not binding on the IRS or the courts. Because there are
no authorities that directly address instruments that are similar to the units, no assurance can be given that the IRS or the courts will
agree with the characterization described above or the discussion below. Accordingly, each prospective investor is urged to consult its
own tax advisors regarding the tax consequences of an investment in a unit (including alternative characterizations of a unit). The balance
of this discussion assumes that the characterization of the units described above is respected for U.S. federal income tax purposes.

Consequences to U.S. Holders

The following is a summary
of the U.S. federal income tax consequences that will apply to a U.S. holder of our securities. For purposes of this discussion, you are
a U.S. holder if, for U.S. federal income tax purposes, you are a beneficial owner of our securities, other than a partnership, that is:

●	an individual citizen or resident of the United States;

●	a corporation or other entity taxable as a corporation created or organized in the United States or under the laws of the United States, any State thereof or the District of Columbia;

●	an estate whose income is subject to U.S. federal income tax regardless of its source; or

●	a trust (x) whose administration is subject to the primary supervision of a U.S. court and which has one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (y) which has made a valid election to be treated as a “United States person.”

Distributions

As described in the section
titled “Market for Our Common Stock—Dividend Policy,” we have never declared or paid cash dividends on our common stock
and do not anticipate paying any dividends on our common stock in the foreseeable future. However, if we do make distributions on our
common stock, those payments will constitute dividends for U.S. tax purposes to the extent paid from our current or accumulated earnings
and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed both our current and our
accumulated earnings and profits, the excess will constitute a return of capital and will first reduce your basis in our common stock,
but not below zero, and then will be treated as gain from the sale of stock as described below under “Sale, Exchange or Other Taxable
Disposition of Common Stock.”

Dividend income may be taxed
to an individual U.S. holder at rates applicable to long-term capital gains, provided that a minimum holding period and other limitations
and requirements are satisfied. Any dividends that we pay to a U.S. holder that is a corporation will qualify for a deduction allowed
to U.S. corporations in respect of dividends received from other U.S. corporations equal to a portion of any dividends received, subject
to generally applicable limitations on that deduction. U.S. holders should consult their own tax advisors regarding the holding period
and other requirements that must be satisfied in order to qualify for the reduced tax rate on dividends or the dividends-received deduction.

Constructive Distributions

The terms of the warrants
allow for changes in the exercise price of the warrants under certain circumstances. A change in exercise price of a warrant that allows
holders to receive more shares of common stock on exercise may increase a holder’s proportionate interest in our earnings and profits
or assets. In that case, such holder may be treated as though it received a taxable distribution in the form of our common stock. 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.