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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Word Count: 1462
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Document Content:

and collectively with Duke Inc., “Duke”), which was formed under the laws of the State of Israel in March 2014 and became the sole subsidiary of Duke after its incorporation. On April 29, 2020, the Company, Duke Inc., and UAS Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the Company (“UAS Sub”), executed an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which UAS Sub merged with and into Duke Inc., with Duke Inc. surviving as our wholly-owned subsidiary (the “Short-Form Merger”). Upon closing of the Short-Form Merger, each outstanding share of UAS Sub’s common stock, par value $0.0001 per share, was converted into and became one share of common stock of Duke Inc., with Duke Inc. surviving as a wholly-owned subsidiary of the Company. Following the above transactions, Duke Israel became a wholly-owned subsidiary of Duke Inc., which is a wholly-owned subsidiary of the Company.

On February 18, 2025, the Company established Duke Robotics
Hellas M I.K.E (“Duke Greece”), a wholly owned subsidiary, formed under the laws of Greece, to support the ongoing global
commercialization efforts of the Company’s Insulator Cleaning (“IC”) Drone system.

The Company (collectively with Duke and Duke Greece, the
“Group”) is a robotics company dedicated to developing an advanced robotics stabilization system that enables remote, real-time,
pinpoint accurate firing of small arms and light weapons as well as other civilian applications, with an emphasis in the field of routine
infrastructure maintenance. The Company offers high-voltage insulator washing abilities using its innovative IC Drone system. This technology
provides an efficient and safe method for cleaning high-voltage insulators, improving their performance, enhancing safety, and reducing
maintenance costs.

On October 28, 2024, the Company filed a certificate of
amendment to its Articles of Incorporation with the Nevada Secretary of State to change the Company’s corporate name from UAS Drone
Corp. to DUKE Robotics Corp. effective as of November 4, 2024.

The Company’s Common Stock is
quoted on the OTC Markets Group, Inc.’s OTCQB® tier Venture Market, under the symbol “DUKR” (“USDR”
prior to November 4, 2024).

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS

(USD in thousands, except share and per share data)

NOTE 1
– GENERAL (continue)

B.	In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted
a series of horrific terrorist attacks on civilian and military targets. Following the attack, Israel’s security cabinet declared
war and commenced a military campaign in Gaza against Hamas. Since the commencement of these events, there have been additional active
hostilities, including military operations focused in southern Lebanon against Hezbollah, air force operations against the Houthi movement
in Yemen and multiple airstrikes in Iran, in response to Iranian missile attacks. In October 2024, Israel began ground operations against
Hezbollah in Lebanon culminating in a 60-day cease fire agreed to between Israel and Lebanon on November 27, 2024. On January 27, 2025,
the ceasefire between Israel and Lebanon was extended to February 18, 2025. Following February 18, 2025, Israeli forces retained control
over strategic positions in southern Lebanon while seeking for diplomatic efforts to resolve the dispute. While ceasefire agreements have
been reached in the past, there is no guarantee that the parties will succeed with complying with the terms of such agreements and, accordingly,
it is possible that these hostilities will resume with little to no warning and that additional terrorist organizations and, possibly,
countries will actively join the hostilities. Such clashes may escalate in the future into a greater regional conflict.

On June 13, 2025, Israel launched Operation “Rising
Lion”, a direct military campaign targeting Iranian nuclear and military infrastructure in response to escalating threats posed
by Iran’s long-range missile deployment and intelligence reports indicating imminent coordinated attacks. The United States joined
Israel in this military action. A ceasefire between Israel and Iran was declared by the United States on June 24, 2025. This action resulted
in increased regional instability and led to the temporary shutdown of our operations in Israel for several days.

On September 10, 2025, a ceasefire agreement was reached between Israel
and Hamas, effectively ending the large-scale military operations in the Gaza Strip. As part of the agreement, all remaining living Israeli
hostages in Gaza have been released and returned to Israel. A number of deceased hostages remains are to be returned, and the parties
continue to cooperate in that process. The ceasefire has generally held as of the date of these financial statements, although the security
situation remains fragile, and the risk of renewed hostilities persists.

Given that the majority of the Company’s operations are conducted
in Israel, and that all members of the Company’s board of directors and management, as well as most employees, consultants, and
service providers, are located in Israel, the Company is directly affected by the economic, political, geopolitical, and military conditions
impacting the region. As of September 30, 2025, the recent hostilities and the evolving security situation resulted in temporary disruptions
to our business, resulting in a decrease in revenues during the recent quarter, and may continue to have an adverse impact on certain
business activities. Any further escalation or expansion of the conflict could negatively affect both regional and global conditions,
and may adversely impact the Company’s business, financial condition, and results of operations.

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS

(USD in thousands, except share and per share data)

NOTE 1 – GENERAL (continue)

C.	Going Concern

Since inception, the Company has incurred
losses and negative cash flows from operations and has an accumulated deficit of $12 million. The Company has financed its operations
mainly through fundraising from various investors.

Based on the projected cash flows and
cash balances as of September 30, 2025, management currently is of the opinion that its existing cash will be sufficient to fund its operations
through the second quarter of 2026. As a result, there is substantial doubt regarding the Company’s ability to continue as a going
concern.

Management plans to continue securing
sufficient financing through the sale of additional equity securities or capital inflows from strategic partnerships. Additional funds
may not be available when the Company needs them, on favorable terms, or at all. If the Company is unsuccessful in securing sufficient
financing, it may need to cease operations.

The financial statements do not include
adjustments for measurement or presentation of assets and liabilities, which may be required should the Company fail to operate as a going
concern

NOTE 2 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Basis of presentation

The accompanying unaudited condensed consolidated interim
financial statements include the accounts of the Company and its subsidiaries, prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). In the opinion of management, the financial statements presented herein
include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of the Company’s management,
necessary for a fair statement of the financial condition, results of operations, changes in shareholders equity and cash flows for nine-months
ended September 30, 2025. However, these results are not necessarily indicative of results for any other interim period or for the year
ended December 31, 2025. The preparation of financial statements in conformity with GAAP requires the Company to make certain estimates
and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts
of assets, liabilities, revenues and expenses. Actual amounts could differ from these estimates.

These financial statements should be read in conjunction
with the audited financial statements included in the Company’s Form 10-K for the year ended December 31, 2024 as filed with the
Securities and Exchange Commission. The Company’s significant accounting policies are disclosed in the audited financial statements
for the year ended December 31, 2024 included in the Company’s Form 10-K. Since the date of such financial statements, there have
been no changes to the Company’s significant accounting policies.

The accompanying unaudited condensed
consolidated interim financial statements are prepared in accordance with GAAP. The unaudited condensed consolidated interim financial
statements of the Company include the Company and its wholly-owned and majority-owned subsidiaries. All inter-company balances and transactions
have been eliminated.

Use of Estimates

The preparation of unaudited condensed
consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain revenues and expenses, and disclosure
of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates.

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS

(USD in thousands, except share and per share data)

NOTE 2 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continue)

New Accounting Pronouncements