DUKE Robotics Corp. (DUKR) - 10-K Summary
Business Context and Reporting Period
Company: DUKE Robotics Corp. (formerly UAS Drone Corp.)
Reporting Period: Fiscal Year Ended December 31, 2025
Headquarters: Mevo Carmel, Israel
Business Model: The Company develops advanced robotic stabilization systems for defense applications and civilian drone-based solutions for infrastructure maintenance. Key products include the "Bird of Prey" stabilized weapons drone system (marketed via collaboration with Elbit Systems) and the Insulator Cleaning (IC) Drone for high-voltage utility maintenance.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (USD '000s) | 2024 (USD '000s) |
|---|---|---|
| Revenues | 377 | 108 |
| Gross Profit | 179 | 37 |
| Gross Margin | 47.5% | 34.3% |
| Operating Loss | (1,206) | (1,025) |
| Net Loss | (1,241) | (985) |
| Cash and Cash Equivalents | 750 | 1,256 |
| Working Capital | 151 | 1,010 |
| Accumulated Deficit | (12,403) | (11,162) |
Debt & Liquidity: The Company holds $330,000 in related party loans. Cash used in operating activities was $811,000 in 2025. The Company raised approximately $750,000 in a private placement closing in January 2026 (subsequent to year-end).
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 249% to $377,000, driven by the expansion of IC Drone service operations with the Israel Electric Corporation (IEC) and the first-time recognition of royalty revenues from the "Bird of Prey" defense system.
- Expense Increases: General and Administrative (G&A) expenses rose to $1.281 million (from $905,000), primarily due to increased professional services for Greek expansion and higher stock-based compensation ($224,000 vs. $28,000).
- Net Loss Expansion: Net loss increased to $1.241 million due to higher operating expenses outpacing revenue growth.
- Capital Structure: A 25-for-1 reverse stock split was approved in March 2026. The Company authorized an increase in common stock to 350 million shares and 10 million preferred shares in October 2025.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: The filing explicitly states there is substantial doubt about the Company's ability to continue as a going concern. Management believes current cash resources will fund operations only through the fourth quarter of 2026. Additional financing is required.
- Geopolitical Risks: Operations are heavily concentrated in Israel. The filing details significant risks from ongoing regional conflicts (Hamas, Hezbollah, Iran), which have caused temporary disruptions to operations and supply chains. Hostilities escalated again in February 2026.
- Regulatory Milestones: Duke Greece received operational authorization from the Hellenic Civil Aviation Authority in January 2026, enabling IC Drone operations in the EU.
- Legal Proceedings: A breach of contract complaint filed by LOOL T.V. Ltd. in March 2025 was dismissed without prejudice in February 2026, with the plaintiff ordered to pay legal expenses.
- Warrant Liability: A $189,000 liability was recorded for warrants issued in a December 2025 private placement due to a "make-whole" provision, classified as a Level 3 fair value measurement.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $750,000 cash balance (as of Dec 31, 2025) plus the $750,000 raised in Jan 2026 to cover the projected burn rate through late 2026.
- Revenue Concentration: Confirm the extent of reliance on the IEC contract for civilian revenue and the specific royalty terms with Elbit for defense revenue.
- Geopolitical Exposure: Assess the impact of ongoing Middle East hostilities on the ability to deploy drones in Israel and Greece and the continuity of the supply chain.
- Dilution Risk: Review the terms of outstanding warrants (exercise price $16.25) and the potential dilution from future equity financings required to maintain operations.
- Legal Status: Monitor the status of the dismissed LOOL T.V. Ltd. complaint to ensure no new filings occur that could disrupt IEC services.