What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-13 · 237 added, 180 removed, 260 unchanged (62% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2025

AS OF SEPTEMBER 30, 2025

DUKE ROBOTICS CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2025

AS OF SEPTEMBER 30, 2025

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

Unaudited Condensed

Consolidated Interim Balance sheets as of June 30, 2025, and December 31, 2024

Unaudited Condensed Consolidated Interim Statements of Comprehensive loss for six and three months ended June 30, 2025 and 2024

Condensed Consolidated Interim Statements of Stockholders’ Equity for the period of six and three months ended June

30, 2025 and 2024

Unaudited Condensed Consolidated Interim Statements of Cash Flows for the six months ended June 30, 2025 and 2024

Unaudited Condensed Consolidated Interim Balance sheets as of September 30, 2025, and December 31,

Unaudited Condensed Consolidated Interim Statements of Comprehensive loss for nine and three months ended September 30, 2025 and 2024

Unaudited Condensed Consolidated Interim

Statements of Stockholders’ Equity for the period of nine and three months ended September 30, 2025 and 2024

Unaudited Condensed Consolidated Interim Statements of Cash Flows for the nine months ended September 30, 2025 and 2024

Notes to unaudited condensed consolidated financial statements

6 unchanged sentences

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

September 30,

Current Assets

17 unchanged sentences

Common stock of US$ 0.0001 par value each (“Common Stock”):

100,000,000 shares authorized as of June 30, 2025 and December 31, 2024;

issued and outstanding 54,218,813 shares as of June 30, 2025 and December 31, 2024.

100,000,000 shares authorized as of September 30, 2025 and December 31, 2024;

issued and outstanding 54,218,813 shares as of September 30, 2025 and December 31, 2024.

Additional paid-in capital

9 unchanged sentences

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

Six months ended

Nine months ended

Three months ended

4 unchanged sentences

Financing income (expenses), net

Other comprehensive loss - Foreign currency translation adjustments

Other comprehensive gain (loss) - Foreign currency translation adjustments

Comprehensive loss

1 unchanged sentence

Basic and diluted weighted average number of shares of common stock outstanding

(*) represents amount less than $1 thousand.

accompanying notes are an integral part of the condensed consolidated interim financial

3 unchanged sentences

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

Foreign currency

stockholders’

8 unchanged sentences

BALANCE AT JUNE 30, 2025

Share based compensation for services

Foreign currency translation adjustments

Net loss for the period

BALANCE AT SEPTEMBER 30, 2025

(*) represents amount less than $1 thousand.

DUKE ROBOTICS CORP.

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS

OF CHANGES IN STOCKHOLDERS’ EQUITY

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

Foreign currency

stockholders’

7 unchanged sentences

BALANCE AT JUNE 30, 2024

(*) represents amount less than $1 thousand.

Share based compensation for services

Net loss for the period

BALANCE AT SEPTEMBER 30, 2024

accompanying notes are an integral part of the condensed consolidated interim financial

3 unchanged sentences

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

Six months ended

Nine months ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

7 unchanged sentences

Increase in trade receivable

Increase in other current assets

Decrease (increase) in other current assets

Increase in accounts payable

18 unchanged sentences

DUKE ROBOTICS CORP.

(formerly UAS Drone Corp.) (“the Company”) was incorporated under the laws of the State of Nevada

on February 4, 2015.

(formerly UAS Drone Corp.) (“the Company”) was incorporated under the

laws of the State of Nevada on February 4, 2015.

On March 9, 2020, the Company closed on the Share Exchange

30 unchanged sentences

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).

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.

3 unchanged sentences

– GENERAL (continue)

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.

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.

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.

resulted in increased regional instability and led to the temporary shutdown of our operations in Israel for several days.

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 June 30, 2025, the hostilities have not had a

material adverse effect on the Company’s overall business or operations.

However, the recent developments have caused

temporary disruptions, 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.

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 six-months ended June 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.

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.

2 unchanged sentences

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continue)

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.

NOTE 1 – GENERAL (continue)

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

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

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

10 unchanged sentences

Actual results could differ from those estimates.

Since inception, the Company has incurred

losses and negative cash flows from operations.

The Company has financed its operations mainly through fundraising from various investors.

Based on the projected cash flows and

cash balances as of the date of these financial statements, management is of the opinion that its existing cash will be sufficient to

meet its obligations for a period which is longer than 12 months from the date of the approval of these consolidated financial statements.

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continue)

New Accounting Pronouncements

11 unchanged sentences

Financial Statements.

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

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

EVENTS DURING THE PERIOD

10 unchanged sentences

ordering Duke Israel to act as necessary to establish a partnership or joint venture.

The Company has filed a statement of defense against the complaint and believes that the allegations

are baseless and without merit and intends to vigorously defend Company’s rights.

In addition, the complaint does not impact the

continued performance of the agreement between Duke Israel and IEC, and the Company does not believe the complaint will have a material

effect on its business, financial condition or results of operations.

No accrual was made in the financial statements as of June 30, 2025

in respect of the above complaint.

As of June 30, 2025, revenues include royalties for sales of the “Birds of Prey” stabilized

weapons drone systems, pursuant to the Company’s Collaboration Agreement with Elbit signed on January 29, 2021.

The Company analyzed

such revenues under ASC 606, Revenue from Contracts with Customers.

On March 24, 2025, the Company

and Elbit agreed to update the January 29, 2021 agreement, to expand the Collaboration Agreement to allow the Company to market the

stabilized weapons drone system technology that Elbit has been marketing and deploying under the brand name “Birds of

Prey” to military, defense, home-land security and para-military customers, in coordination with Elbit.

The Company will be

entitled to a commission fee, in the mid-single figure percentage range, from transactions resulting from its marketing activities,

in addition to the royalties the Company is entitled to receive as part of the original Collaboration Agreement.

On April 4, 2022, the Company signed a lease agreement for an office space in Mevo Carmel Science and Industry Park, Israel for a term of 3 years, with an option to extend the term of the lease agreement for an additional 2 years.

The monthly lease payments under the lease agreement, for the first two years are NIS 16.5 (approximately $ 4.6 ) and for the third year NIS 17.2 (approximately $ 4.8 ).

The monthly lease payments for the option period will be agreed between the parties, with a minimum increase of 5 % above the third year monthly payment.

Lease payment are linked to the Israeli Consumer Price Index.

The property became available for Company’s use in February 2023.

Based on the lease agreement terms, the Company made a deposit of $ 15 as a guarantee for its lease commitments.

The Company estimated at December 31, 2024, that it will utilize the two years extension option under the above lease agreement.

The components of operating lease expense for the period ended June 30, 2025 and 2024 were as follows:

Six months ended

Operating lease expense

The Company has filed a statement of defense against the complaint

and believes that the allegations are baseless and without merit and intends to vigorously defend Company’s rights.

While at this

stage it is early to assess the likelihood or potential loss, if any, with respect to the complaint, the Company does not believe the

complaint will impact the continued performance of the agreement between Duke Israel and IEC and the Company does not believe the complaint

will have a material effect on its business, financial condition or results of operations.

No accrual was made in the financial statements

as of September 30, 2025 in respect of the above complaint.

On January 29, 2021, the Company, through Duke Israel, and Elbit Systems

Land Ltd., an Israeli corporation (“Elbit”), entered into a collaboration agreement (the “Collaboration Agreement”)

for the global marketing and sales, and the production and further development by Elbit of the Company’s developed advanced robotic

system mounted on a UAS, armed with lightweight firearms.

In the second quarter of 2025, the Company recognized revenues from royalties

for sales of the “Bird of Prey” stabilized weapons drone systems, pursuant to the Company’s Collaboration Agreement

with Elbit signed on January 29, 2021.

The Company analyzed such revenues under ASC 606, Revenue from Contracts with Customers.

On March 24, 2025, the Company and

Elbit agreed to update the January 29, 2021 agreement, to expand the Collaboration Agreement to allow the Company to market the stabilized

weapons drone system technology that Elbit has been marketing and deploying under the brand name “Bird of Prey” to military,

defense, home-land security and para-military customers, in coordination with Elbit.

The Company will be entitled to a commission fee,

in the mid-single figure percentage range, from transactions resulting from its marketing activities, in addition to the royalties the

Company is entitled to receive as part of the original Collaboration Agreement.

DUKE ROBOTICS CORP.

2 unchanged sentences

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

LEASES (continue)

On April 4, 2022, the Company signed a lease agreement for an office space in Mevo Carmel Science and

Industry Park, Israel for a term of 3 years, with an option to extend the term of the lease agreement for an additional 2 years.

lease payments under the lease agreement, for the first two years are NIS 16.5 (approximately $ 4.6 ) and for the third year NIS 17.2 (approximately

The monthly lease payments for the option period will be agreed between the parties, with a minimum increase of 5 % above the third

year monthly payment.

Lease payment are linked to the Israeli Consumer Price Index.

The property became available for Company’s

use in February 2023.

Based on the lease agreement terms, the Company made a deposit of $ 15 as a guarantee for its lease commitments.

The Company estimated at December 31, 2024, that it will utilize the two years extension option under the above lease agreement.

The components of operating lease expense for the period ended September 30, 2025 and 2024 were as follows:

Nine months ended

September 30,

Operating lease expense

Supplemental cash flow information related to operating leases was as follows:

Six months ended

Nine months ended

September 30,

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Supplemental balance sheet information related to operating leases was as follows:

June 30, December 31,

September 30, December 31,

Operating leases:

5 unchanged sentences

Weighted average discount rate 8.75 % 8.75 %

Future minimum lease payments under non-cancellable leases as of June 30, 2025 were as follows:

Total operating lease payments

imputed interest

Present value of lease liabilities

DUKE ROBOTICS CORP.

2 unchanged sentences

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

LEASES (continue)

Future minimum lease payments under non-cancellable leases as of September 30, 2025 were as follows:

Total operating lease payments

imputed interest

Present value of lease liabilities

SHARE BASED COMPENSATION

The following table presents the Company’s

stock option activity for the three months ended June 30, 2025:

stock option activity for the nine months ended September 30, 2025:

Exercise Price

Outstanding at December 31, 2024

Forfeited or expired

Outstanding at June 30, 2025

Number of options exercisable at June 30, 2025

Outstanding at September 30, 2025

Number of options exercisable at September 30, 2025

The aggregate intrinsic value of the

awards outstanding as of June 30, 2025 is $ 72 .

These amounts represent the total intrinsic value, based on the Company’s stock

price of $ 0.161 as of June 30, 2025, less the weighted exercise price.

awards outstanding as of September 30, 2025 is $ 297 .

These amounts represent the total intrinsic value, based on the Company’s

stock price of $ 0.291 as of September 30, 2025, less the weighted exercise price.

The stock options outstanding as of

June 30, 2025, have been separated into exercise prices, as follows:

September 30, 2025, have been separated into exercise prices, as follows:

Exercise price Stock

2 unchanged sentences

life – years Stock options

As of June 30, 2025

As of September 30, 2025

0.0001 450,000 0.48 450,000

4 unchanged sentences

4,496,812 3.34 2,426,812

Compensation expense recorded by the

Company in respect of its share-based compensation awards for the six months ended June 30, 2025 and 2024 were $ 77 and $ 27 , respectively.

Share-based compensation awards for the three months ended June 30, 2025 and 2024 were $ 67 and $ 12 , respectively These expenses are included

in General and Administrative expenses in the Statements of Operations.

expense recorded by the Company in respect of its share-based compensation awards for the nine months ended September 30, 2025 and 2024

were $ 150 and $ 28 , respectively.

Share-based compensation awards for the three months ended September 30, 2025 and 2024 were $ 73 and

$ 1 , respectively These expenses are included in General and Administrative expenses in the Statements of Operations.

DUKE ROBOTICS CORP.

4 unchanged sentences

Transactions and balances with related parties

Six months ended

Nine months ended

Three months ended

3 unchanged sentences

Financing expense

(*) Less than 1 thousand

Balances with related parties:

September 30,

Other accounts liabilities

On February 24, 2025, the Company executed a consulting agreement

Alexandra Papaconstantinou to provide management services as the Managing Director of Duke Greece.

On March 18, 2025, the board of directors of the Company approved

an increase in the amount of shares of Common Stock available under the 2021 Equity Incentive Plan (the “2021 Plan”) from

4,800,000 to 9,000,000 .

On March 18, 2025, the board of directors of the Company approved

the following grants pursuant to the 2021 Plan (see also note 5 above):

(i) Options to purchase 1,000,000 shares of Common Stock to Mr.

Yossef Balucka, CEO, at an exercise price

of $ 0.21 per share, and vest in three equal installments of 33 % at the end of each year.

The options expire after six ( 6 ) years from the

date of grant, and such other terms and conditions set forth in the 2021 Plan.

(ii) Options to purchase 500,000 shares of Common Stock to Mr.

Vadim Maor, Company’s CTO nominated at

March 18, 2025, at an exercise price of $ 0.21 per share.

The options have the following vesting schedule:

33 % of the options will vest

after 12 months and the remaining portion will vest in eight equal installments over eight quarters.

The options expire after six ( 6 )

years from the date of grant, and such other terms and conditions set forth in the 2021 Plan.

On February 24, 2025, the

Company executed a consulting agreement with Mrs.

Alexandra Papaconstantinou to provide management services as the Managing Director of

On March 18, 2025, the board

of directors of the Company approved an increase in the amount of shares of Common Stock available under the 2021 Equity Incentive Plan

(the “2021 Plan”) from 4,800,000 to 9,000,000 .

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

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

NOTES TO UNAUDITED

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(USD in thousands,

except share and per share data)

6 – RELATED PARTIES (continue)

On March 18, 2025, the board

of directors of the Company approved the following grants pursuant to the 2021 Plan (see also note 5 above):

(i) Options to purchase 1,000,000 shares of Common Stock to Mr.

Yossef Balucka, CEO, at an exercise price of $ 0.21 per share, and vest in three equal installments of 33 % at the end of each year.

options expire after six ( 6 ) years from the date of grant, and such other terms and conditions set forth in the 2021 Plan.

(ii) Options to purchase 500,000 shares of Common Stock to Mr.

Vadim Maor, Company’s CTO nominated at March 18, 2025, at an exercise price of $ 0.21 per share.

The options have the following

vesting schedule:

33 % of the options will vest after 12 months and the remaining portion will vest in eight equal installments over eight

The options expire after six ( 6 ) years from the date of grant, and such other terms and conditions set forth in the 2021 Plan.

( iii) Options to purchase 120,000 shares of Common Stock to Ms.

Gousman Golan, director at an exercise price of $ 0.21 per share and vest in three equal installments of 33 % at the end of each year.

Keren Gousman Golan, director at an exercise price of $ 0.21 per share and vest in three equal installments of 33 % at the end of each

The options expire after six ( 6 ) years from the date of grant, and such other terms and conditions set forth in the 2021 Plan.

(iv) Options to purchase 400,000 shares of Common Stock to Mrs.

Papaconstantinou, Managing Director of Duke Greece.

The options were granted at an exercise price of $ 0.21 per share and vest in three

equal installments of 33 % at the end of each year.

The options expire after six ( 6 ) years from the date of grant, and such other terms

and conditions set forth in the 2021 Plan.

Alexandra Papaconstantinou, Managing Director of Duke Greece.

The options were granted at an exercise price of $ 0.21 per share and vest

in three equal installments of 33 % at the end of each year.

The options expire after six ( 6 ) years from the date of grant, and such other

terms and conditions set forth in the 2021 Plan.

(v) Options to purchase 50,000 shares of Common Stock to Mr.

Shlomo Zakai, CFO, at an exercise price of $ 0.21

per share, and vest in three equal installments of 33 % at the end of each year.

The options expire after six ( 6 ) years from the date of

grant, and such other terms and conditions set forth in the 2021 Plan.

Shlomo Zakai, CFO, at an exercise price of $ 0.21 per share, and vest in three equal installments of 33 % at the end of each year.

options expire after six ( 6 ) years from the date of grant, and such other terms and conditions set forth in the 2021 Plan.

DUKE ROBOTICS CORP.

NOTES TO UNAUDITED

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(USD in thousands,

except share and per share data)

SEGMENT INFORMATION

3 unchanged sentences

primarily based on segment operating loss.

The Company refined the name of the segment previously referred to

as ‘Revenue from drones insulators washing’ to ‘Revenues from civil applications segment’ to better reflect its

The change had no impact on the composition or nature of the segment’s activities.

The following table presents information

about the Company’s reportable segments for the six and three months ended June 30, 2025 and 2024.

The Company has not changed the

composition of its reportable segments since its last annual report.

Six months ended

about the Company’s reportable segments for the nine and three months ended September 30, 2025 and 2024.

The Company has not changed

the composition of its reportable segments since its last annual report.

Nine months ended

Three months ended

Revenue from drones insulators washing

Cost of revenues from drones insulators washing

Other revenues

Revenue from civil applications segment

Cost of revenues from civil applications segment

Gross profit from other revenues

Research and development expenses

6 unchanged sentences

Other expenses

For the six months ended June 30,

2025 and 2024, the Company’s operations were mostly confined to Israel.

As of June 30, 2025 and 2024, all of the fixed assets of

the Company were located in Israel.

For the nine months ended September 30, 2025 and 2024, the Company’s

operations were mostly confined to Israel.

As of September 30, 2025 and 2024, fixed assets of the Company were located in Israel and Greece.

NOTE 8 – SUBSEQUENT EVENTS

On October 15, 2025, the Company filed a Certificate of Amendment to

its Articles of Incorporation (the “Certificate of Amendment”) with the Nevada Secretary of State, to increase its authorized

shares of Common Stock, from 100,000,000 shares of Common Stock to 350,000,000 shares of Common Stock, as well as to permit

the issuance of up to 10,000,000 shares of “blank check” preferred stock, par value $ 0.0001 per share.

The “blank-check”

preferred stock may have such rights and preferences as may be designated by the Company’s Board of Directors from time to time.

The Certificate of Amendment was effective upon filing on October 15, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements