DUKE Robotics (DUKR) risk factors, FY2024 10-K

Risks Related to our Business and Industry

1. 01We have a limited operating history and have generated limited revenues to date
2. 02We may not be able to obtain adequate financing to continue our operations
3. 03We have inadequate capital and need for additional financing to accomplish our business and strategic plans. Terms of subsequent financing, if any, may adversely impact your investment
4. 04Our revenues will depend heavily on government contracts
5. 05We face other risks in our expected international sales
6. 06We may experience production delays if suppliers fail to make compliant or timely deliveries
7. 07If we fail to manage growth or to prepare for product scalability effectively, it could have an adverse effect on our employee efficiency, product quality, working capital levels and results of operations
8. 08We were granted a patent for certain of our key technologies and may apply for additional patents in the future. Our ability to protect our intellectual property and proprietary technology is uncertain and may be inadequate, which may have a material and adverse effect on us
9. 09We may become subject to claims of infringement or misappropriation of the intellectual property rights of others, which could prohibit us from developing our products, require us to obtain licenses from third parties or to develop non-infringing alternatives and subject us to substantial monetary damages
10. 10The sale of our products is subject to various regulatory requirements of the Israeli Ministry of Defense and will also be subject to regulatory requirements in countries in which we seek to sell our products

Risks Related to our Common Stock

1. 11Our executive officer, directors and certain stockholders who are beneficial owners of more than 5% of our outstanding common shares possess the majority of our voting power, and through this ownership, have the ability to control our Company and our corporate actions
2. 12There is a substantial lack of liquidity of our common stock and volatility risks
3. 13Because we became public by means of a “reverse merger,” we may not be able to attract the attention of major brokerage firms
4. 14Our common stock may never be listed on a major stock exchange
5. 15Our common stock is subject to price volatility unrelated to us or our operations
6. 16Sales of our currently issued and outstanding stock may become freely tradable pursuant to Rule 144 and may dilute the market for your shares and have a depressive effect on the price of the shares of our common stock
7. 17The securities issued in connection with the Share Exchange are restricted securities and may not be transferred in the absence of registration or the availability of a resale exemption
8. 18We do not plan to declare or pay any dividends to our stockholders in the near future
9. 19“Penny Stock” rules may make buying or selling our common stock difficult
10. 20The sales practice requirements of FINRA may also limit a stockholder’s ability to buy and sell our stock

Risks Related to Israeli Law and Our Operations in Israel

1. 21Our principal executive offices and other significant operations are located in Israel, and, therefore, our results may be adversely affected by political, economic and military instability in Israel, including the recent attacks by Hamas and other terrorist organizations and Israel’s war against them
2. 22Our operations are subject to currency and interest rate fluctuations
3. 23It may be difficult to enforce a judgment of a United States court against us and our officers and directors to assert United States securities laws claims in Israel or to serve process on our officers and directors and these experts
4. 24Our operations may be disrupted as a result of the obligation of management or key personnel to perform military service
5. 25We operate in a competitive industry
6. 26Undetected problems in our products could impair our financial results and give rise to potential product liability claims
7. 27Our business depends on proprietary technology that may be infringed
8. 28Potential product liability claims could adversely affect our future earnings and financial condition
9. 29We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel or hire additional qualified personnel, we may not be able to grow effectively
10. 30Our management team may not be able to successfully implement our business strategies
11. 31Significant disruptions of our information technology systems or breaches of our data security could adversely affect our business
12. 32A decline in the price of our common stock could affect our ability to raise working capital and adversely impact our ability to continue operations
13. 33The requirements of being a public company may strain our resources and distract management
14. 34Future changes in financial accounting standards or practices may cause adverse unexpected financial reporting fluctuations and affect reported results of operations