Duke Robotics Reports Increased Net Loss and Decreased Assets in Q1 2025

Duke Robotics Corp. reported its financial results for the first quarter of 2025, revealing a net loss of $279,000, an increase from a net loss of $209,000 during the same period in 2024. The company did not generate any revenue in either quarter, maintaining a consistent trend as it continues to focus on its commercial agreement with the Israel Electric Corporation (IEC) for high-voltage insulator washing services. The company's total assets decreased to $1.34 million as of March 31, 2025, down from $1.63 million at the end of 2024, primarily due to a reduction in cash and cash equivalents.

In terms of expenses, Duke Robotics reported a decrease in research and development costs, which fell to $22,000 from $38,000 year-over-year. This reduction reflects the company's strategic focus on its existing commercial agreements rather than new product development. Conversely, general and administrative expenses rose to $258,000 from $192,000, attributed to increased professional services costs, partially offset by lower stock-based compensation expenses. The company’s cash position also declined, with cash and cash equivalents at $1.01 million compared to $2.11 million a year earlier.

Operationally, Duke Robotics has made significant strides by establishing a new wholly-owned subsidiary, Duke Robotics Hellas M I.K.E, in Greece on February 18, 2025, aimed at supporting the global commercialization of its Insulator Cleaning Drone system. The company continues to operate primarily in Israel, where it has focused its efforts on maintaining and expanding its service agreements with the IEC. As of March 31, 2025, the company had 54,218,813 shares outstanding, with a slight increase in the weighted average number of shares compared to the previous year.

The company is also navigating legal challenges, as a complaint was filed against its Israeli subsidiary, Duke Israel, alleging breach of contract and other claims related to its services for the IEC. Duke Robotics maintains that the allegations are baseless and does not expect the complaint to materially impact its operations or financial condition. Looking ahead, the company believes it has sufficient cash to fund its operations for at least the next 12 months, although it acknowledges the potential need for additional funding to support further development and expansion efforts.

Overall, Duke Robotics continues to focus on its core competencies in drone technology while managing its financial and operational challenges. The company remains committed to its strategic objectives, including the commercialization of its innovative cleaning solutions and the expansion of its market presence, despite the geopolitical uncertainties affecting its primary operational base in Israel.