Duke Robotics Corp. (DUKR) presents a deeply negative liquidation recovery posture as of December 31, 2025. Total assets of $1.25M are offset by total liabilities of $1.15M, leaving book equity of roughly $100K — but under liquidation haircuts, recovery to equity is negative. Applying standard haircuts: cash $750K recovers at 100% ($750K); AR $41K at 90% ($37K); PP&E net $215K at 50-60% ($108-129K); ROU asset $127K at 0% (no standalone liquidation value); other current assets $116K at modest recovery (~$60K). Haircutted asset pool approximates $955-975K. Against this, liabilities at face value total $1.15M: current liabilities $756K (AP $129K, accrued $341K, other current $366K including operating lease current $72K, warrant liability $189K), non-current operating lease $63K, related-party loans $330K at face. The liability stack exceeds haircutted assets by approximately $175-195K, confirming MFFAIS's reported negative liquidation values (CLV -$69K, LLV/OLV -$28K). The going-concern qualification remains in force; management disclosed cash resources sufficient only through Q2 2026. Net cash burn from operations was $811K in 2025 versus operating receipts from the single IEC insulator-washing contract ($361K revenue). The December 30, 2025 private placement raised $475K gross ($750K total commitment, $275K remaining to be received in January 2026) but introduced a Level 3 warrant liability of $189K with a make-whole provision that precluded equity classification under ASC 480/815. PP&E gross nearly doubled YoY ($359K vs $167K), driven by drone acquisitions ($234K vs $52K), funded by $216K in cash capex — a meaningful cash drain in the context of the company's liquidity position. Related-party loans of $330K at 3% annual interest are contingent-repayment instruments (triggered by $15M raise and $3M EBITDA threshold); these are unlikely to accelerate near-term but remain on-balance-sheet at face. The accumulated deficit stands at approximately $12.2M (implied from equity movements). All deferred tax assets ($1.86M) are fully offset by valuation allowance, consistent with no prospect of near-term taxable income. Filing discusses the make-whole provision and warrant liability classification in MD&A/Notes but does not separately tag the make-whole provision's standalone fair value in XBRL — only the combined warrant liability of $189K is tagged as DerivativeLiabilitiesCurrent.
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