SKTG 10-K & 10-Q changes, risk factors and insider trading
Skytech Orion Global Corp. · OTC · Services-Prepackaged Software · CIK 1498067 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “UAV systems involve complex technologies and may fail to perform as expected in operational environments.”
New heading “Environmental and weather conditions may limit the performance and deployment of UAV systems.”
New heading “Risks related to Cybersecurity”
New heading “Cyberattacks, security vulnerabilities, or failures in our cybersecurity framework could disrupt operations, compromise sensitive data, or harm our reputation.”
New heading “Restrictions under Israeli government grant may pose specific demands on our operational and corporate flexibility”
Removed heading “Regulatory and Licensing Barriers in the Defense Drone and UAV Sector”
Removed heading “We intend to rely on third parties to conduct clinical trials (if needed). If these third parties do not meet our deadlines or otherwise conduct the trials as required, our clinical trials programs could be delayed or unsuccessful and we may not be able to obtain regulatory approval for or commercialize our product candidates when expected or at all.”
Largest changes
“We face risks in our international operations. We plan to derive a significant portion of our revenues from international sales. Entry into new markets as well as changes in international, political, economic or geographic conditions could cause significant reductions in our revenues and profitability. …”see in full comparison
“We are subject to risks associated with artificial intelligence (AI) technologies. When referring to AI, we generally mean a machine-based system with various levels of autonomy that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, and use machine and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action. …”see in full comparison
“We depend on governmental security clearance and governmental approvals for international sales, procurement and acquisitions. Many of our contracts with governmental customers require us to maintain security clearances and employ staff with specific qualifications, experience, and clearance levels. If we or our employees fail to obtain or maintain the necessary clearances, we may be unable to secure new contracts, and current customers could end their contracts or choose not to renew them. …”see in full comparison
“The regional security environment has continued to escalate materially since the filing period covered by this report. Following a series of Israeli and U.S. military strikes on Iranian nuclear and military facilities in June 2025, the United States and Israel launched a broader joint military campaign against Iran beginning on February 28, 2026, which has expanded into an active, ongoing armed conflict involving retaliatory Iranian missile and drone strikes against Israel, U.S. military installations across the Middle East, and Gulf state energy infrastructure. …”see in full comparison
“Through our subsidiary Cannovation Center Israel, we developed the nutritional product line containing natural and herbal formulas based on researched and science-based plants, herbal extracts, mushrooms and other natural ingredients. The product lines are manufactured in Israel in iBOT Israel Botanicals Ltd, iBOT being a related party with which we have manufacturing and strategic cooperation agreements, under a GMP-certified manufacturing facility approved by the Israeli Ministry of Health. …”see in full comparison
“Cyberattacks, security vulnerabilities, or failures in our cybersecurity framework could disrupt operations, compromise sensitive data, or harm our reputation.”see in full comparison
Full comparison: every changed paragraph (98)
The Company’s executive leadership and management are based in Israel, operating through its wholly owned subsidiary CTGL Citrine Global Israel Ltd. and its majority-owned subsidiary SkyTech Orion Ltd.
On October 7, 2023, a large-scale war broke out in Israel, leading to a prolonged national crisis. The war created widespread uncertainty and instability in the country, disrupted the Israeli economy, and adversely affected the Company’s operations. Since the outbreak of the conflict, the Company has continued to face significant disruptions.
The regional security environment has continued to escalate materially since the filing period covered by this report. Following a series of Israeli and U.S. military strikes on Iranian nuclear and military facilities in June 2025, the United States and Israel launched a broader joint military campaign against Iran beginning on February 28, 2026, which has expanded into an active, ongoing armed conflict involving retaliatory Iranian missile and drone strikes against Israel, U.S. military installations across the Middle East, and Gulf state energy infrastructure. Iranian retaliatory strikes have targeted multiple locations within Israel, including population centers, and Israeli airspace has experienced disruptions. The conflict has caused significant regional instability, including the closure of the Strait of Hormuz and disruptions to regional energy and logistics markets. While the Company’s operations are based in Yerucham in southern Israel and have not been directly destroyed or disabled, the conflict presents material risks to the Company’s personnel, facilities, supply chain, fundraising activities, and ability to execute on its UAV and drone technology business plan. The duration, scope, and ultimate resolution of the conflict remain highly uncertain. Investors should carefully review the risk factors set forth in Item 1A of this Annual Report, which address geopolitical risk, Israeli operational risk, and the potential impact of the ongoing conflict on the Company’s business, financial condition, and results of operations.
We
have beentransitioned operatingfrom our previous business in the plant-based health and wellness sector to
our current businessfield sinceof Marchactivity 2020.of drones and unmanned systems’ solutions. Accordingly, our operations are subject to all the risks inherent in the
establishment of a developing
enterprise and the uncertainties arising from the absence of a significant operating history. As of December
31, 2024,2025, we have not generated
revenues and there can be no assurance that we will ever be profitable. If our business plan is not successful,
and we are not able to
operate profitably, investors may lose some or all of their investment in our company.
Until
we can generate a sufficient amount ofenough product revenue to finance our cash requirements, which we may never achieve, we expect to finance
our cash needs primarily through public or private equity offerings, debt financings or through the establishment of possible strategic
alliances. We cannot be certain that additional funding will be available on acceptable terms, or at all. If we are not able to secure
additional equity funding when needed, we may have to delay, reduce the scope of, or eliminate, development programs or future commercialization
initiatives.
Our future success in a competitive industry depends on our ability to develop new offerings and technologies quickly at cost-effective Prices locating Western-compliant electronic components, The markets we serve are highly competitive and characterized by rapid changes in technologies and evolving industry standards. In addition, some of our systems and products are installed on platforms that may have a limited lifespan or become obsolete. Unless we develop new offerings or enhance our existing offerings, we may be susceptible to loss of market share resulting from the introduction of new or enhanced offerings by our competitors. We compete with many large and mid-tier defense, homeland security and commercial aviation contractors based on system performance, cost, overall value, delivery and reputation. Many of these competitors are larger and have greater resources than us and therefore may be better positioned to take advantage of economies of scale and develop new technologies. Some of these competitors are also our suppliers in some programs. Accordingly, our future success will require that we:
● identify emerging technological trends;
● identify additional uses for our existing technology to address customer requirements;
● develop, upgrade and maintain competitive products and services;
● add innovative solutions that differentiate our offerings from those of our competitors;
● bring solutions to the market quickly at cost-effective prices;
● develop working prototypes as a condition to receive contract awards;
● maintain a global presence, working through subsidiaries around the world; and
● structure our business efficiently through joint ventures, teaming agreements and other forms of alliance.
In
addition, any additional equity funding that we do obtain will dilute the ownership held by our existing security holders..holders. Any debt financing
financing that we obtain in the future could involve substantial restrictions on activities and creditors could seek a pledge of some
or all of
our assets. We have not identified potential sources for such financing that we will require, and we do not have commitments
from any
third parties to provide any future debt financing. If we fail to obtain funding as needed, we may be forced to cease or scale
back operations,
and our results, financial condition and stock price would be adversely affected.
If
we are unable to successfully commercialize ourthe products or if revenue from any of ourthe products that receives marketing approval is
insufficient, insufficient,
we will not achieve profitability. Furthermore, even if we successfully commercialize ourthe products, our planned
investments may not result
in increased revenue or growth of our business. We may not be able to generate net revenues sufficient to
offset our expected cost increases
and planned investments in our business. As a result, we may incur significant losses for the
foreseeable future,future and may not be able
to achieve and sustain profitability. If we fail to achieve and sustain profitability, then
we may not be able to achieve our business
plan, fund our business or continue as a going concern.
We incur expenses in U.S. Dollars and in NIS but our functional currency is the U.S. dollar. However, a significant portion of our headcount-related expenses, consisting principally of personnel expenses as well as R&D consulting services, leases and certain other operating expenses, are denominated in NIS. This foreign currency exposure gives rise to market risk associated with exchange rate movements of the U.S. dollar against the NIS. Furthermore, we anticipate that a material portion of our expenses will continue to be denominated in NIS. We plan to generate our revenues in currencies other than the U.S. dollar (our financial reporting currency), mainly New Israeli Shekels (NIS). Accordingly, in case of an appreciation of the NIS compared to the U.S. dollar, a significant portion of our costs will likely increase, as has previously happened. During 2025, the NIS appreciated by 12.5% compared to the U.S. dollar, leading to an increase in the portion of our labor-related and operating expenses denominated in U.S. dollars. We also face the risk of reduced revenues in case of a depreciation of the Euro compared to the U.S. dollar, if we are awarded Euro denominated contracts based on price proposals that were provided when the Euro value was higher compared to the U.S. dollar. To the extent we derive our revenues or incur our expenses in currencies other than the U.S. dollar, we are subject to exchange rate fluctuations between the U.S. dollar and such other currencies. For example, we are sometimes negatively affected by exchange rate changes during the period from the date we submit a price proposal to the date of the date of contract award or until the date(s) of payment. Certain currency derivatives we use to hedge against exchange rate fluctuations may not fully protect against sharp exchange rate fluctuations, and in some cases we cannot adequately and cost-effectively hedge against all exchange rate fluctuations. See Item 11. Quantitative and Qualitative Disclosures About Market Risk – Exchange Rate Risk Management. In addition, our international operations expose us to the risks of price controls, restrictions on the conversion or repatriation of currencies, or even devaluations or hyperinflation in the case of currencies issued by countries with unstable economies. All these currency-related risks could have a material adverse effect on our business, reputation, financial condition, results of operations and cash flow.
We
incur expenses in U.S. Dollars and in NIS but our functional currency is the U.S. dollar. However, a significant portion of our headcount
related expenses, consisting principally of personnel expenses as well as R&D consulting services, leases and certain other operating
expenses, are denominated in NIS. This foreign currency exposure gives rise to market risk associated with exchange rate movements of
the U.S. dollar against the NIS. Furthermore, we anticipate that a material portion of our expenses will continue to be denominated in
NIS.
In
addition, increased international sales in the future may result in greater foreign currency denominated sales, increasing our foreign
currency risk. If we are not able tocannot successfully hedge against the risks associated with currency fluctuations, our financial condition
and results of operations could be adversely affected. which could adversely affect our financial condition and results of operations.
Our revenues depend on a continued level of government business. We plan to derive most of our revenues directly or indirectly from government agencies, mainly the US Department of War and the Israeli Ministry of Defense (IMOD), and other military or governmental authorities of various countries, pursuant to contracts awarded to us under defense and homeland security-related programs. Israel is also a recipient of significant U.S. security assistance under the Foreign Military Financing (FMF) program, pursuant to a 10-year (2019-2028) MOU with the U.S. The funding of government programs could be reduced, delayed or eliminated due to numerous factors, including geopolitical events and macro-economic conditions, as well as U.S. government shutdowns, as recently occurred, changes in policies or priorities of specific governments or security pacts among several governments. As a result, our current orders from governmental customers may be subject to modifications and terminations, and our future orders may be reduced, due to factors over which we have little or no control. In addition, if the U.S. security assistance to Israel is reduced or discontinued, we may receive fewer U.S. funded orders and FMF funds. In some cases, such developments, as well as other changes relating to specific markets or customers, could lead to our exit from certain business operations, which could also result in asset impairment. Following the outbreak of the war in October 2023, we have in some cases experienced a reluctance from certain countries to purchase from Israeli companies, while in other cases we have experienced an increase in demand for the products. A reduction or elimination of government spending under current contracts with us, changes in future government spending priorities and funding and a discontinuation of certain of our business operations could have a material adverse effect on our business, reputation, financial condition, results of operations and cash flow. Additionally, pursuant to a January 7, 2026 U.S. Executive Order, the U.S. Secretary of War could seek to limit our ability to pay cash dividends or make share repurchases if the Secretary of War determines that we have underperformed or lacked sufficient prioritization of, investment in or production speed in carrying out or performing under our U.S. government contracts.
In
order to execute our business plan, we will be dependent on Ora Elharar Soffer, our Chief Executive Officer and Director. The loss of
Ms. Elharar Soffer could have a material adverse effect uponon our business prospects. Moreover, our success continues to depend to a significant
extent on our ability to identify, attract, hire, train and retain qualified professional, creative, technical and managerial personnel.
Competition
for such personnel is intense, and there can be no assurance that we will be successful in identifying, attracting, hiring, training,
and retaining such personnel in the future. If we are unable to hire, assimilate and retain qualified personnel in the future, our business,
operating results, and financial condition could be materially adversely effected.affected. We may also depend on third party contractors and
other partners to assist with the execution of our business plan. There can be no assurance that we will be successful in either attracting
and retaining qualified personnel,personnel or creating arrangements with such third parties. The failure to succeed in these endeavors would
have a material adverse effect on our ability to consummate our business plans.
Failure
in the Company’s information technology systems, including by cybersecurity attacks or other data security incidents, could significantly
disrupt its operations.
Our
operations depend, in part, on the continued performance of our information technology systems. Our information technology systems are
potentially vulnerable to physical or electronic break-ins, computer viruses and similar disruptions. Failure of our information technology
systems could adversely affect our business, profitability, and financial condition. Although we have information technology security
systems, a successful cybersecurity attack or other data security incident could result in the misappropriation and/or loss of confidential
or personal information, create system interruptions, or deploy malicious software that attacks our systems. It is possible that we do not
notice a cybersecurity attack for some period. The occurrence of a cybersecurity attack or incident could result in business interruptions
from the disruption of the Company’s information technology systems, or negative publicity resulting in reputational damage with
its shareholders and other stakeholders and/or increased costs to prevent, respondresponding to or mitigatemitigating cybersecurity events. In addition,
the unauthorized dissemination of sensitive personal information or proprietary or confidential information could expose the Company
or other third parties to regulatory fines or penalties, litigation, and potential liability, or otherwise harm its business.
We
may grow through mergers or acquisitions, which strategy may not be successful or, if successful, may produce risks in successfully integrating
and managing the merged companies or acquisitionacquisitions and may dilute our stockholders.
Mergers
and acquisitions also frequently result in the recording of goodwill and other intangible assets, which are subject to potential impairments
in the future and that could harm our financial results. In addition, if we finance acquisitions by issuing convertible debt or equity
securities, our existing stockholders may be diluted, which could affect the market price of our common shares. As a result, if we fail
to properly evaluate mergers, acquisitions or investments, we may not achieve the anticipated benefits of any such merger or acquisition,
and we may incur costs inmore excess ofthan what we anticipate. The failure to successfully evaluate and execute mergers, acquisitions or investments
or otherwise adequately address these risks could materially harm our business, financial condition and results of operations.
Through our subsidiary Cannovation Center Israel, we developed the nutritional
product line containing natural and herbal formulas based on researched and science-based plants, herbal extracts, mushrooms and other
natural ingredients. The product lines are manufactured in Israel in iBOT Israel Botanicals Ltd, iBOT being a related party with which
we have manufacturing and strategic cooperation agreements, under a GMP-certified manufacturing facility approved by the Israeli Ministry
of Health. the products which may be subject to different regulations for manufacturing, depending on country and product. As these products
are designed to be ingested by humans, we face an inherent risk of exposure to product liability claims, regulatory action and litigation
if our products are alleged to have caused significant loss or injury. Previously unknown adverse reactions resulting from human consumption
of cannabis products alone or in combination with other medications or substances could occur. We may be subject to various product liability
claims, including, among others, that the products produced by us caused injury or illness, include inadequate instructions for use or
include inadequate warnings concerning possible side effects or interactions with other substances. A product liability claim or regulatory
action against us could result in increased costs, could adversely affect our reputation with our clients and consumers generally, and
could have a material adverse effect on the business, financial condition and operating results of the Company. There can be no assurances
that we will be able to obtain or maintain product liability insurance on acceptable terms or with adequate coverage against potential
liabilities. The inability to obtain sufficient insurance coverage on reasonable terms or to otherwise protect against potential product
liability claims could prevent or inhibit the commercialization of products.
As
the Company transitionshas transitioned into the defense UAV and
drone sector, it becomes subject to a complex and evolving set of local and international
regulations, licenses, and restrictions that
govern the development, integration, marketing, and export/import of unmanned aerial systems
(UAS) and related defense technologies.
Defense-related UAVs require a variety of approvals from governmental agencies, including — but not limited to — the Israeli Ministry of Defense (MOD), the Ministry of Economy, the Israeli Export Control Agency, the U.S. Department of Commerce (BIS), and the U.S. Department of State under ITAR (International Traffic in Arms Regulations). The failure to secure or maintain such authorizations could delay or prohibit the commercialization of our systems. We must interact with multiple U.S. government agencies, including the Defense Contract Audit Agency and the Defense Contract Management Agency, routinely audit government contractors. These agencies review the performance of companies under contracts, cost structure and compliance with applicable laws, regulations and standards, as well as the adequacy of and such companies’ compliance with their internal control systems and policies.
The drone industry is regulated in the United States by the FAA to ensure that drone related services meet safety and performance standards. The FAA prescribes standards and certification requirements for use of UAS for commercial and recreational purposes. The rule for operating UAS under 55 pounds in the U.S. national airspace is the FAA’s Small UAS Rule (14 CFR Part 107). On April 21, 2021, the FAA’s Operation of Unmanned Aircraft Systems Over People final rule (14 CFR Part 107 Subpart D) went into effect, allowing for routine drone operations over people under certain circumstances.
For any parts or “know-how” which may be exported from Israel, are subject to the Israeli Defense Export Control Agency within the Israeli Ministry of Defense, or DECA, regulation under the Defense Export Control Law, 5766-2007, or the Export Control Law and, collectively, Israeli Trade Control Laws, which impact our operations, for example by limiting our ability to sell, export, or otherwise transfer the products or technology, or to release controlled technology to non-Israeli companies.
Under the Export Control Law, an Israeli company may not conduct “defense marketing activity” without a defense marketing license from the Israeli Ministry of Defense and may be subject to a requirement to obtain a specific license from the Israeli Ministry of Defense for any export of defense related products and/or knowhow. The definition of defense marketing activity is broad and includes any marketing of “defense equipment,” “defense knowhow” or “defense services” outside of Israel, which includes “dual-use goods and technology,” (material and equipment intended in principle for civilian use and that can also be used for defensive purposes, such as certain of the products) that is specified in the list of Goods and Dual-Use Technology annexed to the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, if intended for defense use only, or is specified under Israeli legislation. “Dual-use goods and technology” will be subject to control by the Israeli Ministry of Economy if intended for civilian use only.
In addition, under the Export Control Law, the Israeli Ministry of Defense and DECA have various audit and supervision powers to ensure compliance with the Export Control Law, to which violations are subject to criminal and administrative penalties. We are also required to submit periodic reports to DECA, and to maintain and retain records as to the information and documents pertaining to defense export transactions conducted.
The failure to satisfy the requirements under the Israeli Trade Control Laws, including the failure or inability to obtain necessary licenses or qualify for license exceptions, could delay or prevent the development, production, export, import, and/or in-country transfer of products and technology.
Regulatory
and Licensing Barriers in the Defense Drone and UAV Sector
Internationally,
ourthe products and components may be subject to:
We are subject to risks associated with artificial intelligence (AI) technologies. When referring to AI, we generally mean a machine-based system with various levels of autonomy that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, and use machine and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action. We incorporate AI capabilities and generative AI capabilities, some of which we develop internally and some of which we obtain or license from third parties, into some of the products and solutions and in some of our development processes and business operations, and we expect to do so more in the future. Generative AI capabilities generally refer to our use of machine learning, deep learning, or other AI techniques to generate new outputs based on patterns and structures learned from training data, such as advanced data retrieval, code generation, natural language, images, videos, or recommendations. Such capabilities include, among others, large language models and vision language models, which are incorporated into certain of our internal enterprise processes, for example in the areas of supply chain management, engineering workflows, inventory oversight and project execution, and into certain of the products and solutions, for example in the areas of border protection, autonomous solutions, C4I systems, network centric information and operational systems and intelligence gathering systems. The rapid pace and complexity of generative AI development may require the investment of significant resources for us to remain competitive, and such investments may not produce successful outcomes or the returns that we expect. In addition, our competitors may incorporate generative AI into their development tools or products more quickly or more successfully than us, which could impair our ability to compete effectively. It is possible that generative AI will become a disruptive technology, causing a radical change in our industry. If we are unable to timely adapt to such change, we may fall behind our competitors. Generative AI is a rapidly developing technology, with a developing legal framework. Current and future AI-related regulations may impose certain obligations on us, and the costs of monitoring and responding to such regulations, as well as the consequences of non-compliance, could have an adverse effect on our operations or financial condition. Furthermore, our use of AI may expose us to additional liability, litigation, as well as increased cybersecurity risks, risks related to IP ownership, IP infringement, disclosure of personal identifiable information, loss of confidential information, faulty manufacturing, misuse of AI, limited explainability and traceability of AI, as well as other technological, operational, reputational, and regulatory risks that are hard to predict, particularly if the AI we adopt, or data it is based on, produces errors or AI bias, generates inaccurate, incomplete or misleading outputs, contains open source copyrighted material, infringes upon existing technology or otherwise does not function as intended. All of these risks could have a material adverse effect on our business, reputation, financial condition, results of operations and cash flow.
We are likely to compete with certain potential customers. The defense industry is dominated by a relatively small number of large prime contractors that have, in recent years, aggressively pursued vertical integration by acquiring or developing in-house capabilities that compete with our offerings in certain areas. This trend creates a ‘co-opetition’ dynamic where we must seek subcontracts in some cases from the same entities with whom we compete for larger programs. Decisions by these prime contractors to ‘insource’ requirements rather than utilize our specialized solutions or our failure to maintain good business relations with them, or further horizontal consolidation among them, could significantly reduce our addressable market and harm our financial results.
Part of our revenues are derived from competitively awarded contracts. Part of our revenues are derived from contracts awarded through competitive bidding processes, primarily with governmental customers. These processes are complex, costly and time consuming, and we may not be successful in winning new contracts or renewals on favorable terms, or at all. Competitive procurements sometimes require us to submit technical and pricing proposals before the completion of product design, requiring assumptions regarding performance, cost, schedule and supply chain availability that may later prove inaccurate. If our estimates are incorrect, our margins may be reduced and we may incur losses. In addition, use of tenders, as well as indefinite delivery, indefinite quantity and other multi-award contracts, may intensify competition, increase pricing pressure and require repeated competition for task or delivery orders. Moreover, even when we possess the necessary qualifications for a specific new contract, we may not secure the business due to the government’s approach of promoting a broad and varied group of contractors. We may also face bid protests from unsuccessful bidders, leading to added costs and possible contract changes and delays. If we are unable to consistently win competitively awarded contracts or replace expiring contracts, this could have a material adverse effect on our business, reputation, financial condition, results of operations and cash flow.
We depend on governmental security clearance and governmental approvals for international sales, procurement and acquisitions. Many of our contracts with governmental customers require us to maintain security clearances and employ staff with specific qualifications, experience, and clearance levels. If we or our employees fail to obtain or maintain the necessary clearances, we may be unable to secure new contracts, and current customers could end their contracts or choose not to renew them. Additionally, our international sales, as well as our ability to attract and retain highly skilled personnel and access or procure technology, software and hardware, depend largely on export authorizations and other approvals from the governments of Israel, the U.S. and other countries, the receipt, maintenance and renewal of which may be delayed or disrupted by government actions or inaction, including regulatory or policy changes or U.S. government shutdowns. Our suppliers are also subject to applicable authorizations and approvals. From time to time, we may be unable to obtain such approvals and approvals granted to us may expire or be revoked or new approval requirements may be implemented by governmental authorities. Since the outbreak of the “Swords of Iron” war, we have experienced increased delays and stringency in the provision of approvals by certain foreign governments to export certain materials and components to Israel, which can cause supply chain disruptions. If we, our customers or our suppliers fail to obtain or comply with governmental approvals, or if certain approvals previously obtained are revoked or expire and are not renewed for any reason, including due to changes in political conditions, increasing stringency of international export control requirements to Israel or to countries we operate in (such as the controls on the export of U.S. developed computer chips that power AI technologies), or imposition of sanctions, our ability to sell the products and services to overseas customers and our ability to obtain, develop or manufacture goods and services essential to our business could be interrupted, resulting in a material adverse effect on our business, reputation, financial condition, results of operations and cash flow.
We depend on a global supply chain for critical components, and disruptions could adversely affect our operations.
The products rely on the availability of key components, including semiconductors, sensors, communication modules, propulsion systems, and batteries. Supply chain disruptions may arise from geopolitical tensions, export restrictions, sanctions, supplier constraints, transportation delays, or global shortages of critical materials. Certain components may have limited or single-source suppliers, and replacement may not be readily available on commercially reasonable terms. Any disruption in our supply chain could delay production, increase costs, and impair our ability to fulfill customer obligations.
Our operations are subject to aviation regulatory requirements, and failure to obtain or maintain required approvals could limit our ability to deploy UAV systems. Our unmanned aerial systems are subject to aviation regulations in multiple jurisdictions, including requirements related to airworthiness certification, operational approvals, Beyond-Visual-Line-of-Sight (BVLOS) operations, and Remote Identification compliance. Regulatory authorities such as the FAA, EASA, and other national aviation bodies may delay, restrict, or deny approvals due to safety, security, or policy considerations. Changes in applicable laws or regulations, or increased scrutiny of autonomous systems, could impose additional requirements, limit operational capabilities, or delay commercialization. If we fail to obtain, maintain, or renew necessary regulatory approvals, our ability to operate and expand our business could be materially adversely affected.
RF Spectrum and communication Risks: UAV systems rely on access to regulated radio frequency spectrum, and limitations or disruptions could impair system performance. Our platforms depend on radio frequency communications for command-and-control, data transmission, and payload operations. These communications are subject to regulation and licensing requirements in various jurisdictions. Interference, spectrum congestion, changes in regulatory policies, or failure to obtain or maintain required licenses could degrade system performance, reduce operational range, or disrupt missions. Any such limitations could adversely affect our ability to deliver reliable solutions to customers and may impact our business and results of operations.
We are subject to government procurement and anti-bribery and corruption rules and regulations. We are required to comply with government contracting rules and regulations relating to, among other things, cost accounting, sales of various types of munitions, anti-bribery and procurement integrity, which increase our performance and compliance costs. Our supply chain is also required to comply with many of these regulations. In addition, certain non-governmental entities with which we do business adopt their own anti-bribery and corruption rules and guidelines that may be applicable to us in connection with our engagements with them. These include the NATO Support and Procurement Agency (“NSPA”), NATO’s centralized procurement agency, rather than any individual NATO member state. Additionally various laws and regulations, including certain provisions of the Israel Penal Code, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and corresponding legislation in other countries, prohibit providing personal benefits or bribes to government officials in connection with the governmental procurement process. Israeli defense exporters, such as SkyTech Orion Global Corp., are required to maintain and follow an anti-bribery/corruption compliance program.
The
Company operates in multiple
regulated industries, including wellness and plant-based consumer products, as well as the defense drone and UAV sector through our SkyTech Orion Global Corp. and SkyTech
Orion division.Ltd. entities. Possibly in the future we will be active in additional territories. Each of theseour sectorstarget markets is exposed to different
product safety risks and potential recall scenarios.
For our wellness and natural product
lines, product recalls may result from contamination, adverse reactions, packaging defects, or inaccurate labelling. Such recalls may
result in regulatory scrutiny, legal claims, loss of sales, reputational damage, and unplanned operational costs.
As
we expand into the defense
UAV market, additional recall and liability risks arise in relation to the functionality, reliability, and
safety of our drone platforms
and subsystems. Defense clients —clients, including governmental entities —entities, require strict compliance
with safety, airworthiness,
and performance standards. Any failure in flight control, communications, payload reliability, or mission-critical
performance may trigger
operational halts, recalls, or even contract termination.
Malfunctions in, or undetected problems with the products or in our manufacturing processes, or misuse of the products could impair our financial results and give rise to potential product liability, breach of contract or other claims. We offer a wide portfolio of products and solutions, which is routinely being updated and adjusted. From time to time, we encounter unintentional defects or malfunctions in the products and solutions, or deficiencies in the manufacturing processes thereof. In addition, we often rely on subcontractors to design and manufacture some of the components that are embedded in our systems. In the event of defects in the design, production or testing of our or our subcontractors’ products and systems, including the products and solutions sold for safety purposes in the homeland security and commercial aviation areas, or if the cyber protection measures included in the products and solutions do not operate as intended, we could face substantial repair, replacement, or service costs, delays, potential liability and damage to our reputation. Similar issues could arise if we fail to timely implement and maintain adequate manufacturing processes and safeguards or if a defective part or deficient solution affects our development, production and operation infrastructures. In addition, we must comply with regulations and practices to prevent the use of parts and components that are considered as counterfeit or that violate third-party IP rights. Our efforts to implement appropriate design, manufacturing and testing processes for the products or systems may not be sufficient to prevent such occurrences. We could also be subject to claims if the products are intentionally or unintentionally misused. We may not be able to obtain product liability or other insurance to fully cover such risks in a cost-effective manner, which could have a material adverse effect on our business, reputation, financial condition, results of operations and cash flow.
UAV systems involve complex technologies and may fail to perform as expected in operational environments.
The products incorporate advanced autonomous flight systems, sensors, communication technologies, and software, which may contain defects, experience malfunctions, or fail under certain operating conditions, including harsh environments, electromagnetic interference, or loss of connectivity.
Failures in flight performance, navigation, or system integration could result in accidents, operational disruptions, or mission failure.
Given the mission-critical nature of many of our applications, such failures could lead to significant liability, reputational damage, regulatory scrutiny, and loss of customer confidence.
Environmental and weather conditions may limit the performance and deployment of UAV systems.
UAV systems may be affected by environmental conditions such as extreme temperatures, wind, precipitation, and electromagnetic interference.
Such conditions may limit operational availability, reduce system performance, or require suspension of missions.
If our systems do not perform reliably across diverse environmental conditions, customer satisfaction and adoption may be adversely affected.
The
Company may be subject to various potential conflicts of interest because of the fact that some of its officers and directors may be
engaged in a range
of business activities. In addition, the Company’s executive officers and directors may devote time to their
outside business interests,
so long as such activities do not materially or adversely interfere with their duties to the Company. In
some cases, the Company’s
executive officers and directors may have fiduciary obligations associated with these business interests
that interfere with their ability
to devote time to the Company’s business and affairs and that could adversely affect the Company’s
operations. These business
interests could require significant time and attention of the Company’s executive officers and directors.
In
addition, the Company may also
become involved in other transactions which conflict with the interests of certain directors and the officers
who may from time-to-time
deal with persons,people, firms, institutions or companies with which the Company may be dealing, or which may be
seeking investments similar
to those desired by it. The interests of these personspeople could conflict with those of the Company. In addition,
from time to time, these persons
people may be competing with the Company for available investment opportunities. Conflicts of interest, if
any, will be subject to the
procedures and remedies provided under applicable laws. In particular, in the event thatif such a conflict
of interest arises at a meeting of the Company’s
directors, a director who has such a conflict will abstain from voting for or
against the approval of such participation or such terms.
In accordance with applicable laws, the directors of the Company are required
to act honestly, in good faith and in the best interests
of the Company.
A significant portion of our revenue may depend on a limited number of customers.
Management's Discussion & Analysis (MD&A)
Not available: the section could not be located automatically in one of the filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
What changed in the latest 10-Q
Risk Factors
We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item. However, you should carefully consider the risk factors included in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on April 15th, 2026, in addition to other information contained in our reports and in this quarterly report in evaluating the Company and its business before purchasing shares of our Common Stock.
None
Exhibit Index:
* Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SKYTECH ORION GLOBAL CORP
(Registrant)
Removed heading “Risks Relating to Our Israel Operations”
Removed heading “Our company is headquartered in Israel and, therefore, our results may be adversely affected by economic restrictions imposed on, and political and current military events.”
Largest changes
“Our company is headquartered in Israel and, therefore, our results may be adversely affected by economic restrictions imposed on, and political and current military events.”see in full comparison
“On October 7, 2023, a large-scale war broke out between Israel and Hamas following a surprise terrorist attack on southern Israel. This marked the beginning of a period of heightened geopolitical and economic instability in the region. As of the time of this filing, the situation remains volatile, with increasing uncertainty regarding the duration, scope, and broader implications of the conflict. …”see in full comparison
see in full comparisonAnWeinvestmentare a smaller reporting company as defined intheRuleCompany’s Common Stock involves a number12b-2 ofverythesignificantExchangerisks.ActYouand are not required to provide the information required under this item. However, you should carefully consider the risk factors included in the “Risk Factors” section of our Annual Report on Form 10-K for the yearendingended December 31,2024,2025, as filed with the SEC onAugustApril31,15th,2025,2026, in addition to other information contained in our reports and in this quarterly report in evaluating the Company and its business before purchasing shares of our Common Stock.There have been no material changes to our risk factors contained in our Annual Report on Form 10-K for the year ending December 31, 2024.
“The Company’s executive management and subsidiaries are based in Israel, where a significant portion of its strategic, development, and operational activities take place.”see in full comparison
“Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.”see in full comparison
Full comparison: every changed paragraph (11)
AnWe
investmentare a smaller reporting company as defined in theRule Company’s Common Stock involves a number12b-2 of verythe significantExchange risks.Act Youand are not required to provide the information required
under this item. However, you should carefully consider the risk factors
included in the “Risk Factors” section of our Annual
Report on Form 10-K for the year endingended December 31, 2024,2025, as filed with
the SEC on AugustApril 31,15th, 2025,2026, in addition to other
information contained in our reports and in this quarterly report in evaluating the Company
and its business before purchasing shares
of our Common Stock. There have been no material changes to our risk factors contained in our
Annual Report on Form 10-K for the year ending December 31, 2024.
None
Exhibit Index:
* Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SKYTECH ORION GLOBAL CORP (Registrant)
Risks Relating to Our Israel Operations
Our company is headquartered
in Israel and, therefore, our results may be adversely affected by economic restrictions imposed on, and political and current military
events.
The Company’s executive
management and subsidiaries are based in Israel, where a significant portion of its strategic, development, and operational activities
take place.
On October 7, 2023, a large-scale war broke out between Israel and Hamas
following a surprise terrorist attack on southern Israel. This marked the beginning of a period of heightened geopolitical and economic
instability in the region. As of the time of this filing, the situation remains volatile, with increasing uncertainty regarding the duration,
scope, and broader implications of the conflict. Although the full impact of the war is not yet fully known, we recognize the potential
for significant long-term consequences for business activities in or related to Israel, including potential disruptions to supply chains,
operational continuity, or access to resources. The Company is closely monitoring the evolving regional situation.
Management's Discussion & Analysis (MD&A)
New heading “Management Discussion & Analysis of Financial Condition & Results of Operations”
New heading “Strategic Focus - Small Drones and Large-Scale Production”
New heading “Addressing Market Challenges in Supplying Small Drone Systems”
New heading “About SkyTech Replicator™ Drone Platforms”
New heading “Modular Architecture and Operational Flexibility”
New heading “The Core Unit: “The System’s Brain””
New heading “Modularity and “The Brain’s” Connectivity”
New heading “SkyTech Replicator™ Kit Offering Multi-Mission Capability for the Soldier in the Field”
New heading “Intellectual Property Strategy & Technological Foundation”
New heading “Provisional Patent Application No. 63/873,673”
New heading “Provisional Patent Application No. 63/918,560”
New heading “Provisional Patent Application No. 63/918,569”
New heading “Patent Application No. IL 323592”
New heading “Additional Considerations”
New heading “SkyTech Replicator Platform Designed for Manufacturing”
New heading “Replication Manufacturing Method™ for Scalable Manufacturing and Global Industrial Infrastructure”
New heading “Production Plan and Growth Targets”
New heading “SkyTech Center Israel - The National and Industrial Flagship for Unmanned Systems, Drones and Defense Solutions”
New heading “National Prioritization and Yerucham as a Strategic Location”
New heading “Company’s Dual-Nation Presence and Competitive Advantage”
New heading “Regulatory Compliance for SkyTech Center Israel”
New heading “Employees/Consultants”
Removed heading “Management Update and Business Review”
Removed heading “Executive Summary – Management Overview”
Removed heading “Strategic Shift – Entry into Defense & UMS (Unmanned Systems) and Drone Industry”
Removed heading “Strategic Positioning & Global Expansion”
Removed heading “SkyTech’s Breakthrough Multi-Domain Modular System for Unmanned Systems”
Removed heading “Replication Manufacturing Method – Innovative Manufacturing and Industrial Scalability”
Removed heading “Operations & Regulatory Compliance”
Removed heading “Israel and Yeruham – Strategic Innovation Hub for UAV and Drone Technologies”
Removed heading “National Prioritization and Yeruham as a Strategic Location”
Removed heading “Government Support and National Strategy”
Removed heading “Strategic Alignment: U.S.–Based Parent Company and Israel–Based Subsidiaries”
Removed heading “Market Projections1:”
Removed heading “Market of Small Drones”
Removed heading “Overview of the Company’s Past Operations – Wellness and Plant-Based Pharma”
Removed heading “Intellectual Property and Patents”
Removed heading “Significant Events”
Removed heading “Comparison of the Nine Months Ending September 30, 2025, compared to the Nine Months Ending September 30, 2024”
Largest changes
“In Israel, the production and commercialization of UAV and drone systems—especially for military or security-related use—require compliance with regulations issued by the Ministry of Defense (MOD), the Directorate of Security for the Defense Establishment (MALMAB), and, where relevant, export control regulations governed by the Israeli Export Control Agency. Manufacturing processes may also require approvals or licenses related to dual-use technologies or restricted components.”see in full comparison
“This dual-national structure enables the Company to integrate Israeli technological innovation with U.S.-based commercialization and defense infrastructure, creating a scalable and regulation-compliant framework that supports growth and sales in Israel, the United States, and worldwide across the UMS, drone, and broader defense sectors. It further provides direct access to defense procurement channels (DoD, FMS, G2G), eligibility for U.S. …”see in full comparison
“SkyTech Center Israel - The National and Industrial Flagship for Unmanned Systems, Drones and Defense Solutions”see in full comparison
“Israel and Yeruham – Strategic Innovation Hub for UAV and Drone Technologies”see in full comparison
“Strategic Alignment: U.S.–Based Parent Company and Israel–Based Subsidiaries”see in full comparison
Full comparison: every changed paragraph (281)
This
Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform
Reform Act of 1995 and other Federal securities laws, and is subject to the safe-harbor created by such Act and laws. In some cases,
you can
identify forward-looking statements by terminology such as “may,” “will,” “should,”
“expect,”
“intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,”
“potential” or “continue,” the negative of such terms, or
other variations thereon or comparable terminology.
The statements herein and their implications are merely predictions and
therefore inherently subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause actual results,
performance levels of activity, or our achievements, or industry results
to be materially different from those contemplated by the
forward-looking statements. Except as required by law, we undertake no obligation
to release publicly the result of any revision to
these forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the
occurrence of unanticipated events. Further information on potential factors that could affect
our business is described under the
heading “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the
fiscal year endingended December 31,
2024 2025 as filed with the Securities and Exchange Commission, or the SEC, on AugustApril 31,15th, 2025. 2026.
Readers are also urged to carefully
review and consider the various disclosures we have made in that report. As used in this quarterly
report, the terms
“we”, “us”, “our”, the “Company” and “Citrine” mean Citrine Global,
Corp. (DBA SkyTechSkytech Orion Global Corp.)” “we,” “us,” and “our” refer to Skytech Orion
Global Corp., renamed SkyTechfrom Orion“Citrine Global Corp.” in JuneOctober 2025 in Delaware and our consolidated
subsidiaries, including
our wholly-owned subsidiary, CTGL-Citrine Global Israel Ltd. and to our partiallyMajority owned subsidiary SkyTech
Orion Ltd. (Previouslyrenamed namedfrom Cannovation Center Israel Ltd. and renamed SkyTech Orion Ltd. in May 2025). unlessFor the avoidance
otherwiseof indicateddoubt, throughout this report references to “SkyTech Orion Global Corp.” or “SkyTech Orion Global Corp.” (also
referred to as otherwise“SkyTech requiredGlobal” byor “SkyTech”) mean the context.U.S. public company, while references to “,”
“SkyTech Orion Ltd.” or “SkyTech Israel” mean the Company’s Israeli subsidiary. The use of these names reflects
historical name changes and customary commercial usage, and all should be interpreted as referring to the Company and its consolidated
group, as applicable.
This
summary summary
highlights selected information contained elsewhere in this report and does not contain all the information that you should consider
before making your investment decision. Before investing in our common stock, you should carefully read this entire report, including
including the information set forth under the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition
and Results of Operations” sections of this report and our consolidated financial statements and the
accompanying notes included
in this report. Except as otherwise indicated herein or as the context otherwise requires, references in
this report to “CitrineSkytech
Orion Global,”Global the “Company,Corp.” “we,” “us,” and “our”
refer to Citrine Global, Corp. (DBA SkyTechSkytech Orion Global Corp.)Corp., renamed SkyTech Orionfrom
“Citrine Global CorpCorp.” in JuneOctober 2025 in Delaware and our consolidated
subsidiaries, including our wholly-owned subsidiary,
CTGL-Citrine Global Israel Ltd. and to our partiallyMajority owned subsidiary
SkyTech Orion Ltd. (Previouslyrenamed namedfrom Cannovation Center Israel Ltd.
and renamed SkyTech Orion Ltd. in May 2025). For the avoidance
of doubt, throughout this report
references to “Citrine Global, Corp.” or “SkyTech Orion Global Corp.” (also referred to as “SkyTech
Global”
or “SkyTech”) mean the U.S. public company, while references to “Cannovation Center Israel
Ltd.,” “SkyTech Orion Ltd.” or “SkyTech Israel”
mean the Company’s Israeli subsidiary. The use
of these names reflects historical name changes and customary commercial usage, and
all should be interpreted as referring to the
Company and its consolidated group, as applicable.
Management Discussion & Analysis of Financial Condition & Results of Operations
Management Update and Business Review
Citrine
Global Corp. (DBA SkyTech Orion Global Corp.) reports that the Company has formally changed its corporate name in the State of Delaware
to SkyTech Orion Global Corp. and is currently completing the corresponding name-change procedures with FINRA.
Executive
Summary – Management Overview
As
previously described, during 2024–2025 we emerged from a challenging period for the Company, for Israel, and for the global environment
in which we operate, following the events of October 7, 2023 and the resulting war, which significantly affected the Israeli economy
and the activities of our subsidiaries CTGL Citrine Global Israel Ltd. (wholly owned) and SkyTech Orion Ltd. (69.5% owned). During this
period, we conducted a comprehensive strategic review of all our assets, teams, and capabilities across the U.S. and Israel.
Based
on this assessment, we made a strategic decision not merely to continue our operations, but to transform the Company’s vision,
structure, and activities to align with the developing global defense, unmanned systems, and advanced drone markets. This process resulted
in the Company’s transition from activities in the health and wellness sector to one of the fastest-growing fields worldwide: unmanned
systems and defense-grade drone technologies, a market valued at approximately $42 billion in 2025 and expected to exceed $186 billion
by 2034.
We
developed the SkyTech Replicator™, a modular, multi-mission drone platform based on a single Core Unit and our proprietary Click
& Fly™ mechanism, enabling rapid mission reconfiguration and real-time adaptation for defense and dual-use applications. In
parallel, we filed multiple patent applications in the United States and Israel relating to our Multi-Domain Robotics Framework and our
modular systems for air, land, and sea operations.
To
support industrial scalability, we created the Replication Manufacturing Method, enabling rapid replication of production lines using
advanced manufacturing and 3D-printing technologies, in collaboration with Stratasys, a global leader in additive manufacturing. Furthermore,
our Israeli subsidiary, SkyTech Orion Ltd., was recognized by the Israeli government and awarded a multi-million-dollar grant to establish
SkyTech Center Israel, a national innovation and production center for drones, unmanned systems, and defense technologies in the city
of Yeruham.
We
operate through a dual-nation structure, integrating U.S. and Israeli capabilities in innovation, engineering, manufacturing, and regulatory
alignment. This structure provides strategic advantages, including access to U.S. and Israeli defense channels, eligibility for government
programs, and full NDAA-compliant supply-chain capabilities. As part of our expansion, we are establishing assembly centers in both Israel
and the United States to begin production of thousands of units in early 2026.
During
the quarter, following the publication of the previous financial statements, we completed a highly significant step for the Company by
graduating from the Pink Sheets to the OTCQB market, a move that contributed materially to restoring public and investor confidence in
the Company and strengthening the stability of our stock.
We
are currently leading a strategic capital raise to support international expansion, broaden our production capabilities, and prepare
for an uplist to the NASDAQ stock exchange. Our commitment remains focused on innovation, disciplined financial management, operational
efficiency, and long-term value creation.
SkyTech Orion Ltd.
Description of our Business:
SkyTech Orion Global Corp. (the “Company”) is a U.S.-based corporation, with subsidiaries in Israel, focused on building end-to-end drone solutions from innovative modular drone platforms to large-scale production.
The Company is building a multi-layered industrial and modular infrastructure focused on the drone and defense sectors, combining proprietary in-house development, OEM capabilities, strategic partnerships, and targeted mergers and acquisitions (M&A). This structure is designed to address the growing needs of the drone industry across the United States, Israel, allied markets, and globally, with the objective of enabling a transition to large-scale serial production.
The core of the Company’s technology is a proprietary modular architectural approach based on the separation between intelligent core systems and the drone’s airframe, power systems, sensors, communications, and payload components.
This approach enables the use of a standardized core unit, the Smart Core Unit™, which integrates with a wide range of airframes, propulsion systems, sensors, and payloads, thereby enabling high flexibility, shortened development cycles, and efficient scalability across multiple platforms and use cases.
The Company develops advanced drone technologies and platforms, led by its flagship platform, the SkyTech Replicator™ Modular Drone Platform. This platform is based on flexible modular architecture, enabling the creation of a wide range of configurations, models, and mission profiles within a unified system, with rapid adaptation to evolving operational requirements. This platform redefines how small drone systems are designed, produced, and deployed; instead of building separate systems for each mission, the Company focuses on a platform-based architecture that enables maximum versatility.
The Company’s solutions are designed as Dual-Use modular systems, based on a unified technological infrastructure that enables adaptation to a wide range of applications, while maintaining high standards of reliability, security, and regulatory compliance. The Company’s strategy is built around a Western-aligned, secure, and regulation-compliant supply chain, with full alignment to NDAA requirements, in order to support the production of modular, reliable, and scalable drone systems that are independent of restricted or foreign-controlled components.
Strategic Focus - Small Drones and Large-Scale Production
The Company is focused on the development and manufacturing of modular small drones, aligned with the new operational reality in the defense market, characterized by a shift toward large-scale deployment of unmanned systems, at relatively low cost, and with the ability for rapid and wide deployment.
This trend reflects a fundamental shift in procurement and warfare doctrines, particularly in the United States, where there is increasing and immediate demand for modular small drone systems that can be deployed in massive quantities, ranging from hundreds of thousands to millions of units per year, as an alternative or complement to expensive and limited systems.
Accordingly, the Company is developing modular platforms designed to support:
Addressing Market Challenges in Supplying Small Drone Systems
Small drones have become essential assets in modern and future battlefields. Recent conflicts, including the war in Ukraine and Israel, have demonstrated a rapid and substantial increase in demand for small tactical drone systems.
The United States has formally recognized small drone systems as a strategic priority. The U.S. Department of Defense has emphasized the need for scalable deployment of small tactical drones, with public statements indicating a requirement to acquire at least one million drones by 2026-2028 with the potential to scale from hundreds of thousands to several million drones annually thereafter highlighting the accelerating demand for unmanned aerial systems across defense sectors, driven by evolving battlefield needs and large-scale modernization efforts1.
At the same time, regulatory developments are significantly reshaping the market. U.S. federal directives, including the National Defense Authorization Act (NDAA), restrict or prohibit the use of drone systems and components originating from non-approved countries, particularly China. These restrictions include widely used commercial platforms, such as DJI, as well as critical components across the drone supply chain.
As a result, a structural gap has emerged between demand and supply:
In this environment, small drones are no longer single-purpose systems, but multi-mission tools used across intelligence, surveillance and reconnaissance (ISR), tactical operations, one-way (loitering) missions, logistics, and real-time battlefield support.
This combination of operational demand, regulatory constraints, and supply limitations is creating a clear and immediate need for trusted, NDAA-compliant, and scalable drone solutions, supported by secure Western supply chains and industrial-scale production capabilities.
The Company’s proprietary modular technology is designed to meet the rapidly growing demand in the U.S. and global markets for trusted, secure, and NDAA-compliant drone systems, aligning the Company with the expansion of U.S. and allied industrial capacity.
The Company’s vision is to establish and lead the next generation of modular small drone solutions and building large-scale industrial manufacturing capabilities that will support the growing demand for the small drones and unmanned systems.
1 Reuters, Exclusive: US Army to buy 1 million drones, in major acquisition ramp-up, By Phil Stewart and Idrees Ali November 7, 2025
About SkyTech Replicator™ Drone Platforms
The Company has developed SkyTech Replicator™, modular drone platforms based on Western components and fully aligned with NDAA requirements, designed to support a wide range of missions alongside scalable and efficient production of small drone systems.
SkyTech Replicator™ is built around a unified drone platform architecture that enables multiple drone configurations, payloads, sizes, and mission profiles within a consistent system. This approach supports the development of a full family of drone systems while maintaining standardization across core components, manufacturing processes, and operational deployment.
At the center of the platform architecture is the SkyTech Replicator™ Core, a compact control and electronics unit that serves as the operational “brain” of the drone.
Modular Architecture and Operational Flexibility
The Core Unit: “The System’s Brain”
The Core Unit serves as the control system and electronics hub that unifies the entire system power management, communications, and video transmission within a single, unified unit.
The unit is designed as a scalable platform that allows for the connection of various components and add-ons based on mission requirements.
Modularity and “The Brain’s” Connectivity
The platform modularity enables to create different product families allowing for the quick production of numerous drone types for various missions and applications based on the same “Brain” unit.
The Core is designed to connect seamlessly with a wide range of drone configurations, supporting:
Manufacturing Capabilities and Compliance (Industrial Scale) - The SkyTech Replicator™ Drone Platforms is built for true industrial scale while ensuring supply chain resilience and the use of Western components.
This architecture enables the Company to design, produce, and deploy multiple drone systems within a unified platform.
The SkyTech Replicator™ Drone Platforms support a wide range of missions, including:
SkyTech Replicator™ Kit Offering Multi-Mission Capability for the Soldier in the Field
The SkyTech Replicator™ Kit offers soldiers a complete multi-mission kit in a compact bag that contains a core Unit, light arms, heavy arms, different batteries, and payload housings. This is a Click & Fly concept where in the battlefield the soldier can swap arms and payloads in seconds with no tools needed and get four drones for different missions, from ISR drones to loitering munition drones.
The SkyTech Replicator™ platform combines modular architecture, a unified core system, and manufacturing-oriented design to enable the development and production of multiple drone configurations within a single framework.
This approach supports:
This positions SkyTech Replicator™ as a foundation for scalable and adaptable drone systems across defense and dual-use markets providing a very much needed solution for a real problem of industrial scalability in the field of drones and specifically small tactical drones.
Intellectual Property Strategy & Technological Foundation
The Company’s intellectual property portfolio consists of patent applications and other proprietary rights intended to protect key aspects of its modular, cross-domain unmanned systems technology.
The Company’s patent filings are directed generally to system architecture, modular mobility components, and unified electronic interfaces enabling interoperability across multiple operational domains.
The Company relies on a combination of patent protection, trade secrets, know-how, and contractual restrictions to establish and protect its proprietary rights. The following summarizes certain of the Company’s material patent applications.
The descriptions below are qualified in their entirety by reference to the full applications as filed. Specific claims, technical specifications, and implementation details have been omitted for confidentiality purposes.
The Company has filed multiple patent applications covering its Multi-Domain Robotics Framework and modular systems built around the SkyTech Replicator platform under inventor Ora Elharar Soffer.
SKTG insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding SKTG (13F)
None of the 59 investors we track reported a position in their latest 13F.