SkyTech Orion (OTC: CTGL) details cash strain and drone growth plan
SkyTech Orion Global Corp. reported no revenue for the quarter ended March 31, 2026 and a net loss of $260,000, similar to the prior year’s loss. Operating expenses were driven by $101,000 in research and development and $180,000 in marketing, general and administrative costs.
The balance sheet remains highly leveraged, with total assets of $1.212 million against liabilities of $5.739 million, resulting in a stockholders’ deficit of $4.527 million. Cash stood at only $3,000 and the working capital deficiency was $4.864 million, though management cites access to an Israeli credit facility of NIS 3,000,000 (about $857,000) and other loans extended to September 30, 2027.
The company is repositioning around modular defense and drone technology, led by its SkyTech Replicator™ platform and Replication Manufacturing Method™ for large-scale small drone production. Its Israeli subsidiary was awarded a government grant of NIS 12.5 million (about $4 million) to build the SkyTech Center Israel on 125,000 sq. ft. of company-owned industrial land, supporting future manufacturing and R&D capacity.
Positive
- None.
Negative
- Severe liquidity and capital deficit: Cash was only $3,000 at March 31, 2026, with a working capital deficiency of $4.864 million and a stockholders’ deficit of $4.527 million, while the company remains pre-revenue and continues to incur quarterly net losses.
Key Figures
Key Terms
working capital deficiency financial
Credit Facility financial
NDAA regulatory
Replication Manufacturing Method™ technical
stockholders’ deficit financial
Emerging growth company regulatory
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SKYTECH ORION GLOBAL CORP.
Form 10-Q
March 31, 2026
| Page | ||
| PART I — FINANCIAL INFORMATION | ||
| Item 1 – Unaudited Condensed Consolidated Financial Statements | 3 | |
| Condensed Consolidated Balance Sheets – March 31, 2026 (unaudited) and December 31, 2025 | 5 | |
| Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 (unaudited) | 6 | |
| Condensed Consolidated Statement of Changes in Stockholders’ Deficit for the three months ended March 31, 2026 and 2025 (unaudited) | 7 | |
| Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited) | 8 | |
| Notes to Unaudited Condensed Consolidated Financial Statements | 9 | |
| Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 | |
| Item 3 – Quantitative and Qualitative Disclosures About Market Risk | 26 | |
| Item 4 – Controls and Procedures | 26 | |
| PART II — OTHER INFORMATION | ||
| Item 1 – Legal Proceedings | 27 | |
| Item 1A – Risk Factors | 27 | |
| Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds | 27 | |
| Item 3 – Defaults upon Senior Securities | 27 | |
| Item 4 – Mine Safety Disclosures | 27 | |
| Item 5 – Other Information | 27 | |
| Item 6 – Exhibits | 28 | |
| Exhibit Index | 28 | |
| SIGNATURES | 29 |
| 2 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2026
| 3 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2026
U.S. DOLLARS IN THOUSANDS
TABLE OF CONTENTS
| Page | |
| CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: | |
| Condensed consolidated balance sheets as of March 31, 2026, and December 31, 2025 (unaudited) | 5 |
| Condensed consolidated statements of operations and comprehensive loss for the three-months periods ended March 31, 2026 and 2025 (unaudited) | 6 |
| Condensed consolidated statements of stockholders’ deficit for the three-months periods ended March 31, 2026 and 2025 (unaudited) | 7 |
| Condensed consolidated statements of cash flows for the three-months periods ended March 31, 2026 and 2025 (unaudited) | 8 |
| Notes to unaudited condensed consolidated financial statements | 9 |
| 4 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(U.S. dollars in thousands, except share and per share data)
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | ||||||||
| Prepaid expenses | ||||||||
| Other current assets – related party | ||||||||
| Other current assets | ||||||||
| Total Current assets | ||||||||
| Non-current assets | ||||||||
| Investments valued under the measurement alternative | ||||||||
| Property and equipment, net | ||||||||
| Total non-current assets | ||||||||
| Total assets | ||||||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities | ||||||||
| Short term loans | ||||||||
| Accounts payable | ||||||||
| Accounts payable – related parties | ||||||||
| Accounts payable | ||||||||
| Accrued compensation – related parties | ||||||||
| Other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Non-current liability | ||||||||
| Related parties | ||||||||
| Total liabilities | ||||||||
| Stockholders’ Deficit | ||||||||
| Common stock, par value $ | ||||||||
| Additional paid-in capital | ||||||||
| Stock to be issued | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income | ||||||||
| Total stockholders’ deficit | ( | ) | ( | ) | ||||
| Total liabilities and stockholders’ deficit | ||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
| 5 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(U.S. dollars in thousands, except share and per share data)
| 2025 | 2024 | |||||||
| Three months ended | ||||||||
| March 31 | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Research and development expenses– related parties | ( | ) | ( | ) | ||||
| Marketing, general and administrative expenses- related parties | ( | ) | ( | ) | ||||
| Marketing, general and administrative expenses | ( | ) | ( | ) | ||||
| Operating loss | ( | ) | ( | ) | ||||
| Financing income (expenses), net: | ||||||||
| Other financing income (expenses), net | ( | ) | ||||||
| Financing income (expenses), net | ( | ) | ||||||
| Net loss attributable to common stockholders | ( | ) | ( | ) | ||||
| Loss per common stock (basic and diluted) | ( | ) | ( | ) | ||||
| Basic weighted average number of shares of common stock outstanding | ||||||||
| Comprehensive loss: | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Other comprehensive income (loss) attributable to foreign currency translation | ( | ) | ||||||
| Comprehensive loss | ( | ) | ( | ) | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
| 6 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
(U.S. dollars in thousands, except share and per share data)
| Stock | Amount | capital | issued | deficit | income | deficit | ||||||||||||||||||||||
| Common stock | Additional paid-in | Stock to be | Accumulated | Accumulated other comprehensive | Total stockholders’ | |||||||||||||||||||||||
| Stock | Amount | capital | issued | deficit | income | deficit | ||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||
| CHANGES DURING THE PERIOD OF THREE MONTHS ENDED MARCH 31, 2026: | ||||||||||||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| BALANCE AT MARCH 31, 2026 (unaudited) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Common stock | Additional paid-in | Stock to be | Accumulated | Accumulated other comprehensive | Total stockholders’ | |||||||||||||||||||||||
| Stock | Amount | capital | issued | deficit | income | deficit | ||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2024 | ( | ) | ( | ) | ||||||||||||||||||||||||
| BALANCE | ( | ) | ( | ) | ||||||||||||||||||||||||
| CHANGES DURING THE PERIOD OF THREE MONTHS ENDED MARCH 31, 2025: | ||||||||||||||||||||||||||||
| Issuance of shares under share purchase agreement | - | - | - | - | - | |||||||||||||||||||||||
| Share based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | |||||||||||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| BALANCE AT MARCH 31, 2025 (unaudited) | ( | ) | ( | ) | ||||||||||||||||||||||||
| BALANCE | ( | ) | ( | ) | ||||||||||||||||||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
| 7 |
SKYTECH ORION GLOBAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except share and per share data)
| 2026 | 2025 | |||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Finance expenses, net | - | |||||||
| Share based payment | - | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses and other current assets – related party | - | |||||||
| Prepaid expenses and other current assets | - | |||||||
| Accounts payable and accrued expenses – related parties | ||||||||
| Accounts payable and accrued expenses | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Short term loan ,net | - | |||||||
| Receipt on accounts of shares | - | |||||||
| Proceeds (repayments) under credit facility | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rates on cash and cash equivalents | -(*) | -(*) | ||||||
| Net decrease in cash and cash equivalents | ( | ) | ||||||
| CASH, CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||
| CASH, CASH EQUIVALENTS AT END OF PERIOD | ||||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Non-cash transactions: | ||||||||
| Loan issuance costs | ||||||||
| Receipt on accounts of shares against other current liabilities | - | |||||||
| * |
The accompanying notes are an integral part of the condensed consolidated financial statements.
| 8 |
SKYTECH ORION GLOBAL CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE 1 - GENERAL
SkyTech Orion Global, Corp. (previously named “Citrine Global”) or the “Company” was incorporated under the laws of the State of Delaware on May 26, 2010. The Company’s common stock is traded in the United States on the OTC market under the ticker symbol “CTGL.” On June 26, 2025, Citrine Global Corp. changed its name to SkyTech Orion Global Corp. in Delaware, reflecting its strategic focus on UAV and drone solutions.
On June 3, 2020 the Company established a wholly owned new Israeli subsidiary: CTGL – Citrine Global Israel Ltd, (the “Israeli Subsidiary”).
On August 20, 2020, the Israeli Subsidiary CTGL – Citrine Global Israel Ltd., Beezhome Technologies Ltd., a company owned and controlled by the Company’s Chief Executive Officer and Golden Holdings Neto Ltd., a company in which Ilan Ben-Ishay, a former director of the Company, holds shares, incorporated SkyTech Orion Ltd. (Previously named Cannovation Center Israel).
CTGL
– Citrine Global Israel Ltd.(Israeli Subsidiary holds
On May 13, 2025, the Israeli subsidiary Cannovation Center Israel Ltd. changed its name to SkyTech Orion Ltd.
On
May 29, 2025, SkyTech Orion Ltd. executed the resolution to reallocate shares. Following this resolution, CTGL Citrine Global Israel
Ltd. increased its holdings to
Financial support
On
March 6, 2023 SkyTech Orion Ltd. (Previously named Cannovation Center Israel Ltd.) and S.R. Accord Ltd., an Israeli company (“Lender”),
entered into an 18-month credit facility agreement (the “Credit Facility”) pursuant to which Lender has committed to fund
SkyTech Orion Ltd. in an aggregate amount of NIS
| 9 |
SKYTECH ORION GLOBAL CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE 1 – GENERAL (cont.)
On
March 31, 2025, the total amount of the short term loan was increased to NIS
In August 2025, SR Accord extended the credit facility agreement with SkyTech Orion Ltd. until March 31, 2027 and in April 2026, SR Accord extended the credit facility agreement with SkyTech Orion Ltd. until September 30, 2027. The facility is supported by guarantees of CTGL Citrine Global Israel Ltd. and Citrine Global Corp., as well as personal guarantees signed by Ora Elharar-Soffer, the Company’s CEO, and Lior Asher, a director of SkyTech Orion Ltd.
With respect to the personal guarantees of Ora Elharar-Soffer and Lior Asher, SkyTech Orion Ltd., CTGL - Citrine Global Israel Ltd., and Citrine Global Corp. have confirmed, in line with prior Board resolutions, their undertaking to provide indemnification and comprehensive protections to the guarantors.
The Company has no significant firm commitments that require it to remit cash and can control the level of expenses it incurs. Based on the Company’s current cash balances, and the access to the Credit Facility noted above, the Company believes it will have sufficient funds for its plans for the next twelve months from the issuance of these financial statements. As the Company is embarking on its business plan, it is incurring losses. It cannot determine with reasonable certainty when and if it will have sustainable profits.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Unaudited Interim Financial Statements
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiary, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q. In the opinion of management, the financial statements presented herein have not been audited by an independent registered public accounting firm but include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the three months ended March 31, 2026. However, these results are not necessarily indicative of results for any other interim period or for the year ended December 31, 2025.
These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates.
| 10 |
SKYTECH ORION GLOBAL CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE 3 – STOCK OPTIONS
On March 5, 2023, the Board of the Company determined that in the event that the Company’s stock is listed on the Nasdaq Stock Market, then one half of the awarded but unvested option grants made in each of August 2021 and in August 2022, including to officers, directors, will immediately vest at such time. In addition, the Board also determined to provide that following the termination of services by an officer, director or a selected service provider for any reason other than cause, such person shall have a one year period from the date of termination to exercise any option that was vested at the time of the termination of services.
On January 21, 2026, the board approved to increase the company’s existing ESOP from
The following table presents the Company’s stock option activity for employees and directors of the Company for the period ended March 31, 2026:
SCHEDULE OF STOCK OPTION ACTIVITY
| Number of Options | Weighted Average Exercise Price ($) | |||||||
| Outstanding at December 31, 2025 | ||||||||
| Granted | - | - | ||||||
| Exercised | - | - | ||||||
| Forfeited or expired | - | - | ||||||
| Outstanding at March 31, 2026 | ||||||||
| Number of options exercisable at March 31, 2026 | ||||||||
The stock options outstanding as of March 31, 2026, have been separated into exercise prices, as follows:
SCHEDULE OF STOCK OPTIONS OUTSTANDING
| Exercise price | Stock options outstanding | Weighted average remaining contractual life – years | Stock options vested | |||||||||||
| $ | As of March 31, 2026 | |||||||||||||
Compensation
expense recorded by the Company in respect of its stock-based compensation awards for the period ended March 31, 2026 and 2025 was $0
thousands and $
As
of March 31, 2026, there was $
The aggregate intrinsic value of
the awards outstanding as of March 31, 2026 is $
NOTE 4 – RELATED PARTIES
Balances with related parties:
SCHEDULE OF TRANSACTION AND BALANCE WITH RELATED PARTIES
| As of March 31, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Short term loan | ||||||||
| Non-current liabilities - Related parties | ||||||||
| 11 |
SKYTECH ORION GLOBAL CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE 5 –EVENTS DURING AND AFTER THE REPORTING PERIOED
On January 21, 2026, the board approved :
| - | Directors and Senior Management: The Board approved the grant of stock options to purchase ordinary shares, vesting quarterly over a
two-year period, as follows: Ora Elharar-Soffer: |
| - | Cash Compensation Effective January 2026, the Board approved updated monthly management fees and salaries for the following officers:
Ora Elharar-Soffer (USD |
| - | The board also reapproved full and irrevocable indemnification from SkyTech Orion Global Corp and its subsidiaries (CTGL Citrine Global Israel Ltd and SkyTech Orion Ltd) to Ora Elharar-Soffer and Lior Asher for all personal guarantees, commitments, loans, and obligations undertaken by them personally or through their companies on behalf of the company. | |
| - | A
bridge loan of approximately $ |
| 12 |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Forward-looking Statements
This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation 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 ended December 31, 2025 as filed with the Securities and Exchange Commission, or the SEC, on April 15th, 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 “Skytech Orion Global Corp.” “we,” “us,” and “our” refer to Skytech Orion Global Corp., renamed from “Citrine Global Corp.” in October 2025 in Delaware and our consolidated subsidiaries, including our wholly-owned subsidiary, CTGL-Citrine Global Israel Ltd. and to our Majority owned subsidiary SkyTech Orion Ltd. (renamed from Cannovation Center Israel Ltd. in May 2025). For the avoidance of doubt, throughout this report references to “SkyTech Orion Global Corp.” or “SkyTech Orion Global Corp.” (also referred to as “SkyTech Global” or “SkyTech”) mean the 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.
Overview
This 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 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 “Skytech Orion Global Corp.” “we,” “us,” and “our” refer to Skytech Orion Global Corp., renamed from “Citrine Global Corp.” in October 2025 in Delaware and our consolidated subsidiaries, including our wholly-owned subsidiary, CTGL-Citrine Global Israel Ltd. and to our Majority owned subsidiary SkyTech Orion Ltd. (renamed from Cannovation Center Israel Ltd. in May 2025). For the avoidance of doubt, throughout this report references to “SkyTech Orion Global Corp.” (also referred to as “SkyTech Global” or “SkyTech”) mean the 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.
Management Discussion & Analysis of Financial Condition & Results of Operations
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.
| 13 |
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:
| ● | Mass production at industrial scale | |
| ● | Reduction of unit costs | |
| ● | Large-scale deployment of drone systems | |
| ● | Rapid reconfiguration and adaptation to evolving operational requirements |
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:
| ● | Demand is increasing rapidly, both in volume and operational diversity | |
| ● | Supply is constrained by regulatory requirements and limited Western manufacturing capacity | |
| ● | Existing Western solutions are often not optimized for high-volume production or cost efficiency |
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
| 14 |
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:
| ● | Modular arm system that include: |
| ○ | Arms and Frames: The Core connects to various arm configurations and airframe geometries (Smart-Arm™ series). | |
| ○ | Arms include motors and propellers of various types and sizes, optimized for either high speed or heavy-lift payloads. |
| ● | Energy Systems: Supports batteries of different sizes and capacities tailored to the mission’s current and endurance requirements. | |
| ● | Tactical Payloads: Various cameras, pilot views for explosives, fiber-optic connections, and other tactical end-point devices. |
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:
| ● | Intelligence, surveillance and reconnaissance (ISR), day and night | |
| ● | Tactical and operational missions | |
| ● | One-way (loitering / attack) drone configurations | |
| ● | Logistics and real-time operational support |
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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:
| ● | A wide range of mission profiles | |
| ● | High operational flexibility | |
| ● | Efficient large-scale production | |
| ● | Full alignment with Western regulatory standards |
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.
These filings support the development of modular systems across air, land, and sea domains, and establish the foundation for the next generation of modular, scalable, and defense-grade drone platforms.
Provisional Patent Application No. 63/873,673
This provisional application relates to the Company’s cross-domain modular unmanned platform. The application generally covers scalable system architecture, modular integration frameworks, and unified control and communication structures enabling reconfiguration of the platform for multiple operational environments.
Provisional Patent Application No. 63/918,560
This application is directed to modular mobility assemblies for unmanned platforms, including interchangeable arm or extension units configured for use in aerial, ground, surface, and robotic systems.
Provisional Patent Application No. 63/918,569
This application relates to a unified interface system for unmanned platforms, including a standardized connection architecture for power, data, and control signals across system components.
Patent Application No. IL 323592
This patent application is directed to a modular unmanned systems platform capable of operation across aerial, ground, surface, and robotic domains.
The application generally relates to a system architecture comprising a central structural framework, a universal control unit, and standardized mechanical and electrical interfaces designed to support the integration and interchangeability of system components.
Additional Considerations
The Company intends to pursue additional patent filings, including international applications, as part of its ongoing intellectual property strategy. The Company also maintains certain aspects of its technology as trade secrets.
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SkyTech Replicator Platform Designed for Manufacturing
SkyTech Replicator™ platform is designed from an industrial perspective, with a focus on efficient production of multiple drone configurations within a single system.
Using the same advanced SkyTech Replicator™ Core for multiple drone configuration enables the Company’s Replication Manufacturing method.
Replication Manufacturing Method™ for Scalable Manufacturing and Global Industrial Infrastructure
In response to the growing demand to produce millions of small drones, SkyTech has developed a unique manufacturing method: the Replication Manufacturing Method™, an industrial approach that enables rapid replication of production lines and integration centers worldwide, while maintaining uniform quality, standardization, and operational control.
The method is based on:
| ● | Standardized, repeatable production cells | |
| ● | Advanced manufacturing technologies, including 3D printing | |
| ● | Efficient assembly processes | |
| ● | Parallel production of modules | |
| ● | Reduced complexity in the production of multiple drone models | |
| ● | Distributed global manufacturing infrastructure, combined with leading assembly partners in each target market, as well as collaboration with leading component suppliers across the drone ecosystem |
This approach supports high-volume production while maintaining consistency in quality, performance, and regulatory compliance.
All system components are compliant with NDAA requirements and Western standards, enabling secure deployment across U.S., Israeli, and allied markets.
Each production cell is designed for deployment and replication, enabling:
| ● | Rapid scale-up of production | |
| ● | Consistent product quality | |
| ● | Regulatory compliance and control | |
| ● | Secured and resilient supply chains |
Production Plan and Growth Targets
The Company is building a platform that enables the development, production, and deployment of small drones at a high level across both defense and civilian markets while addressing the evolving needs of the market.
As part of the Replication Manufacturing Method™ and a hybrid manufacturing model, SkyTech has established a strategic framework engineered to support a scalable production capacity exceeding 100,000 drones over the coming years. This large-scale potential is driven by the integration of a diverse portfolio of small drone models and versatile platforms, tailored to capture opportunities across both military and advanced civilian sectors.
This comprehensive growth target is achieved through a multi-faceted approach that combines:
Advanced modular manufacturing: Enabling rapid customization across various drone configurations.
Distributed production processes: Utilizing a decentralized network to maximize output efficiency and mitigate bottlenecks.
Integration of multiple manufacturing technologies: Leveraging diverse tech stacks to ensure production stability and speed based on operational needs.
This integrated approach enables perfect alignment between design flexibility and mass-production requirements.
By establishing this infrastructure through a combination of in-house resources and strategic collaborations with certified external contractors, SkyTech ensures it is positioned to meet immediate demand from the Israeli defense sector, international allied markets, and the U.S. military, with the inherent ability to scale output well beyond current targets in direct response to confirmed orders and market growth.
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SkyTech Center Israel - The National and Industrial Flagship for Unmanned Systems, Drones and Defense Solutions
SkyTech is establishing the SkyTech Center Israel™, a government-backed national project.
The Company’s Israeli subsidiary, SkyTech Orion Ltd was selected by the Government of Israel to lead a flagship national project in the military UAV and drone sector. SkyTech was chosen from among numerous applicants competing for inclusion in this strategic program, following a comprehensive government selection process located on land owned by the company’s Israeli subsidiary, covering 11,687 square meters (approximately 125,000 sq. ft.) in the city of Yerucham, positioned as Israel’s Drone City.
As part of this designation, SkyTech Orion Ltd. was awarded a development grant of NIS 12.5 million (approximately $3.4 million) by the Israeli Ministry of Economy, one of the largest grants provided under the set of the Israeli government’s national defense and innovation initiatives.
In addition to the grant, SkyTech was approved for a range of complementary benefits, including corporate tax incentives, employment and training support, import/export facilitation, and regulatory guidance designed to accelerate the establishment and expansion of the SkyTech Center.
The SkyTech Center will be designed to provide full-cycle infrastructure for secure, Israeli-based manufacturing of defense-grade UMS and drone solutions, supporting both domestic and international markets. The Center integrates advanced production, research, testing, and business development capabilities within one national hub, ensuring compliance with Israeli and allied defense standards.
Key components of the SkyTech Center include:
| ● | Assembly & Production – Advanced UAV and drone manufacturing and assembly lines, including 3D-printing capabilities. | |
| ● | Research & Development – Hardware, software, and AI development and customization. | |
| ● | Laboratories & QA Testing – Facilities for validation, quality assurance, and compliance testing. | |
| ● | Regulatory Compliance – Full alignment with MOD, NDAA, ITAR, and EU defense/export regulations. | |
| ● | Flight Testing & Rental Services – Integration with Israel’s national drone test site and controlled environments for UAV flight testing and evaluation. | |
| ● | Equipment & Logistics Services – Rental and logistical support for defense applications. | |
| ● | Training Department – Simulator-based environments for training, skill development, and testing. | |
| ● | Business Development & Innovation Hub – Support for startups and defense-tech companies, providing workspace, technical infrastructure, and access to strategic partnerships. |
The SkyTech Center is planned to serve as Israel’s national hub for innovation and a strategic assembly and production hub in Israel, dedicated to the defense sector, with a focus on UAVs, drones, AI-powered platforms, Western-grade critical components, and advanced defense solutions tailored to military applications in the field of UAV and drone solutions.
The Company views this transition as a pivotal strategic move that enables it to operate in one of the most impactful and rapidly expanding sectors in Israel and globally particularly in the defense arena.
In the long term, SkyTech’s vision is that, as part of the infrastructure being developed within the SkyTech Center, the company will have the capability to produce hundreds of thousands of drones annually. These drones are based on certified, military-grade components designed to meet the highest defense standards.
This anticipated capacity is driven by the rapidly growing global demand for defense-ready drone systems, as drones are increasingly recognized as the future of tactical weaponry on the modern battlefield. It reflects SkyTech’s strategic vision and production roadmap to build scalable, secure, and regulation-compliant capabilities that address the evolving needs of allied defense markets worldwide.
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National Prioritization and Yerucham as a Strategic Location
SkyTech is building its UMS & Drone innovation and production center on company-owned land in the city of Yerucham, a region officially designated by the Israeli government as a strategic national priority zone for the development of UAV and drone technologies. Yerucham is emerging as a national hub for unmanned systems innovation, development, and defense solutions.
This designation provides operating companies with extensive government-backed benefits, including:
| ● | Capital investment grants | |
| ● | Tax incentives and employment support programs | |
| ● | Streamlined infrastructure and permitting processes | |
| ● | Access to government procurement channels and joint development programs |
Geographic and operational advantages of Yerucham include low population density, open airspace, and proximity to military zones, making it ideal for real-time testing, production, and training for UAV solutions.
The company’s strong presence in Israel alongside its deep ties with leading academic institutions, researchers, and technology partners enables access to cutting-edge innovations, engineering talent, and dual-use technologies essential for defense and aerospace applications.
The Company chose to anchor its UAV and drone operations in Israel for the following strategic reasons:
● The Company’s headquarters, executive leadership, and strategic partners are based in Israel, with longstanding operational experience and an extensive network of collaborations with universities, labs, startups, and defense-related entities.
● Israel recognizes the UAV and drone sector as a critical national priority, particularly considering the ongoing war and changing security threats. The government has identified the need for locally developed and manufactured unmanned systems as a strategic imperative — ensuring operational independence, rapid deployment, and reduced reliance on foreign supply chains.
● As part of this national strategy, there is an increasing emphasis on using Western-approved components to ensure compatibility with allied defense standards, support international cooperation, and eliminate dependency on non-compliant or restricted-origin technologies.
● Israel has an advanced regulatory and operational environment, supporting the rapid development, testing, and deployment of unmanned systems, especially those intended for defense and dual-use purposes.
● The Israeli government actively supports industrial and defense innovation, including grants for equipment, tax benefits, employment incentives, and dedicated support programs for priority regions such as Yeruham, where the Company is establishing its innovation and production center.
● In alignment with this vision, the company owns government-backed industrial land in Yeruham, southern Israel, on which it is building a dedicated Operational Innovation Center for UAV and drone development, assembly, testing, and
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Collaboration with the Israeli Defense Forces (IDF)
SkyTech believes that close collaboration with Israel’s defense system provides a significant advantage in aligning product development with real-world operational needs, accelerating time-to-field, and ensuring that its platforms meet the highest military and regulatory standards.
This relationship supports SkyTech’s commitment to advancing Israeli technological independence, strengthening national production capabilities, and developing certified, mission-ready drone solutions designed to serve both local defense requirements and global allied forces.
This initiative is part of SkyTech’s broader strategy to foster a collaborative defense innovation ecosystem, support the scaling of partner companies, and position SkyTech as a key facilitator of growth and advancement in the UAV and defense technology sectors both locally and globally.
As part of this strategic redirection, we are aligning our U.S. corporate platform with SkyTech’s Israeli operations to create a seamless U.S.–Israel bridge for dual-national activity in the field of unmanned aerial systems (UAS), drones, and related defense technologies.
Company’s Dual-Nation Presence and Competitive Advantage
SkyTech Orion operates through a dual-nation structure, combining a U.S. parent company with Israeli subsidiaries, CTGL Citrine Global Israel Ltd. and SkyTech Orion Ltd.
By integrating innovation, industrial capacity, and defense-grade production standards with Israeli technological excellence, agility, and field-proven innovation, SkyTech Orion’s dual-nation presence enables the delivery of scalable, modular unmanned systems for Israel, the United States, NATO, and allied markets worldwide.
This U.S.–Israel framework creates full synergy across innovation, development, manufacturing, standardization, regulation, and commercialization, forming a unified transatlantic defense-technology platform.
The Strategic advantages include:
| ● | Access to leading U.S. and Israeli innovation ecosystems in the unmanned systems and drone industry | |
| ● | Access to U.S. defense procurement channels (DoD, FMS, G2G) | |
| ● | Eligibility for government innovation and funding programs in both Israel and the United States | |
| ● | Integration into development, testing, and training programs of defense entities | |
| ● | A secure, traceable supply chain built on Western-standard and NDAA-compliant components |
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Market Opportunity
UAVs & Drones Market Potential
The global UAV and drone market continues to exhibit strong growth. Market value stood at USD 44.54 billion in 2025 and predicted to increase from USD 52.65 billion in 2026 to approximately USD 209.91 billion by 2035, representing a CAGR of 16.77% from 2026 to 20352.
The small drone market size was valued at USD 27.34 billion in 2025 and is projected to grow from USD 34.89 billion in 2026 to USD 168.30 billion by 2034, exhibiting a CAGR of 21.70% during the forecast period. North America dominated the small drone market with a share of 31.44% in 20253 .
Military and security applications represent the largest segment (45–50% of the market), followed by civilian and commercial uses in industry, agriculture, logistics, photography, media, mapping, and research.
The war in Ukraine has dramatically accelerated the evolution of tactical small drones and loitering munitions into essential tools of modern warfare. Ukrainian forces have demonstrated the battlefield dominance of mass-produced tactical drones, capable of neutralizing enemy assets worth hundreds or thousands of times more than the cost of each drone. These affordable, scalable systems have become front-line force multipliers, reshaping the nature of asymmetric warfare.
In Ukraine, drones are responsible for 60–70% of battlefield damage and most casualties4. The Ukrainian industry is now producing hundreds of thousands of tactical drones annually, with current demand already surpassing one million units per year - underscoring the scale at which modern conflicts require drone-based combat capabilities.
The U.S. Army is undertaking an unprecedented expansion of its drone procurement program. The US Army plans 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 efforts5.
Competition
The Company operates in the highly competitive and rapidly evolving global Unmanned Systems Market, and specifically the small Unmanned Aerial Systems (sUAS) market, with direct competition from large, established defense contractors as well as emerging drone technology companies developing autonomous, mission-specific, or multi-domain unmanned platforms.
The global small Unmanned Aerial Systems (sUAS) market is currently at a critical turning point. While the demand for tactical drones has exploded, the market remains polarized between two inadequate extremes, creating a significant “Strategic Gap”:
Chinese Dominance and Regulatory Restrictions: Chinese manufacturers, led by entities like DJI, currently dominate the global commercial drone market and components’ supply chain. However, these platforms are increasingly restricted or banned in Western defense and federal applications (e.g., U.S. NDAA compliance) due to cybersecurity vulnerabilities and geopolitical risks.
Improvised Solutions: In active conflict zones like the Ukraine, immediate wartime needs have led to the mass use of improvised FPV racing drones. While cost-effective, these systems lack the standardization, reliability, and security protocols required by professional military industries.
2 Unmanned Aerial Vehicle (UAV) Drones Market Size and Forecast 2026 to 2035, Precedence Research, Jan 2026
3 Small Drone Market Size, Share & Industry Analysis, Fortune Business Insights, March 2026
4 The New York Times, A Thousand Snipers in the Sky, By Marc Santora, Lara Jakes, Andrew E. Kramer, Marco Hernandez and Liubov Sholudko March 3, 2025
5 Reuters, Exclusive: US Army to buy 1 million drones, in major acquisition ramp-up, By Phil Stewart and Idrees Ali November 7, 2025
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Traditional Defense Systems: Established defense contractors provide advanced UASs, but these systems are often prohibitively expensive, costing tens of thousands of dollars per unit) Their high cost and complex, low-volume manufacturing cycles make them unsuitable for mass, attainable deployment in modern high-intensity conflicts.
In the small Unmanned Aerial Systems (sUAS) market competition is driven by technological capabilities, system reliability, cost efficiency, manufacturing scalability, regulatory compliance, and the ability to meet diverse operational requirements for defense, homeland security, and commercial customers.
While the market continues to expand due to increased adoption of unmanned aerial, ground, and maritime systems, competitive pressures remain significant as many companies seek to introduce advanced architectures, interoperable mission packages, and next-generation autonomous capabilities.
The Company’s competitive differentiation is rooted in its modular platform design, unified electronic interfaces, and the replication manufacturing method that enable rapid adaptation and scalability, short time to market, reduced life-cycle costs, and efficient, consistent production across multiple operational domains using latest technologies, including additive 3D printing.
SkyTech’s business strategy, combining U.S. & Israeli R&D and manufacturing offers an agile, secure, and scalable platform designed to meet the evolving needs of modern defense forces. This integrated approach positions the Company as a credible and trusted emerging supplier in both domestic and international UAV, drone and defense technology markets.
Regulatory Environment –in the Defense UAV Sector
Regulatory Compliance of Products
The Company is currently advancing the regulatory and certification processes required to enter these markets and will continue to disclose its progress in regulatory compliance and operational readiness in future reports, in accordance with applicable disclosure rules.
Regulatory Compliance for SkyTech Center Israel
We acquired approximately 125,000 sq. ft. (11,687 sqm) of industrial land in the south of Israel, designated for the development of the Cannovation Israel Center. The planned 65,000 sq. ft. (~5,800 sqm) facility will include advanced manufacturing spaces, logistics and distribution areas, import/export infrastructure, office space, a training and conference center, and a visitor complex for international partners.
The development of the center is subject to a range of regulatory approvals and compliance processes, including but not limited to:
● Industrial zoning and building permits from the local planning and building committee.
● Environmental permits as required by the Israeli Ministry of Environmental Protection.
● Fire and safety compliance, including authorization from the National Fire and Rescue Authority.
● Occupational health and safety approvals.
● Import/export licensing from the Ministry of Economy and relevant customs authorities.
● Security and defense-related certifications, where applicable, especially if the site will support activities related to UAV or defense technologies.
The construction will be carried out by a professional real estate project management firm, and the Company is currently in the process of retaining regulatory consultants and engineering professionals with experience in industrial and defense-compliant infrastructure to oversee the permitting and compliance process.
We expect to complete the permitting phase in accordance with Israeli law and submit the final detailed engineering and construction plans for approval in line with the project timeline. The Company will continue to report on progress and compliance as part of its disclosure obligations.
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Properties
| ● | SkyTech Orion Ltd. |
The Company holds this entity through its wholly owned Israeli subsidiary, CTGL Citrine Global Israel Ltd. As of December 31, 2025, the company increased its ownership stake to 69.5%.
| ● | Land Asset in Yerucham, Israel - In February 2022, the Company’s Israeli subsidiary, Skytech Orion Ltd. (then Cannovation Center Israel Ltd.) acquired approximately 11,687 square meters (approximately 125,000 sq. ft.) of industrial land located in Yerucham, southern Israel. The acquisition was made under a Development Agreement with the Israel Lands Authority (ILA) as part of a government-backed industrial initiative. Under the agreement, the Company is required to complete the development of the site within four (4) years, with possible extensions subject to ILA approval. Upon completion, the Company will be granted a 49-year long-term lease, renewable under standard terms, which is considered equivalent to ownership rights under Israeli public land law. On September 25, 2025, ILA approved to extend the agreement for another year.
The property has been designated for the development of operational innovation center, as part of its broader platform of Operational Innovation Centers intended to support growth, enhance scalability, and provide a foundation for future business activities. Following a grant received from the Ministry of Economy, the Company is currently advancing the development of the SkyTech Innovation Center in Yerucham. The site allows for additional development for other operational or industrial activities, which the Company is currently evaluating. It should also be noted that the land is subject to certain ownership and eligibility restrictions under Israeli law, including requirements related to Israeli citizenship or approved entities that are required to hold control over the land. |
The site allows for approximately 9,600 square meters (approximately 103,000 sq. ft.) of industrial development. The Company is currently evaluating whether to utilize the full development capacity or to allocate approximately 5,000 square meters (approximately 54,000 sq. ft.) specifically for the SkyTech Innovation Center. (we prepared a development plan that integrates both activities, combining the SkyTech Innovation Center with additional industrial uses.)
As the property is located within a nationally prioritized industrial zone in Yerucham, the Company believes it is well-positioned to obtain the required approvals. The Israeli government has already approved our drone innovation center plan on the same land with a footprint of approximately 5,000 square meters.
On January 12, 2025, Cannovation Center Israel Ltd. (subsequently renamed SkyTech Orion Ltd.), the Israeli subsidiary received official notification from the Israeli Ministry of Economy and Industry that it had been awarded a government grant in the amount of NIS 12.5 million (approximately USD 4 million). The grant, in the amount of NIS 12.5 million (approximately USD 4 million), is structured as reimbursements of approximately 37.5% of the Company’s eligible expenses, including construction, equipment, services, and other costs submitted in connection with the establishment of the SkyTech Innovation and Production Center. The grant was awarded as part of a national strategic program supporting the defense sector. The funds are designated for the establishment of the SkyTech Innovation and Production Center in the city of Yerucham, Israel, on land that had previously been allocated to the subsidiary by the State of Israel as part of a prior grant for the construction of an Operational Innovation Center. This new grant is in addition to the prior allocation and supports the construction of approximately 5,000 square meters of facilities on the 11.7-dunam (about 2.89 acres) plot. The Center will include assembly lines, R&D laboratories, testing facilities, and an advanced production system focused on developing and manufacturing defense-grade UAV and drone solutions.
The address of SkyTech Orion Ltd is 5 Rashi St. Yerucham, Israel 8050743
SkyTech Orion Global Corp. - US offices are located #3 Bethesda Metro Center #700, Bethesda, Md 20814.
Our website address is www.skytech-global.com
Employees/Consultants
We currently engage 18 consultants, including our officers, on a part- time basis, working in various fields of management, research and development, product management, marketing and regulatory advice. Most of our activities are done with external consultants and professional companies that provide us the required services.
Components of Operating Results
The following discussion summarizes the key factors our management believes are necessary for an understanding of our consolidated financial statements.
Revenues
We have not generated any revenues from product sales as of March 31, 2026.
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Research and Development Expenses
The process of researching and developing our products is lengthy, unpredictable, and subject to many risks. We expect to continue incurring expenses for the next several years for research and development as we continue to develop products and innovative solutions. We are unable, with any certainty, to estimate either the costs or the timelines in which those expenses will be incurred. Our current development plans focus on the development of plant-based solutions.
Our research and development costs include costs are composed of:
● internal recurring costs, such as personnel-related and consultants costs (salaries, employee benefits, equity compensation and other costs), materials and supplies, facilities and maintenance costs attributable to research and development functions; and
● fees paid to external parties who provide us with contract services, such as preclinical testing, manufacturing and related testing and activities.
Marketing
Marketing expenses consist primarily of salaries, employee benefits, equity compensation, and other personnel-related costs associated with executive and other support staff. Other significant marketing expenses include the costs associated with professional fees to develop our marketing strategy.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries, employee benefits, equity compensation, and other personnel-related costs associated with executive, administrative and other support staff. Other significant general and administrative expenses include the costs associated with professional fees for accounting, auditing, insurance costs, consulting and legal services, along with facility and maintenance costs attributable to general and administrative functions.
Financial Expenses
Financial expenses consist primarily impact of exchange rate derived from re-measurement of monetary balance sheet items denominated in non-dollar currencies. Other financial expenses include bank’s fees and interest on long term loans.
Results of Operations
Comparison of the Three Months Ended March 31, 2026 compared to the Three Months Ended March 31, 2025
The following table presents our results of operations for the three months ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| March 31 | ||||||||
| 2026 | 2025 | |||||||
| US Dollars | ||||||||
| Research and development expenses | (101,000 | ) | (32,000 | ) | ||||
| Marketing, general and administrative expenses – related parties | (144,000 | ) | (165,000 | ) | ||||
| Marketing, general and administrative expenses | (36,000 | ) | (41,000 | ) | ||||
| Operating loss | (281,000 | ) | (238,000 | ) | ||||
| Other financing expenses, net | 21,000 | (29,000 | ) | |||||
| Net loss | (260,000 | ) | (267,000 | ) | ||||
Revenues. We had no revenues in the three months ended March 31, 2026 and 2025.
Research and Development. Research and development expenses for the three months ended March 31, 2026 were $101,000 compared to $32,000 for the three months ended March 31, 2025. The increase is primarily attributable to professional expenses incurred in the operation of the business.
Marketing, general and Administrative Expenses. Marketing, general and administrative expenses consist primarily of professional services, share-based compensation expenses and other non-personnel related expenses such as legal expenses. Marketing, general and administrative expenses for the three months ended March 31, 2026 were $180,000 compared to $206,000 for the three months ended March 31, 2025. The decrease is primarily attributable to the decrease in our non-cash share-based compensation expenses.
Financing Expenses, Net. Financing income, net for the three months ended March 31, 2026 were $21,000 compared to financing expenses, net $29,000 for the three months ended March 31, 2025.
Net Loss. Net loss for the three months ended March 31, 2026 was $260,000 and is attributable to the reasons discussed above.
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Financial Condition, Liquidity and Capital Resources
At March 31, 2026, we had current assets of $164,000 compared to total current assets of $166,000 as of December 31, 2025. The decrease is mainly attributed to the decrease in cash.
At March 31, 2026, we had a cash balance of $3,000 compared to the cash balance of $10,000 as of December 31, 2025.
At March 31, 2026, we had a working capital deficiency of $4,864,000 as compared with a working capital deficiency of $4,591,000 at December 31, 2025.
The following table provides a summary of operating, investing, and financing cash flows for the three months ended March 31, 2026 and 2025, respectively (in US Dollars):
| Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Net cash used in operating activities | (160,000 | ) | (57,000 | ) | ||||
| Net cash provided by investment activities | - | - | ||||||
| Net cash provided by Financing Activities | 153,000 | 123,000 | ||||||
On March 6, 2023 SkyTech Orion Ltd. (Previously named Cannovation Center Israel Ltd.) and S.R. Accord Ltd., an Israeli company (“Lender”), entered into an 18-month credit facility agreement (the “Credit Facility”) pursuant to which Lender has committed to fund SkyTech Orion Ltd. in an aggregate amount of NIS 3,000,000 (approximately $857,000), as needed. At the time of each draw down, SkyTech Orion Ltd. and Lender will determine the maturity date of the loan. All amounts drawn under the Credit Facility will bear interest at a monthly rate of 1.7%. SkyTech Orion Ltd. has the right to pre-pay the entire amount outstanding under the Credit Facility at any time. As security for any loans under the Credit Facility, SkyTech Orion Ltd. granted the Lender a first priority lien on its rights to the 125,000 sq ft (11,687 sq meters) of industrial land in Yerucham. The lien will become effective only if SkyTech Orion Ltd. utilizes the Credit Facility. If the market value of the Premises is less than the amount outstanding under the Credit Facility, then Lender will be entitled to additional security including additional shares of Citrine Global common stock, on such terms and conditions as the parties may agree. As additional security for any payments due to Lender, Israeli Subsidiary, (ii) Beezhome and (iii) Netto Holdings, an unaffiliated entity under the partial control of Ilan Ben Ishay, a director on the board of SkyTech Orion Ltd., as well as each of Ms. Elharar Soffer and Mr. Ben Ishay in their personal capacities, have provided guarantees for the repayment of any amounts that may be owing to Lender under the Credit Facility. SkyTech Orion Ltd. has agreed to indemnify Ms. Elharar Soffer and Mr. Ben Ishay for any losses they incur as a result of the guarantee. As of September 2024, the Company renewed its short term loan with S.R. Accord Ltd. in the amount of approximately NIS 660,000 (approximately $176,000). As part of the renewal, Mr. Lior Asher signed as a personal guarantor, joining Ms. Ora Elharar Soffer as guarantor. In addition, the Company, its Israeli subsidiary CTGL – Citrine Global Israel Ltd., and Beezhome Technologies Ltd., a private company wholly owned by Ms. Ora Elharar Soffer, signed the agreement. While Neto Holdings Ltd. and Mr. Ilan Ben Ishay had originally undertaken to provide personal guarantees, they had not executed such guarantees as of that date. All collateral under the Credit Facility remained in place, including a first-priority lien over the SkyTech Orion Ltd.’s rights and the 125,000 sq. ft. (11,687 sq. meters) industrial parcel in Yerucham, Israel, as well as additional collateral intended to secure repayment of the loan and to cover any damage, debt, or obligation arising from the Credit Facility. The Company, together with CTGL – Citrine Global Israel Ltd. and SkyTech Orion Ltd., undertook to fully indemnify both Ms. Elharar Soffer and Mr. Lior Asher for any liability, damage, or loss that may result from their personal guarantees.
On March 31, 2025, the total amount of the short term loan was increased to NIS 1,000,000 (approximately $280,000 at that time), with all guarantees and collateral remaining in place.
In August 2025, SR Accord extended the credit facility agreement with SkyTech Orion Ltd. until March 31, 2027 and in April 2026, SR Accord extended the credit facility agreement with SkyTech Orion Ltd. until September 30, 2027. The facility is supported by guarantees of CTGL Citrine Global Israel Ltd. and Citrine Global Corp., as well as personal guarantees signed by Ora Elharar-Soffer, the Company’s CEO, and Lior Asher, a director of SkyTech Orion Ltd.
With respect to the personal guarantees of Ora Elharar-Soffer and Lior Asher, SkyTech Orion Ltd., CTGL - Citrine Global Israel Ltd., and Citrine Global Corp. have confirmed, in line with prior Board resolutions, their undertaking to provide indemnification and comprehensive protections to the guarantors.
The Company has no significant firm commitments that require it to remit cash and can control the level of expenses it incurs. Based on the Company’s current cash balances, and the access to the Credit Facility noted above, the Company believes it will have sufficient funds for its plans for the next twelve months from the issuance of these financial statements. As the Company is embarking on its business plan, it is incurring losses. It cannot determine with reasonable certainty when and if it will have sustainable profits.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements.
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| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Not Applicable.
| ITEM 4. | CONTROLS AND PROCEDURES |
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s principal executive officer and the Company’s principal financial officer to allow for timely decisions regarding required disclosure. In designing and evaluating the Company’s disclosure controls and procedures, the Company’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Based on the Company’s evaluation of the effectiveness of its disclosure controls and procedures as of March 31, 2026, the Company’s principal executive officer and the Company’s principal financial officer concluded that the Company’s disclosure controls and procedures are effective.
Changes in Internal Control over Financial Reporting
During the three months ended March 31, 2026, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect the Company’s internal control over financial reporting.
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PART II—OTHER INFORMATION
| ITEM 1. | LEGAL PROCEEDINGS |
None.
| ITEM 1A. | 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.
| ITEM 2. | UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS |
None.
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
None.
| ITEM 4. | MINE SAFETY DISCLOSURES |
None.
| ITEM 5. | OTHER INFORMATION |
None
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| ITEM 6. | EXHIBITS |
Exhibit Index:
| 31.1* | Certification of Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
| 31.2 | Certification of Chief Financial Officer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
| 32.1* | Certification of Chief Executive Officer (Principal Executive Officer), as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 32.2 | Certification of Chief Financial Officer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 | |
| 101.INS | Inline XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith
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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)
| By: | /s/ Ora Elharar Soffer | By: | /s/ Ilanit Halperin | |
| Ora Elharar Soffer | Ilanit Halperin | |||
| Chief Executive Officer | Chief Financial Officer | |||
| (Principal Executive Officer) | (Principal Financial and Accounting Officer) |
| Date: | May 20, 2026 | Date: | May 20, 2026 |
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