UAS Drone Corp. (USDR)·Q4 2019 Earnings Summary

Executive Summary

• USDR had no revenue in Q4 2019 (and FY19), remained a shell with minimal operations, and posted a significantly larger Q4 net loss as year-end costs hit; no guidance or earnings call was issued .
• Prior to and around Q4, management pivoted away from legacy distribution arrangements (terminated Feb 21, 2020) and then closed a reverse merger with Duke Robotics on March 9, 2020, changing the business profile post-period .
• Liquidity was extremely tight with just $262 of cash at 12/31/19, underpinning a going‑concern warning; financing was subsequently arranged in March 2020 via $965K of convertible loans and debenture exchanges .
• There were no Wall Street consensus estimates available (S&P Global CIQ mapping unavailable for USDR), so there is no beat/miss framework this quarter; the trading catalyst is the post‑Q4 reverse‑merger transition rather than fundamentals in Q4 [GetEstimates error; see “Estimates Context”].

What Went Well and What Went Wrong

• What Went Well

  • Strategic reset: management exited dormant Havis manufacturing/distribution agreements (mutually terminated Feb 21, 2020) and completed the Duke Robotics share exchange on March 9, 2020, aligning USDR with a defense robotics strategy .
  • Defined product vision post‑merger: “We are now a robotics company dedicated to the development of an advanced robotics system that enables remote, real‑time, pinpoint accurate firing of small arms and light weapons” .
  • Financing path identified: At the merger close, USDR secured $965K of convertible loans and restructured prior debentures, providing runway into the second half of 2021, per management’s liquidity outlook .

• What Went Wrong

  • No revenue and rising Q4 loss: FY19 revenue was $0; Q4 net loss expanded vs prior quarters as year‑end costs flowed through .
  • Going‑concern risk: “These conditions raise substantial doubt about our ability to continue as a going concern,” reflecting minimal cash and persistent losses .
  • No earnings call or guidance: There was no Q4 earnings press release under Item 2.02 or call transcript, limiting transparency; the company remained on OTC Pink with limited liquidity [ListDocuments; none found] .

Financial Results

Quarterly results (USD unless noted):

Notes: Q4 2019 operating expenses and net loss are derived as FY19 minus 9M19; EPS derived using the reported weighted-average shares (1,172,544) from quarterly filings .

KPIs and liquidity:

Segment breakdown: Not applicable; no operating revenue segments disclosed .

Guidance Changes

USDR provided no quantitative guidance during Q4 2019; no Item 2.02 earnings release or guidance updates were filed.

[ListDocuments; none found for 8-K 2.02 or earnings-call-transcript; 10-K confirms no revenue or outlook] .

Earnings Call Themes & Trends

No earnings call was held. Narrative from filings across quarters:

Management Commentary

• “Our financial statements have been prepared assuming that the Company will continue as a going concern… We had… $0 of revenue during our fiscal year ended December 31, 2019.” .
• “Our agreements with Havis were mutually terminated on February 21, 2020… [we] adopted the business plan of Duke [Robotics]” .
• “We are now a robotics company dedicated to the development of an advanced robotics system that enables remote, real‑time, pinpoint accurate firing of small arms and light weapons” (post‑Share Exchange) .
• “In conjunction with the consummation of the Share Exchange… [we] entered into… convertible loan agreements [aggregate $965,000]” .

Q&A Highlights

No analyst call or Q&A was held for Q4 2019 (no earnings call transcript available) [ListDocuments; none found].

Estimates Context

• S&P Global/Capital IQ consensus estimates were unavailable for USDR (CIQ mapping missing), so no EPS/Revenue consensus is shown this quarter. This limits any beat/miss assessment for Q4 2019.

Key Takeaways for Investors

• Q4 2019 had no revenue and a larger quarter loss versus Q2–Q3, reflecting year‑end costs; FY19 revenue was $0 and FY19 net loss was $172,948 .
• Liquidity was critically constrained at year‑end ($262 cash), reinforcing going‑concern risk absent financing; this was partially mitigated post‑period via $965K in convertible loans and debenture exchanges tied to the Duke Robotics transaction .
• The investment narrative pivots from a dormant OTC shell to an early‑stage defense robotics story post‑merger; near‑term fundamentals remain pre‑revenue, with execution hinging on productization, regulatory approvals, and government customer adoption (as described in the 8‑K business overview) .
• Expect reporting complexity in 2020+ as historical USDR shell results roll off and Duke (accounting acquirer) becomes the operative financial baseline; watch for initial contract wins, R&D cadence, and cash runway updates .
• No guidance or estimates framework is available; catalysts are likely to be financing milestones, contract awards, and technology validations rather than quarterly financial beats in the near term .
• Risk remains high: going-concern warnings, limited cash, dependence on government buying cycles, and early commercialization stage all elevate execution risk and potential dilution from future capital raises .

Citations

• 10-K FY2019 (filed Apr 13, 2020):
• 10-Qs 2019: Q1 ; Q2 ; Q3
• 8-K (Mar 10, 2020) (Share Exchange, financing, business overview):
• 8-K (Sep 17, 2019) (term sheet):

Estimates note: S&P Global/Capital IQ consensus unavailable for USDR this period due to missing CIQ mapping (GetEstimates error).