Quarterly Report for Quarter Ending March 31, 2025 (Form 10-Q)

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, 2024 as filed with the Securities and Exchange Commission, or the SEC, on August 31 2025. 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. renamed SkyTech Orion Global Corp. in June 2025 in Delaware and our consolidated subsidiaries, including our wholly-owned subsidiary, CTGL-Citrine Global Israel Ltd. and to our partially owned subsidiary Cannovation Center Israel Ltd. (renamed SkyTech Orion Ltd. in May 2025) unless otherwise indicated or as otherwise required by the context.

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 "Citrine Global," the "Company," "we," "us," and "our" refer to Citrine Global, Corp. renamed SkyTech Orion Global Corp in June 2025 and our consolidated subsidiaries, including our wholly-owned subsidiary, CTGL-Citrine Global Israel Ltd. and to our partially owned subsidiary Cannovation Center Israel Ltd. (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 Update and Business Review

The Company's entire executive leadership, strategic management, and core operations are based in Israel, operating through its wholly owned subsidiary CTGL Citrine Global Israel Ltd. and its majority-owned subsidiary Cannovation Center Israel Ltd. was renamed SkyTech Orion Ltd. in May 2025.)

On October 7, 2023, a large-scale war broke out in Israel, leading to a prolonged national crisis. The conflict created widespread uncertainty and instability across the country, disrupted the Israeli economy, and adversely affected the Company's operations.

Throughout 2024, the Company remained primarily engaged in the wellness and plant-based health sector. Activities focused on the development of proprietary product lines, strategic collaborations, and minority investments, including in iBOT Israel Botanicals Ltd. These initiatives included the development of nutritional supplements, plant-based cosmetics, and other consumer health products. The Company had also prepared to launch its wellness products in the United States during 2024.

However, the outbreak of war in Israel, and its severe and prolonged impact on the Israeli economy particularly in international-facing consumer markets prevented the Company from proceeding with its planned launch and international sales activities. As a result, the Company experienced material delays in wellness-related product development, fundraising, and marketing efforts, and was unable to fully execute its strategic plans.

In the last quarter of 2024, following an internal review and in light of the evolving business environment, management determined that the existing wellness-focused strategy was no longer sufficient to drive growth. The Company therefore resolved to broaden its scope of activity and prepare for expansion into additional areas of development.

The Company placed a key focus on its government-supported industrial land in Yerucham, Israel-considered a highly strategic asset with substantial potential, located within a designated national innovation and industrial zone.

As part of its strategic review, the Company evaluated this asset within the framework of its Production, Innovation Center platform, aiming to align it with evolving national priorities and global industry needs. This review highlighted a unique opportunity to realign the Company's operations with Israel's growing focus on defense, UMS (Unmanned Systems)

Description of Business:

Ø	Equity Interest - 100% in CTGL Citrine Global Israel Ltd.

The Company holds 100% of the equity in CTGL Citrine Global Israel Ltd.

Ø	Equity Interest - 69.5% in Cannovation Center Israel Ltd. (subsequently renamed SkyTech Orion Ltd.) Through its wholly owned subsidiary, CTGL Citrine Global Israel Ltd., the Company holds a 69.5% equity interest in Cannovation Center Israel Ltd. (now operating as SkyTech Orion Ltd.).
Ø	Real Property Asset - Land in Yerucham, Israel (11,687 sqm / 125,000 sq. ft.) In February 2022, Cannovation Center Israel Ltd. acquired approximately 11,687 square meters of industrial land in Yerucham, southern Israel, under a Development Agreement with the Israel Lands Authority ("ILA"). The agreement requires development within four years (with possible extensions subject to ILA approval). Upon completion, the Company will be granted a 49-year renewable lease, considered equivalent to ownership rights under Israeli public land law. The property is designated for the establishment of an Operational Innovation Center.
Ø	Government Grant - NIS 12.5 million (approximately USD 3.4 million) On January 12, 2025, Cannovation Center Israel Ltd. (subsequently renamed SkyTech Orion Ltd.), the Company's 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 3.4 million).

The grant, awarded as part of a national strategic defense program, is designated for the establishment of the SkyTech Innovation and Production Center in Yerucham, Israel. The planned facility will cover approximately 5,000 square meters on the Company's 11.7-dunam (2.89-acre) industrial plot and will include assembly lines, R&D laboratories, testing facilities, and advanced production systems for defense-grade UAV and drone solutions.

Ø	Equity Interest - 19% in iBOT Israel Botanicals Ltd. The Company holds a 19% equity interest in iBOT, a GMP-certified facility approved by the Israeli Ministry of Health, focused on nutritional supplements and wellness products.
Ø	Equity Interest - 10% in MyPlant Bio Ltd. The Company holds a 10% equity interest in MyPlant Bio Ltd., a company specializing in botanical science and plant-based innovation.
Ø	Operational Innovation Centers' Platform

The Company has a proprietary Operational Innovation Centers Platform. This modular and scalable infrastructure model supports the Company's business growth by enabling the delivery of end-to-end solutions across its areas of activity, including product development, production, and commercialization. The platform is operated through the Company's Israeli subsidiary with the goal of establishing specialized innovation centers that support both internal operations and external strategic collaborations.

Each innovation center functions as an integrated operational ecosystem offering a wide range of core capabilities, including:

	●	Research and development laboratories
	●	Manufacturing and product formulation infrastructure
	●	Quality assurance and testing
	●	Import/export and logistics support
	●	Distribution and go-to-market operations
	●	Services for both the Company's proprietary product lines and third-party clients

The platform is a high-tech and biotech operational infrastructure, targeting key sectors that require advanced production facilities, innovation, and growth-oriented ecosystems, and represents a unique business model designed to realize its full potential and support global growth and expansion.

Ø	Other Assets

The Company may also hold additional assets and equity interests reflected in its consolidated financial statements, including intangible assets such as intellectual property, goodwill, and proprietary technologies, as well as products developed for commercialization.

Strategic Shift - Entry into Defense & UMS (Unmanned Systems) and Drone Industry

On January 12, 2025, the Company was officially selected by the Government of Israel to lead a flagship national project in the military UMS and drone sector. SkyTech was chosen from among numerous applicants competing for inclusion in this strategic program, following a comprehensive government selection process.

As part of this designation, the Company 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 granted under the 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 is planned to serve as Israel's national hub for innovation and manufacturing in the field of unmanned systems (UMS), tailored to the operational needs of the defense sector. It will provide the infrastructure for research, development, assembly, testing, and integration of advanced unmanned systems, all in full compliance with Israeli and international defense regulations and export standards.

SkyTech Center Israel - Building Demonstration (Architect: Avner Sher)
All rights reserved to the Company. The final design, specifications, and construction are subject to change and are not binding.

The SkyTech Center is 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.

Strategic Positioning & Global Expansion

The SkyTech Center is being established as a national flagship project and a strategic assembly and production hub for the defense sector in Israel, with a focus on UAVs, drones, AI-powered platforms, Western-grade critical components, and advanced defense solutions tailored to military applications.

As part of its global expansion strategy, the Company is also establishing additional assembly and manufacturing centers worldwide. A U.S.-based production and assembly center is already under evaluation, aligned with U.S. defense procurement policies and regulatory frameworks.

SkyTech's Breakthrough Multi-Domain Modular System for Unmanned Systems

The Company has developed a unique multi-domain modular system for unmanned platforms - an innovative solution designed to operate in air, sea, land, and advanced robotic configurations. The system represents a proprietary technological platform, based on a distinctive development methodology, enabling both operational deployment in the field and large-scale serial production capabilities, reaching hundreds of thousands and even millions of units in an efficient, rapid, and cost-effective manner.

The Company's strategy focuses on the integration of approved Western defense-grade components, in light of the growing demand for compliance with strict regulatory and security standards in international markets, particularly in Israel, the United States, and other Western countries. This strategic approach ensures that the system meets the most rigorous defense requirements and enables market penetration into key global defense sectors.

The system is primarily aimed at the defense industry, addressing the rising demand for advanced unmanned solutions worldwide. The combination of technological uniqueness, scalable serial production capacity, and the strategic use of Western-approved components provides the Company with a significant strategic advantage, unlocking substantial sales potential and positioning it as a leading player in the global unmanned systems market.

SkyTech's Modular FPV Drone - Developed for Defense

As part of its multi-domain modular system, SkyTech has developed a modular FPV (First Person View) drone, representing an initial and dedicated implementation of the Company's broader development concept. The drone is specifically designed to address the evolving operational needs of defense forces. Compact, agile, and adaptable, it is built with trusted components that meet the most stringent international defense standards, including NDAA, ITAR, and Israeli MOD requirements.

The Company is building a portfolio of modular FPV drones and advanced unmanned systems (UAV/UAS), all based on certified and regulation-compliant components. These products are intended to meet the urgent operational demands of modern armed forces while ensuring flexibility, scalability, and secure integration.

Initial assembly capabilities are being established through a hybrid model that combines the Company's in-house resources with strategic collaborations with certified contractors. This approach enables early-stage production and timely delivery of systems to meet immediate demand, including planned sales to the Israeli defense sector, international allied markets, and the U.S. military.

In parallel, the Company is evaluating localized manufacturing options in the United States, in line with U.S. defense procurement policies and regulatory frameworks.

SkyTech's FPV drone activities form an integral part of the Company's global strategy to deliver advanced defense technologies to strategic partners and government customers worldwide ensuring readiness, compliance, and long-term operational value. The Company is preparing for large-scale commercial sales across key defense markets, with a strong focus on building long-term customer relationships and expanding its international footprint.

This approach supports SkyTech's mission to provide high-quality, adaptable defense technologies to strategic partners and government customers worldwide ensuring readiness, compliance, and long-term operational value. As part of its global business strategy, the company is actively preparing for scalable commercial sales across multiple defense markets, with a strong focus on building long-term customer relationships and international growth.

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 FPV 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 FPV 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.

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.

The Company operates in Israel through its subsidiaries CTGL Citrine Global Israel Ltd., and Cannovation Center Israel Ltd., renamed SkyTech Orion Ltd. in Q2 2025.

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.

Israel and Yerucham - Strategic Innovation Hub for UAV and Drone Technologies

Israel serves as a key foundation for the Company's innovation and development strategy in the field of UAVs and drone technologies. 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 UMS and drone 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 in light of the ongoing war and evolving 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 that supports the rapid development, testing, and deployment of unmanned systems, particularly those intended for defense and dual-use purposes.
	●	The Israeli government actively promotes industrial and defense innovation through grants for equipment, tax benefits, employment incentives, and dedicated programs for priority regions such as Yerucham, where the Company is establishing its innovation and production center.
	●	In alignment with this vision, the Company owns government-backed industrial land in Yerucham, southern Israel, on which it is building a dedicated Operational Innovation and Production Center for UMS and drone development, assembly, testing, and commercialization, designed to serve both domestic and international defense markets.

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 solution.

Government Support and National Strategy

The Israeli Ministry of Defense and related agencies continue to invest heavily in innovation, allocating over $168 million to 86 Israeli startups in 2024 alone. That same year, Israeli defense exports reached a record $14.79 billion, with over 54% going to Europe, and nearly 57% of contracts valued above $100 million. These achievements occurred despite the ongoing security challenges, highlighting Israel's global leadership in defense technologies.

Additionally, Israel's National Drone Initiative (INDI) has positioned the country at the forefront of UAV integration by establishing the world's first municipal airspace management center for autonomous aircraft in shared civilian and military airspace.

The Israeli government officially recognizes the UAV and drone sector as a "national growth engine", driven by global demand, rising geopolitical complexity, and the expansion of dual-use technologies into both military and civilian markets. This recognition reflects Israel's commitment to maintaining global leadership in UAV innovation.

By establishing its operations in Yerucham, SkyTech is strategically leveraging the unique combination of government incentives, national defense priorities, geographic advantages, and access to talent and infrastructure - positioning the Company as a leader in both the Israeli and global UAV and drone markets.

Strategic Alignment: U.S.-Based Parent Company and Israel-Based Subsidiaries

As part of its strategic focus on defense, unmanned systems (UMS) and drone solutions, the Company operates through a dual-national corporate structure, combining its U.S.-based parent entity, SkyTech Orion Global Corp., with its Israeli

subsidiaries.

This integrated framework allows Israeli technological innovation to be directly connected with U.S.-based commercialization and compliance, creating a scalable and regulation-compliant structure for growth in the UMS and defense sectors.

Role of SkyTech Orion Global Corp. (U.S.) -As the Company's parent entity in the United States, SkyTech Orion Global Corp. provides:

	●	Public corporate infrastructure for capital raising, M&A, and strategic partnerships;
	●	Direct access to U.S. and NATO-aligned defense markets;
	●	Local production, customization, and assembly of UMS and drone systems;
	●	Supply to international customers through FMS, G2G, and B2B channels;
	●	Warehousing, logistics, and export compliance in U.S. territory.
	●	Legal and operational framework for U.S.-compliant manufacturing and export;
	●	U.S.-Based Manufacturing and Operational Innovation Center -

In alignment with U.S. policy trends supporting domestic defense manufacturing and secure supply chains, the Company is evaluating the establishment of a U.S.-based Operational Innovation and Manufacturing Center. This initiative is designed to:

	●	Build domestic production capacity for UMS and drone platforms;
	●	Enable direct sales and contracting with the U.S. Department of Defense (DoD) and other defense agencies;
	●	Support distribution and deployment within the United States and allied markets;
	●	Ensure participation in defense procurement programs requiring "Made in USA" compliance;
	●	Strengthen transatlantic supply chain resilience by leveraging Israeli-developed technologies through the Company's U.S.-Israel structure.

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. and Israeli government funding and innovation programs, participation in joint training and operational exercises, and resilient supply chains through the exclusive use of Western-approved components fully compliant with Israeli MOD, U.S. DoD, ITAR, and NDAA standards. The Company positions itself as a trusted and scalable defense partner, supporting growth and sales in Israel, the United States, and across allied global markets.

Market Opportunity

UAVs & Drones - the weapons of future wars

UAVs and drones are transforming modern and future warfare. Conflicts in Ukraine and Israel (e.g., the Iron Swords War), as well as proxy engagements with Iran, have exposed vulnerabilities in traditional defense paradigms and emphasized the strategic value of drones.

In Ukraine, drones are responsible for 60-70% of battlefield damage and most casualties. This shift has created a "zone of continuous death" up to 15 km from the front lines.

Meanwhile, Iran and its proxies have developed advanced drone capabilities and supplied them to nations like Russia. Systems such as the Homa, Dideban, and Shahin-1 are now deployed across the region.

Market Projections¹:

●Aerial Systems: Expected to reach $163.6B by 2030 (CAGR 14.3%).

●Commercial Drones: $57.8B by 2030; Drones-as-a-Service: $179.3B.

Market of Small Drones

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.

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.

Driven by these urgent operational lessons, the global market for tactical small drones and autonomous loitering systems is projected to grow from $6.4 billion in 2025 to $11.25 billion by 2030². Autonomous drones represent the fastest-growing segment due to their flexibility, speed to field, and battlefield effectiveness.

¹ Grandview Research, Feb 2025, Drone Market To Reach $163.60 Billion By 2030 | Research and Markets, May 2025, Drones as a Service Market Forecast Report 2025-2030

² Markets & Markets, April 2025, Small Drones Market Size 2025-2030

Regulatory Environment -in the Defense UAV Sector

Due to the outbreak of the Gaza war and its material impact on the Israeli economy, the Company faced significant operational challenges, which resulted in delays to our planned U.S. launch of the wellness product line. As a result, the Company reassessed its strategic direction in response to market realities and national priorities.

In the last quarter of 2024, the Company began transitioning into the defense and aerospace sector, with a specific focus on the development and production of unmanned aerial vehicles (UAVs), drones, and modular FPV systems.

This new line of activity operates under a distinct and stringent regulatory framework. 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.

In parallel, the Company is developing UAV platforms based solely on certified, Western-approved components, in accordance with applicable international and U.S. defense compliance protocols. This approach ensures compatibility with future expansion into U.S. and NATO markets and aligns with evolving Western regulations prohibiting the use of Chinese-origin components in sensitive defense systems.

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 Cannovation Center Israel Ltd. (renamed SkyTech Orion Ltd. in Q2 2025)

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.

Overview of the Company's Past Operations - Wellness and Plant-Based Pharma

Until the last quarter of 2024, the Company was primarily engaged in the wellness and plant-based pharma solutions. The Company's mission was to leverage the power of nature and scientific research to improve health, wellbeing, and quality of life.

The business activity was primarily composed of the development of science-backed plant-based products aimed at improving quality of life and offering complementary solutions to mitigate side effects associated with medicines, treatments, or unbalanced lifestyles. To support this mission, the Company developed an end-to-end strategy covering the full value chain from research and innovation, product development, infrastructure for manufacturing and production, to distribution, marketing, and sales with the goal of bringing innovative plant-based wellness and pharma products to global markets.

The Company developed a broad portfolio of products based on rigorously researched botanical ingredients, including herbal extracts, tinctures, medicinal mushrooms, vitamins, and minerals. In addition, the Company holds equity interests in iBOT Israel Botanicals Ltd. and MyPlant Bio Ltd., as well as ownership of proprietary formulations and product families in the wellness and plant-based health sector.

However, the outbreak of war in Israel, and its severe and prolonged impact on the Israeli economy particularly in international-facing consumer markets, prevented the Company from proceeding with its planned launch and international sales activities. As a result, the Company experienced material delays in wellness-related product development, fundraising, and marketing efforts, and was unable to fully execute its strategic plans.

In the last quarter of 2024, following an internal review and in light of the evolving business environment, management determined that the existing wellness-focused strategy was no longer sufficient to drive growth.

While the Company is now primarily focused on defense technologies, the wellness-related assets remain under the Company's ownership. These include its equity stakes in iBOT and MyPlant, proprietary formulations, and developed product lines. Management continues to assess how these assets can be realized or leveraged in the future in a manner consistent with the Company's current strategic focus on defense.

Properties

The address of our primary executive office is 5 Rashi St. Yerucham, Israel 8050743. Our website address is www.citrine-global.com.

Through our subsidiary Cannovation Israel Center, in February of 2022, we completed the acquisition of 125,000 sq ft (11,687 sq meters), or approximately three acres, of industrial land in Yerucham, a city in southern Israel, to build the Green Vision Center Israel with Israeli government's support. Under the Development Agreement entered into with the Israel Lands Authority ("ILA"), Cannovation Ltd. will build and develop the Green Vision Center in accordance with by the time frames, terms and conditions of the agreement. Typically, the initial time frame for completing the development is four (4) years, subject to extensions that the ILA may approve. Upon completion of the development within the time frames and other requirements specified in the Development Agreement, then Cannovation Ltd. will be entitled subject to Israeli law to long term lease agreement (49 years) to the land (equivalent to ownership rights as most of the land in Israel is government owned and when marketed usually the developers are granted with development/long lease rights). Our subsidiary, Cannovation Ltd., holds title to the land under the Development Agreement. As part of our strategic focus on the botanical wellness and pharma sector, we plan to establish an Operational Production and Innovation Center dedicated to the development, manufacturing, and commercialization of plant-based wellness and pharma products.

Significant Events

On January 7, 2025, Deer Light Ltd signed an investment agreement with Citrine Global Corp. (the "Company"). under which it committed to invest USD 137,000 in exchange for 13.7 million common shares and warrants to purchase an additional 13.7 million shares at an exercise price of $0.01 per share. The warrants are exercisable by December 31, 2025, or upon uplisting to a national stock exchange, whichever comes first. The investment is to be completed no later than March 15, 2025, and may be partially executed through direct supplier payments. As of March 2025, the investment has been fully completed.

On January 12, 2025, Cannovation Center Israel Ltd. (subsequently renamed SkyTech Orion Ltd.), the Israeli subsidiary of Citrine Global Corp., 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 3.4 million). The grant, in the amount of NIS 12.5 million (approximately USD 3.4 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.

On January 23, 2025, a shareholders' meeting of Cannovation Center Ltd. was held with the participation of all shareholders: CTGL Citrine Global Israel Ltd., holding 60% (a subsidiary of Citrine Global Corp., Beezhome Technologies Ltd. (owned by Ms. Ora Elharar Soffer, the Company's CEO), holding 20%, and Golden Holdings Finance, holding 20%. All shareholders were given the opportunity to support the Company, including by providing personal guarantees for existing loans as well as for obligations under the government grant. CTGL Citrine Global Israel Ltd. expressed its support, and Beezhome Technologies Ltd., through its owner and the Company's CEO, Ms. Ora Elharar Soffer, personally signed guarantees in connection with the existing loans and the government grant commitments, thereby providing the direct backing required to advance the Company's activities. On 29 May 2025 after the period granted to Golden Holdings Finance had passed, and since it did not provide any support or personal guarantees, the Company executed the resolution. Pursuant to this resolution, new shares were allocated to CTGL Citrine Global Israel Ltd., increasing its holdings to 69.5%, and to Beezhome Technologies Ltd., increasing its holdings to 29.5%. As a result, the holdings of Golden Holdings Finance in Cannovation were diluted to approximately 1%.

On March 5, 2025, the Board approved a Directors & Officers (D&O) insurance policy with coverage of USD 3 million at an annual premium of USD 23,750.

On March 26, 2025, the Board approved to increase the share capital of Cannovation Center Israel Ltd. and CTGL Citrine Global Israel Ltd.

On March 31, 2025, Cannovation Center Israel Ltd. increased the credit facility originally entered into in March 2023 with S.R. Accord Ltd. to a total amount of NIS 1,000,000 (approximately $280,000).

In accordance with the framework agreement with S.R. Accord, the facility was supported by formal signatures from the following entities: Citrine Global Corp. CTGL Citrine Global Israel Ltd., Cannovation Center Israel Ltd. (now SkyTech Orion Ltd.), and Beezhome Technologies Ltd., a private company wholly owned by Ms. Ora Elharar Soffer.

In addition, personal guarantees were provided by Ms. Ora Elharar Soffer and Mr. Lior Asher, and the Company together with its affiliates undertook to provide full indemnification to the guarantors for any liability that may arise from the personal guarantee.

On April 8, 2025, in accordance with the grant requirements, a digital bank guarantee in the amount of NIS 625,000 (approximately USD 187,000) was issued by Bank Mizrahi. The guarantee is backed by an unlimited personal guarantee from Ms. Ora Elharar Soffer and a limited personal guarantee from Mr. Meir Aharon, who, through his consulting and construction company, has been engaged to build the SkyTech Center in Yerucham.

On April 8, 2025, a contract was signed with M. Aharon Construction & Projects Ltd. for the construction of the concrete skeleton of the SkyTech Center in Yerucham. The agreement includes exclusivity subject to conditions, with price adjustments permitted in exceptional circumstances such as significant material cost increases or delays in permitting. Mr. Aharon committed to a personal guarantee and bank collateral, and the Company undertook to grant him the right of first refusal, a bonus for his commitment (including options), and full indemnification by Citrine Global, Cannovation, and CTGL.

On May 13, 2025, the Israeli subsidiary Cannovation Center Israel Ltd. changed its name to SkyTech Orion Ltd.

On June 19, 2025, the Board of Directors of SkyTech Orion Ltd. approved the rental of a temporary facility in Yerucham, or in another location as determined by the Company's management, to support the Company's assembly activities and planned sales operations.

On June 19, 2025, the Board of Directors of SkyTech Orion Ltd., through its subsidiary CTGL Citrine Global Israel Ltd. (holding 69.5% of the shares in SkyTech Orion Ltd.), wholly owned by Citrine Global Corp. resolved that, in light of the personal exposure of Ms. Ora Elharar Soffer, the Company's Chairwoman and CEO, who personally invests funds and is the only shareholder continuously supporting the Company by providing services, personal guarantees and financial resources - Beezhome Technologies Ltd. (holding 29.5% of the shares of SkyTech Orion Ltd.), and wholly owned by Ms. Ora Elharar Soffer, shall be granted Anti-Dilution Protection with respect to its holdings in SkyTech Orion Ltd.

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.

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, 2025.

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, 2025 compared to the Three Months Ended March 31, 2024

The following table presents our results of operations for the three months ended March 31, 2025 and 2024

		Three Months Ended
		March 31
		2025				2024
		US Dollars
Research and development expenses			(32,000	)			-
Marketing, general and administrative expenses - related parties			(165,000	)			(233,000	)
Marketing, general and administrative expenses			(41,000	)			(170,000	)
Operating loss			(238,000	)			(403,000	)
Expenses related to convertible loan terms - related parties			-				(10,000	)
Fair value measurement of the IBOT options			-				185,000
Other financing expenses, net			(29,000	)			(24,000	)
Net loss			(267,000	)			(252,000	)

Revenues. We had no revenues in the three months ended March 31, 2025 and 2024.

Research and Development. Research and development expenses for the three months ended March 31, 2025 were $32,000 compared to $0 for the three months ended March 31, 2024. 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, 2025 were $206,000 compared to $403,000 for the three months ended March 31, 2024. The decrease in our in our non-cash share-based compensation expenses.

Financing Expenses, Net. Financing income, net for the three months ended March 31, 2025 were $29,000 compared to financing expenses, net $64,000 for the three months ended March 31, 2024. The decrease in financial expense is primarily attributable to finance expenses related to our convertible loans.

Net Loss. Net loss for the three months ended March 31, 2025 was $267,000 and is attributable to the reasons discussed above.

Financial Condition, Liquidity and Capital Resources

At March 31, 2025, we had current assets of $203,000 compared to total current assets of $140,000 as of December 31, 2024. The increase is mainly attributed to the increase in cash.

At March 31, 2025, we had a cash balance of $67,000 compared to the cash balance of $1,000 as of December 31, 2024.

At March 31, 2025, we had a working capital deficiency of $3,542,000 as compared with a working capital deficiency of $3,464,000 at December 31, 2024.

The following table provides a summary of operating, investing, and financing cash flows for the three months ended March 31, 2025 and 2024, respectively (in US Dollars):

		Three Months Ended
		March 31, 2025				March 31, 2024
Net cash used in operating activities			(57,000	)			(45,000	)
Net cash provided by investment activities			-				-
Net cash provided by Financing Activities			123,000				42,000

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 Netto 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 Company'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 Cannovation Center Israel Ltd. (now 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), with all guarantees and collateral remaining in place.

On August 2025, SR Accord extended the credit facility agreement with Cannovation Center Israel Ltd. (renamed SkyTech Orion Ltd.) until March 31, 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, Cannovation Center Israel Ltd.( 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.

Based on the Company's current cash balances and the access to the Credit Facility described above, the Company believes that it has sufficient funds for its plans for the next twelve months from the issuance of these financial statements. As the Company is embarking on its activities as detailed herein, 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.