Austin, June 30, 2025 (GLOBE NEWSWIRE) -- VORAGO Technologies, a leader in radiation-hardened semiconductor solutions for space, defense, and industrial markets, today announced a formal collaboration with Sidus Space, an innovative space and defense technology company, to validate and advance VORAGO's next-generation microcontroller technology through their Alpha Customer Program. This announcement marks a significant milestone for both organizations. VORAGO Technologies has a long-standing reputation for ...

Sidus Space (SIDU) Q1 2025 Earnings Call May 15, 2025 05:00 PM ET Company Participants Adarsh Parekh - CFOCarol Craig - Founder, CEO & Board Chair Operator Greetings, and welcome to the Cytis State First Quarter twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce Adesh Parak, Chief Financial Officer. Please go ahead. Adarsh Parekh Good evening, everyone, and thank you for jo ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $238,000, a decrease of $812,000 or 77% compared to Q1 2024 revenue of $1,050,000, primarily due to the timing of fixed price milestone contracts and a shift away from legacy contract work [17] - Cost of revenue for Q1 2025 increased 93% to approximately $1,900,000 compared to Q1 2024, driven by satellite and software-related depreciation and higher material and labor inputs [17][18] - Gross profit for Q1 2025 was a loss of $1,600,000 compared to a profit of $84,000 in Q1 2024, reflecting increased depreciation and a shift in contract mix [18] - Net loss for Q1 2025 was $6,400,000 compared to a net loss of $3,800,000 in Q1 2024, attributed to depreciation and scaling costs [20] - Adjusted EBITDA loss for Q1 2025 totaled $4,700,000, a 75% increase in loss compared to $2,700,000 for the same period the prior year [19] Business Line Data and Key Metrics Changes - The company celebrated the successful launch of LISISAT three, marking its third satellite and a step towards building a fully operational data-generating micro constellation [5][6] - The transition from development to commercialization is foundational to the company's 2025 growth strategy, with a focus on dual-use technologies for various mission types [6][8] Market Data and Key Metrics Changes - The company is actively pursuing opportunities related to US manufacturing incentives and increased allied defense spending, particularly in Europe, aligning with its dual-use strategy [14] - Early customer engagements have shown strong interest and encouraging feedback, indicating a positive market response to new product offerings [8] Company Strategy and Development Direction - The company aims to become a vertically integrated, diverse, multi-domain solutions provider, expanding capabilities across air, sea, and terrestrial environments [4][6] - A strategic soft launch of several technologies designed for dual-use applications is underway, with plans to bring multi-domain interoperability to market beginning in 2025 [7][9] - The company is focused on diversifying its technology portfolio and addressable markets, with a commitment to developing breakthrough innovations [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory despite the near-term financial impacts of the transformation, emphasizing the importance of the groundwork laid in Q1 for future revenue growth [22][23] - The company is positioned to begin realizing material revenue growth in the second half of the year, with a focus on completing satellite commissioning and expanding commercialization [13][22] Other Important Information - The company received a notice of allowance for its modular satellite testing platform patent, reinforcing its vertically integrated model and safeguarding intellectual property [12] - The total potential contract value with Lone Star Holdings was amended and extended to $120,000,000, providing strong visibility for future revenue [10] Q&A Session Summary Question: What are the expectations for revenue growth in the second half of the year? - Management indicated that the groundwork laid in Q1 positions the company to begin realizing material revenue growth in the second half of the year [13][22] Question: How is the company addressing the increased costs in the supply chain? - The company is actively pursuing further cost optimization and operating efficiencies to support long-term profitability [21]

Exhibit 99.1 SIDUS SPACE REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE Cape Canaveral, FL – May 15, 2025 – Sidus Space (NASDAQ: SIDU) (the "Company" or "Sidus"), an innovative, agile space mission enabler, today announced its financial results for the first quarter ended March 31, 2025, and provided a business update. The Company is scheduled to host a conference call and webcast today, Thursday, May 15, at 5:00 p.m. ET. "Q1 was a pivotal quarter for Sidus as we launched LizzieSa ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q1 2025, showing a significant revenue decrease and an increased net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a decrease in total assets to $34.0 million from $37.7 million at year-end 2024 Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $16,516,929 | $22,252,552 | | Cash | $11,711,301 | $15,703,579 | | **Total Assets** | **$33,984,265** | **$37,745,567** | | **Total Current Liabilities** | $14,229,336 | $14,209,502 | | Asset-based loan liability | $9,794,642 | $6,902,636 | | **Total Liabilities** | **$14,229,336** | **$14,209,502** | | **Total Stockholders' Equity** | **$19,754,929** | **$23,536,065** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a 77% year-over-year revenue decrease, a gross loss of $1.6 million, and a 68% wider net loss Consolidated Statements of Operations Highlights (Unaudited) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | $238,494 | $1,050,155 | | **Gross Profit (Loss)** | $(1,628,478) | $84,064 | | **Net Loss from Operations** | $(6,072,920) | $(3,561,519) | | **Net Loss** | **$(6,414,627)** | **$(3,810,500)** | | **Basic and Diluted Loss per Share** | $(0.35) | $(1.42) | | Weighted Avg. Shares Outstanding | 18,228,267 | 2,719,812 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to $19.8 million as of March 31, 2025, driven by a net loss partially offset by capital from warrant exercises - The ending balance of stockholders' equity was **$19,754,929** as of March 31, 2025[13](index=13&type=chunk) - Key changes during Q1 2025 included a **net loss of $6,414,627** and the issuance of Class A common stock for warrant exercises, which added **$2,381,247 to equity**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company used $3.2 million in cash from operations and $3.0 million in investing, resulting in a net cash decrease of $4.0 million Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Cash used in Operating Activities** | $(3,207,213) | $(5,418,294) | | **Net Cash used in Investing Activities** | $(2,978,308) | $(2,230,118) | | **Net Cash provided by Financing Activities** | $2,193,243 | $12,604,064 | | **Net change in cash** | $(3,992,278) | $4,955,652 | | **Cash, end of period** | **$11,711,301** | **$6,171,759** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business verticals, consolidation of an entity, an increased loan facility, stock grants, and high customer concentration - The company's business is structured across several verticals: Satellite Design and Manufacturing, Technology Design and Integration, AI-driven Space-based Data Solutions, Mission Planning Operations, AI/ML Products and Services, and Space and Defense Manufacturing[20](index=20&type=chunk) - The asset-based revolving line of credit was increased from $7 million to **$10.5 million** in January 2025, with an outstanding balance of **$9.8 million** as of March 31, 2025[67](index=67&type=chunk) - On February 1, 2025, the company granted **265,000 stock options** and **265,000 Restricted Stock Units (RSUs)** to employees[86](index=86&type=chunk)[90](index=90&type=chunk) Customer Concentration (Q1 2025) | Customer | Percentage of Revenue | Percentage of Accounts Receivable | | :--- | :--- | :--- | | Bechtel | 25% | 13% | | Craig Technologies | 23% | 58% | | Xiomas Technologies | 15% | 2% | | **Total (as a group)** | **63%** | **82%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 77% revenue decline due to contract timing, an increased net loss, and a decrease in cash to $11.7 million [Overview of Operations and Key Achievements](index=25&type=section&id=Overview%20of%20Operations%20and%20Key%20Achievements) Sidus Space operates as a vertically integrated space mission enabler, highlighted by the successful launch of three LizzieSat® satellites - Successfully launched LizzieSat®-1, LizzieSat®-2, and LizzieSat®-3, establishing a **micro-constellation** for delivering near real-time data solutions[132](index=132&type=chunk) - Signed an extended preliminary contract valued at **$120M** to design and build a lunar fleet of Data Storage Spacecraft for Lonestar Data Holdings[132](index=132&type=chunk) - Received **FCC approval** for operation of a micro constellation and for Space-to-Space Data Relay Capability for LizzieSat®[132](index=132&type=chunk) - The LizzieSat® platform is differentiated by its ability to collect coincident data from multiple sensors and analyze data on-orbit using the **Sidus Orlaith™ AI ecosystem**[133](index=133&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell 77% due to milestone contract timing, while costs rose 93% from increased satellite depreciation Financial Performance Comparison (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $238,494 | $1,050,155 | $(811,661) | (77)% | | **Cost of revenue** | $1,866,972 | $966,091 | $900,881 | 93% | | **Gross Profit (Loss)** | $(1,628,478) | $84,064 | $(1,712,542) | (2037)% | | **SG&A expense** | $4,444,442 | $3,645,583 | $798,859 | 22% | | **Net loss** | $(6,414,627) | $(3,810,500) | $(2,604,127) | 68% | - The increase in SG&A was primarily due to a **$1.2 million rise in labor costs and benefits**, which included increased headcount, equity-based compensation accruals, and severance costs[172](index=172&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on external financing, with cash at $11.7 million and working capital at $2.3 million as of March 31, 2025 Working Capital Summary | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current assets | $16,516,929 | $22,252,552 | | Current liabilities | $14,229,336 | $14,209,502 | | **Working capital** | **$2,287,593** | **$8,043,050** | Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(3,207,213) | $(5,418,294) | | Cash used in investing activities | $(2,978,308) | $(2,230,118) | | Cash provided by financing activities | $2,193,243 | $12,604,064 | - Cash on hand decreased from **$15.7 million** at the end of 2024 to **$11.7 million** at the end of Q1 2025[179](index=179&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies involve significant judgment in revenue recognition, inventory valuation, and stock option valuation - Critical accounting policies include **Revenue Recognition, Inventory, Credit Losses, Lease Accounting, and Stock Option and Warrant Valuation**[192](index=192&type=chunk) - Revenue from manufacturing contracts is recognized over time using the **percentage-of-completion method**, while revenue from satellite contracts with milestones is recognized at the **point in time a milestone is met**[193](index=193&type=chunk)[194](index=194&type=chunk) - The company is an "emerging growth company" and has elected to use the **extended transition period** for complying with new or revised accounting standards under the JOBS Act[204](index=204&type=chunk)[205](index=205&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from this disclosure as a "smaller reporting company" under SEC rules - As a **"smaller reporting company,"** Sidus Space is exempt from the disclosure requirements of this item[207](index=207&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective**[209](index=209&type=chunk) - **No material changes** to internal control over financial reporting were identified during the first quarter of 2025[210](index=210&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any legal proceedings that would materially impact its business or financial condition - The company is **not currently involved in any material litigation**[212](index=212&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors disclosed in the 2024 Annual Report on Form 10-K - There have been **no material changes in risk factors** from those disclosed in the 2024 Annual Report on Form 10-K[213](index=213&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the reporting period - **No unregistered sales of equity securities** were made during the quarter[214](index=214&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - **No directors or officers adopted or terminated** any Rule 10b5-1 trading arrangements during the quarter[217](index=217&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including officer certifications and Inline XBRL files - The exhibits filed include **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906, as well as Inline XBRL documents[218](index=218&type=chunk)

Industry Overview - The global agriculture drones market is projected to grow from $2.01 billion in 2024 to $8.03 billion by 2029, indicating significant growth potential driven by the adoption of aerial data collection tools in agriculture [1] - The cereals and grains segment is experiencing substantial growth, with drones playing a crucial role in optimizing yields through aerial surveys, crop health monitoring, and soil condition assessments [2] - The overall agriculture drone market is expected to grow from $6.10 billion in 2024 to $23.78 billion by 2032, at a CAGR of 18.5%, fueled by demand for precision agriculture and advancements in drone technology [4] Company Developments - ZenaTech, Inc. has received FAA Part 137 approval for its ZenaDrone 1000, allowing it to conduct commercial agricultural operations, including crop spraying and precision agriculture [2][3] - ZenaTech plans to utilize a Drone as a Service (DaaS) model to sell its solutions, targeting larger commercial farms and agribusinesses [2] - Unusual Machines, Inc. reported a fourth-quarter revenue of over $2.0 million, marking a 31% increase quarter-over-quarter, with total revenue for FY2024 reaching $5.65 million, exceeding its target by 13% [11] Technological Advancements - The ZenaDrone 1000 features advanced technology, including AI, sensors, and purpose-built attachments for crop spraying, designed for stable flight and heavy lift capabilities [5][6] - Sidus Space has unveiled a near real-time vessel detection and classification capability through its LizzieSat® satellite platform, enhancing space-based maritime intelligence [12][13] - AgriFORCE Growing Systems Ltd. has made progress in its Radical Clean Solutions division, receiving a U.S. patent for a chemical-free solution to reduce mold and extend the shelf life of produce [14][15][16]

Financial Performance - Total revenue for the year ended December 31, 2024, was approximately $4.7 million, a decrease of $1.3 million or 22% compared to 2023[5] - Cost of revenue increased 42% to approximately $6.1 million for the year ended December 31, 2024, driven by higher depreciation and material costs[6] - Gross profit for the year ended December 31, 2024, was a loss of approximately $1.5 million, resulting in a gross profit margin of negative 31%[8] - Net loss for the year ended December 31, 2024, was $17.5 million, compared to a net loss of $14.3 million in 2023, representing a 22% increase in loss[11] - Adjusted EBITDA loss for the year ended December 31, 2024, totaled $12.9 million, a 19% increase in loss compared to the prior year[10] - Selling, general, and administrative expenses for the year ended December 31, 2024, totaled approximately $14.2 million, consistent with the prior year[9] Assets and Funding - Current assets increased by approximately $13.0 million, or 142%, to $22.3 million as of December 31, 2024, primarily due to increased cash balance[13] - The company raised $37 million in funding and ended 2024 with a cash balance of $15.7 million, up from $1.2 million in 2023[3][12] Strategic Initiatives - LizzieSat-3 was launched in March 2025 at a total cost 25% less than LizzieSat-2 and 45% less than LizzieSat-1, demonstrating improved capital efficiency[7] - The company announced a strategic partnership with Reflex Aerospace to enhance its presence in global markets and deliver high-performance solutions[3]

Financial Data and Key Metrics Changes - Total revenue for the 12 months ending December 31, 2024, was approximately $4.7 million, a decrease of $1.3 million, or 22%, compared to the previous year [36] - Cost of revenue increased 42% for the same period to approximately $6.1 million, driven by higher depreciation costs and increased material and labor expenses [37] - Gross profit for the 12 months ended December 31, 2024, decreased 31% to a loss of approximately $1.5 million, with a gross profit margin of negative 31% [38] - Net loss for the 12 months ended December 31, 2024, was $17.5 million, compared to a net loss of $14.3 million in 2023 [42] - Cash balance increased to $15.7 million as of December 31, 2024, from $1.2 million in the previous year [42] Business Line Data and Key Metrics Changes - The company transitioned from a primarily manufacturing-driven revenue model to a scalable, high-margin data and technology services business [34] - The strategic shift included strengthening the pipeline of opportunities with an estimated $200 million in identified opportunities [36] - Selling general and administrative expenses for the 12 months ended December 31, 2024, totaled approximately $14.2 million, consistent with the prior year [39] Market Data and Key Metrics Changes - The company received approval from the U.S. Federal Communications Commission for a micro-constellation of remote sensing satellites, enhancing its operational capabilities [15] - Partnerships with international firms like Reflex Aerospace and WarpSpace were established, expanding the company's global footprint [18] Company Strategy and Development Direction - The company aims to transition from a trusted supplier to a strategic platform provider, focusing on higher-margin revenue streams [11] - The strategy includes diversifying revenue sources to mitigate risks associated with macroeconomic shifts and technological disruptions [21] - The company is focused on executing its long-term strategy, scaling AI-driven space data services, and demonstrating value through operational excellence [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disconnect between operational milestones and stock performance, attributing it to broader market conditions and macroeconomic forces [60] - The company is committed to creating value for shareholders and engaging with the investment community to communicate progress [61] - The focus for 2025 includes achieving key satellite and AI milestones, expanding capabilities, and reinforcing core pillars of technology, AI, and space [49] Other Important Information - The company raised $37 million in funding to support its growth phase and ended 2024 with a cash balance of $15.7 million [25] - The implementation of SAP in 2024 is expected to enhance operational efficiencies across the organization [22] Q&A Session Summary Question: What factors contribute to the disconnect between operational milestones and stock performance? - Management acknowledged the frustration of investors and noted that stock performance is influenced by external factors, including broader market conditions and sector-specific trends [60] Question: What is Citus' approach to capital strategy moving forward? - The company requires upfront investment to develop capabilities but anticipates needing significantly less external capital over time as it shifts to a higher-margin data and service business [64]

Financial Data and Key Metrics Changes - Total revenue for the 12 months ending December 31, 2024, was approximately $4.7 million, a decrease of $1.3 million, or 22%, compared to the previous year [36] - Cost of revenue increased 42% for the same period to approximately $6.1 million, driven by higher depreciation costs and increased material and labor expenses [37] - Gross profit for the 12 months ended December 31, 2024, decreased 31% to a loss of approximately $1.5 million, with a gross profit margin of negative 31% [38] - Net loss for the 12 months ended December 31, 2024, was $17.5 million, compared to a net loss of $14.3 million in 2023 [42] - Cash balance increased to $15.7 million as of December 31, 2024, compared to $1.2 million in the previous year [42] Business Line Data and Key Metrics Changes - The company transitioned from a primarily manufacturing-driven revenue model to a scalable, high-margin data and technology services business [34] - The strategic shift included strengthening the pipeline of opportunities with an estimated $200 million in identified opportunities [36] - Selling general and administrative expenses for the 12 months ended December 31, 2024, totaled approximately $14.2 million, consistent with the prior year [39] Market Data and Key Metrics Changes - The company received approval from the U.S. Federal Communications Commission for a micro-constellation of remote sensing satellites, enhancing its operational capabilities [15] - Partnerships with international firms like Reflex Aerospace and WarpSpace were established, expanding the company's global footprint [18] Company Strategy and Development Direction - The company aims to transition from a trusted supplier to a strategic platform provider, focusing on higher-margin revenue streams [11] - The strategy includes diversifying revenue sources to mitigate risks associated with macroeconomic shifts and technological disruptions [21] - The company is focused on executing its long-term strategy, scaling AI-driven space data services, and demonstrating value through operational excellence [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disconnect between operational milestones and stock performance, attributing it to broader market conditions and macroeconomic forces [60] - The company is committed to creating value for shareholders and engaging with the investment community to communicate progress [61] - The focus for 2025 includes achieving key satellite and AI milestones, expanding capabilities, and reinforcing core pillars of technology, AI, and space [49] Other Important Information - The company raised $37 million in funding to support its growth phase and ended 2024 with a strong cash position [25] - The implementation of SAP in 2024 is expected to enhance operational efficiencies across the organization [22] Q&A Session Summary Question: What factors contribute to the disconnect between operational milestones and stock performance? - Management understands investor frustration and attributes the disconnect to external factors like market conditions and macroeconomic forces, despite achieving significant operational milestones [59][60] Question: What is Citus' approach to capital strategy moving forward? - The company requires upfront investment for scaling operations but aims to reach a self-sustaining point where ongoing capital needs are significantly lower, focusing on maximizing shareholder value [63][66]

Satellite Launch and Technology - Sidus Space successfully launched three hybrid, additively manufactured LizzieSat® satellites equipped with advanced AI edge-computing capabilities in just over 12 months[282]. - The company received FCC approval in October 2024 to operate a micro constellation of remote sensing, multi-mission satellites in Low Earth Orbit (LEO)[283]. - Planned enhancements for the LizzieSat® platform include an AI processor capable of handling 248 trillion operations per second (TOPS) and an upgraded payload processor with speeds up to 12 Gb/s[283]. - The LizzieSat® design enables simultaneous on-orbit data collection from multiple sensors, enhancing flexibility for various mission requirements[288]. - The integration of automated identification system (AIS) technology into the LizzieSat® constellation allows for unique vessel tracking and monitoring solutions[314]. - The company plans to launch four to six additional LizzieSat® satellites ranging from 100kg to 400kg over the next 24 months[317]. - The FeatherEdge™ processor was activated in Q2 2024, enabling near real-time intelligence from earth observation data[314]. Manufacturing and Operations - Sidus Space operates a 35,000-square-foot manufacturing facility that supports the manufacturing, testing, and assembly of space-grade hardware[282]. - The company has an approximately 10,000 square-foot reconfigurable avionics lab for producing mission-critical components[292]. - Sidus Space's 3D printing technology reduces production costs and lead times while producing parts that are stronger and lighter than traditional materials[295]. - The company has extensive experience in manufacturing, assembly, and testing of electronic systems, ensuring high-quality production for mission-critical applications[296]. - The company aims to expand its space hardware operations from one shift to two and a half shifts to meet growing demand[319]. Revenue and Financial Performance - Revenue for the year ended December 31, 2024, was $4,672,646, a decrease of 22% from $5,962,785 in 2023[352]. - Cost of revenue increased by 42% to $6,141,657 in 2024 from $4,321,482 in 2023[352]. - Gross profit turned into a loss of $1,469,011 in 2024, compared to a profit of $1,641,303 in 2023, representing a change of 190%[352]. - The gross profit percentage dropped to -31% in 2024 from 28% in 2023[352]. - Net loss for 2024 was $17,524,056, a 22% increase from the net loss of $14,328,348 in 2023[352]. - Total revenue for the twelve months ended December 31, 2024 decreased by approximately $1.3 million, or 23%, to approximately $3.9 million compared to $5.0 million for the same period in 2023[353]. - Adjusted EBITDA for the twelve months ended December 31, 2024 was approximately $(12.9) million, a decline of 19% from approximately $(10.9) million in 2023[360]. Market and Industry Insights - The global space economy is projected to reach $1.8 trillion by 2035, growing from $630 billion in 2023, with a CAGR of 9%[341]. - The small satellite market is expected to grow at a CAGR of 16.4%, reaching approximately $30.6 billion by 2034[342]. - The small satellite launch market is projected to grow by over 279% to reach $28.4 billion[346]. Strategic Partnerships and Business Model - The company offers a subscription-based Data-as-a-Service model utilizing the Orlaith AI ecosystem, providing timely data insights for applications in environmental monitoring and security[289]. - Sidus Space's vertically integrated model allows for diverse revenue generation opportunities, mitigating risks associated with macroeconomic shifts[285]. - The company has established strategic partnerships with international partners to support the Sidus International Space Center, enhancing its market presence[308]. - The company is focused on vertical integration to enhance the capabilities of its multi-mission satellite constellation, ensuring cost-effective solutions for customers[310]. Accounting and Compliance - Revenue is recognized based on the percentage-of-completion method for fixed price contracts, reflecting total costs incurred to date[382]. - Fixed price contracts related to satellite business recognize revenue upon meeting milestone payments, with nonrefundable progress payments retained if the contract is terminated[383]. - The company accounts for most contracts as performance obligations satisfied over time, with amounts recognized as revenue reflected as contract assets until invoiced[384]. - The provision for expected credit losses on trade receivables is based on historical information and customer solvency, calibrated with forward-looking information[386]. - Operating leases are recognized as right-of-use assets and liabilities on the balance sheet, with lease payments recognized on a straight-line basis over the lease term[391]. - The company uses the Black-Scholes option-pricing model for valuing stock options, requiring significant assumptions that may affect future equity-based compensation[393]. - The company is utilizing the extended transition periods under the JOBS Act for complying with new accounting standards, which may affect comparability with other companies[395]. - The company remains an "emerging growth company" until total annual gross revenues exceed $1.07 billion or other specified conditions are met[396]. - The company is not required to provide market risk disclosures as it qualifies as a "smaller reporting company" under the Exchange Act[397].