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 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]

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].

Financial Data and Key Metrics Changes - The company reported its third quarter 2024 earnings, with specific financial metrics to be discussed later in the call [3][4]. Business Line Data and Key Metrics Changes - Detailed performance across various business lines will be provided in subsequent sections of the call [3]. Market Data and Key Metrics Changes - Market conditions and specific metrics related to different markets will be addressed during the call [3]. Company Strategy and Development Direction and Industry Competition - The company will outline its strategic initiatives and competitive positioning within the industry as the call progresses [3]. Management's Comments on Operating Environment and Future Outlook - Management will provide insights into the current operating environment and future expectations, highlighting potential risks and uncertainties [4][5]. Other Important Information - The company emphasizes the importance of understanding the risks associated with forward-looking statements and encourages listeners to refer to SEC filings for more details [5]. Q&A Session All Questions and Answers Question: What are the expectations for future revenue growth? - Management will address revenue growth expectations and any related strategic initiatives during the Q&A segment [3].

Financial Performance - Q3 2024 revenues reached $1.9 million, representing a 90% increase year-over-year[1] - Q3 2024 gross profit was approximately $38,000, a 140% increase year-over-year[1] - Q3 2024 EBITDA loss improved by 33% to $2.5 million compared to the same period last year[1] - Adjusted EBITDA loss for Q3 2024 was $2.5 million, compared to a loss of $3.7 million in Q3 2023, indicating a 33% improvement[8] - Total revenue for Q3 2024 was $1,868,958, a significant increase from $985,520 in Q3 2023, representing an increase of 89.5%[16] - Gross profit for Q3 2024 was $38,171, compared to a loss of $96,281 in Q3 2023, indicating a turnaround in profitability[16] - Net loss for Q3 2024 was $3,902,589, slightly improved from a net loss of $4,082,085 in Q3 2023[16] - Basic and diluted loss per common share improved to $(0.93) in Q3 2024 from $(5.49) in Q3 2023[16] Expenses and Liabilities - Selling, general, and administrative expenses decreased by 15% to approximately $3.2 million[1] - Operating expenses for Q3 2024 were $3,210,069, down from $3,778,460 in Q3 2023, a decrease of 15%[16] - Current liabilities decreased to $13,819,315 in 2024 from $12,219,356 in 2023, a reduction of 13.1%[15] - Cash paid for interest increased significantly to $524,015 from $20,353 in the prior year, highlighting a rise in interest expenses[17] - Stock-based compensation decreased to $236,040 from $845,029, reflecting a reduction in equity compensation expenses[17] Assets and Equity - Total assets increased to $23,096,815 in 2024 from $19,351,112 in 2023, reflecting a growth of 19.1%[15] - Total stockholders' equity increased to $9,277,500 in 2024 from $7,131,756 in 2023, a growth of 30.1%[15] - Cash balance increased to $1,231,401 in 2024 from $1,216,107 in 2023, showing a slight growth of 1.3%[15] - Accounts receivable rose to $1,495,340 in 2024 from $1,175,077 in 2023, an increase of 27.3%[15] Cash Flow - Cash provided by financing activities totaled $15,406,183, up from $14,561,964 in the previous year, reflecting a positive cash flow from financing[17] - Net cash used in operating activities was $10,288,228, compared to $9,954,980 in 2023, showing a higher cash outflow from operations[17] - The company reported a decrease in cash at the end of the period to $1,231,401 from $1,597,331 in the previous year[17] - Total cash used in investing activities was $5,102,661, slightly down from $5,304,912 in 2023, indicating stable investment spending[17] Contracts and Projects - Sidus Space was selected to build a 6 satellite Lunar constellation for Lonestar Data Holdings[2] - The company secured a $2 million contract from Craig Technologies for U.S. Navy equipment[4] - FCC approval was granted for the operation of a micro constellation of satellites in Low Earth Orbit[4] - The LizzieSat™-2 satellite is scheduled for launch no earlier than December 2024[4] Other Financial Metrics - Net loss for September 2024 was $11,849,173, compared to a net loss of $11,024,725 in 2023, indicating an increase in losses[17] - Accounts receivable decreased by $320,263, contrasting with an increase of $258,493 in the previous year, suggesting improved collection efforts[17] - Proceeds from the issuance of common stock units were $13,742,311, down from $14,788,121, indicating a decline in capital raised through equity[17]

LizzieSat™ Satellite Platform and Capabilities - The company's LizzieSat™ satellite platform achieved first launch mission success in March 2024, marking a significant milestone in its space mission capabilities[94] - LizzieSat™ is equipped with FeatherEdge™ AI for on-orbit processing, enabling efficient data processing and delivery, including visual spectrum, methane, and AIS data collection[92] - LizzieSat™ platform enhancements include a processor capable of handling 100 trillion operations per second (TOPS) and upgraded payload processing up to 12 Gb/s[95] - LizzieSat™ offers Constellation-as-a-Service (CaaS), allowing multiple customers to share satellite and constellation resources for Earth Observation (EO) and Non-Earth Imaging (NEI) data collection[101] - Integrated Edge AI software into LizzieSat-1, with next-gen Edge AI software planned for LizzieSat-3, enhancing geospatial data processing and rapid data transfer[112] - Successfully launched LizzieSat multi-mission satellite in Q1 2024 and activated FeatherEdge AI platform in Q2 2024 for near real-time intelligence[126][127] - LizzieSat-1 successfully completed NASA Stennis Space Center ASTRA primary mission objectives, leading to additional funding for new critical mission objectives over the next 12 months[109] - Completed LizzieSat-2 build, planned for Q4 2024 launch, and nearing completion of LizzieSat-3, planned for Q1 2025 launch[111] - Developed Sidus LVDS Switch Card, enhancing payload processor capabilities for LizzieSat-2 and LizzieSat-3[118] Regulatory Approvals and Licenses - The company received FCC approval in October 2024 to operate a micro constellation of remote sensing, multi-mission satellites in Low Earth Orbit (LEO)[95] - Received FCC approval for a micro constellation of remote sensing, multi-mission satellites in Low Earth Orbit (LEO)[117] - Received NOAA Tier 1 license for LizzieSat1-3 operations, enabling remote-sensing space system deployment[128] Manufacturing and Technology - The company operates a 35,000-square-foot manufacturing facility in Florida, ISO 9001:2015 and AS9100 Rev. D certified, supporting space and defense hardware production[93] - The company's 3D printing technology reduces satellite production costs and lead times while maintaining structural integrity, with a Technology Readiness Level (TRL) of TRL-9 for space applications[107] Space-as-a-Service and Business Model - The company's Space-as-a-Service model reduces customer capital expenditures by eliminating the need for satellite design, development, and manufacturing[98] - The company's FeatherEdge AI/ML solution enhances on-orbit data processing, enabling autonomous satellite operations and cloud-based data processing for space applications[103] - Signed a multi-year and multi-launch agreement with Space-X, offering customers reliable and cost-effective launch services with a steady cadence of launches[110] - Signed agreement with Neuraspace for Space Traffic Management and LEOP support, enhancing constellation operation capabilities[113] Financial Performance - Revenue increased by 90% to $1.87 million in Q3 2024 compared to $985,520 in Q3 2023[139] - Non-related party revenue increased by 131% to $1.8 million in Q3 2024, driven by fixed-price milestone contracts and satellite-related revenue[140] - Cost of revenue increased by 69% to $1.83 million in Q3 2024, primarily due to a mix of contracts and increased depreciation expense in satellite-related business[141] - Gross profit improved by 140% to $38,171 in Q3 2024 from a gross loss of $96,281 in Q3 2023, driven by higher-margin satellite-related sales[143] - Selling, General, and Administrative expenses decreased by 15% to $3.21 million in Q3 2024, primarily due to reduced professional fees and payroll expenses[144][145] - Net loss decreased by 4% to $3.9 million in Q3 2024 compared to $4.08 million in Q3 2023[139] - Total revenue for the nine months ended September 30, 2024, decreased by 17% to $3.85 million, driven by a change in contract mix and lower satellite-related revenue[148][149] - Cost of revenue for the nine months ended September 30, 2024, increased by 38% to $4.57 million, primarily due to a mix of contracts and increased depreciation expense[150] - Adjusted EBITDA improved by 33% to a loss of $2.45 million in Q3 2024 compared to a loss of $3.67 million in Q3 2023, driven by reduced capital raise expenses and increased depreciation[158] - Mission Operations Support expense increased by $531,000 to $604,000 for the nine months ended September 30, 2024, due to ground support for the first satellite launched in March 2024[154] - Net loss for the nine months ended September 30, 2024 was $11.8 million, a 7% increase from $11.0 million in the same period in 2023[160] - Adjusted EBITDA improved by 9% to $(8.3) million in the nine months ended September 30, 2024 compared to $(9.1) million in the same period in 2023[160] Cash Flow and Financing - Current liabilities increased by 13% to $13.8 million as of September 30, 2024 from $12.2 million as of December 31, 2023, primarily due to an increase in asset-based loan liability[164] - Cash used in operating activities was $10.3 million for the nine months ended September 30, 2024, a 3% increase from $10.0 million in the same period in 2023[164] - Cash provided by financing activities was $15.4 million for the nine months ended September 30, 2024, a 6% increase from $14.6 million in the same period in 2023[164] - Cash on hand decreased by 23% to $1.2 million as of September 30, 2024 from $1.6 million as of December 31, 2023[164] - The company completed a public offering in March 2024, issuing 1,321,000 shares at $6.00 per share for net proceeds of $7.1 million[172] - The company completed a public offering in January 2024, issuing 1,181,800 shares at $4.50 per share and pre-funded warrants for net proceeds of $5.0 million[172] Revenue Recognition and Contracts - Revenue from fixed price manufacturing contracts is recognized using the percentage-of-completion method based on costs incurred[178] - Revenue from fixed price contracts related to satellite payloads with milestone payments is recognized when milestones are met[179] Regulatory and Reporting Exemptions - The company is evaluating the benefits of relying on exemptions and reduced reporting requirements under the JOBS Act as an "emerging growth company"[188] - The company intends to rely on exemptions including not providing an auditor's attestation report on internal controls over financial reporting under Section 404(b) of the Sarbanes-Oxley Act[188] - The company will remain an "emerging growth company" until it reaches $1.07 billion in total annual gross revenues, the fifth anniversary of its IPO, issues over $1 billion in nonconvertible debt, or is deemed a large accelerated filer by the SEC[188] - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a "smaller reporting company" under Rule 12b-2 of the Exchange Act[189] Geospatial Intelligence and Mission Support - Expanded geospatial intelligence capabilities following NGA award and NASA Lunar Terrain Vehicle Services Contract[116] - Achieved flight heritage for FeatherEdge edge computing hardware and software solutions[115]

Company Overview - Sidus Space (NASDAQ: SIDU) is a space mission enabler that provides flexible and cost-effective solutions, including custom satellite design, payload hosting, mission management, space manufacturing, and AI-enhanced space-based sensor data-as-a-service [4] - The company is committed to its mission of "Space Access Reimagined™," focusing on rapid innovation and optimization of space system and data collection performance [4] - Sidus Space has a demonstrated space heritage, including the manufacturing and operation of its own satellite and sensor system, LizzieSat™, serving government, defense, intelligence, and commercial clients globally [4] Event Participation - Sidus Space will participate in The ThinkEquity Conference on October 30, 2024, at the Mandarin Oriental Hotel in New York, which gathers institutional investors, corporate clients, and industry professionals [1][3] - CEO Carol Craig will present on how Sidus serves as a mission enabler, with the presentation scheduled for 4 p.m. ET [2] - The conference will also feature one-on-one investor meetings throughout the day, and the presentation will be live-streamed [2] ThinkEquity Conference Insights - ThinkEquity is a boutique investment bank that has collectively financed over $50 billion in public and private capital raises, restructurings, and mergers and acquisitions [3] - Previous conferences have featured over 70 company presentations, 700+ attendees, and 500+ one-on-one meetings, providing a valuable platform for companies and investors to connect [3]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was just under $1 million, a decrease of approximately $440,000 compared to Q2 2023, primarily due to the timing of fixed price milestone contracts and fewer satellite-related revenue payments [25] - Cost of revenue increased 105% to approximately $1.8 million in Q2 2024, driven by a mix of contracts with higher material expenses and increased depreciation costs [26] - Gross profit decreased approximately $1.35 million, resulting in a net loss of approximately $841,000 for Q2 2024, compared to a gross profit of approximately $508,000 in Q2 2023 [26] - Gross profit margin was negative 91% for Q2 2024, compared to a positive 37% in Q2 2023, influenced by the timing of satellite-related payments and higher depreciation costs [27] - Adjusted EBITDA loss for Q2 2024 totaled $3.2 million, compared to a loss of $2.8 million in the same period last year [28] - Net loss for Q2 2024 was $4.1 million, compared to a net loss of $3.5 million in Q2 2023 [28] - Cash as of June 30, 2024, was $1.4 million, up from $1.2 million at December 31, 2023 [29] Business Line Data and Key Metrics Changes - The company is currently generating revenue and has been for over a decade, with a growing pipeline across all business lines [7] - LizzieSat-1 has performed well in its first five months in orbit, meeting mission objectives and activating sensors, laying a solid foundation for future growth [8] - The company is on target for two launches in the next six to nine months, with the first launch scheduled for Q4 2024 [9] Market Data and Key Metrics Changes - The space economy is evolving from a niche sector to a mainstream industry, generating value across various fields and addressing global challenges [5] - The company has approximately $100 million in its pipeline and over 30 active customers across multiple divisions [18] Company Strategy and Development Direction - The company aims to expand its constellation and has plans for LizzieSat-2 and 3, which are in the final stages of production [8] - The company is focused on a multi-mission constellation and has secured a multi-launch agreement with SpaceX [30] - The company is part of NASA's Lunar Terrain Vehicle Services Award, indicating a strategic focus on lunar missions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the higher revenue streams anticipated from satellite manufacturing and space data services [31] - The company is committed to restoring shareholder value and expanding into sectors such as agriculture, maritime, and oil and gas [30] Other Important Information - The company has signed an MOU with NamaSys Bahrain to establish Sidus Arabia, a joint venture for satellite manufacturing [19] - The company is investing in next-generation satellite designs, including a VPX open architecture system [20] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Performance - Total revenue for Q2 2024 was approximately $930,000, a decrease of $440,000 (32.0%) compared to Q2 2023[5] - Sidus Space reported total revenue of $927,570 for Q2 2024, a decrease of 32.4% compared to $1,370,409 in Q2 2023[15] - Adjusted EBITDA loss for Q2 2024 was $3.2 million, compared to a loss of $2.8 million in Q2 2023[7] - Net loss for Q2 2024 was $4.1 million, compared to a net loss of $3.5 million in Q2 2023[7] - The net loss from operations for Q2 2024 was $3,897,915, compared to a net loss of $3,052,705 in Q2 2023, indicating a 27.7% increase in losses[15] - Net loss for the six months ended June 30, 2024, was $7,946,584, compared to a net loss of $6,942,640 in 2023, representing an increase of approximately 14.4%[16] Expenses - Selling, general and administrative expenses decreased by $500,000 (13.9%) to approximately $3.1 million from $3.6 million in Q2 2023[5] - Cost of revenue increased by 105% to approximately $1.8 million, up from $860,000 in Q2 2023[6] - The cost of revenue increased significantly to $1,768,671 in Q2 2024, compared to $862,632 in Q2 2023, resulting in a gross loss of $841,101[15] - Operating expenses for Q2 2024 were $3,056,814, down from $3,560,482 in Q2 2023, reflecting a reduction of 14.1%[15] - The company incurred increased depreciation expenses in 2024 due to the launch and deployment of satellite fixed assets and related software[14] Assets and Liabilities - Total current assets decreased to $8,303,412 in 2024 from $9,202,310 in 2023, a decline of 9.8%[14] - Total liabilities decreased significantly to $8,735,296 in 2024 from $12,219,356 in 2023, a reduction of 28.5%[14] - Stockholders' equity increased to $13,104,077 in 2024 from $7,131,756 in 2023, reflecting an increase of 83.8%[14] Cash Flow - Cash increased to $1,444,369 in 2024 from $1,216,107 in 2023, representing a growth of 18.8%[14] - Cash used in operating activities was $7,570,068 for 2024, up from $6,139,261 in 2023, indicating a year-over-year increase of about 23.4%[16] - Cash used in investing activities totaled $4,067,741 in 2024, compared to $2,614,169 in 2023, reflecting a significant increase of approximately 55.5%[16] - Proceeds from the issuance of common stock units were $13,742,311 in 2024, slightly down from $14,787,511 in 2023, a decrease of about 7.1%[16] - Net cash provided by financing activities was $11,866,071 in 2024, compared to $14,322,020 in 2023, showing a decline of approximately 17.1%[16] - The ending cash balance as of June 30, 2024, was $1,444,369, down from $7,863,849 in 2023, a decrease of about 81.7%[16] - Cash paid for interest increased to $338,116 in 2024 from $155,365 in 2023, representing a rise of approximately 117.5%[16] - The company reported a net change in cash of $228,262 for the six months ended June 30, 2024, contrasting with a net change of $5,568,590 in 2023[16] Strategic Developments - LizzieSat-1 successfully transmitted data from orbit, demonstrating the capabilities of Sidus' AI Rapid Delivery Platform[4] - Sidus Space secured a $30 million subcontract for the NASA Lunar Terrain Vehicle Services contract[3] - The company is preparing for the launches of LizzieSat-2 and LizzieSat-3 with SpaceX, indicating a focus on scaling its Data-as-a-Service business model[2] - Sidus Space and NamaSys Bahrain signed an MOU to establish a joint venture in Saudi Arabia for satellite manufacturing[4]

Launch Success and Satellite Development - Sidus Space achieved 'first launch success' with the 3D printed, AI-enhanced multi-mission satellite "LizzieSat" in March 2024[78]. - The next group of satellites will feature enhancements including a processor capable of handling ten Terra Operations Per Second (TOPS) and upgraded payload processing capabilities[79]. - The company is in advanced stages of assembling and testing the next generation of commercial LizzieSat satellites, with launches expected later this year and early next year[88]. - The LizzieSat design allows for simultaneous on-orbit data collection from multiple sensors, integrating new technologies during the production cycle[83]. - The LizzieSat satellite platform is designed for on-orbit coincident data collection, enhancing data accuracy and reducing false positives[90]. - The integration of AIS technology into the LizzieSat constellation enhances vessel tracking and monitoring capabilities[95]. Financial Performance - Revenue for Q2 2024 decreased by 32% to $927,570 compared to $1,370,409 in Q2 2023[105]. - Cost of revenue increased by 105% to $1,768,671 in Q2 2024 from $862,632 in Q2 2023[105]. - Gross loss for Q2 2024 was approximately $841,101, a decrease of $1,348,878 compared to a gross profit of $507,777 in Q2 2023[107]. - Selling, general, and administrative expenses decreased by 14% to approximately $3,056,814 in Q2 2024 from $3,560,482 in Q2 2023[108]. - Non-related party revenue decreased by 29% to approximately $835,000 in Q2 2024 compared to approximately $1.2 million in Q2 2023[106]. - Total revenue for the six months ended June 30, 2024, decreased by approximately $1.66 million, or 46%, to $1,977,725 compared to $3,634,036 for the same period in 2023[112][113]. - Cost of revenue increased by 23% to approximately $2.73 million for the six months ended June 30, 2024, compared to approximately $2.23 million in 2023[114]. - Gross profit decreased by approximately $2.16 million, resulting in a gross loss of approximately $757,000 for the six months ended June 30, 2024, compared to a gross profit of approximately $1.4 million in 2023[115]. - Selling, general, and administrative expenses decreased by approximately $400,000, or 6%, to approximately $6.7 million for the six months ended June 30, 2024, compared to approximately $7.1 million in 2023[117]. - Net loss for the six months ended June 30, 2024, was approximately $7.95 million, an increase of $1.00 million, or 14%, compared to a net loss of approximately $6.94 million in 2023[112][123]. Cash Flow and Financing Activities - Cash used in operating activities for the six months ended June 30, 2024, was approximately $7.57 million, an increase of $1.43 million, or 23%, compared to approximately $6.14 million in 2023[128][129]. - Cash provided by financing activities decreased by approximately $2.46 million, or 17%, to $11.87 million for the six months ended June 30, 2024, compared to $14.32 million in 2023[128]. - Net cash provided in financing activities for the six months ended June 30, 2024, was approximately $11.9 million, which included capital raises of approximately $5.6 million in January 2024 and $7.9 million in February 2024[133]. - The company completed a public offering on March 5, 2024, raising approximately $7.1 million from the sale of 1,321,000 shares at $6.00 per share[134]. - The January 2024 public offering raised approximately $5.0 million from the sale of 1,181,800 shares at $4.50 per share[134]. Operational and Strategic Developments - Sidus Space's vertically integrated model aims to expand existing and unlock new potential revenue-generating opportunities across multiple business units[80]. - The company has signed a multi-year and multi-launch agreement with Space-X, providing customers with reliable and cost-effective launch services[88]. - The FeatherEdge solution offers onboard AI processing, reducing downlink costs and improving response times for critical events in orbit[84]. - Sidus Space has expanded capabilities related to geospatial intelligence through a contract with the National Geospatial-Intelligence Agency (NGA)[89]. - The FeatherEdge AI platform was successfully activated in Q2 2024, enabling near real-time intelligence from earth observation data[95]. - The company plans to expand its satellite manufacturing capacity to produce 5-10 satellites per month at its Cape Canaveral facility[100]. - The company aims to grow its space and defense hardware operations, increasing from one shift to two and a half shifts in the future[97]. Assets and Liabilities - Current assets decreased by approximately $900,000, or 10%, to approximately $8.3 million as of June 30, 2024, from approximately $9.2 million as of December 31, 2023[126][127]. - Current liabilities decreased by approximately $3.5 million, or 29%, to approximately $8.7 million as of June 30, 2024, from approximately $12.2 million as of December 31, 2023[127]. Accounting and Reporting - Revenue recognition is based on ASC 606, which was adopted using the modified retrospective transition approach, with no material impact on the consolidated financial statements[138]. - Inventory consists of work in progress and finished goods, with estimated revenue calculated based on a percentage of completion[143]. - The provision for expected credit losses on trade receivables is estimated based on historical information and customer solvency[144]. - The company intends to rely on exemptions provided by the JOBS Act as an "emerging growth company" until certain revenue or debt thresholds are met[149]. - The company does not have any off-balance sheet arrangements or relationships with unconsolidated entities[135].