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].

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]