Sidus Space(SIDU) - 2024 Q2 - Quarterly Report

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$3,056,814 in Q2 2024 from $3,560,482 in Q2 2023[108]. - Non-related party revenue decreased by 29$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$6.14 million in 2023[128][129]. - Cash provided by financing activities decreased by approximately $2.46 million, or 17$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$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].