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Sidus Space(SIDU) - 2024 Q4 - Annual Report
SIDUSidus Space(SIDU)2025-03-31 20:15
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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,adecreaseof224,672,646, a decrease of 22% from 5,962,785 in 2023[352]. - Cost of revenue increased by 42% to 6,141,657in2024from6,141,657 in 2024 from 4,321,482 in 2023[352]. - Gross profit turned into a loss of 1,469,011in2024,comparedtoaprofitof1,469,011 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,a2217,524,056, 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 1.3million,or231.3 million, or 23%, to approximately 3.9 million compared to 5.0millionforthesameperiodin2023[353].−AdjustedEBITDAforthetwelvemonthsendedDecember31,2024wasapproximately5.0 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)millionin2023[360].MarketandIndustryInsights−Theglobalspaceeconomyisprojectedtoreach(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 630billionin2023,withaCAGRof9630 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 28.4billion[346].StrategicPartnershipsandBusinessModel−Thecompanyoffersasubscription−basedData−as−a−ServicemodelutilizingtheOrlaithAIecosystem,providingtimelydatainsightsforapplicationsinenvironmentalmonitoringandsecurity[289].−SidusSpace′sverticallyintegratedmodelallowsfordiverserevenuegenerationopportunities,mitigatingrisksassociatedwithmacroeconomicshifts[285].−ThecompanyhasestablishedstrategicpartnershipswithinternationalpartnerstosupporttheSidusInternationalSpaceCenter,enhancingitsmarketpresence[308].−Thecompanyisfocusedonverticalintegrationtoenhancethecapabilitiesofitsmulti−missionsatelliteconstellation,ensuringcost−effectivesolutionsforcustomers[310].AccountingandCompliance−Revenueisrecognizedbasedonthepercentage−of−completionmethodforfixedpricecontracts,reflectingtotalcostsincurredtodate[382].−Fixedpricecontractsrelatedtosatellitebusinessrecognizerevenueuponmeetingmilestonepayments,withnonrefundableprogresspaymentsretainedifthecontractisterminated[383].−Thecompanyaccountsformostcontractsasperformanceobligationssatisfiedovertime,withamountsrecognizedasrevenuereflectedascontractassetsuntilinvoiced[384].−Theprovisionforexpectedcreditlossesontradereceivablesisbasedonhistoricalinformationandcustomersolvency,calibratedwithforward−lookinginformation[386].−Operatingleasesarerecognizedasright−of−useassetsandliabilitiesonthebalancesheet,withleasepaymentsrecognizedonastraight−linebasisovertheleaseterm[391].−ThecompanyusestheBlack−Scholesoption−pricingmodelforvaluingstockoptions,requiringsignificantassumptionsthatmayaffectfutureequity−basedcompensation[393].−ThecompanyisutilizingtheextendedtransitionperiodsundertheJOBSActforcomplyingwithnewaccountingstandards,whichmayaffectcomparabilitywithothercompanies[395].−Thecompanyremainsan"emerginggrowthcompany"untiltotalannualgrossrevenuesexceed28.4 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].