Sidus Space(SIDU) - 2025 Q1 - Quarterly Results

Revenue and Profitability - Revenue for Q1 2025 was $238,000, down from $1.05 million in Q1 2024, reflecting a strategic pivot away from legacy services to new commercial models [9] - Gross loss for the quarter was $(1.6) million, compared to a profit of $84,000 in Q1 2024, due to reduced contributions from legacy high-margin services [9] - Net loss for Q1 2025 was $6.4 million, up from $3.8 million in Q1 2024, driven by strategic investments and depreciation [9] - Adjusted EBITDA loss was $4.7 million, compared to a loss of $2.7 million in Q1 2024, indicating a 75% increase in losses [13] - Net loss for the three months ended March 31, 2025, was $6,414,627, compared to a net loss of $3,810,500 for the same period in 2024, representing an increase of 68% [20] Costs and Expenses - Cost of revenue increased by 93% to $1.9 million compared to Q1 2024, driven by higher satellite and software depreciation as well as increased material and labor costs [9] - SG&A expenses rose to $4.4 million from $3.6 million in Q1 2024, attributed to headcount growth and operational scaling [9] - The company reported a significant increase in stock-based compensation, rising to $252,244 from $79,198, reflecting higher employee incentives [20] Cash Flow and Financial Position - Cash position improved to $11.7 million as of March 31, 2025, compared to $6.2 million a year earlier [9] - Net cash used in operating activities decreased to $3,207,213 from $5,418,294 year-over-year, indicating improved cash flow management [20] - Cash provided by financing activities was $2,193,243, a significant decrease from $12,604,064 in the previous year, primarily due to lower proceeds from common stock issuance [20] - Cash at the end of the period was $11,711,301, up from $6,171,759 at the end of the same period last year, reflecting a year-over-year increase of 90% [20] - Total cash paid for interest decreased to $5,462 from $152,066, showing a reduction in interest expenses [20] Investments and Growth Initiatives - The company invested $2,978,308 in property and equipment during the quarter, compared to $2,230,118 in the same quarter of the previous year, indicating ongoing investment in growth [20] - Successfully launched LizzieSat®-3 on March 14, 2025, marking a significant milestone in the company's satellite constellation [5] - Amended lunar satellite manufacturing contract with Lonestar Holdings, increasing total potential value to $120 million [5] - Expanded partnership with Little Place Labs for near real-time maritime intelligence, enhancing the company's AI and analytics offerings [9] Operational Efficiency - Accounts receivable decreased by $158,267, from $524,314 to $366,047, suggesting improved collection efforts [20] - Inventory changes showed a positive shift with a reduction of $112,744 compared to a decrease of $205,659 in the previous year, indicating better inventory management [20] - Proceeds from the exercise of warrants amounted to $2,381,247, contributing to the financing activities during the quarter [20]