Sidus Space(US:SIDU)2025-11-14 21:31Satellite 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[117]. - The LizzieSat platform includes upgrades such as an AI processor capable of handling 248 trillion operations per second (TOPS) and a payload processor with speeds up to 12 Gb/s[120]. - The modular LizzieSat platform can be customized for various technologies and mission requirements, supporting a broad range of operational and data collection needs[119]. - Successfully launched LizzieSat®-1 in March 2024, LizzieSat®-2 in December 2024, and completed the build and launch of LizzieSat®-3 in Q1 2025, establishing a micro-constellation for near real-time solutions[141]. - Integrated second-generation automated identification system (AIS) technology into the LizzieSat® satellite constellation, enhancing vessel tracking and monitoring solutions[149]. - Expected to launch four to six more LizzieSat® satellites ranging from 100kg to 400kg over the next 24 months, expanding commercial satellite operations[151]. Contracts and Revenue - Signed a preliminary contract valued at $120 million to design and build the first-generation lunar fleet of Data Storage Spacecraft for Lonestar Data Holdings, reinforcing the adaptability of the LizzieSat® platform[141]. - Awarded a $2 million contract from Craig Technologies to manufacture two fleet interactive display equipment (FIDE) pre-production unit main panels for U.S. Navy Propulsion systems[141]. - The data-as-a-service model is subscription-based with multiple price tiers, applicable to government, defense, and commercial customers[123]. - Revenue for the three months ended September 30, 2025, decreased by $570,900, a 31% decline compared to the same period in 2024[177]. - Non-related party revenue fell approximately 68% to about $559,000 for the three months ended September 30, 2025, down from approximately $1.8 million in the same period of 2024[178]. - Related party revenue increased by 562% to approximately $739,000 for the three months ended September 30, 2025, compared to approximately $112,000 in the same period of 2024[178]. Financial Performance - Gross profit decreased 450% for the nine months ended September 30, 2025, resulting in a loss of approximately $3.9 million compared to a loss of approximately $719,000 for the same period in 2024[187]. - Net loss for the nine months ended September 30, 2025, was approximately $18.1 million, an increase of 52% compared to a net loss of approximately $11.8 million in 2024[194]. - Current assets decreased by approximately $1.1 million to approximately $21.1 million as of September 30, 2025, from approximately $22.2 million as of December 31, 2024[200]. - Current liabilities increased by approximately $1.1 million to $15.4 million as of September 30, 2025, primarily due to an increase in asset-based loan liability[201]. - Adjusted EBITDA for the nine months ended September 30, 2025, was approximately $(12.6) million, a decrease of 51% compared to $(8.3) million in 2024[194]. - Cash used in operating activities was approximately $14.1 million, an increase of 37% compared to $10.3 million in the same period of 2024[203]. Manufacturing and Operations - The company operates a 35,000-square-foot manufacturing facility that is ISO 9001:2015 and AS9100 Rev. D certified, supporting the manufacturing, testing, and assembly of space-grade hardware[124]. - Sidus Space's manufacturing capabilities include precision machining, multi-material 3D printing, and a reconfigurable avionics lab for producing space system components[124][130]. - The company aims to expand its space and defense hardware operations from one shift to two and a half shifts, targeting growth in avionics and wire harness divisions[153]. - Established a fully operational mission control center to manage satellite operations and enhance constellation operation capabilities[141]. Market Trends and Growth - The global space economy is projected to reach $1.8 trillion by 2035, growing from $630 billion in 2023, with an average annual growth rate of 9%[167]. - The small satellite market is expected to grow at a CAGR of 16.4%, reaching approximately $30.6 billion by 2034, driven by cost-effectiveness and advances in miniaturization[168]. - The small satellite launch market is projected to grow from $7.6 billion to $28.4 billion, reflecting a 279% increase[172]. - The company is actively expanding its international market presence, signing partnership agreements with companies in Germany, Japan, Bahrain, and India[163]. Intellectual Property and Innovation - Strengthened intellectual property portfolio with the approval of new patents and the publication of a patent application protecting enhanced functionality of the LizzieSat® Modular Satellite Platform System[142]. - The company holds 14 granted patents and 13 pending applications related to space technologies, indicating a strong focus on innovation[157]. Financial Adjustments and Reporting - The company adopted ASC 606 for revenue recognition, which did not have a material impact on the consolidated financial statements[211]. - The company accounts for most fixed price or time and materials contracts as performance obligations satisfied over time, reflecting the right to collect based on services provided[216]. - The provision for expected credit losses on trade receivables is estimated based on historical information and customer solvency, with adjustments for forward-looking information[218]. - The company is evaluating the benefits of relying on exemptions and reduced reporting requirements provided by the JOBS Act as an "emerging growth company"[226].