Sidus Space, Inc. Reports Second Quarter 2022 Results and Business Update

Revenue Increased 695% in Second Quarter 2022 from Second Quarter 2021

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CAPE CANAVERAL, Fla.–(BUSINESS WIRE)–Sidus Space, Inc. (NASDAQ:SIDU), a Space-as-a-Service satellite company focused on commercial satellite design, manufacture, launch, and data collection, today announced financial results for the second quarter ended June 30, 2022 and provided company business updates.

Q2 2022 Financial Highlights

  • Revenue increased to $1.85 million for the three months ended June 30, 2022 from $232,000 in the comparable period of 2021, an increase of 695%.
    • This increase is primarily attributed to increased customer confidence as a result of previous deliveries and increased contract flow driven by sales efforts from an expanded sales team.
  • Gross Profit increased to $347,000 for the three months ended June 30, 2022 from a loss of $56,000 in the comparable period of 2021, attributable to an increase in revenue, a decrease in labor intensive contracts and an increase in our higher margin Satellite-as-a-Service business line.
  • Operating Expenses increased to $2.7 million for the three months ended June 30, 2022 compared to $418,000 for the three months ended June 30, 2021, resulting from expansion of our staff and facilities, as well as increased insurance, investor relations, legal and accounting fees that are associated with being a publicly traded company.
  • During the quarter, the Company’s principal shareholder forgave approximately $1.624 million of debt, consisting of the entire unpaid principal amount and accrued interest owed by the Company to the shareholder.

Capital Structure

  • As of June 30, 2022, the Company had $6.8 million in cash.
  • On August 10, 2022, to supplement the Company’s cash position and enable the Company’s growth, the Company entered into a Common Stock Purchase Agreement that will enable the Company to raise up to $30 million of additional equity as funding needs arise.

Operational Highlights

The Company continues to take meaningful steps toward the inaugural launch of its LizzieSatTM Constellation:

  • The Company announced that it has selected AWS to provide cloud storage of mission critical operation and customer data.
  • The Company has selected L3Harris Technologies InControl™ software for command and control and mission planning for LizzieSat™ Constellation.
  • Subsequent to the close of the quarter, the Company was informed by NASA that its launch date has been moved to Q1 2023. There is no expected impact to production or 2022 revenue as a result of this change.

The Company continues to build key relationships with customers in its mission-critical hardware manufacturing business:

  • The Company increased its scope of work with Teledyne Marine, whereby Sidus Space will now manufacture components for Teledyne Marine’s Massachusetts facility in addition to continuing to supply components to Teledyne Marine’s facilities in Texas and Florida, which should increase Sidus’ overall Teledyne revenue.
  • Sidus has completed the fabrication of the first set of hardware in support of NASA’s Artemis Program and their Space Launch System (SLS) Manned Vehicle. Sidus is responsible for the build, qualification, and testing of Umbilical Quick Disconnects for the Environmental Control System (ECS) on the Universal Stage Adapter (USA) for NASA’s Space Launch System (SLS).
  • Sidus is a partner on the team that won a $3.5 billion contract for the Exploration Extravehicular Activity Services, or xEVAS Program, which the team will, among other responsibilities, design, develop, and produce an integrated Extravehicular Activity (EVA) capability that includes a new Spacesuit and ancillary hardware.

Carol Craig, Founder and CEO of Sidus Space, said, “In the second quarter, we continued to win contracts, customers and purchase orders while expanding existing partnerships, marking significant progress implementing our Space-as-a-Service strategy. Our manufacturing division continues to expand relationships throughout the industry, with Teledyne being just one example of how we have become an integral supplier to many space hardware manufacturers. We continue to secure new design and production opportunities, with recent successes including a role on one of the teams that won NASA’s Exploration Extravehicular Activity (xEVAS) services contract, which includes the design, development, production, and hardware processing for a new spacesuit and ancillary hardware tools. At the same time, we are making progress in preparing for the launch of LizzieSatTM, with the successful completion of a Phase I Safety Review and key partner selections. There is a significant opportunity ahead of us and our comprehensive vertically-integrated offerings position us well to capture a significant portion of the overall total addressable market of the Space ecosystem. We are excited about what lies ahead for Sidus and I am proud of our team’s ability to meet the rapidly evolving needs for commercial space capabilities. We are confident we are taking the necessary steps on our path toward profitability and creating value for our shareholders.”

About Sidus Space

Sidus Space, located in Cape Canaveral, Florida, operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on commercial satellite design, manufacture, launch, and data collection. The company’s rich heritage includes the design and manufacture of many flight and ground component parts and systems for various space-related customers and programs. Sidus Space has a broad range of Space-As-a-Service offerings including space-rated hardware manufacturing, design engineering, satellite manufacturing and platform development, launch and support services, data analytics services and satellite constellation management.

Sidus Space has a mission of Bringing Space Down to Earth™ and a vision of enabling space flight heritage status for new technologies while delivering data and predictive analytics to domestic and global customers. Any corporation, industry, or vertical can start their journey off-planet with Sidus Space’s rapidly scalable, low-cost satellite services, space-based solutions, and testing alternatives. More than just a “Satellite-as-a-Service” provider, Sidus Space is a trusted Mission Partner–from concept to Low Earth Orbit and beyond. Sidus is ISO 9001:2015, AS9100 Rev. D certified, and ITAR registered.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute ‘forward-looking statements’ within the meaning of The Private Securities Litigation Reform Act of 1995. The words ‘anticipate,’ ‘believe,’ ‘continue,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘potential,’ ‘predict,’ ‘project,’ ‘should,’ ‘target,’ ‘will,’ ‘would’ and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in Sidus Space’s Annual Report on Form 10-K for the year ended December 31, 2021, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Sidus Space, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

SIDUS SPACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
         
  June 30, 2022  December 31, 2021 
Assets      
Current assets        
Cash $6,768,318  $13,710,845 
Accounts receivable  1,148,062   130,856 
Accounts receivable – related parties  366,238   443,282 
Inventory  284,385   127,502 
Contract asset  60,932    
Prepaid and other current assets  2,293,248   1,595,099 
Total current assets  10,921,183   16,007,584 
         
Property and equipment, net  1,462,473   775,070 
Operating lease right-of-use assets  378,917   504,811 
Other  19,761   12,486 
Total Assets $12,782,334  $17,299,951 
         
Liabilities and Stockholders’ Equity        
Current Liabilities        
Accounts payable and other current liabilities $1,992,035  $1,845,460 
Accounts payable and accrued interest – related party  549,171   588,797 
Contract liabilities  60,932    
Contract liabilities- related party     63,411 
Notes payable – related party     1,000,000 
Operating lease liability  259,813   261,674 
Finance lease liability     50,927 
Total Current Liabilities  2,861,951   3,810,269 
         
Notes payable – non-current  1,079,021   1,120,051 
Notes payable – related party – non-current     1,350,000 
Operating lease liability – non-current  135,725   262,468 
Finance lease liability – non-current     97,092 
Total Liabilities  4,076,697   6,639,880 
         
Commitments and contingencies      
         
Stockholders’ Equity        
Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding      
Common stock: 110,000,000 authorized; $0.0001 par value        
Class A common stock: 100,000,000 shares authorized; 6,874,040 and 6,574,040 shares issued and outstanding, respectively  687   657 
Class B common stock: 10,000,000 shares authorized; 10,000,000 shares issued and outstanding  1,000   1,000 
Common stock value  1,000   1,000 
Additional paid-in capital  28,908,017   26,074,292 
Accumulated deficit  (20,204,067)  (15,415,878)
Total Stockholders’ Equity  8,705,637   10,660,071 
Total Liabilities and Stockholders’ Equity $12,782,334  $17,299,951 
SIDUS SPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                 
  Three Months Ended Six Months Ended 
  June 30, June 30, 
  2022  2021  2022  2021 
             
Revenue $1,479,092  $177,794  $2,839,480  $289,641 
Revenue – related parties  368,271   54,524   807,218   95,813 
Total – revenue  1,847,363   232,318   3,646,698   385,454 
Cost of revenue  1,500,599   288,464   2,321,597   576,140 
Gross profit (loss)  346,764   (56,146)  1,325,101   (190,686)
                 
Operating expenses                
Payroll expenses  1,391,451   222,490   2,142,649   442,862 
Sales and marketing expenses  112,153   23,382   202,614   71,111 
Lease expense  86,352   46,353   171,351   84,008 
Depreciation expense  47,505   8,014   68,596   15,598 
Professional fees  131,922   19,902   1,454,214   30,493 
General and administrative expense  976,796   97,981   1,949,538   159,224 
Total operating expenses  2,746,179   418,122   5,988,962   803,296 
                 
Net loss from operations  (2,399,415)  (474,268)  (4,663,861)  (993,982)
                 
Other income (expense)                
Other expense     (74)     (504)
Interest expense  (58,420)  (23,048)  (124,328)  (26,693)
Gain on forgiveness of PPP loan           324,460 
Total other income (expense)  (58,420)  (23,122)  (124,328)  297,263 
                 
Loss before income taxes  (2,457,835)  (497,390)  (4,788,189)  (696,719)
Provision for income taxes            
Net loss $(2,457,835) $(497,390) $(4,788,189) $(696,719)
                 
Basic and diluted loss per Common Share $(0.15) $(0.05) $(0.29) $(0.07)
                 
Basic and diluted weighted average number of common shares outstanding  16,874,040   10,000,000   16,738,128   10,000,000 
SIDUS SPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
         
  Six Months Ended 
  June 30, 
  2022  2021 
       
Cash Flows From Operating Activities:        
Net loss $(4,788,189) $(696,719)
Adjustments to reconcile net loss to net cash used in operating activities:        
Stock based compensation  1,209,000    
Depreciation and amortization  171,117   195,700 
Lease liability amortization  (2,710)  10,718 
Gain on forgiveness of PPP loan     (324,460)
Changes in operating assets and liabilities:        
Accounts receivable  (1,017,206)  (31,762)
Accounts receivable – related party  77,044   175,769 
Inventory  (156,883)  124,101 
Contract asset  (60,933)   
Prepaid expenses and other assets  (705,423)  8,261 
Accounts payable and accrued liabilities  239,545   (17,279)
Accounts payable and accrued liabilities – related party  32,634   224,905 
Contract liabilities  (2,479)   
Net Cash used in Operating Activities  (5,004,483)  (330,766)
         
Cash Flows From Investing Activities:        
Purchase of property and equipment  (858,520)  (30,266)
Net Cash used in Investing Activities  (858,520)  (30,266)
         
Cash Flows From Financing Activities:        
Bank overdraft     56,071 
Due to shareholder     89,872 
Proceeds from notes payable     307,610 
Repayment of notes payable  (134,000)  (16,266)
Payment of lease liabilities  (148,019)  (49,952)
Repayment of notes payable – related party  (797,505)   
Net Cash provided by (used in) Financing Activities  (1,079,524)  387,335 
         
Net change in cash  (6,942,527)  26,303 
Cash, beginning of period  13,710,845   20,162 
Cash, end of period $6,768,318  $46,465 
         
Supplemental cash flow information        
Cash paid for interest $1,949  $4,754 
Cash paid for taxes $  $ 
         
Non-cash Investing and Financing transactions:        
Debt forgiveness $1,624,755  $ 

Contacts

Investor Relations
Kevin Holmes
Chesapeake Group
kevinholmes@chesapeakegp.com
+1-410-825-3930

Media Contact
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Gregory FCA
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