Sidus Space Reports Record Q2 2023 Gross Margin

Gross margin nearly doubles to 37% for the quarter ended June 30, 2023, improving 1,800 basis points year-over-year

Higher-margin satellite revenue increased 126% year-over-year

CAPE CANAVERAL, Fla.–(BUSINESS WIRE)– Sidus Space, Inc. (NASDAQ:SIDU) (the “Company” or “Sidus”), a Space and Data-as-a-Service satellite company, announces its financial results and is providing a business update for the second quarter ending June 30, 2023.

“During the second quarter of 2023 we achieved several key milestones, including significantly expanding our margins period-over-period, as we continue to take meaningful steps toward the launch of our AI driven LizzieSatTM constellation. The increase in gross margin was the result of an increase in our satellite revenue. For the six months ended June 30, 2023 our satellite revenue was over 100% higher than full year 2022,” said Carol Craig, Founder and CEO of Sidus. “We are developing an advanced hybrid 3D printed satellite constellation with a focus on building a multi-mission space infrastructure for a diverse customer base in advance of our ten LizzeSat launches scheduled over the next two years with SpaceX. As we get closer to initiating these launches, we continue to develop new, high-margin revenue streams focusing on the sale of both data and payloads on these missions. We believe this will drive both revenue and profit margin over time, as well as value for our shareholders. A key factor to achieving this growth is the in-house development of our 3D-printed satellites, LizzieSat.”

“In addition, several partnerships with new and existing customers were executed during the quarter – a testament to our reputation, expertise and quality of work in the space community where we play a vital role as a mission critical manufacturing partner. These projects further validate Sidus’ ability to deliver mission critical hardware to key partners and vendors. Our ability to provide space infrastructure, as well as critical data, creates a high-margin, rapidly-scalable, recurring-revenue business model,” continued Craig.

Financial Highlights for the Quarter Ending June 30, 2023

  • Sidus reported revenue of $1.4 million for the quarter ended June 30, 2023, compared to $1.8 million for the same period in 2022. While revenue declined period-over-period, primarily due to timing of fixed price milestone contracts, higher margin satellite revenue increased 126% year-over-year.
  • Gross profit was approximately $508,000 or 37%, for the quarter ended June 30, 2023, compared to approximately $347,000 or 19% for the second quarter of 2022, an increase of 1,800 basis points. The increase in gross profit margin was primarily attributed to the mix of contracts and an increase in our higher margin satellite business.
  • Total Operating Expenses increased to approximately $3.6 million for the quarter ended June 30, 2023, from approximately $2.7 million for the quarter ended June 30, 2022, primarily due to expansion of the Company’s staff to support the growth of the business.
  • As of June 30, 2023, the Company had $7.9 million in cash.

Operational Highlights for the Quarter Ending June 30, 2023

  • Announced agreement to launch industry leading hyperspectral and multispectral imaging and Edge Artificial Intelligence on LizzieSat missions beginning in 2024.
  • Granted additional hardware manufacturing subcontract to support NASA’s Artemis Program and Space Launch System Manned Vehicle.
  • Selected by Airbus OneWeb Satellites to design and build machined parts, to be integrated into the portfolio of Arrow commercial small satellites manufactured by AOS, which is producing satellites for Airbus, in support of U.S. government programs.
  • Awarded a new subcontract to produce hardware in support of Parsons Corporation’s Launch Manifest Systems Integration contract.
  • Awarded contracts for two projects with Israeli partners Maris-Tech and Lulav Space by Space Florida under the Florida-Israel Innovation Partnership, the first time Sidus has received two awards from the same round of projects from the Florida-Israel Innovation Partnership.
  • Announced a collaboration with Lulav Space, to provide a complete guidance navigation and control, or GN&C, solution, for both lunar satellite and lunar lander missions.
  • Announced agreement with SOLAR MEMS to host its star tracker as a part of Sidus’ payload rideshare program.
  • Selected ATLAS Space Operations to expand the Company’s ground station services, significantly increasing the global network of ground stations for the LizzieSat constellation.
  • Announced agreement with Leaf Space to progress and broaden Sidus’ ground station network and to extend the availability of Earth Observation data to both established and emerging markets.
  • Announced plans to integrate Exo-Space’s FeatherEdge Data Processing Platform into LizzieSat.
  • Signed MOU with SkyServe to leverage the latest advancements in artificial intelligence and machine learning-based analytics.
  • Selected as a protégé with L3Harris Technologies for the Department of Defense Mentor-Protege Program.
Conference Call and Webcast
Event: Sidus Space Second Quarter 2023 Earnings Call
Date: Tuesday, August 15, 2023
Time: 9:00 a.m. Eastern Time
Live Call: + 1-877-269-7751 (U.S. Toll-Free) or +1-201-389-0908 (International)
Meeting Number: 13740440

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Tuesday, August 29, 2023, at 11:59 PM ET and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13740440.

To submit a question for the Company to answer in the Q&A portion of the call, please email

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a Space Data-as-a-Service and Defense-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support. The Company is located in Cape Canaveral, Florida, where it operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on vertically integrated Space-as-a-Service solutions including end-to-end satellite support.

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, 2022, 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.

  June 30, December 31,
  2023 2022
Current assets   
Cash $7,863,849 $2,295,259
Accounts receivable 694,210 850,340
Accounts receivable – related parties 113,474 168,170
Inventory 1,120,960 583,437
Contract asset 60,932 60,932
Contract asset – related party 30,938 14,982
Prepaid and other current assets 4,949,324 3,476,748
Total current assets 14,833,687 7,449,868
Property and equipment, net 5,089,776 2,554,992
Operating lease right-of-use assets, net 251,201 249,937
Other assets 54,120 42,778
Total Assets $20,228,784 $10,297,575
Liabilities and Stockholders’ Equity  
Current Liabilities  
 Accounts payable and other current liabilities $4,786,656 $3,415,845
Accounts payable and accrued interest – related party 566,171 566,636
Contract liability 60,932 60,932
Contract liability – related party 30,938 14,982
Asset-based loan liability 216,382 502,349
Notes payable 1,781,529 1,599,150
Operating lease liabilities 259,338 199,158
Total current liabilities 7,701,946 6,359,052
Operating lease liabilities – non-current  63,310
Total Liabilities 7,701,946 6,422,362
Commitments and contingencies  
Stockholders’ Equity  
Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding  
Common stock: 210,000,000 authorized; $0.0001 par value  
Class A common stock: 200,000,000 shares authorized; 59,795,054 as of June 30, 2023 and 8,022,736 shares as of December 31, 2022 issued and outstanding, respectively 5,979 802
Class B common stock: 10,000,000 shares authorized; 10,000,000 shares issued and outstanding 1,000 1,000
Additional paid-in capital 47,718,345 32,129,257
Accumulated deficit (35,198,486) (28,255,846)
Total Stockholders’ Equity 12,526,838 3,875,213
Total Liabilities and Stockholders’ Equity $20,228,784 $10,297,575
Three Months Ended Six Months Ended
June 30, June 30,
  2023 2022 2023 2022
Revenue $1,175,616 $1,479,092 $3,090,340 $2,839,480
Revenue – related parties 194,793 368,271 543,696 807,218
Total – revenue 1,370,409 1,847,363 3,634,036 3,646,698
Cost of revenue 862,632 1,500,599 2,230,460 2,321,597
Gross profit 507,777 346,764 1,403,576 1,325,101
Operating expenses    
Payroll expenses 1,861,016 1,391,451 3,577,559 2,142,649
Sales and marketing expenses 165,928 112,153 354,525 202,614
Lease expense 88,668 86,352 175,055 171,351
Professional fees 382,817 131,922 870,259 1,454,214
General and administrative expense 1,062,053 1,024,301 2,125,253 2,018,134
Total operating expenses 3,560,482 2,746,179 7,102,651 5,988,962
Net loss from operations (3,052,705) (2,399,415) (5,699,075) (4,663,861)
Other income (expense)    
Other income 17,950  17,950 
Interest expense (187,667) (58,420) (375,194) (124,328)
Asset-based loan expense (38,634)  (79,567) 
Finance expense (240,525)  (806,754) 
Total other expense (448,876) (58,420) (1,243,565) (124,328)
Loss before income taxes (3,501,581) (2,457,835) (6,942,640) (4,788,189)
Provision for income taxes    
Net loss $(3,501,581) $(2,457,835) $(6,942,640) $(4,788,189)
Basic and diluted loss per Common Share $(0.07) $(0.23) $(0.17) $(0.29)
Basic and diluted weighted average number of common shares outstanding 51,131,482 10,836,332 40,482,106 16,600,707
 Six Months Ended
 June 30,
 2023 2022
Cash Flows From Operating Activities:  
Net loss $(6,942,640) $(4,788,189)
Adjustments to reconcile net loss to net cash used in operating activities:  
Stock based compensation 806,754 1,209,000
Depreciation 79,385 171,117
Lease liability amortization (4,394) (2,710)
Changes in operating assets and liabilities:  
Accounts receivable 156,130 (1,017,206)
Accounts receivable – related party 54,696 77,044
Inventory (537,523) (156,883)
Contract asset  (60,933)
Contract asset – related party (15,956) 
Prepaid expenses and other assets (1,483,918) (705,423)
Accounts payable and accrued liabilities 1,732,714 239,545
Accounts payable and accrued liabilities – related party (465) 32,634
Contract liability  60,932
Contract liability – related party 15,956 (63,411)
Net Cash used in Operating Activities (6,139,261) (5,004,483)
Cash Flows From Investing Activities:  
Purchase of property and equipment (2,614,169) (858,520)
Net Cash used in Investing Activities (2,614,169) (858,520)
Cash Flows From Financing Activities:  
Proceeds from issuance of common stock units 14,787,511 
Proceeds from asset-based loan agreement 2,881,228 
Repayment of asset-based loan agreement (3,167,195) 
Repayment of notes payable (179,524) (134,000)
Payment of lease liabilities  (148,019)
Repayment of notes payable – related party  (797,505)
Net Cash provided by (used in) Financing Activities 14,322,020 (1,079,524)
Net change in cash 5,568,590 (6,942,527)
Cash, beginning of period 2,295,259 13,710,845
Cash, end of period $7,863,849 $6,768,318
Supplemental cash flow information  
Cash paid for interest $155,365 $105,767
Cash paid for taxes $ $
Non-cash Investing and Financing transactions:  
Debt forgiveness $ $1,624,755
Modification of right-of-use asset and lease liability $135,235 $

Investor Relations
Valter Pinto or Jack Perkins
KCSA Strategic Communications
(212) 896-1254

Pam Davis
Sidus Space

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