Sidus Space Reports Full Year 2023 Financial Results and Provides Business Update

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a multi-faceted Space and Data-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 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. More than just a “Satellite-as-a-Service” provider, Sidus Space’s products and services are offered through its four business units: Space and Defense Hardware Manufacturing, Satellite Manufacturing and Payload Integration, Space-Based Data Solutions, and AI/ML Products and Services to support customers from concept to Low Earth Orbit and beyond. Sidus Space 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, 2023, 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.

NON-GAAP MEASURES

To provide investors with additional information in connection with our results as determined in accordance with GAAP, we use non-GAAP measures of adjusted EBITDA. We use adjusted EBITDA in order to evaluate our operating performance and make strategic decisions regarding future direction of the company since it provides a meaningful comparison to our peers using similar measures. We define adjusted EBITDA as net income (as determined by U.S. GAAP) adjusted for interest expense, depreciation and amortization expense, acquisition deal costs, severance costs, capital market and advisory fees, equity-based compensation and warrant costs. These non-GAAP measures may be different from non-GAAP measures made by other companies since not all companies will use the same measures. Therefore, these non-GAAP measures should not be considered in isolation or as a substitute for relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis.

The following table reconciles adjusted EBITDA to net loss (the most comparable GAAP measure) for the twelve months ended December 31, 2023, and 2022:

Twelve Months Ended

December 31,

2023

2022

Change

%

Net Income / (Loss)

$

(14,328,348

)

(12,839,968

)

$

(1,488,380

)

12

%

Interest Expense (i)

903,136

 

795,669

 

107,467

 

14

%

Depreciation and Amortization

217,107

 

238,859

 

(21,752

)

(9

%)

Acquisition Deal Costs (ii)

220,632

 

-

 

220,632

 

-

 

Severance Costs

147,222

 

63,769

 

83,453

 

131

%

Capital Market and advisory fees (iii)

927,875

 

824,036

 

103,839

 

13

%

Equity-based compensation (iv)

104,038

 

1,209,000

 

(1,104,962

)

(91

%)

Warrant costs (v)

917,848

 

-

 

917,848

 

-

 

Total Non-GAAP Adjustments

3,437,858

 

3,131,333

 

306,525

 

10

%

Adjusted EBITDA

(10,890,490

)

(9,708,635

)

(1,181,855

)

12

%

(i)

Sidus Space incurred increased interest expense due to short-term note payable becoming due in Q4 2024 and interest expense related to an asset-based loan.

(ii)

Sidus Space incurred one-time legal costs associated with the acquisition of Exo-Space, an Artificial Intelligence (AI) company.

(iii)

Sidus Space incurred one-time stock issuance costs in 2023 and 2022, respectively.

(iv)

Sidus Space issued stock-based compensation for services rendered in 2023 and 2022, respectively.

(v)

Sidus Space incurred one-time costs related to underwriter warrants during 2023.

 

 

SIDUS SPACE, INC.

CONSOLIDATED BALANCE SHEETS

 

 

December 31,

December 31,

 

2023

2022

Assets

Current assets

 

Cash

$

1,216,107

 

$

2,295,259

 

Accounts receivable

1,175,077

 

850,340

 

Accounts receivable - related parties

67,447

 

168,170

 

Inventory

1,217,929

 

583,437

 

Contract asset

77,124

 

60,932

 

Contract asset - related party

43,173

 

14,982

 

Prepaid and other current assets

5,405,453

 

3,476,748

 

Total current assets

9,202,310

 

7,449,868

 

 
Property and equipment, net

9,570,214

 

2,554,992

 

Operating lease right-of-use assets

115,573

 

249,937

 

Intangible asset

398,135

 

-

 

Other assets

64,880

 

42,778

 

Total Assets

$

19,351,112

 

$

10,297,575

 

 

 

 

Liabilities and Stockholders' Equity

Current liabilities

 

 

Accounts payable and other current liabilities

$

6,697,562

 

$

3,415,845

 

Accounts payable and accrued interest - related party

677,039

 

566,636

 

Contract liability

77,124

 

60,932

 

Contract liability - related party

43,173

 

14,982

 

Asset-based loan liability

2,587,900

 

502,349

 

Notes payable

2,017,286

 

1,599,150

 

Operating lease liability

119,272

 

199,158

 

Total current liabilities

12,219,356

 

6,359,052

 

 
Operating lease liability - non-current

-

 

63,310

 

Total Liabilities

12,219,356

 

6,422,362

 

 

Commitments and contingencies

 

Stockholders' Equity

 

'

 

Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding

Series A convertible preferred stock: 2,000 shares authorized; 372 and 0 shares issued and outstanding, respectively

-

 

-

 

Common stock: 210,000,000 authorized; $0.0001 par value

Class A common stock: 200,000,000 shares authorized; 983,173 and 80,227 shares issued and outstanding, respectively

98

 

8

 

Class B common stock: 10,000,000 shares authorized; 100,000 shares issued and outstanding

10

 

10

 

Additional paid-in capital

49,918,441

 

32,131,041

 

Accumulated deficit

(42,786,793

)

(28,255,846

)

Total Stockholders' Equity

7,131,756

 

3,875,213

 

Total Liabilities and Stockholders' Equity

$

19,351,112

 

$

10,297,575

 

SIDUS SPACE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

Years Ended

December 31,

 

2023

2022

 

Revenue

$

5,010,565

 

$

6,250,780

 

Revenue - related parties

952,220

 

1,042,628

 

Total - revenue

5,962,785

 

7,293,408

 

Cost of revenue

4,321,482

 

5,855,275

 

Gross profit (loss)

1,641,303

 

1,438,133

 

 

Operating expenses

Selling, general and administrative expenses

14,166,617

 

13,482,432

 

Total operating expenses

14,166,617

 

13,482,432

 

 

Net loss from operations

(12,525,314

)

(12,044,299

)

 

Other income (expense)

Other income

17,950

 

-

 

Interest expense

(747,420

)

(781,376

)

Asset-based loan expense

(155,716

)

(14,293

)

Finance expense

(917,848

)

-

 

Total other income (expense)

(1,803,034

)

(795,669

)

 

Loss before income taxes

(14,328,348

)

(12,839,968

)

Provision for income taxes

-

 

-

 

Net loss

$

(14,328,348

)

$

(12,839,968

)

 

Dividend on Series A preferred Stock

(202,599

)

-

 

Net loss attributed to stockholders

(14,530,947

)

(12,839,968

)

 

Basic and diluted loss per common share

$

(23.11

)

$

(74.80

)

Basic and diluted weighted average number of common shares outstanding

619,986

 

171,658

 

 

SIDUS SPACE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOW

 

Years Ended

December 31,

2023

2022

 

Cash Flows From Operating Activities:

Net loss

$

(14,328,348

)

$

(12,839,968

)

Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation

1,021,886

 

1,209,000

 

Finance Expense

-

 

-

 

Depreciation and amortization

217,107

 

319,936

 

Bad debt

17,871

 

22,500

 

Changes in operating assets and liabilities:
Accounts receivable

(290,839

)

(741,984

)

Accounts receivable - related party

100,723

 

275,112

 

Inventory

(624,881

)

(455,935

)

Contract asset

(16,192

)

(60,932

)

Contract asset - related party

(28,191

)

(14,982

)

Prepaid expenses and other assets

(1,950,807

)

(1,911,941

)

Accounts payable and accrued liabilities

3,986,275

 

2,049,484

 

Accounts payable and accrued liabilities - related party

110,403

 

50,099

 

Contract liability

16,192

 

60,932

 

Contract liability - related party

28,191

 

(48,429

)

Changes in operating lease assets and liabilities

(8,832

)

(6,800

)

Net Cash used in Operating Activities

(11,749,442

)

(12,093,908

)

Cash Flows From Investing Activities:

Purchase of property and equipment

(7,208,200

)

(2,099,858

)

Cash paid for asset acquisition

(483,644

)

-

 

Net Cash used in Investing Activities

(7,691,844

)

(2,099,858

)

Cash Flows From Financing Activities:

Proceeds from issuance of common stock units

14,788,121

 

3,221,355

 

Proceeds from issuance of Series A preferred stock units

1,811,000

 

-

 

Proceeds from asset-based loan agreement

6,379,624

 

502,349

 

Repayment of asset-based loan agreement

(4,294,073

)

-

 

Proceeds from notes payable

-

 

-

 

Repayment of notes payable

(302,983

)

-

 

Payment of lease liabilities

-

 

(148,019

)

Repayment of notes payable - related party

-

 

(797,505

)

Dividend paid

(19,555

)

-

 

Net Cash provided by Financing Activities

18,362,134

 

2,778,180

 

Net change in cash

(1,079,152

)

(11,415,586

)

Cash, beginning of period

2,295,259

 

13,710,845

 

Cash, end of period

$

1,216,107

 

$

2,295,259

 

Supplemental cash flow information

Cash paid for interest

$

190,920

 

$

284,178

 

Cash paid for taxes

$

-

 

$

-

 

Non-cash Investing and Financing transactions:

Debt forgiveness

$

-

 

$

1,624,755

 

Class A common stock issued for conversion of Series A convertible preferred stock

$

166,483

 

$

-

 

Common stock issue for reverse split adjustment

$

-

 

$

-

 

Modification of right-of-use asset and lease liability

$

135,235

 

$

-

 

Class A common stock issued for exercised cashless warrant

$

-

 

$

-

 





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