Sidus Space Reports First Quarter 2025 Financial Results and Provides Business Update

Yahoo

15-05-2025

CAPE CANAVERAL, Fla., May 15, 2025--(BUSINESS WIRE)--Sidus Space (NASDAQ: SIDU) (the "Company" or "Sidus"), an innovative, agile space mission enabler, today announced its financial results for the first quarter ended March 31, 2025, and provided a business update. The Company is scheduled to host a conference call and webcast today, Thursday, May 15, at 5:00 p.m. ET.
"Q1 was a pivotal quarter for Sidus as we launched LizzieSat®-3 (LS-3) and advanced a major technology rollout, laying the foundation for future revenue growth. We remain committed to delivering integrated, AI-driven solutions across space, air, land, and sea and are confident in our long-term trajectory," said Carol Craig, Sidus Chairwoman and CEO. "With growing commercial and defense interest in our products and the commissioning of LS-3 underway, we believe Sidus is well-positioned to generate meaningful returns on our investments in innovation, infrastructure, and talent. We have strengthened our balance sheet, launched high-potential, new platforms including our Orlaith™ AI Ecosystem and are poised to generate revenue from diversified initiatives in the second half of the year."
Operational Highlights for the Quarter Ending March 31, 2025:
Successfully launched LizzieSat®-3 on March 14, 2025, aboard SpaceX Transporter-13—the third satellite in our growing micro-constellation
Completed initial commissioning of FeatherEdge™ GEN-2, the next-generation advanced onboard edge computer
Established communications with customer payload onboard LS-3
Launched Sidus Orlaith™ AI Ecosystem, combining FeatherEdge™ hardware and Cielo™ software
Introduced VPX technology, including the Sidus Single Board Computer (SSBC) - a SOSA™-Aligned, OpenVPX-based computer Along with SSBC, Sidus debuted the Position, Navigation and Timing Card (PNT) module addressing operational challenges in GPS-denied or contested environments
Initiated early-stage customer demos and trials in defense and commercial space domain sectors
Subsequent Operational Highlights:
Amended and extended the lunar satellite manufacturing contract with Lonestar Holdings, bringing the total potential value to $120 million
Deployed Orlaith™ AI system in Asia strengthening global AI and analytics offerings
Executed an MOU with Reflex Aerospace to explore joint constellation services
Expanded partnership with Little Place Labs for near real-time maritime intelligence with LizzieSat® powered vessel detection solution
Received Notice of Allowance for our Modular Satellite Platform—a patent that safeguards the intellectual property behind our adaptable and scalable satellite architecture
Expanded pipeline of initial product orders for dual-use, SOSA™-aligned hardware
Financial Highlights for the First Quarter Ending March 31, 2025:
Revenue: $238,000, compared to $1.05 million in Q1 2024, reflecting a strategic pivot away from legacy services to new commercial models
Cost of Revenue: $1.9 million, up 93% from Q1 2024 due to increased satellite and software depreciation and an increase of material and labor costs
Gross Profit (Loss): $(1.6) million, compared to $84,000 profit in Q1 2024 due to reduced contribution from legacy high-margin services as we transition to higher-value, recurring revenue lines
SG&A Expenses: $4.4 million, up from $3.6 million in Q1 2024, driven by headcount growth, launch rescheduling, and operational scaling
Adjusted EBITDA: Loss of $4.7 million (non-GAAP), compared to a $2.7 million loss in Q1 2024
Net Loss: $6.4 million, versus $3.8 million in Q1 2024, driven by strategic investment and depreciation
Cash Position: $11.7 million as of March 31, 2025, versus $6.2 million a year earlier
Debt: Fully repaid Decathlon loan, improving capital efficiency
Conference Call and Webcast
Event: Sidus Space First Quarter Financial Results Conference Call
Date: Thursday, May 15, 2025
Time: 5:00 p.m. Eastern Time
Live Call: + 1-877-269-7751 (U.S. Toll-Free) or [phone] (International)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1718772&tp_key=60eb853909
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Thursday, May 29, 2025, at 11:59 P.M. ET and can be accessed by dialing [phone] (U.S. Toll-Free) or [phone] (International) and entering replay pin number: 13753732.
An online archive of the webcast will be available for three months following the event at https://investors.sidusspace.com/.
About Sidus Space
Sidus Space (NASDAQ: SIDU) is a space mission enabler providing flexible, cost-effective solutions, including satellite manufacturing and technology integration, AI-driven space-based data solutions, mission planning and management operations, AI/ML products and services and space and defense hardware manufacturing. With its mission of Space Access Reimagined®, Sidus Space is committed to rapid innovation, adaptable and cost-effective solutions, and the optimization of space system and data collection performance. With demonstrated space heritage, including manufacturing and operating its own satellite and sensor system, LizzieSat®, Sidus Space serves government, defense, intelligence and commercial companies around the globe. Strategically headquartered on Florida's Space Coast, Sidus Space operates a 35,000-square-foot space manufacturing, assembly, integration and testing facility and provides easy access to nearby launch facilities. For more information, visit: www.sidusspace.com.
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. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. 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 described more fully in the section entitled 'Risk Factors' in Sidus Space's Annual Report on Form 10-K for the year ended December 31, 2024, 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 three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
2025
2024
Change
%
Net Income / (Loss)
$
(6,414,627
)
$
(3,810,500
)
$
(2,604,127
)
68
%
Interest Income/Expense (i)
341,707
248,981
92,726
37
%
Depreciation & Amortization(ii)
934,674
253,030
681,644
269
%
Fundraising expense (iii)
5,480
560,322
(554,842
)
-99
%
Severance expense
206,100
(9,722
)
215,822
2220
%
Equity based compensation
252,243
79,198
172,045
218
%
Total Non-GAAP Adjustments
1,740,204
1,131,809
608,395
54
%
Adjusted EBITDA
(4,674,423
)
(2,678,691
)
(1,995,732
)
75
%
(i)
Sidus Space incurred increased interest expense related to an asset-based loan slightly offset by interest income.
(ii)
Sidus Space incurred increased depreciation expense 2025 with launch and deployment of multiple satellite fixed assets and related satellite software as well as new ERP software capitalization.
(iii)
Sidus Space did not raise capital during Q1 2025, which resulted in decreased fundraising expense during Q1 2025.
SIDUS SPACE, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31,
December 31,
2025
2024
Assets
Current assets
Cash
$
11,711,301
$
15,703,579
Accounts receivable
461,839
827,886
Accounts receivable - related parties
647,942
641,376
Inventory
142,972
255,716
Contract asset
1,338,054
1,347,386
Contract asset - related party
46,953
46,953
Prepaid and other current assets
2,167,868
3,429,656
Total current assets
16,516,929
22,252,552
Property and equipment, net
16,935,611
14,891,976
Operating lease right-of-use assets
49,118
121,545
Intangible asset
398,135
398,135
Other assets
84,472
81,359
Total Assets
$
33,984,265
$
37,745,567
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and other current liabilities
$
3,643,708
$
3,388,667
Accounts payable and accrued interest - related party
694,915
673,743
Contract liability
-
16,192
Contract liability - related party
46,953
46,953
Asset-based loan liability
9,794,642
6,902,636
Notes payable
-
3,059,767
Operating lease liability
49,118
121,544
Total current liabilities
14,229,336
14,209,502
Total Liabilities
14,229,336
14,209,502
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; 0 shares issued and outstanding
-
-
Common stock: 210,000,000 authorized; $0.0001 par value
Class A common stock: 200,000,000 shares authorized; 18,204,483 and 15,956,816 shares issued and outstanding, respectively
1,821
1,597
Class B common stock: 10,000,000 shares authorized; 100,000 shares issued and outstanding
10
10
Additional paid-in capital
86,520,949
83,887,682
Accumulated deficit
(66,767,851
)
(60,353,224
)
Total Stockholders' Equity
19,754,929
23,536,065
Total Liabilities and Stockholders' Equity
$
33,984,265
$
37,745,567
SIDUS SPACE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2025
2024
Revenue
$
160,704
$
845,111
Revenue - related parties
77,790
205,044
Total - revenue
238,494
1,050,155
Cost of revenue
1,866,972
966,091
Gross profit (loss)
(1,628,478
)
84,064
Operating expenses
Selling, general and administrative expense
4,444,442
3,645,583
Total operating expenses
4,444,442
3,645,583
Net loss from operations
(6,072,920
)
(3,561,519
)
Other income (expense)
Interest expense
24,593
(153,526
)
Interest income
66,345
-
Asset-based loan expense
(432,645
)
(95,455
)
Total other income (expense)
(341,707
)
(248,981
)
Loss before income taxes
(6,414,627
)
(3,810,500
)
Provision for income taxes
-
-
Net loss
$
(6,414,627
)
$
(3,810,500
)
Dividend on Series A preferred Stock
-
(42,375
)
Net loss attributed to stockholders
(6,414,627
)
(3,852,875
)
Basic and diluted loss per common share
$
(0.35
)
$
(1.42
)
Basic and diluted weighted average number of common shares outstanding
18,228,267
2,719,812
SIDUS SPACE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
2025
2024
Cash Flows From Operating Activities:
Net loss
$
(6,414,627
)
$
(3,810,500
)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation
252,244
79,198
Depreciation and amortization
934,673
253,030
Non-cash fees on asset-based loan
20,243
Changes in operating assets and liabilities:
Accounts receivable
366,047
524,314
Accounts receivable - related party
(6,566
)
(104,583
)
Inventory
112,744
(205,659
)
Contract asset
9,332
-
Prepaid expenses and other assets
1,258,675
629,973
Accounts payable and accrued liabilities
255,041
(2,991,139
)
Accounts payable and accrued liabilities - related party
21,172
209,292
Contract liability
(16,192
)
-
Changes in operating lease assets and liabilities
1
(2,220
)
Net Cash used in Operating Activities
(3,207,213
)
(5,418,294
)
Cash Flows From Investing Activities:
Purchase of property and equipment
(2,978,308
)
(2,230,118
)
Net Cash used in Investing Activities
(2,978,308
)
(2,230,118
)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock units
-
13,742,311
Proceeds from exercise of warrants
2,381,247
-
Proceeds from asset-based loan agreement
3,289,744
46,133
Repayment of asset-based loan agreement
(417,981
)
(1,034,380
)
Repayment of notes payable
(3,059,767
)
(150,000
)
Net Cash provided by Financing Activities
2,193,243
12,604,064
Net change in cash
(3,992,278
)
4,955,652
Cash, beginning of period
15,703,579
1,216,107
Cash, end of period
$
11,711,301
$
6,171,759
Supplemental cash flow information
Cash paid for interest
$
5,462
$
152,066
Cash paid for taxes
$
-
$
-
Non-cash Investing and Financing transactions:
Class A common stock issued for conversion of Series A convertible preferred stock
$
-
$
16,566
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