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 | $ |
- |
|
$ |
- |
|
