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

Press Release From: Sidus Space
Posted: Friday, May 13, 2022

Sidus Space, Inc. (NASDAQ:SIDU), a Space-as-a-Service satellite company focused on commercial satellite design, manufacture, launch, and data collection, today announced recent company highlights and financial results for the first quarter ended March 31, 2022.

Q1 2022 Financial Highlights:

  • Revenue increased to $1,799,335 for the three months ended March 31, 2022 from $153,136 in the comparable period of 2021, an increase of 1075%. This was driven by growth in number of customers and significant growth in the size of contracts.
  • Gross Profit increased to $978,337 for the three months ended March 31, 2022 from a loss of $134,540 in the comparable period of 2021. This was primarily attributable to the increase in revenue and decrease in labor intensive contracts and an increase in our higher margin Satellite-as-a-Service business line.
  • Operating Expenses increased to $3,242,783 for the three months ended March 31, 2022 compared to $385,174 for the three months ended March 31, 2021. This was primarily the result of the expansion of staff, the leasing of more space for expansion and a one-time non-cash expense of $1.2M.
  • As of March 31, 2022, the Company had $10.4 million in cash.

March 31, 2022 Operational Highlights and Recent Developments

  • We announced the upcoming launch of the LizzieSat™ aboard a NASA Commercial Resupply Services (CRS) rocket (wherein SpaceX and Northrop Grumman are contracted to launch to the orbiting laboratory). LizzieSat™ is scheduled and expected to be delivered to the International Space Station (ISS) later this year.
  • We announced the successful completion of the LizzieSat™ (LS) Preliminary Design Review (PDR). A PDR ensures the design and basic system architecture are complete and that there is technical confidence the capability need can be satisfied within cost and schedule goals. A successful PDR means that a satellite is on track and development is progressing as planned.
  • Over the last three months we rounded out our executive leadership team with the hiring of three key individuals with highly relevant industry experience including positions with Lockheed Martin, NASA, Blue Origin and others. These individuals include John Curry as Chief Mission Operations Officer, Teresa Burchfield as Chief Financial Officer and Gerry Schaafsma as Chief Sales and Revenue Officer.
  • We continue to manufacture and deliver hardware to a broad range of customers including the Department of State, the Department of Defense, Northrop Grumman, Leidos, Aegis, Teledyne Marine, Bechtel, and L3Harris in areas that include launch vehicles, satellite hardware, and autonomous underwater vehicles.

“As we delivered on previously announced contracts, our revenues increased dramatically. We believe that we are well-positioned to compete with legacy space-based data providers and other emergent providers due to our vertical integration strategy that combines rapid production with flexible technology insertion points. While readying for launching numerous satellites over the next 12-24 months, we anticipate our backlog to continue to increase. The company, built on years of experience manufacturing for commercial, military and government customers, has positioned itself to become one of the leading companies in the low earth orbit (LEO) satellite industry. We believe the LizzieSat constellation of satellites will level the playing field by bringing space down to earth for everyone and making access easier for all consumers,” commented Carol Craig, Founder and CEO of Sidus Space.

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)

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

10,419,648

 

 

$

13,710,845

 

Accounts receivable

 

 

825,026

 

 

 

130,856

 

Accounts receivable - related parties

 

 

808,294

 

 

 

443,282

 

Inventory

 

 

158,774

 

 

 

127,502

 

Contract Assets

 

 

60,932

 

 

 

-

 

Prepaid and other current assets

 

 

2,015,601

 

 

 

1,595,099

 

Total current assets

 

 

14,288,275

 

 

 

16,007,584

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,211,123

 

 

 

775,070

 

Operating lease right-of-use assets

 

 

442,243

 

 

 

504,811

 

Other

 

 

12,486

 

 

 

12,486

 

Total Assets

 

$

15,954,127

 

 

$

17,299,951

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

1,922,237

 

 

$

1,845,460

 

Accounts payable and accrued interest - related party

 

 

604,159

 

 

 

588,797

 

Contract liabilities

 

 

60,932

 

 

 

-

 

Contract Liabilities - related party

 

 

-

 

 

 

63,411

 

Notes payable - related party

 

 

1,000,000

 

 

 

1,000,000

 

Operating lease liability

 

 

266,526

 

 

 

261,674

 

Finance lease liability

 

 

51,070

 

 

 

50,927

 

Total Current Liabilities

 

 

3,904,924

 

 

 

3,810,269

 

 

 

 

 

 

 

 

 

 

Notes payable - non-current

 

 

1,132,220

 

 

 

1,120,051

 

Notes payable - related party - non-current

 

 

1,100,000

 

 

 

1,350,000

 

Operating lease liability - non-current

 

 

193,830

 

 

 

262,468

 

Finance lease liability - non-current

 

 

84,436

 

 

 

97,092

 

Total Liabilities

 

 

6,415,410

 

 

 

6,639,880

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Preferred Stock: 1,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock: 35,000,000 authorized; $0.0001 par value

 

 

 

 

 

 

 

 

Class A common stock: 25,000,000 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

 

Additional paid-in capital

 

 

27,283,262

 

 

 

26,074,292

 

Accumulated deficit

 

 

(17,746,232

)

 

 

(15,415,878

)

Total Stockholders’ Equity

 

 

9,538,717

 

 

 

10,660,071

 

Total Liabilities and Stockholders’ Equity

 

$

15,954,127

 

 

$

17,299,951

 

SIDUS SPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Revenue

 

$

1,360,388

 

 

$

111,847

 

Revenue - related parties

 

 

438,947

 

 

 

41,289

 

Total - revenue

 

 

1,799,335

 

 

 

153,136

 

Cost of revenue

 

 

820,998

 

 

 

287,676

 

Gross profit (loss)

 

 

978,337

 

 

 

(134,540

)

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Payroll expenses

 

 

751,198

 

 

 

220,372

 

Sales and marketing expenses

 

 

90,461

 

 

 

47,729

 

Lease expense

 

 

84,999

 

 

 

37,655

 

Depreciation expense

 

 

21,091

 

 

 

7,584

 

Professional fees

 

 

1,322,292

 

 

 

10,591

 

General and administrative expense

 

 

972,742

 

 

 

61,243

 

Total operating expenses

 

 

3,242,783

 

 

 

385,174

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(2,264,446

)

 

 

(519,714

)

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Other expense

 

 

-

 

 

 

(430

)

Interest expense

 

 

(65,908

)

 

 

(3,645

)

Gain on forgiveness of PPP loan

 

 

-

 

 

 

324,460

 

Total other income (expense)

 

 

(65,908

)

 

 

320,385

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(2,330,354

)

 

 

(199,329

)

Provision for income taxes

 

 

-

 

 

 

-

 

Net loss

 

$

(2,330,354

)

 

$

(199,329

)

 

 

 

 

 

 

 

 

 

Basic and diluted loss per Common Share

 

$

(0.14

)

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average number of common shares outstanding

 

 

16,600,707

 

 

 

10,000,000

 

SIDUS SPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(2,330,354

)

 

$

(199,329

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

1,209,000

 

 

 

-

 

Depreciation and amortization

 

 

105,211

 

 

 

97,635

 

Amortization of ROU Asset

 

 

(1,218

)

 

 

(617

)

Gain on forgiveness of PPP loan

 

 

-

 

 

 

(324,460

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(694,170

)

 

 

(51,205

)

Accounts receivable - related party

 

 

(365,012

)

 

 

175,769

 

Inventory

 

 

(31,272

)

 

 

92,260

 

Contract Assets

 

 

(60,932

)

 

 

-

 

Prepaid expenses and other assets

 

 

(420,502

)

 

 

(1,361

)

Accounts payable and accrued liabilities

 

 

123,573

 

 

 

(37,468

)

Accounts payable and accrued liabilities - related party

 

 

15,362

 

 

 

-

 

Contract liabilities

 

 

60,932

 

 

 

 

 

Deferred revenue

 

 

(63,411

)

 

 

-

 

Net Cash used in Operating Activities

 

 

(2,452,793

)

 

 

(248,776

)

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(541,264

)

 

 

-

 

Net Cash used in Investing Activities

 

 

(541,264

)

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from notes payable

 

 

-

 

 

 

307,610

 

Repayment of notes payable

 

 

(34,627

)

 

 

(16,266

)

Payment of lease liabilities

 

 

(12,513

)

 

 

(29,691

)

Repayment of notes payable - related party

 

 

(250,000

)

 

 

-

 

Net Cash provided by (used in) Financing Activities

 

 

(297,140

)

 

 

261,653

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

(3,291,197

)

 

 

12,877

 

Cash, beginning of period

 

 

13,710,845

 

 

 

20,162

 

Cash, end of period

 

$

10,419,648

 

 

$

33,039

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

1,949

 

 

$

2,582

 

Cash paid for taxes

 

$

-

 

 

$

-

 

 Investor Relations 

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

Media 
Karen Soriano 
karen.soriano@sidusspace.com 
+1-443-900-2437 

http://www.sidusspace.com

// end //

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