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Sidus Space (SIDU)

Filed: 5 Apr 22, 4:22pm

 

Exhibit 99.1

 

Sidus Space Inc. Announces 2021 Fourth Quarter and Year End Financials and Business Update

 

CAPE CANAVERAL, Fla., April 5, 2022—(BUSINESS WIRE)—Sidus Space, Inc. (NASDAQ:SIDU), a Space-as-a-Service satellite company focused on commercial satellite design, manufacture, launch, and data collection, today announced financial and corporate results for its fourth quarter and year ended December 31, 2021.

 

Fourth Quarter 2021 Financial Highlights:

 

Revenue increased to $523,419 for the three-month period ended December 31, 2021, from $268,507 during the same period in 2020, an increase of 95%
Loss from operations increased to $1,620,017 for the three-month period ended December 31, 2021 versus $363,472 in the comparable period of 2020.
Net loss was $2,426,490 for the three-month period ended December 31, 2021 compared to a net loss of $364,575 during the same period in 2020. The loss was primarily a result of expansion of staff and costs associated with the Company’s initial public offering in December of 2021.

 

Full Year 2021 Financial Highlights:

 

§Revenue decreased from $1,807,182 in 2020 to $1,408,724 in 2021, a decrease of 22%. The decrease was primarily attributable to a slowdown from COVID-19 which caused delays in the supply chain and production capacity due to protocols to protect employees’ health.
§Gross Profit decreased to ($366,324) in 2021 from $20,772 in 2020. This was due to material and hardware acquisitions in 2021 for revenue to be recognized in Q1 of 2022.
§Operating Expenses increased from $1,553,909 in 2020 to $3,146,957 for 2021. This was primarily due to of the expansion of staff and costs associated with the initial public offering in December of 2021 along with capital expenditures that include a mobile satellite processing clean room, facility enhancements and growth in production staffing.
§Total Assets increased to $17,299,951 on December 31, 2021, compared to $1,844,856 on December 31, 2020.
§Cash position increased to $13,710,845 on December 31, 2021, compared to $20,162 on December 31, 2020.
§Total liabilities decreased to $6,639,880 on December 31, 2021, from $8,430,316 on December 31, 2020.
§Net loss was $3,746,138 or $0.34 EPS in 2021 compared to a net loss of $1,542,906 or $0.15 EPS in 2020. The primary reason for this increase was increased operating expenses due to costs associated with the initial public offering.

 

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2021 Operational Highlights and Recent Developments:

 

Received multiple contracts including a subcontract valued at over $5 million to support NASA’s Mobile Launcher 2 (ML2). Sidus also received over $1.5 million in purchase orders for space hardware and services supporting four primary customers. The purchase orders consist of both new orders and modification to a previous purchase order. The majority of these contracts are expected to be completed during the first half of 2022
Continued working with some of the largest companies in the industry on high visibility projects including manufacturing hardware for a large Government Space and Communication Systems customer for the 6th consecutive year
Completed partnerships with well-known and strategically significant companies within the space industry including Aitech Systems, Red Canyon Software and Kongsberg Satellite Services (KSAT), operator of the world’s largest ground station for support of polar orbiting satellites
Completed and delivered multiple manufactured products including a patented EMI Filter Box to the Department of State and Reef Test Cutters for the Orion Crew Module Parachute System
Improved intellectual property portfolio with three new patents issued and one notice of allowance received. Additionally, one patent application was filed with additional patents in the process of being filed
Carol Craig was presented with the U.S. Women’s Chamber of Commerce “Innovation and Performance Award” given to a contractor who exhibits outstanding innovation and performance on a key contract that will significantly bolster their ability to secure future opportunities. The award was a result of Carol’s efforts to help facilitate NASA’s vision of commercialization that is leading the way to new business opportunities.

 

“2021 was a groundbreaking year for Sidus Space. The company, built on more than a decade of experience manufacturing and assembly for commercial, military and government customers, has positioned itself to become one of the leading companies in the satellite industry. We hired key personnel, established strong partnerships, added customers, and began manufacturing our own satellites - readying for launch later this year. We are confident in our ability to deliver premier data and products to our customers and strong results to our investors. We believe the standards of excellence and the foundation we built in 2021 will result in significant customer and partnership growth in 2022,” commented Carol Craig, Founder and CEO of Sidus Space.

 

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 described under the caption “Risk Factors” in Sidus Space’s Form 10-K for the year ended December 31, 2021, and in Sidus’ other filings made 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.

 

Contacts

 

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

 

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SIDUS SPACE, INC.

CONSOLIDATED BALANCE SHEETS

 

  December 31,  December 31, 
  2021  2020 
Assets        
Current assets        
Cash $13,710,845  $20,162 
Accounts receivable  130,856   166,450 
Accounts receivable - related parties  443,282   175,769 
Inventory  127,502   205,942 
Prepaid and other current assets  1,595,099   14,294 
Total current assets  16,007,584   582,617 
         
Property and equipment, net  775,070   952,198 
Operating lease right-of-use assets  504,811   297,555 
Other  12,486   12,486 
Total Assets $17,299,951  $1,844,856 
         
Liabilities and Stockholders’ Equity (Deficit)        
Current Liabilities        
Accounts payable and other current liabilities $1,845,460  $260,191 
Accounts payable and accrued interest - related party  588,797   - 
Deferred revenue - related party  63,411   - 
Due to shareholder  -   7,302,422 
Notes payable  -   338,311 
Notes payable - related party  1,000,000   - 
Operating lease liability  261,674   121,613 
Finance lease liability  50,927   73,184 
Total Current Liabilities  3,810,269   8,095,721 
         
Notes payable - non-current  1,120,051   - 
Notes payable - related party - non-current  1,350,000   - 
Operating lease liability - non-current  262,468   185,210 
Finance lease liability - non-current  97,092   149,385 
Total Liabilities  6,639,880   8,430,316 
         
Commitments and Contingencies  -   - 
         
Stockholders’ Equity (Deficit)        
Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding  -   - 
Common stock: 110,000,000 authorized; $0.0001 par value        
Class A common stock: 100,000,000 shares authorized; 6,574,040 and 0 shares issued and outstanding  657   - 
Class B common stock: 10,000,000 shares authorized; 10,000,000 issued and outstanding  1,000   1,000 
         
Additional paid-in capital  26,074,292   5,083,280 
Accumulated deficit  (15,415,878)  (11,669,740)
Total Stockholders’ Equity (Deficit)  10,660,071   (6,585,460)
Total Liabilities and Stockholders’ Equity (deficit) $17,299,951  $1,844,856 

 

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SIDUS SPACE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

  Years Ended 
  December 31, 
  2021  2020 
       
Revenue $789,400  $1,631,413 
Revenue - related parties  619,324   175,769 
Total Revenue  1,408,724   1,807,182 
Cost of revenue  1,775,299   1,786,410 
Gross profit (loss)  (366,575)  20,772 
         
Operating expenses        
Payroll expenses  1,503,236   905,012 
Sales and marketing expenses  71,111   711,111 
Lease Expense  253,311   159,122 
Depreciation expense  34,767   41,521 
Professional fees  335,604   19,216 
General and administrative expense  948,928   274,654 
Total operating expenses  3,146,957   1,553,909 
         
Net loss from operations  (3,513,532)  (1,533,137)
         
Other income (expense)        
Other income  -   10,000 
Other expense  (504)  (1,500)
Interest expense  (42,882)  (18,269)
Interest expense – related party  (54,145)  - 
Gain on forgiveness of PPP loan  633,830   - 
Finance expense  (768,905)  - 
Total other income (expense)  (232,606)  (9,769)
         
Loss before income taxes  (3,746,138)  (1,542,906)
Provision for income taxes  -   - 
Net loss $(3,746,138) $(1,542,906)
         
Basic and diluted loss per Common Share $(0.34) $(0.15)
         
Basic and diluted weighted average number of common shares outstanding  11,161,181   10,000,000 

 

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