Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 13, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41154 | |
Entity Registrant Name | SIDUS SPACE, INC. | |
Entity Central Index Key | 0001879726 | |
Entity Tax Identification Number | 46-0628183 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 150 N. Sykes Creek Parkway | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Merritt Island | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 92953 | |
City Area Code | (321) | |
Local Phone Number | 613-5620 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value | |
Trading Symbol | SIDU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,874,040 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
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 |
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 | ||
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 |
Common Class A [Member] | ||
Stockholders’ Equity | ||
Common stock, value | 687 | 657 |
Common Class B [Member] | ||
Stockholders’ Equity | ||
Common stock, value | $ 1,000 | $ 1,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common Class A [Member] | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,874,040 | 6,574,040 |
Common stock, shares outstanding | 6,874,040 | 6,574,040 |
Common Class B [Member] | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 10,000,000 | 10,000,000 |
Common stock, shares outstanding | 10,000,000 | 10,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
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 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) | Common Class A [Member]Common Stock [Member] | Common Class B [Member]Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2020 | $ 1,000 | $ 5,083,280 | $ (11,669,740) | $ 10,660,071 | |
Balance, shares at Dec. 31, 2020 | 10,000,000 | ||||
Net loss | (199,329) | (199,329) | |||
Balance at Mar. 31, 2021 | $ 1,000 | 5,083,280 | (11,869,069) | 10,460,742 | |
Balance, shares at Mar. 31, 2021 | 10,000,000 | ||||
Balance at Dec. 31, 2021 | $ 657 | $ 1,000 | 26,074,292 | (15,415,878) | 10,660,071 |
Balance, shares at Dec. 31, 2021 | 6,574,040 | 10,000,000 | |||
Common stock issued for services | $ 30 | 1,208,970 | 1,209,000 | ||
Common stock issued for services, shares | 300,000 | ||||
Net loss | (2,330,354) | (2,330,354) | |||
Balance at Mar. 31, 2022 | $ 687 | $ 1,000 | $ 27,283,262 | $ (17,746,232) | $ 9,538,717 |
Balance, shares at Mar. 31, 2022 | 6,874,040 | 10,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 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 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1. Organization and Description of Business Organization Sidus Space Inc. (“Sidus”, “we”, “us” or the “Company”), was formed as Craig Technologies Aerospace Solutions, LLC, in the state of Florida, on July 17, 2012. On April 16, 2021, the Company filed a Certificate of Conversion to register and incorporate with the state of Delaware and on August 13, 2021 changed the company name to Sidus Space, Inc. Description of Business The Company is a Space-as-a-Service company focused on commercial satellite design, manufacture, launch, and data collection with a vision to enable space flight heritage status for new technologies and deliver data and predictive analytics to both domestic and global customers. We have nine (9) years of commercial, military and government manufacturing experience combined with space qualification experience, existing customers and pipeline, and International Space Station (ISS) heritage hardware. We support Commercial Space, Aerospace, Defense, Underwater Marine and other commercial and government customers. Our services include Multidisciplinary Design Engineering, Precision CNC Machining and Fabrication, Swiss Screw Machining, American Welding Society (AWS) Certified Welding and Fabrication, Electrical and Electronic Assemblies, Wire Cable harness Fabrication, 3D Composite and Metal Printing, Satellite Manufacturing, Satellite Payload Integration and Operations Support, Satellite Deployment and Microgravity testing and Research. We are building an all-inclusive space-as-a-service platform for the global space economy. Carol Craig, the founder and CEO of Sidus, has also built her namesake firm Craig Technologies into a multi-million-dollar revenues aerospace and defense contracting company recognized throughout the U.S. government and commercial space industries, backed with proven experience in catalyzing the design, development, and commercialization of new and innovative space technologies and services through aerospace and defense partnerships and collaborations. We are developing and plan to launch 100 kg (220-pound) satellites with available space to rapidly integrate customer sensors and technologies. By developing a plug-and-play operating system for space, we believe we can deliver customer sensors to orbit in months, rather than years. In addition, we intend on delivering high-impact data for insights on aviation, maritime, weather, space services, earth intelligence and observation, financial technology (Fintech) and the Internet of Things. While our business has historically been centered on the design and manufacture of space hardware, our expansion into manufacture of spacecraft as well as on-orbit constellation management services and space data applications has led us to innovating in the area of space data applications. Each of these areas and initiatives addresses a critical component of our cradle-to-grave solution and value proposition for the space economy as a Space-as-a-Service company. |
Summary of Signification Accoun
Summary of Signification Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Signification Accounting Policies | Note 2. Summary of Signification Accounting Policies Basis of Presentation The Company prepares its financial statements in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and GAAP in the United States of America. The accompanying interim financial statements have been prepared in accordance with GAAP for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the year ended December 31, 2021, contained in the Company’s Form 10-K filed on April 5, 2022. Principles of Consolidation The consolidated financial statements include the accounts of our Company and the variable interest entity (“VIE”), Aurea Alas Limited (“Aurea”), of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated on consolidation. For entities determined to be VIEs, an evaluation is required to determine whether the Company is the primary beneficiary. The Company evaluates its economic interests in the entity specifically determining if the Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance (“the power”) and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (“the benefits”). When making the determination on whether the benefits received from an entity are significant, the Company considers the total economics of the entity, and analyzes whether the Company’s share of the economics is significant. The Company utilizes qualitative factors, and, where applicable, quantitative factors, while performing the analysis. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Revenue Recognition We adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. Our updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements. Our revenue is recognized under Topic 606 in a manner that reasonably reflects the delivery of our services and products to customers in return for expected consideration and includes the following elements: ● executed contracts with our customers that we believe are legally enforceable; ● identification of performance obligations in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● Allocation of the transaction price to each performance obligation; and ● recognition of revenue only when we satisfy each performance obligation. These five elements, as applied to each our revenue category, is summarized below: Revenues from fixed price contracts that are still in progress at month end are recognized on the percentage-of-completion method, measured by the percentage of total costs incurred to date to the estimated total costs for each contract. This method is used because management considers total costs to be the best available measure of progress on these contracts. Revenue from fixed price contracts and time-and-materials contracts that are completed in the month the work was started are recognized when the work is shipped. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as we satisfy a performance obligation. Revenues from fixed price service contracts that contain provisions for milestone payments are recognized at the time of the milestone being met and payment received. This method is used because management considers that the payments are non-refundable unless the entity fails to perform as promised. If the customer terminates the contract we are entitled only to retain any progress payments received from the customer and we have no further rights to compensation from the customer. Even though the payments made by the customer are non-refundable, the cumulative amount of those payments is not expected, at all times throughout the contract, to at least correspond to the amount that would be necessary to compensate us for performance completed to date. Accordingly, we account for the progress under the contract as a performance obligation satisfied at a point in time. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as we satisfy a performance obligation. Contract Assets & Contract Liabilities The amounts included within contract assets and contract liabilities are related to the company’s long-term construction contracts. Retainage for which the company has an unconditional right to payment that is only subject to the passage of time is classified as contracts receivable. Retainage subject to conditions other than the passage of time are included in contract assets and contract liabilities on a net basis at the individual contract level. Contract assets represent revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts. Contract liabilities represent the company’s obligation to perform on uncompleted contracts with customers for which the company has received payment or for which contracts receivable are outstanding. Property and Equipment Property and equipment, consisting mostly of plant and machinery, motor vehicles, computer equipment and capitalized research and development equipment, is recorded at cost reduced by accumulated depreciation and impairment, if any. Depreciation expense is recognized over the assets’ estimated useful lives of three - ten years using the straight-line method. Fair Value Measurements The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: ● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and ● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The Company’s financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, and loans payable, are carried at historical cost. At March 31, 2022 and December 31, 2021, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Note 3. Variable Interest Entity The consolidated financial statements include Aurea Alas Limited, which is a variable interest entity of which we are the primary beneficiary, and on August 26, 2020, the Company entered into a licensing agreement with Aurea. Aurea is a limited company organized in the Isle of Man, which entered into a license agreement with a third-party vendor, whereby they licensed the rights to use certain available radio frequency spectrum for satellite communications. The Company is responsible for 100% of the operations of Aurea and derives 100% of the net profits or losses derived from the business operations. The assets, liabilities and the operations of Aurea from the date of inception (July 20, 2020), are included in the Company’s consolidated financial statements. Through a declaration of trust, 100 If facts and circumstances change such that the conclusion to consolidate the VIE has changed, the Company shall disclose the primary factors that caused the change and the effect on the Company’s financial statements in the periods when the change occurs. As of March 31, 2022 and December 31, 2021, Aurea’s assets and liabilities are as follows; Schedule of Variable Interest Entities Assets and Liabilities March 31, December 31, 2022 2021 Assets Cash $ 41,029 $ 67,754 Prepaid and other current assets 9,593 10,585 Total Assets $ 50,622 $ 78,339 Liability Accounts payable and other current liabilities $ 22,481 $ 63,091 For the three months ended March 31, 2022 and 2021, Aurea’s net loss was $ 32,107 and $ 63 , respectively. |
Prepaid expense and Other curre
Prepaid expense and Other current assets | 3 Months Ended |
Mar. 31, 2022 | |
Prepaid Expense And Other Current Assets | |
Prepaid expense and Other current assets | Note 4. Prepaid expense and Other current assets As of March 31, 2022 and December 31, 2021, prepaid expense and other current assets are as follows; Schedule of Prepaid Expense and Other Current Assets March 31, December 31, 2022 2021 Prepaid insurance $ 1,105,466 $ 1,520,016 Other prepaid expense 904,135 68,178 VAT receivable 6,000 6,905 Total $ 2,015,601 $ 1,595,099 During the three months ended March 31, 2022 and 2021, the Company recorded interest expense of $ 5,875 0 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5. Inventory As of March 31, 2022 and December 31, 2021, inventory is as follows: Schedule of Inventory March 31, December 31, 2022 2021 Work in Process $ 158,774 $ 127,502 Total $ 158,774 $ 127,502 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment At March 31, 2022 and December 31, 2021, property and equipment consisted of the following: Schedule of Property and Equipment March 31, December 31, 2022 2021 Office equipment $ 17,061 $ 17,061 Computer equipment 14,907 14,907 Vehicle 28,143 28,143 Software 93,012 93,012 Machinery 3,280,911 3,280,911 Leasehold improvements 322,501 198,645 Capitalized R&D cost 529,469 - Construction in progress 38,552 150,611 Property and equipment, gross 4,324,556 3,783,290 Accumulated depreciation (3,113,433 ) (3,008,220 ) Property and equipment, net of accumulated depreciation $ 1,211,123 $ 775,070 Depreciation expense of property and equipment for the three months ended March 31, 2022 and 2021 is $ 105,211 and $ 97,635 , respectively, of which $ 84,120 90,051 During the three months ended March 31, 2022 and 2021, the Company purchased assets of $ 541,264 and $ 0 |
Accounts payable and other curr
Accounts payable and other current liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts payable and other current liabilities | Note 7. Accounts payable and other current liabilities At March 31, 2022 and December 31, 2021, Accounts payable and other current liabilities consisted of the following: Schedule of Accounts Payable and Other Current Liabilities March 31, December 31, 2022 2021 Accounts payable $ 446,413 $ 225,271 Payroll liabilities 359,445 220,914 Credit cards 76,558 44,510 Other payable 107,597 23,016 Insurance payable 932,224 1,331,749 Total accrued expenses and other liabilities $ 1,922,237 $ 1,845,460 |
Contract assets and liabilities
Contract assets and liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract assets and liabilities | Note 8. Contract assets and liabilities At March 31, 2022 and December 31, 2021, contract assets and contract liabilities consisted of the following: Schedule of Contract Assets and Liabilities Contract assets March 31, December 31, 2022 2021 Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset), excluding retainage $ - $ - Retainage included in contract assets due to being conditional on something other than solely passage of time 60,932 - Total contract assets $ 60,932 $ - Contract liabilities March 31, December 31, 2022 2021 Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage $ - $ - Retainage included in contract liabilities due to being conditional on something other than solely passage of time 60,932 - Total contact liabilities $ 60,932 $ - |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 9. Leases Operating lease We have a noncancelable operating lease entered into in November 2016 for our office facility that expired in July 2021. and has renewal options to May 2023. The monthly “Base Rent” is $ 10,392 2.5 147,766 153,951 In May 2021, we entered into a new lease agreement for our office and warehouse space that expires in May 2024. The Company shall have the option to terminate the lease after 12 months and 24 months from the commencement date. 11,855.42 2.5 399,372 294,477 306,405 We recognized total lease expense of approximately $ 84,999 and $ 32,468 for the three months ended March 31, 2022 and 2021, respectively, primarily related to operating lease costs paid to lessors from operating cash flows. As of March 31, 2022 and December 31, 2021, the Company recorded security deposit of $ 10,000 . Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at March 31, 2022 were as follows: Summary of Future Minimum Lease Payments Under Operating Leases Total Year Ended December 31, 2022 $ 210,550 2023 205,987 2024 63,835 Thereafter - Total undiscounted lease payments 480,372 Less: Imputed interest (20,016 ) Operating lease liabilities 460,356 Operating lease liability - current 266,526 Operating lease liability - non-current $ 193,830 The following summarizes other supplemental information about the Company’s operating lease as of March 31, 2022: Summary of Other Supplemental Information Weighted average discount rate 4.64 % Weighted average remaining lease term (years) 1.82 Finance lease The Company leases machinery and office equipment under non-cancellable finance lease arrangements. The term of those capital leases is at the range from 59 83 4 5 At March 31, 2022, future minimum lease payments under the finance lease obligations, are as follows: Summary of Future Minimum Lease Payments Under Finance Lease Obligations Future minimum lease payments under financing leases Total 2022 $ 42,479 2023 50,682 2024 15,732 2025 15,732 2026 15,732 Thereafter 6,554 Total undiscounted lease payments 146,911 Less: Imputed interest (11,405 ) Finance lease liabilities 135,506 Finance lease liability 51,070 Finance lease liability - non-current $ 84,436 As of March 31, 2022 and December 31, 2021, finance lease assets are included in property and equipment as follows: Schedule of Finance Lease Assets in Property and Equipment March 31, December 31, 2022 2021 Machinery $ 585,563 $ 585,563 Accumulated depreciation (484,582 ) (455,899 ) Finance lease assets, net of accumulated depreciation $ 100,981 $ 129,664 During the three months ended March 31, 2022 and 2021, the Company recorded depreciation of finance lease assets of $ 28,683 29,278 1,647 2,471 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 10. Notes Payable Decathlon Note On December 1, 2021, we entered into a Loan Assignment and Assumption Agreement, or Loan Assignment, with Decathlon Alpha IV, L.P., or Decathlon and Craig Technical Consulting, Inc (“CTC”) pursuant to which we assumed $ 1,106,164 1.4 1,106,164 293,836 Management believes that the assumption of the Decathlon Note from CTC is in our best interests because in connection therewith, Decathlon released us from a cross-collateralization agreement it was a party to with CTC for a loan of a greater amount. Also in connection with the Loan Assignment on December 3, 2021, we entered into a Revenue Loan and Security Agreement, or RLSA, with Decathlon and our CEO, Carol Craig, pursuant to which we pay interest based on a minimum rate of 1 times the amount advanced and make monthly payments based on a percentage of our revenue calculated as an amount equal to the product of (i) all revenue for the immediately preceding month multiplied by (ii) the Applicable Revenue Percentage, defined as 4 December 9, 2023 293,836 1,106,164 During the three months ended March 31, 2022, the Company recorded interest expense of $ 46,796 34,627 1,132,220 1,120,051 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related Party Transactions Revenue and Accounts receivable – Related Party The Company recognized revenue of $ 438,947 and $ 41,289 for the three months ended March 31, 2022 and 2021, respectively, accounts receivable of $ 808,294 and $ 443,282 , respectively, and contract liabilities of $ 0 and $ 63,411 as of March 31, 2022 and December 31, 2021, respectively, from contracts entered into by Craig Technical Consulting, Inc, its majority shareholder, and subcontracted to the Company for four customers. Accounts payable and accrued interest – related party At March 31, 2022 and December 31, 2021, Accounts payable and accrued interest, consisted of the following: Schedule of Accounts Payable and Accrued Interest March 31, December 31, 2022 2021 Accounts payable $ 538,726 $ 534,652 Insurance payable 65,433 54,145 Accounts payable and accrued interest $ 604,159 $ 588,797 Note payable – related party On May 1, 2021, the Company converted $ 4 3,473,693 September 30, 2025 250,000 On December 1, 2021, in connection with the assumption of the Decathlon Note, the Company reduced the principal of the Note Payable – related party by recording a reclassification of $ 1,106,164 293,836 1,000,000 1,100,000 1,350,000 11,288 65,433 Sublease On August 1, 2021, the Company entered into a Sublease Agreement with its related party Majority Shareholder (“Sublandlord”), whereby the Company shall sublease certain offices, rooms and shared use of common spaces located at 150 Sykes Creek Parkway, Merritt Island, FL. The Lease is a month-to-month lease and may be terminated with 30 days’ notice to the Sublandlord. The monthly rent shall be $ 4,570 4,707 4,847 13,984 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies License Agreement The consolidated financial statements include Aurea Alas Limited, which is a variable interest entity of which we are the primary beneficiary (see Note 4). On August 18, 2020, Aurea entered into a license agreement with a third-party vendor (the “Vendor”), whereby they licensed the rights to use certain available radio frequency spectrum for satellite communications. The Company shall pay an annual Reservation Fee of $ 120,000 120,000 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 13. Stockholders’ Equity Authorized Capital Stock On August 31, 2021, the Company filed an amendment to its Amended and Restated Certificate of Incorporation with the State of Delaware to authorize the Company to issue 36,000,000 25,000,000 10,000,000 1,000,000 Class A Common Stock The Company had 6,874,040 6,574,040 During the three months ended March 31, 2022, the Company issued 300,000 restricted shares for consulting services valued at $ 1,209,000 , pursuant to the Sidus Space, Inc. 2021 Omnibus Equity Incentive Plan. Class B Common Stock The Company had 10,000,000 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events Management evaluated all events subsequent to the balance sheet date and through the date the financial statements were available to be issued, and determined there have been no events that have occurred that would require adjustment to our disclosures in the consolidated financial statements. |
Summary of Signification Acco_2
Summary of Signification Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepares its financial statements in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and GAAP in the United States of America. The accompanying interim financial statements have been prepared in accordance with GAAP for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the year ended December 31, 2021, contained in the Company’s Form 10-K filed on April 5, 2022. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of our Company and the variable interest entity (“VIE”), Aurea Alas Limited (“Aurea”), of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated on consolidation. For entities determined to be VIEs, an evaluation is required to determine whether the Company is the primary beneficiary. The Company evaluates its economic interests in the entity specifically determining if the Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance (“the power”) and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (“the benefits”). When making the determination on whether the benefits received from an entity are significant, the Company considers the total economics of the entity, and analyzes whether the Company’s share of the economics is significant. The Company utilizes qualitative factors, and, where applicable, quantitative factors, while performing the analysis. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. |
Revenue Recognition | Revenue Recognition We adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. Our updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements. Our revenue is recognized under Topic 606 in a manner that reasonably reflects the delivery of our services and products to customers in return for expected consideration and includes the following elements: ● executed contracts with our customers that we believe are legally enforceable; ● identification of performance obligations in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● Allocation of the transaction price to each performance obligation; and ● recognition of revenue only when we satisfy each performance obligation. These five elements, as applied to each our revenue category, is summarized below: Revenues from fixed price contracts that are still in progress at month end are recognized on the percentage-of-completion method, measured by the percentage of total costs incurred to date to the estimated total costs for each contract. This method is used because management considers total costs to be the best available measure of progress on these contracts. Revenue from fixed price contracts and time-and-materials contracts that are completed in the month the work was started are recognized when the work is shipped. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as we satisfy a performance obligation. Revenues from fixed price service contracts that contain provisions for milestone payments are recognized at the time of the milestone being met and payment received. This method is used because management considers that the payments are non-refundable unless the entity fails to perform as promised. If the customer terminates the contract we are entitled only to retain any progress payments received from the customer and we have no further rights to compensation from the customer. Even though the payments made by the customer are non-refundable, the cumulative amount of those payments is not expected, at all times throughout the contract, to at least correspond to the amount that would be necessary to compensate us for performance completed to date. Accordingly, we account for the progress under the contract as a performance obligation satisfied at a point in time. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as we satisfy a performance obligation. |
Contract Assets & Contract Liabilities | Contract Assets & Contract Liabilities The amounts included within contract assets and contract liabilities are related to the company’s long-term construction contracts. Retainage for which the company has an unconditional right to payment that is only subject to the passage of time is classified as contracts receivable. Retainage subject to conditions other than the passage of time are included in contract assets and contract liabilities on a net basis at the individual contract level. Contract assets represent revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts. Contract liabilities represent the company’s obligation to perform on uncompleted contracts with customers for which the company has received payment or for which contracts receivable are outstanding. |
Property and Equipment | Property and Equipment Property and equipment, consisting mostly of plant and machinery, motor vehicles, computer equipment and capitalized research and development equipment, is recorded at cost reduced by accumulated depreciation and impairment, if any. Depreciation expense is recognized over the assets’ estimated useful lives of three - ten years using the straight-line method. |
Fair Value Measurements | Fair Value Measurements The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: ● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and ● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The Company’s financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, and loans payable, are carried at historical cost. At March 31, 2022 and December 31, 2021, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities Assets and Liabilities | As of March 31, 2022 and December 31, 2021, Aurea’s assets and liabilities are as follows; Schedule of Variable Interest Entities Assets and Liabilities March 31, December 31, 2022 2021 Assets Cash $ 41,029 $ 67,754 Prepaid and other current assets 9,593 10,585 Total Assets $ 50,622 $ 78,339 Liability Accounts payable and other current liabilities $ 22,481 $ 63,091 |
Prepaid expense and Other cur_2
Prepaid expense and Other current assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Prepaid Expense And Other Current Assets | |
Schedule of Prepaid Expense and Other Current Assets | As of March 31, 2022 and December 31, 2021, prepaid expense and other current assets are as follows; Schedule of Prepaid Expense and Other Current Assets March 31, December 31, 2022 2021 Prepaid insurance $ 1,105,466 $ 1,520,016 Other prepaid expense 904,135 68,178 VAT receivable 6,000 6,905 Total $ 2,015,601 $ 1,595,099 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2022 and December 31, 2021, inventory is as follows: Schedule of Inventory March 31, December 31, 2022 2021 Work in Process $ 158,774 $ 127,502 Total $ 158,774 $ 127,502 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At March 31, 2022 and December 31, 2021, property and equipment consisted of the following: Schedule of Property and Equipment March 31, December 31, 2022 2021 Office equipment $ 17,061 $ 17,061 Computer equipment 14,907 14,907 Vehicle 28,143 28,143 Software 93,012 93,012 Machinery 3,280,911 3,280,911 Leasehold improvements 322,501 198,645 Capitalized R&D cost 529,469 - Construction in progress 38,552 150,611 Property and equipment, gross 4,324,556 3,783,290 Accumulated depreciation (3,113,433 ) (3,008,220 ) Property and equipment, net of accumulated depreciation $ 1,211,123 $ 775,070 |
Accounts payable and other cu_2
Accounts payable and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Current Liabilities | At March 31, 2022 and December 31, 2021, Accounts payable and other current liabilities consisted of the following: Schedule of Accounts Payable and Other Current Liabilities March 31, December 31, 2022 2021 Accounts payable $ 446,413 $ 225,271 Payroll liabilities 359,445 220,914 Credit cards 76,558 44,510 Other payable 107,597 23,016 Insurance payable 932,224 1,331,749 Total accrued expenses and other liabilities $ 1,922,237 $ 1,845,460 |
Contract assets and liabiliti_2
Contract assets and liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | At March 31, 2022 and December 31, 2021, contract assets and contract liabilities consisted of the following: Schedule of Contract Assets and Liabilities Contract assets March 31, December 31, 2022 2021 Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset), excluding retainage $ - $ - Retainage included in contract assets due to being conditional on something other than solely passage of time 60,932 - Total contract assets $ 60,932 $ - Contract liabilities March 31, December 31, 2022 2021 Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage $ - $ - Retainage included in contract liabilities due to being conditional on something other than solely passage of time 60,932 - Total contact liabilities $ 60,932 $ - |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Summary of Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at March 31, 2022 were as follows: Summary of Future Minimum Lease Payments Under Operating Leases Total Year Ended December 31, 2022 $ 210,550 2023 205,987 2024 63,835 Thereafter - Total undiscounted lease payments 480,372 Less: Imputed interest (20,016 ) Operating lease liabilities 460,356 Operating lease liability - current 266,526 Operating lease liability - non-current $ 193,830 |
Summary of Other Supplemental Information | The following summarizes other supplemental information about the Company’s operating lease as of March 31, 2022: Summary of Other Supplemental Information Weighted average discount rate 4.64 % Weighted average remaining lease term (years) 1.82 |
Summary of Future Minimum Lease Payments Under Finance Lease Obligations | At March 31, 2022, future minimum lease payments under the finance lease obligations, are as follows: Summary of Future Minimum Lease Payments Under Finance Lease Obligations Future minimum lease payments under financing leases Total 2022 $ 42,479 2023 50,682 2024 15,732 2025 15,732 2026 15,732 Thereafter 6,554 Total undiscounted lease payments 146,911 Less: Imputed interest (11,405 ) Finance lease liabilities 135,506 Finance lease liability 51,070 Finance lease liability - non-current $ 84,436 |
Schedule of Finance Lease Assets in Property and Equipment | As of March 31, 2022 and December 31, 2021, finance lease assets are included in property and equipment as follows: Schedule of Finance Lease Assets in Property and Equipment March 31, December 31, 2022 2021 Machinery $ 585,563 $ 585,563 Accumulated depreciation (484,582 ) (455,899 ) Finance lease assets, net of accumulated depreciation $ 100,981 $ 129,664 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Payable and Accrued Interest | At March 31, 2022 and December 31, 2021, Accounts payable and accrued interest, consisted of the following: Schedule of Accounts Payable and Accrued Interest March 31, December 31, 2022 2021 Accounts payable $ 538,726 $ 534,652 Insurance payable 65,433 54,145 Accounts payable and accrued interest $ 604,159 $ 588,797 |
Summary of Signification Acco_3
Summary of Signification Accounting Policies (Details Narrative) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Property and equipment, estimated useful lives | Depreciation expense is recognized over the assets’ estimated useful lives of three - ten years using the straight-line method. |
Schedule of Variable Interest E
Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash | $ 10,419,648 | $ 13,710,845 |
Prepaid and other current assets | 2,015,601 | 1,595,099 |
Total Assets | 15,954,127 | 17,299,951 |
Liability | ||
Accounts payable and other current liabilities | 538,726 | 534,652 |
Aurea [Member] | ||
Assets | ||
Cash | 41,029 | 67,754 |
Prepaid and other current assets | 9,593 | 10,585 |
Total Assets | 50,622 | 78,339 |
Liability | ||
Accounts payable and other current liabilities | $ 22,481 | $ 63,091 |
Variable Interest Entity (Detai
Variable Interest Entity (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Variable interest entity, description | The consolidated financial statements include Aurea Alas Limited, which is a variable interest entity of which we are the primary beneficiary, and on August 26, 2020, the Company entered into a licensing agreement with Aurea. Aurea is a limited company organized in the Isle of Man, which entered into a license agreement with a third-party vendor, whereby they licensed the rights to use certain available radio frequency spectrum for satellite communications. The Company is responsible for 100% of the operations of Aurea and derives 100% of the net profits or losses derived from the business operations. The assets, liabilities and the operations of Aurea from the date of inception (July 20, 2020), are included in the Company’s consolidated financial statements. | |
Net loss | $ (2,330,354) | $ (199,329) |
Aurea [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Net loss | $ 32,107 | $ 63 |
Aurea Shareholders [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Voting rights percent | 100.00% |
Schedule of Prepaid Expense and
Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense And Other Current Assets | ||
Prepaid insurance | $ 1,105,466 | $ 1,520,016 |
Other prepaid expense | 904,135 | 68,178 |
VAT receivable | 6,000 | 6,905 |
Total | $ 2,015,601 | $ 1,595,099 |
Prepaid expense and Other cur_3
Prepaid expense and Other current assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Prepaid Expense And Other Current Assets | ||
Interest expense | $ 5,875 | $ 0 |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Work in Process | $ 158,774 | $ 127,502 |
Total | $ 158,774 | $ 127,502 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,324,556 | $ 3,783,290 |
Accumulated depreciation | (3,113,433) | (3,008,220) |
Property and equipment, net of accumulated depreciation | 1,211,123 | 775,070 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,061 | 17,061 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,907 | 14,907 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,143 | 28,143 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 93,012 | 93,012 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,280,911 | 3,280,911 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 322,501 | 198,645 |
Capitalized R & D Cost [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 529,469 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,552 | $ 150,611 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment other accumulated depreciation | $ 105,211 | $ 97,635 |
Payments for Purchase of Other Assets | 541,264 | 0 |
Cost of Revenue [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment other accumulated depreciation | $ 84,120 | $ 90,051 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Other Current Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 446,413 | $ 225,271 |
Payroll liabilities | 359,445 | 220,914 |
Credit cards | 76,558 | 44,510 |
Other payable | 107,597 | 23,016 |
Insurance payable | 932,224 | 1,331,749 |
Total accrued expenses and other liabilities | $ 1,922,237 | $ 1,845,460 |
Schedule of Contract Assets and
Schedule of Contract Assets and Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset), excluding retainage | ||
Retainage included in contract assets due to being conditional on something other than solely passage of time | 60,932 | |
Total contract assets | 60,932 | |
Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage | ||
Retainage included in contract liabilities due to being conditional on something other than solely passage of time | 60,932 | |
Total contact liabilities | $ 60,932 |
Summary of Future Minimum Lease
Summary of Future Minimum Lease Payments Under Operating Leases (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
2022 | $ 210,550 | |
2023 | 205,987 | |
2024 | 63,835 | |
Thereafter | ||
Total undiscounted lease payments | 480,372 | |
Less: Imputed interest | (20,016) | |
Operating lease liabilities | 460,356 | |
Operating lease liability - current | 266,526 | $ 261,674 |
Operating lease liability - non-current | $ 193,830 | $ 262,468 |
Summary of Other Supplemental I
Summary of Other Supplemental Information (Details) | Mar. 31, 2022 |
Leases | |
Weighted average discount rate: operating leases | 4.64% |
Weighted average remaining lease term: Operating leases | 1 year 9 months 25 days |
Summary of Future Minimum Lea_2
Summary of Future Minimum Lease Payments Under Finance Lease Obligations (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
2022 | $ 42,479 | |
2023 | 50,682 | |
2024 | 15,732 | |
2025 | 15,732 | |
2026 | 15,732 | |
Thereafter | 6,554 | |
Total undiscounted lease payments | 146,911 | |
Less: Imputed interest | (11,405) | |
Finance lease liabilities | 135,506 | |
Finance lease liability | 51,070 | $ 50,927 |
Finance lease liability - non-current | $ 84,436 | $ 97,092 |
Schedule of Finance Lease Asset
Schedule of Finance Lease Assets in Property and Equipment (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Machinery | $ 585,563 | $ 585,563 |
Accumulated depreciation | (484,582) | (455,899) |
Finance lease assets, net of accumulated depreciation | $ 100,981 | $ 129,664 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Right of use asset | $ 442,243 | $ 504,811 | |
Lease liability | 460,356 | ||
Operating lease expenses | 84,999 | $ 32,468 | |
Security Deposit | 10,000 | 10,000 | |
Depreciation of finance lease assets | 28,683 | 29,278 | |
Finance lease interest expense | $ 1,647 | $ 2,471 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capital leases term | 59 months | ||
Finance lease annual interest | 4.00% | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capital leases term | 83 months | ||
Finance lease annual interest | 5.00% | ||
New Lease Agreement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Base rent expense | $ 11,855.42 | ||
Increased base rent percentage | 2.50% | ||
Right of use asset | $ 294,477 | ||
Lease liability | $ 306,405 | ||
Lessee, Operating Lease, Option to Terminate | In May 2021, we entered into a new lease agreement for our office and warehouse space that expires in May 2024. The Company shall have the option to terminate the lease after 12 months and 24 months from the commencement date. | ||
Recognized a right of use asset and lease liabilities | $ 399,372 | ||
Office Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lessee, Operating Lease, Description | We have a noncancelable operating lease entered into in November 2016 for our office facility that expired in July 2021. and has renewal options to May 2023. The monthly “Base Rent” is $10,392 and the Base Rent is increased by 2.5% each year. During the year ended December 31, 2021, the Company exercised its option and extended the lease to May 31, 2023. | ||
Base rent expense | $ 10,392 | ||
Increased base rent percentage | 2.50% | ||
Right of use asset | $ 147,766 | ||
Lease liability | $ 153,951 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Dec. 03, 2021 | Dec. 01, 2021 | May 02, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Notes payable | $ 1,132,220 | $ 1,120,051 | ||||
Interest expenses | 11,288 | |||||
Repayment of notes payable | 34,627 | $ 16,266 | ||||
Accrued interest | 65,433 | |||||
Loan Assignment and Assumption Agreement [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Debt principal amount | $ 1,400,000 | |||||
Revenue Loan and Security Agreement [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Revenue percentage | 4.00% | |||||
Decathlon AlphaI VLP [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Loans payable | 1,106,164 | |||||
Debt principal amount | 1,132,220 | 1,120,051 | ||||
Notes payable | 1,106,164 | |||||
Forgiveness of notes payable | $ 293,836 | $ 293,836 | ||||
Debt Instrument, Maturity Date | Dec. 9, 2023 | Sep. 30, 2025 | ||||
Interest expenses | 46,796 | |||||
Repayment of notes payable | $ 250,000 | 34,627 | ||||
Accrued interest | $ 1,132,220 | $ 1,120,051 |
Schedule of Accounts Payable _2
Schedule of Accounts Payable and Accrued Interest (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Accounts payable | $ 538,726 | $ 534,652 |
Insurance payable | 65,433 | 54,145 |
Accounts payable and accrued interest | $ 604,159 | $ 588,797 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Dec. 03, 2021 | Dec. 01, 2021 | May 02, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 31, 2024 | Jan. 31, 2023 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||||||||
Accounts receivable - related parties | $ 808,294 | $ 443,282 | ||||||
Contract liabilities, related party | 63,411 | |||||||
Notes payable, realated party current | 1,000,000 | 1,000,000 | ||||||
Repayments of Notes Payable | 34,627 | $ 16,266 | ||||||
Notes payable, related party noncurrent | 1,100,000 | 1,350,000 | ||||||
Interest Expense, Debt | 11,288 | |||||||
Accrued interest | 65,433 | |||||||
Sub lease rent | 13,984 | |||||||
Forecast [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly rent | $ 4,847 | $ 4,707 | ||||||
Inception Through January 31,2022 [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly rent | 4,570 | |||||||
Craig Technical Consulting Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Contract with Customer, Liability, Revenue Recognized | 438,947 | $ 41,289 | ||||||
Accounts receivable - related parties | 808,294 | 443,282 | ||||||
Contract liabilities, related party | 0 | 63,411 | ||||||
Notes payable, realated party current | $ 4,000,000 | |||||||
Debt Instrument, Decrease, Forgiveness | $ 3,473,693 | |||||||
Decathlon AlphaI VLP [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes payable, realated party current | $ 1,106,164 | 1,000,000 | 1,000,000 | |||||
Debt Instrument, Decrease, Forgiveness | $ 293,836 | $ 293,836 | ||||||
Debt Instrument, Maturity Date | Dec. 9, 2023 | Sep. 30, 2025 | ||||||
Repayments of Notes Payable | $ 250,000 | 34,627 | ||||||
Notes payable, related party noncurrent | 1,100,000 | 1,350,000 | ||||||
Interest Expense, Debt | 46,796 | |||||||
Accrued interest | $ 1,132,220 | $ 1,120,051 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - License Agreement Terms [Member] | Aug. 18, 2020USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Reservation fee | $ 120,000 |
License fee | $ 120,000 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2021 |
Class of Stock [Line Items] | |||
Common stock, shares authorized | 35,000,000 | 35,000,000 | 36,000,000 |
Preferred stock, shares issued | 0 | 0 | 1,000,000 |
Service [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares issued | 300,000 | ||
Common Stock, Value, Issued | $ 1,209,000 | ||
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,874,040 | 6,574,040 | |
Common stock, shares outstanding | 6,874,040 | 6,574,040 | |
Common Stock, Value, Issued | $ 687 | $ 657 | |
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares issued | 10,000,000 | 10,000,000 | |
Common stock, shares outstanding | 10,000,000 | 10,000,000 | |
Common Stock, Value, Issued | $ 1,000 | $ 1,000 |