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Sidus Space (SIDU)

Filed: 13 May 22, 7:53am

 

Exhibit 99.1

 

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

Revenue Increased 1075% in First Quarter 2022 from First Quarter 2021

 

CAPE CANAVERAL, Fla., May 13, 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 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.

 

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

 

 

 

 

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 $-  $-