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

Rhea-AI Summary

Sidus Space, Inc. (NASDAQ:SIDU) reported its fourth-quarter and full-year 2021 results. Fourth-quarter revenue increased 95% to $523,419, despite a net loss of $2,426,490. For the full year, revenue declined 22% to $1,408,724, impacted by COVID-19 supply chain issues. Operating expenses surged due to staff expansion and initial public offering costs. Total assets rose to $17.3 million, with cash holdings of $13.7 million. Notably, Sidus secured contracts exceeding $5 million with NASA and expanded its partnerships, highlighting a strategic focus on growth and innovation.

Positive

• Fourth quarter revenue increased 95% to $523,419.
• Secured multiple contracts, including a $5 million subcontract with NASA.
• Total assets rose to $17.3 million by December 31, 2021.
• Increased cash position to $13.7 million.
• Improved intellectual property portfolio with new patents issued.

Negative

• Full-year revenue decreased 22% to $1,408,724 due to COVID-19 impacts.
• Net loss increased to $3,746,138 or $0.34 EPS for 2021.
• Operating expenses surged to $3,146,957, primarily due to expansion and IPO costs.

CAPE CANAVERAL, Fla.--(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.

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.

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

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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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

Source: Sidus Space, Inc.

FAQ

What were Sidus Space's fourth quarter 2021 financial results?

Sidus Space reported fourth quarter revenue of $523,419, a 95% increase from the previous year, but a net loss of $2,426,490.

How did Sidus Space's full-year revenue perform in 2021?

For 2021, Sidus Space's revenue decreased by 22% to $1,408,724 compared to 2020.

What contributed to Sidus Space's net loss in 2021?

The net loss of $3,746,138 in 2021 was mainly due to increased operating expenses related to staff expansion and costs from the initial public offering.

What significant contracts did Sidus Space announce?

Sidus Space secured a $5 million subcontract to support NASA’s Mobile Launcher 2 and over $1.5 million in purchase orders for space hardware.

What improvements did Sidus Space make in its intellectual property portfolio?

Sidus improved its intellectual property portfolio by securing three new patents and filed additional patent applications.