Sidus Space, Inc. Reports 2022 Financial Results - Annual Revenue up 418% and Annual Gross Profit up 492% as Compared To 2021
Sidus Space, Inc. (NASDAQ:SIDU) reported remarkable revenue growth of 418%, reaching $7.3 million in 2022, up from $1.4 million in 2021. The company is expanding into the small satellite and Earth observation data market, poised for recurring revenues and enhanced margins. Key milestones include securing multiple launches with SpaceX and a $2.5 million agreement with The Netherlands Organization to test laser communication technology. Sidus aims to deploy LizzieSat™ satellites in low Earth orbit by 2026, increasing accessibility to space-based data. The firm ended 2022 with $2.3 million in cash and completed a public offering generating $5.2 million.
- Revenue up by 418% to $7.3 million for 2022.
- Achieved gross profit of 20%, a significant improvement from (26%) in 2021.
- Signed a $2.5 million agreement with The Netherlands Organization for laser communication technology testing.
- Expanded launch agreements with SpaceX, adding four additional launches for 2024 and 2025.
- None.
“We delivered a strong year of revenue growth while making progress on strategic initiatives as we move to expand our offering into the growing small satellite and earth observation data market, which is expected to yield recurring revenue streams and stronger margins over time,” said
“We are pleased to have expanded existing relationships and created new ones for our space and defense manufacturing business line while also advancing our progress toward launching LizzieSat™ . This included securing multiple launches with
“With multiple LizzieSat satellites expected to be in low earth orbit (LEO) by 2026, we believe our disruptive flexible SmallSat constellation infrastructure will make space-based data more accessible for everyone including non-traditional industries. LizzieSat is a multi-mission satellite platform that supports a suite of custom sensors and customer needs, leveraging space flight-proven communications, power, navigation and computing subsystems to provide domestic and international customers with valuable data from LEO. Our fleet of LizzieSat satellites will be capable of hosting a range of sensors for a variety of customer missions and collecting data and providing actionable intelligence for multiple industries. Our team continues to fire on all cylinders as we scale up to meet increasing demand while prioritizing progress toward profitability and creating long-term value for our shareholders.”
Financial Highlights for the Year-to-Date Period Ended
-
Revenue increased to
for the year ended$7.3 million December 31, 2022 from in the comparable period of 2021, an increase of$1.4 million 418% . -
On a year-to-date basis, the Company has generated gross profit of
20% as compared to (26% ) for the previous 2021 period.
Capital Structure
-
As of
December 31, 2022 , the Company had in cash. The Company has continued to invest in expanding operations and launch contracts as well as logistics and equipment related to the development of its satellite operations.$2.3 million -
Subsequent to the end of the quarter, the Company closed on an underwritten public offering, generating gross proceeds of
.$5.2 million
Operational Highlights
Since its last earnings update, the Company continues to take meaningful steps toward the launch of its LizzieSat™ Constellation:
-
As part of an effort to expand its reach into the international market,
Sidus Space was awarded a agreement with$2.5 million The Netherlands Organization forApplied Scientific Research (TNO) to deploy and test TNO's laser communications technology aboard a Sidus' LizzieSat™ satellite. The Company also announced plans to increase its presence inEurope by opening a new office inthe Netherlands . - The Company announced its partnership with Dutch industry leader GTM Advanced Structures (“GTM”) to integrate their space-proven solar panels into LizzieSat™..
-
The Company achieved key certification and licensing milestones including receiving its
National Oceanographic and Atmospheric Administration (NOAA ) Tier 1 License allowing Sidus to provide global data services from its upcoming LizzieSat-1 mission and its AS9100 Rev D Certification which enhances the current AS9100 certification manufacturing scope to include engineering. Key production milestones were also met including successful completion of the Critical Design Review for LizzieSat’s integrated system architecture of the satellite bus with payloads and sensors along with implementation of theMission Control Center and launch systems required for mission success. - Key to accelerated expansion of Sidus’ commercial data distribution strategy and broadening of its customer base, the Company signed an agreement with SkyWatch, an industry leading satellite intelligence infrastructure firm, to utilize its TerraStream data management platform.
-
The Company executed an updated agreement with
SpaceX that nearly doubled contracted launches with the launch provider, providing four additional Transporter missions in 2024 and 2025 to establish a regular launch cadence for Sidus and its customers. This agreement creates multiple manifest options to meet customer mission objectives while expanding the company’s space data and imagery platform. - The Company expanded its agreement with Exo-Space to integrate edge AI capabilities into its satellite constellation. The combination of a rapid revisit rate satellite constellation and onboard high performance edge AI computing is expected to enable Sidus to offer industry leading data transmission speed, accelerating the speed at which end users can receive intelligent analytics after image capture.
The Company continues to build key relationships with customers in its mission-critical hardware manufacturing business with two particularly significant contracts:
-
The Company was selected by
Bechtel Corporation to manufacture cables for the NASA Mobile Launcher 2 project. -
As part of the US Navy’s Propulsion program, the Company was selected to manufacture, assemble, test, and deliver the
Maneuvering Panel trainers for the manufacturing of 13 Propulsion Plant Team Trainer Maneuvering Area Panels forBechtel Plant Machinery, Inc. (BPMI).
About
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
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CONSOLIDATED BALANCE SHEETS |
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2022 |
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2021 |
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Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
2,295,259 |
|
|
$ |
13,710,845 |
|
Accounts receivable, net |
|
|
850,340 |
|
|
|
130,856 |
|
Accounts receivable - related parties |
|
|
168,170 |
|
|
|
443,282 |
|
Inventory |
|
|
583,437 |
|
|
|
127,502 |
|
Contract asset |
|
|
60,932 |
|
|
|
- |
|
Contract asset - related party |
|
|
14,982 |
|
|
|
- |
|
Prepaid and other current assets |
|
|
3,476,748 |
|
|
|
1,595,099 |
|
Total current assets |
|
|
7,449,868 |
|
|
|
16,007,584 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
2,554,992 |
|
|
|
775,070 |
|
Operating lease right-of-use assets |
|
|
249,937 |
|
|
|
504,811 |
|
Other |
|
|
42,778 |
|
|
|
12,486 |
|
Total Assets |
|
$ |
10,297,575 |
|
|
$ |
17,299,951 |
|
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|
|
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Liabilities and Stockholders’ Equity |
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Current Liabilities |
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|
|
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Accounts payable and other current liabilities |
|
$ |
3,415,845 |
|
|
$ |
1,845,460 |
|
Accounts payable and accrued interest - related party |
|
|
566,636 |
|
|
|
588,797 |
|
Contract liability |
|
|
60,932 |
|
|
|
- |
|
Contract liability - related party |
|
|
14,982 |
|
|
|
63,411 |
|
Factoring liability |
|
|
502,349 |
|
|
|
- |
|
Note payable |
|
|
1,599,150 |
|
|
|
- |
|
Notes payable - related party |
|
|
- |
|
|
|
1,000,000 |
|
Operating lease liability |
|
|
199,158 |
|
|
|
261,674 |
|
Finance lease liability |
|
|
- |
|
|
|
50,927 |
|
Total Current Liabilities |
|
|
6,359,052 |
|
|
|
3,810,269 |
|
|
|
|
|
|
|
|
|
|
Note payable - non-current |
|
|
- |
|
|
|
1,120,051 |
|
Notes payable - related party - non-current |
|
|
- |
|
|
|
1,350,000 |
|
Operating lease liability - non-current |
|
|
63,310 |
|
|
|
262,468 |
|
Finance lease liability - non-current |
|
|
- |
|
|
|
97,092 |
|
Total Liabilities |
|
|
6,422,362 |
|
|
|
6,639,880 |
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Commitments and contingencies |
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- |
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|||
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Stockholders’ Equity |
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Preferred Stock: 5,000,000 shares authorized; |
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Common stock: 110,000,000 authorized; |
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Class A common stock: 100,000,000 shares authorized; 8,022,736 and 6,574,040 shares issued and outstanding, respectively |
|
|
802 |
|
|
|
657 |
|
Class B common stock: 10,000,000 shares authorized; 10,000,000 shares issued and outstanding |
|
|
1,000 |
|
|
|
1,000 |
|
Common stock value |
1,000 |
1,000 |
||||||
Additional paid-in capital |
|
|
32,129,257 |
|
|
|
26,074,292 |
|
Accumulated deficit |
|
|
(28,255,846 |
) |
|
|
(15,415,878 |
) |
Total Stockholders’ Equity |
|
|
3,875,213 |
|
|
|
10,660,071 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
10,297,575 |
|
|
$ |
17,299,951 |
|
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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Years Ended |
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2022 |
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2021 |
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Revenue |
|
$ |
6,250,780 |
|
|
$ |
789,400 |
|
Revenue - related parties |
|
|
1,042,628 |
|
|
|
619,324 |
|
Total - revenue |
|
|
7,293,408 |
|
|
|
1,408,724 |
|
Cost of revenue |
|
|
5,855,275 |
|
|
|
1,775,299 |
|
Gross profit (loss) |
|
|
1,438,133 |
|
|
|
(366,575 |
) |
|
|
|
|
|
|
|
|
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Operating expenses |
|
|
|
|
|
|
|
|
Payroll expenses |
|
|
5,553,025 |
|
|
|
1,503,236 |
|
Sales and marketing expenses |
|
|
559,096 |
|
|
|
71,111 |
|
Lease expense |
|
|
338,389 |
|
|
|
253,311 |
|
Depreciation expense |
|
|
138,930 |
|
|
|
34,767 |
|
Professional fees |
|
|
2,461,077 |
|
|
|
335,604 |
|
General and administrative expense |
|
|
4,431,915 |
|
|
|
948,928 |
|
Total operating expenses |
|
|
13,482,432 |
|
|
|
3,146,957 |
|
|
|
|
|
|
|
|
|
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Net loss from operations |
|
|
(12,044,299 |
) |
|
|
(3,513,532 |
) |
|
|
|
|
|
|
|
|
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Other income (expense) |
|
|
|
|
|
|
|
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Other expense |
|
|
- |
|
|
|
(504 |
) |
Interest expense |
|
|
(781,376 |
) |
|
|
(42,882 |
) |
Interest expense - related party |
|
|
- |
|
|
|
(54,145 |
) |
Factoring expense |
|
|
(14,293 |
) |
|
|
- |
|
Gain on forgiveness of PPP loan |
|
|
- |
|
|
|
633,830 |
|
Finance expense |
|
|
- |
|
|
|
(768,905 |
) |
Total other expense |
|
|
(795,669 |
) |
|
|
(232,606 |
) |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(12,839,968 |
) |
|
|
(3,746,138 |
) |
Provision for income taxes |
|
|
- |
|
|
|
- |
|
Net loss |
|
$ |
(12,839,968 |
) |
|
$ |
(3,746,138 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per Common Share |
|
$ |
(0.75 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average number of common shares outstanding |
|
|
17,165,781 |
|
|
|
11,161,181 |
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Years Ended |
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|
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|
2022 |
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|
2021 |
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Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,839,968 |
) |
|
$ |
(3,746,138 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
1,209,000 |
|
|
|
200,000 |
|
Finance Expense |
|
|
- |
|
|
|
768,905 |
|
Depreciation and amortization |
|
|
319,936 |
|
|
|
394,968 |
|
Bad debt |
|
|
22,500 |
|
|
|
618 |
|
Lease liability amortization |
|
|
(6,800 |
) |
|
|
10,063 |
|
Gain on forgiveness of PPP loan |
|
|
- |
|
|
|
(633,830 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(741,984 |
) |
|
|
32,907 |
|
Accounts receivable - related party |
|
|
275,112 |
|
|
|
(267,513 |
) |
Inventory |
|
|
(455,935 |
) |
|
|
78,440 |
|
Contract asset |
|
|
(60,932 |
) |
|
|
- |
|
Contract asset - related party |
|
|
(14,982 |
) |
|
|
- |
|
Prepaid expenses and other assets |
|
|
(1,911,941 |
) |
|
|
(1,580,805 |
) |
Accounts payable and accrued liabilities |
|
|
2,049,484 |
|
|
|
1,605,399 |
|
Accounts payable and accrued liabilities - related party |
|
|
50,099 |
|
|
|
588,797 |
|
Contract liability |
|
|
60,932 |
|
|
|
- |
|
Contract liability - related party |
|
|
(48,429 |
) |
|
|
63,411 |
|
|
|
|
(12,093,908 |
) |
|
|
(2,484,778 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(2,099,858 |
) |
|
|
(217,840 |
) |
|
|
|
(2,099,858 |
) |
|
|
(217,840 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance from common stock |
|
|
3,221,355 |
|
|
|
16,255,235 |
|
Due to shareholder |
|
|
- |
|
|
|
171,272 |
|
Proceeds from factoring agreement |
|
|
502,349 |
|
|
|
- |
|
Proceeds from notes payable |
|
|
- |
|
|
|
307,610 |
|
Repayment of notes payable |
|
|
- |
|
|
|
(16,266 |
) |
Payment of lease liabilities |
|
|
(148,019 |
) |
|
|
(74,550 |
) |
Repayment of notes payable - related party |
|
|
(797,505 |
) |
|
|
(250,000 |
) |
|
|
|
2,778,180 |
|
|
|
16,393,301 |
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
(11,415,586 |
) |
|
|
13,690,683 |
|
Cash, beginning of year |
|
|
13,710,845 |
|
|
|
20,162 |
|
Cash, end of year |
|
$ |
2,295,259 |
|
|
$ |
13,710,845 |
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
284,178 |
|
|
$ |
6,713 |
|
Cash paid for taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Non-cash Investing and Financing transactions: |
|
|
|
|
|
|
|
|
Debt forgiveness – related party |
|
$ |
1,624,755 |
|
|
$ |
3,767,530 |
|
Note payable - related party issued exchange with due to shareholder |
|
$ |
- |
|
|
$ |
4,000,000 |
|
Initial recognition of right-of-use asset |
|
$ |
- |
|
|
$ |
399,372 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230316005181/en/
Investor Relations
SIDU@redchip.com
1-800-RED-CHIP (733-2447)
Or 407-491-4498
321-450-5633 x407
Executive Vice President
Gregory
heather@gregoryfca.com
321-450-5633 x407
Media Contact
Senior Vice President
Gregory
katiek@gregoryfca.com
1-610-731-1045
Source:
FAQ
What are the financial results for Sidus Space in 2022?
What strategic initiatives has Sidus Space undertaken recently?
What is the future outlook for Sidus Space?
How much cash does Sidus Space have as of December 31, 2022?