Sidus Space Reports First Quarter 2024 Financial Results and Provides Business Update
Sidus Space (NASDAQ: SIDU) reported its Q1 2024 financial results and provided a business update. Key achievements include the successful launch of their first LizzieSat on the SpaceX Transporter-10 Rideshare Mission and securing several contracts, including a $794 million ceiling contract with the National Geospatial-Intelligence Agency. Financially, Sidus Space saw a total revenue of $1.1 million, a decrease of $1.2 million from the same period last year. Costs of revenue decreased by 29% to $1 million, but gross profit margin dropped to 8% from 40%. The company posted a net loss of $3.8 million and an adjusted EBITDA loss of $2.7 million. On the balance sheet, cash reserves increased to $6.2 million, and total stockholders’ equity rose to $17.2 million.
- Successfully launched and deployed the first LizzieSat from SpaceX Transporter-10 Rideshare Mission.
- Secured a $794 million ceiling contract with the National Geospatial-Intelligence Agency.
- Achieved AI and hardware contract revenue milestones.
- Raised $15.2 million through the exercise of warrants and two equity offerings.
- Cash reserves increased to $6.2 million from $1.2 million at the end of the previous quarter.
- Current liabilities decreased by approximately $4 million.
- Total stockholders’ equity increased to $17.2 million.
- Total revenue for Q1 2024 decreased by $1.2 million compared to the same period last year.
- Gross profit margin dropped significantly to 8% from 40%.
- Net loss increased to $3.8 million from $3.4 million in the same period last year.
- Adjusted EBITDA loss of $2.7 million, slightly increased from $2.6 million last year.
- Selling, general, and administrative expenses increased to $3.6 million.
- Revenue decrease primarily driven by timing issues of fixed price manufacturing milestone contracts.
Insights
Sidus Space’s first quarter financial results reveal several key points that investors should consider. To start, the company reported total revenue of
The gross profit margin has dropped dramatically from
On a positive note, the balance sheet appears stronger, with cash rising to
Investors should be cautious of the increased net loss of
Sidus Space’s successful launch of its LizzieSat sets an impressive precedent for the company's technological capabilities and market positioning. The LizzieSat's deployment illustrates Sidus Space's commitment to integrating advanced technologies such as AI and 3D printing into their satellites, which can be a strong selling point to attract more clients.
The company’s business model of offering Space and Data-as-a-Service has great potential for scaling. By securing contracts with notable entities like NASA and other government bodies, Sidus is positioning itself as a preferred partner in space missions and data services, which could drive future revenue growth.
Furthermore, the expansion through agreements with companies like Orbital Transports for global market reach suggests strategic moves to diversify and distribute their market risk, potentially increasing their customer base. The recent contracts and partnerships, such as the one with HEO for NEI Payload and Data Services, indicate a robust pipeline of future revenue streams.
However, investors should weigh these technological and market advances against the backdrop of financial figures that show increased costs and reduced margins. Understanding how these innovations translate into tangible financial benefits will be key for evaluating Sidus Space’s long-term viability and growth prospects.
The launch and deployment of Sidus Space's first 3D printed, AI-enhanced micro satellite is a notable achievement, demonstrating their technical prowess in the space sector. The use of 3D printing for satellite components can drastically reduce production costs and time, allowing for rapid iteration and deployment of satellites. This innovation could give Sidus a competitive edge in the burgeoning NewSpace industry.
AI enhancements in satellite technology can significantly improve operational efficiency and data processing capabilities. This means more accurate and timely data for the company's clients, which can be a strong differentiator in the market. Furthermore, the two-way communication established with the satellite signifies reliable operations, which is critical for client trust and future contracts.
Additionally, the company's focus on developing a multi-material 3D printed space hardware division suggests an intent to expand their technological capabilities further. This could open new revenue streams beyond satellite services, potentially catering to other space missions and innovations.
However, the tech advancements must be monitored for their real-world application and scalability. It’s important for investors to see consistent performance and successful deployment of subsequent satellites like LizzieSat-2 and 3 to confirm these technologies' effectiveness and reliability.
“During the first quarter of 2024, we successfully launched and deployed our first LizzieSat from the SpaceX Transporter-10 Rideshare Mission, representing the first of several satellites we are planning to launch into Low Earth Orbit. With this new launch, the first commercial satellite designed, manufactured and operated by the company, we have demonstrated our expertise in vertical manufacturing integration as well as our ability to successfully deploy and operate a 275lb satellite with multiple technologies supporting a broad range of applications and customers. This unprecedented success lays the foundation for our continued growth as we prepare for LizzieSat-2 and 3, which are manifested for launch with SpaceX in the fourth quarter of this year,” said Carol Craig, Founder and CEO of Sidus.
“Successfully launching LizzieSat into orbit was a key milestone for Sidus and a vital element of our strategy to position our company as a leader in the Space ecosystem. Our Space-based Data-as-a-Service business model that is enabled by our LizzieSats has the capacity to scale rapidly and generate meaningful, high-margin revenue as we continue deploying additional LizzieSats into orbit,” Ms. Craig concluded.
Operational Highlights for the Quarter Ending March 31, 2024:
- Successfully launched and deployed first ever hybrid 3D printed, Artificial Intelligence (AI) enhanced micro satellite on SpaceX Transporter-10 rideshare mission
- Established two-way communications with LizzieSat™ SCN 59132
-
Teammate on winning Solis Applied Science team for National Geospatial-Intelligence Agency IDIQ research and development contract with
$794 million - Awarded contract for technology hosting payload contract with ASPINA
-
Announced publication of new
U.S. patent application for LizzieSat platform - Completed contract to deliver onboard computing flight hardware with final revenue payments
- Unveiled cutting-edge multi-material 3D printed space hardware division
- Achieved AI and hardware contract revenue milestones
- Secured NOAA approval to provide imaging services to government and commercial customers
Subsequent Operational Highlights:
- Completed commissioning Phase and began operating as a fully functional satellite ID# 59132
- Began activation of customer payloads including NASA ASTRA
- Executed subcontract with Intuitive Machines as a Teammate on the NASA Lunar Terrain Vehicle Services (LTVS) contract
- Delivered Electronic LCS Cabinets to Bechtel as Part of NASA's Mobile Launcher 2
- Expanded sales reach by executing agreement with Orbital Transports for global market reach
- Awarded additional contract with HEO, a Leading Provider of Non-Earth Imaging and Data, for NEI Payload and Data Services on LizzieSat-3
- Unveiled Commercial Mission Control Center for expansion across Space ecosystem
Corporate Governance and Capital Formation Highlights:
- Appointed Bill White as Chief Financial Officer
- Appointed Richard J. Berman to Board of Directors
-
Raised Gross Proceeds of
$15.2 Million
Financial Highlights for the First Quarter Ending March 31, 2024:
Total revenue for the three months ended March 31, 2024, totaled approximately
Cost of revenue decreased
Gross profit margin decreased to
Selling, general, and administrative expenses for the first quarter ended March 31, 2024, totaled approximately
Adjusted EBITDA loss, a non-GAAP measure, for the three months ended March 31, 2024, totaled
Net loss for the three months ended March 31, 2024, was
Balance Sheet:
At March 31, 2024, the Company had cash of
Current liabilities decreased by approximately
Total stockholders’ equity increased to
As of May 20, 2024 the Company had 4,081,344 Class A common shares and 100,000 Class B common shares.
Conference Call and Webcast |
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Event: |
Sidus Space First Quarter 2024 Financial Results Conference Call |
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Date: |
Monday, May 20, 2024 |
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Time: |
5:00 p.m. Eastern Time |
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Live Call: |
+ 1-877-269-7751 ( |
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Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1669695&tp_key=1efc809b5b |
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For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Monday, June 3, 2024, at 11:59 P.M. ET and can be accessed by dialing +1-844-512-2921 (
About Sidus Space
Sidus Space (NASDAQ: SIDU) is a multi-faceted Space and Data-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support. The Company is in
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. More than just a “Satellite-as-a-Service” provider, Sidus Space’s products and services are offered through its four business units: Space and Defense Hardware Manufacturing, Satellite Manufacturing and Payload Integration, Space-Based Data Solutions, and AI/ML Products and Services to support customers from concept to Low Earth Orbit and beyond. Sidus Space 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, 2023, 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.
NON-GAAP MEASURES
To provide investors with additional information in connection with our results as determined in accordance with GAAP, we use non-GAAP measures of adjusted EBITDA. We use adjusted EBITDA in order to evaluate our operating performance and make strategic decisions regarding future direction of the company since it provides a meaningful comparison to our peers using similar measures. We define adjusted EBITDA as net income (as determined by
The following table reconciles adjusted EBITDA to net loss (the most comparable GAAP measure) for the three months ended March 31, 2024 and 2023:
Three Months Ended |
||||||||||||||||||
March 31, |
||||||||||||||||||
2024 |
|
2023 |
|
Change |
% |
|||||||||||||
Net Income / (Loss) |
|
$ |
(3,810,500.00 |
) |
$ |
(3,441,059.00 |
) |
$ |
(369,441.00 |
) |
11 |
% |
||||||
Interest Expense (i) |
|
248,981.00 |
|
228,460.00 |
|
20,521.00 |
|
9 |
% |
|||||||||
Depreciation and Amortization (ii) |
|
253,030.00 |
|
3,361.00 |
|
249,669.00 |
|
7428 |
% |
|||||||||
Fundraising expense (iii) |
|
560,322.00 |
|
35,000.00 |
|
525,322.00 |
|
1501 |
% |
|||||||||
Capital Market and advisory fees (iiii) |
|
- |
|
566,299.00 |
|
(566,299.00 |
) |
-100 |
% |
|||||||||
Equity based compensation |
|
41,698.00 |
|
- |
|
41,698.00 |
|
- |
|
|||||||||
Total Non-GAAP Adjustments |
|
1,104,031.00 |
|
833,120.00 |
|
270,911.00 |
|
33 |
% |
|||||||||
Adjusted EBITDA |
|
(2,706,469.00 |
) |
(2,607,939.00 |
) |
(98,530.00 |
) |
4 |
% |
|||||||||
(i) |
Sidus Space incurred increased interest expense due to short-term note payable due in Q4 2024 and interest expense related to an asset based loan. |
|||||||||||||||||
(ii) |
Sidus Space incurred increased depreciation expense 2024 with launch and deployment of satellite fixed asset and related satellite software. |
|||||||||||||||||
(iii) |
Sidus Space incurred one-time legal and audit related fundraising expenses |
|||||||||||||||||
(iiii) |
Sidus Space incurred one-time stock issuance costs in 2023 |
|||||||||||||||||
SIDUS SPACE, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
|
|
March 31, |
December 31, |
||||
|
|
2024 |
|
2023 |
|
||
Assets |
|||||||
Current assets |
|
||||||
|
Cash |
$ |
6,171,759 |
|
$ |
1,216,107 |
|
Accounts receivable |
650,763 |
|
1,175,077 |
|
|||
Accounts receivable - related parties |
172,030 |
|
67,447 |
|
|||
Inventory |
1,423,588 |
|
1,217,929 |
|
|||
Contract asset |
77,124 |
|
77,124 |
|
|||
Contract asset - related party |
43,173 |
|
43,173 |
|
|||
Prepaid and other current assets |
4,768,330 |
|
5,405,453 |
|
|||
Total current assets |
13,306,767 |
|
9,202,310 |
|
|||
Property and equipment, net |
11,547,302 |
|
9,570,214 |
|
|||
Operating lease right-of-use assets |
46,511 |
|
115,573 |
|
|||
Intangible asset |
398,135 |
|
398,135 |
|
|||
Other assets |
72,030 |
|
64,880 |
|
|||
Total Assets |
$ |
25,370,745 |
|
$ |
19,351,112 |
|
|
|
|
||||||
Liabilities and Stockholders' Equity |
|||||||
Current liabilities |
|||||||
|
Accounts payable and other current liabilities |
$ |
3,540,192 |
|
$ |
6,697,562 |
|
Accounts payable and accrued interest - related party |
886,331 |
|
677,039 |
|
|||
Contract liability |
77,124 |
|
77,124 |
|
|||
Contract liability - related party |
43,173 |
|
43,173 |
|
|||
Asset-based loan liability |
1,599,653 |
|
2,587,900 |
|
|||
Notes payable |
2,016,951 |
|
2,017,286 |
|
|||
Operating lease liability |
47,990 |
|
119,272 |
|
|||
Total current liabilities |
8,211,414 |
|
12,219,356 |
|
|||
Total Liabilities |
8,211,414 |
|
12,219,356 |
|
|||
Commitments and contingencies |
|||||||
Stockholders' Equity |
|||||||
Preferred Stock: 5,000,000 shares authorized; |
|||||||
Series A convertible preferred stock: 2,000 shares authorized; 0 and 372 shares issued and outstanding, respectively |
- |
|
- |
|
|||
Common stock: 210,000,000 authorized; |
|||||||
Class A common stock: 200,000,000 shares authorized; 4,081,344 and 983,173 shares issued and outstanding, respectively |
409 |
|
98 |
|
|||
Class B common stock: 10,000,000 shares authorized; 100,000 shares issued and outstanding |
10 |
|
10 |
|
|||
Additional paid-in capital |
63,798,580 |
|
49,918,441 |
|
|||
Accumulated deficit |
(46,639,668 |
) |
(42,786,793 |
) |
|||
Total Stockholders' Equity |
17,159,331 |
|
7,131,756 |
|
|||
Total Liabilities and Stockholders' Equity |
$ |
25,370,745 |
|
$ |
19,351,112 |
|
|
SIDUS SPACE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
|
|
2024 |
|
2023 |
|
||
Revenue |
$ |
845,111 |
|
$ |
1,914,724 |
|
|
Revenue - related parties |
205,044 |
|
348,903 |
|
|||
Total - revenue |
1,050,155 |
|
2,263,627 |
|
|||
Cost of revenue |
966,091 |
|
1,367,828 |
|
|||
Gross profit |
84,064 |
|
895,799 |
|
|||
Operating expenses |
|||||||
Selling, general and administrative expense |
3,645,583 |
|
3,542,169 |
|
|||
Total operating expenses |
3,645,583 |
|
3,542,169 |
|
|||
Net loss from operations |
(3,561,519 |
) |
(2,646,370 |
) |
|||
Other income (expense) |
|||||||
Interest expense |
(153,526 |
) |
(187,527 |
) |
|||
Asset-based loan expense |
(95,455 |
) |
(40,933 |
) |
|||
Finance expense |
- |
|
(566,229 |
) |
|||
Total other expense |
(248,981 |
) |
(794,689 |
) |
|||
Loss before income taxes |
(3,810,500 |
) |
(3,441,059 |
) |
|||
Provision for income taxes |
- |
|
- |
|
|||
Net loss |
$ |
(3,810,500 |
) |
$ |
(3,441,059 |
) |
|
Dividend on Series A preferred Stock |
(42,375 |
) |
- |
|
|||
Net loss attributed to stockholders |
(3,852,875 |
) |
(3,441,059 |
) |
|||
Basic and diluted loss per common share |
$ |
(1.40 |
) |
$ |
(0.12 |
) |
|
Basic and diluted weighted average number of common shares outstanding |
2,719,812 |
|
29,714,403 |
|
|||
SIDUS SPACE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2024 |
|
2023 |
|
||||
Cash Flows From Operating Activities: |
|||||||
|
Net loss |
$ |
(3,810,500 |
) |
$ |
(3,441,059 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
Stock based compensation |
79,198 |
|
566,229 |
|
|||
Depreciation and amortization |
253,030 |
|
3,361 |
|
|||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
524,314 |
|
(621,104 |
) |
|||
Accounts receivable - related party |
(104,583 |
) |
(138,506 |
) |
|||
Inventory |
(205,659 |
) |
(222,852 |
) |
|||
Contract asset - related party |
- |
|
(6,877 |
) |
|||
Prepaid expenses and other assets |
629,973 |
|
(1,122,400 |
) |
|||
Accounts payable and accrued liabilities |
(2,991,139 |
) |
1,515,926 |
|
|||
Accounts payable and accrued liabilities - related party |
209,292 |
|
(24,645 |
) |
|||
Contract liability - related party |
- |
|
6,877 |
|
|||
Changes in operating lease assets and liabilities |
(2,220 |
) |
(2,956 |
) |
|||
Net Cash used in Operating Activities |
(5,418,294 |
) |
(3,488,006 |
) |
|||
Cash Flows From Investing Activities: |
|||||||
Purchase of property and equipment |
(2,230,118 |
) |
(1,147,409 |
) |
|||
Net Cash used in Investing Activities |
(2,230,118 |
) |
(1,147,409 |
) |
|||
Cash Flows From Financing Activities: |
|||||||
Proceeds from issuance of common stock units |
13,742,311 |
|
4,615,465 |
|
|||
Proceeds from asset-based loan agreement |
46,133 |
|
1,857,524 |
|
|||
Repayment of asset-based loan agreement |
(1,034,380 |
) |
(1,221,613 |
) |
|||
Repayment of notes payable |
(150,000 |
) |
(92,483 |
) |
|||
Net Cash provided by Financing Activities |
12,604,064 |
|
5,158,893 |
|
|||
Net change in cash |
4,955,652 |
|
523,478 |
|
|||
Cash, beginning of period |
1,216,107 |
|
2,295,259 |
|
|||
Cash, end of period |
$ |
6,171,759 |
|
$ |
2,818,737 |
|
|
Supplemental cash flow information |
|||||||
Cash paid for interest |
$ |
152,066 |
|
$ |
48,402 |
|
|
Cash paid for taxes |
$ |
- |
|
$ |
- |
|
|
Non-cash Investing and Financing transactions: |
|||||||
Class A common stock issued for conversion of Series A convertible preferred stock |
$ |
16,566 |
|
$ |
- |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240520646273/en/
Investor Relations
Valter Pinto or Jack Perkins
KCSA Strategic Communications
sidus@kcsa.com
(212) 896-1254
Media Inquiries
press@sidusspace.com
Source: Sidus Space, Inc.
FAQ
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