Sidus Space, Inc. (NASDAQ:SIDU) (the “Company” or “Sidus”), a
Space and Data-as-a-Service satellite company, announced its
financial results for the first quarter ended March 31, 2024 and
provided a business update. The Company is scheduled to host a
conference call and webcast today, Monday, May 20th, at 5:00 p.m.
ET.
“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 ceiling
- 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 through the Exercise of
Warrants and Two Equity Offerings
Financial Highlights for the First Quarter Ending March 31,
2024:
Total revenue for the three months ended March 31, 2024, totaled
approximately $1.1 million, a decrease of $1.2 million compared to
total revenue for the three months ended March 31, 2024. This
decrease was primarily driven by the timing of fixed price
manufacturing milestone contracts related to delivery of hardware
as directed by the contract requirements. Additionally, timing of
satellite contract payments from existing customers varies for each
calendar year. Due to customer driven delays, both manufacturing
and satellite milestone payments shifted to the right and are
expected to increase in the second half of the year.
Cost of revenue decreased 29% for the three months ended March
31, 2024, to approximately $1 million as compared to approximately
$1.4 million for the three months ended March 31, 2023. The
decrease in cost of revenue is primarily driven by the reduction of
total revenue.
Gross profit margin decreased to 8% for the first quarter of
2024 as compared to 40% for the first quarter of 2023 due to the
higher percentage of material costs as compared to labor for
manufacturing contracts and the shifting of the satellite
milestones due to customer delays along with the change in
calculation of COGS.
Selling, general, and administrative expenses for the first
quarter ended March 31, 2024, totaled approximately $3.6 million as
compared to $3.5 million for the same period the prior year. The
slight increase was primarily due to fundraising expenses from two
capital raises in Q1 2024 and an increase in Mission Operations
support expense related to ground support required for tracking and
communicating with our first satellite, partly offset by a
reduction in D&O insurance expenses, marketing and investor
relations expenses.
Adjusted EBITDA loss, a non-GAAP measure, for the three months
ended March 31, 2024, totaled $2.7 million as compared to an
Adjusted EBITDA loss of $2.6 million for the same period the prior
year. Total non-GAAP adjustments for interest expense, depreciation
and amortization, acquisition deal costs, severance costs, capital
markets and advisory fees, equity-based compensation, and warrant
costs are provided in the reconciliation table listed below.
Net loss for the three months ended March 31, 2024, was $3.8
million as compared to a net loss of $3.4 million for the same
period the prior year.
Balance Sheet:
At March 31, 2024, the Company had cash of $6.2 million as
compared to $1.2 million at December 31, 2023. During the quarter,
the Company received gross proceeds of $15.2 million through the
exercise of warrants and two offerings.
Current liabilities decreased by approximately $4.0 million to
approximately $8.2 million as of March 31, 2024, from approximately
$12.2 million as of December 31, 2023. The decrease was primarily
attributable to a decrease in accounts payable and other current
liabilities and our asset-based loan liability.
Total stockholders’ equity increased to $17.2 million as of
March 31, 2024 as compared to $7.1 million as of December 31,
2023.
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
Event:
Sidus Space First Quarter 2024 Financial
Results Conference Call
Date:
Monday, May 20, 2024
Time:
5:00 p.m. Eastern Time
Live Call:
+ 1-877-269-7751 (U.S. Toll-Free) or
+1-201-389-0908 (International)
Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1669695&tp_key=1efc809b5b
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 (U.S. Toll Free) or +1-412-317-6671 (International)
and entering replay pin number: 13746483. An online archive of the
webcast will be available for three months following the event at
investors.sidusspace.com.
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 Cape Canaveral, Florida,
where it operates from a 35,000-square-foot manufacturing,
assembly, integration, and testing facility focused on vertically
integrated Space-as-a-Service solutions including end-to-end
satellite support.
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
U.S. GAAP) adjusted for interest expense, depreciation and
amortization expense, acquisition deal costs, severance costs,
capital market and advisory fees, equity-based compensation and
warrant costs. These non-GAAP measures may be different from
non-GAAP measures made by other companies since not all companies
will use the same measures. Therefore, these non-GAAP measures
should not be considered in isolation or as a substitute for
relevant U.S. GAAP measures and should be read in conjunction with
information presented on a U.S. GAAP basis.
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; $0.0001 par value; no shares issued and outstanding
Series A convertible preferred stock:
2,000 shares authorized; 0 and 372 shares issued and outstanding,
respectively
-
-
Common stock: 210,000,000 authorized;
$0.0001 par value
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
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