Sidus Space, Inc. (NASDAQ:SIDU), a Space-as-a-Service satellite
company focused on commercial satellite design, manufacture,
launch, and data collection, announced yesterday financial results
for the year ended December 31, 2022 and provided company business
updates. Sidus will webcast a conference call to discuss the
results today at 9:00 am Eastern Time. The webcast is available on
Sidus’ Investor Relations website at
https://investors.sidusspace.com. A replay of the call will be
available on the site for three months.
“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 Teresa Burchfield, Chief Financial Officer
of Sidus Space. “In 2022, we laid a strong foundation for a
milestone year ahead. Our team delivered results on multiple key
initiatives and accelerated the implementation of our
Space-as-a-Service strategy throughout the year as we continued to
expand our products and services to customers globally. Our many
accomplishments helped to drive year-over-year revenue growth by
over 400% relative to 2021.”
“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 SpaceX, integrating
propulsion technology from Dawn Aerospace to allow us to extend
LizzieSat’s time in orbit, and implementing Artificial Intelligence
(AI) solution strategies both in orbit and on the ground. Our
efforts further support our expectations related to delivering on
our future value proposition of providing space-based data to a
multitude of industries. 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,” said Carol Craig, Founder and CEO of
Sidus Space. “More recently, we signed a multi-million dollar
agreement with The Netherlands Organization to test their laser
communication technology. This is yet another example of executing
on accelerating a key customer base in smaller international
agencies with more limited space experience. And as we look to
capitalize on commercializing this offering, we are pleased to have
brought on our new Chief Commercial Officer, Eric Gillenwater.”
“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
December 31, 2022
- Revenue increased to $7.3 million for the year ended December
31, 2022 from $1.4 million in the comparable period of 2021, an
increase of 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 $2.3 million 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.
- 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 $2.5 million agreement with The
Netherlands Organization for Applied 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 in Europe by opening a new office in the
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 the Mission 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 for Bechtel Plant
Machinery, Inc. (BPMI).
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, 2022, 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.
SIDUS SPACE, INC.
CONSOLIDATED BALANCE
SHEETS
December 31,
December 31,
2022
2021
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
Liabilities and Stockholders’
Equity
Current Liabilities
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
Commitments and contingencies
-
Stockholders’ Equity
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; 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
SIDUS SPACE, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Years Ended
December 31,
2022
2021
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
)
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
Net loss from operations
(12,044,299
)
(3,513,532
)
Other income (expense)
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
SIDUS SPACE, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Years Ended
December 31,
2022
2021
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
Net Cash used in Operating Activities
(12,093,908
)
(2,484,778
)
Cash Flows From Investing
Activities:
Purchase of property and equipment
(2,099,858
)
(217,840
)
Net Cash used in Investing Activities
(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
)
Net Cash provided by Financing
Activities
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 Dave Gentry RedChip Companies Inc.
SIDU@redchip.com 1-800-RED-CHIP (733-2447) Or 407-491-4498
321-450-5633 x407
Heather Crowell Executive Vice President Gregory FCA
heather@gregoryfca.com 321-450-5633 x407
Media Contact Katie Kennedy Senior Vice President Gregory
FCA katiek@gregoryfca.com 1-610-731-1045
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