As
filed with the U.S. Securities and Exchange Commission on December 27, 2023
Registration
Statement No.
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-1
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
SIDUS
SPACE, INC. |
(Exact
name of registrant as specified in its charter) |
Delaware |
|
4812 |
|
46-0628183 |
(State
or other jurisdiction of
incorporation
or organization) |
|
(Primary
Standard Industrial
Classification
Code Number) |
|
(I.R.S.
Employer
Identification
Number) |
150
N. Sykes Creek Parkway, Suite 200
Merritt
Island, FL 32953
(321)
450-5633
(Address
and telephone number of registrant’s principal executive offices)
Carol
Craig
Chief
Executive Officer
Sidus
Space, Inc.
150
N. Sykes Creek Parkway, Suite 200
Merritt
Island, FL 32953
(321)
450-5633
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
to:
Jeffrey
J. Fessler, Esq.
Sean
F. Reid, Esq.
Sheppard,
Mullin, Richter & Hampton LLP
30
Rockefeller Plaza
New
York, NY 10112-0015
Tel:
(212) 653-8700
Approximate
date of commencement of proposed sale to the public:
As
soon as practicable after the effective date of this registration statement.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933 check the following box: ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ☐ |
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Accelerated
filer ☐ |
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Non-accelerated
filer ☒ |
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Smaller
reporting company ☒ |
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Emerging
growth company ☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does
it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
PRELIMINARY
PROSPECTUS |
SUBJECT
TO COMPLETION |
DATED
DECEMBER 27, 2023 |
Up
to 197,006 shares of Class A Common Stock
Sidus
Space, Inc.
Pursuant
to this prospectus, the selling stockholders identified herein (the “Selling Stockholders”) are offering on a resale basis
an aggregate of up to 197,006 shares of our Class A common stock that are issuable upon exercise of warrants (the “Warrants”)
purchased pursuant to securities purchase agreements by and between us and the Selling Stockholders, dated October 11, 2023 (the “Purchase
Agreement”).
We
will not receive any of the proceeds from the sale by the Selling Stockholders of the shares of Class A common stock offered hereby.
Upon any exercise of the Warrants by payment of cash, however, we will receive the exercise price of the Warrants, which, if exercised
in cash with respect to the 197,006 shares of Class A common stock offered hereby, would result in gross proceeds to us of approximately
$2 million.
The
Selling Stockholders may sell or otherwise dispose of the shares of Class A common stock covered by this prospectus in a number of different
ways and at varying prices. We provide more information about how the Selling Stockholders may sell or otherwise dispose of the Class
A common stock covered by this prospectus in the section entitled “Plan of Distribution” on page 15. Discounts, concessions,
commissions and similar selling expenses attributable to the sale of Common Stock covered by this prospectus will be borne by the Selling
Stockholders. We will pay all expenses (other than discounts, concessions, commissions and similar selling expenses) relating to the
registration of the Common Stock with the Securities and Exchange Commission (the “SEC”).
Our
Class A common stock is listed on The Nasdaq Capital Market under the symbol “SIDU”. On December 22, 2023, the closing price
as reported on The Nasdaq Capital Market was $3.72 per share.
We
are an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act of 2012 and, as such, have
elected to comply with certain reduced public company reporting requirements.
Investing
in our Class A common stock involves risks. See “Risk Factors” beginning on page 7.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2023
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus relates to the resale by the Selling Stockholders identified in this prospectus under the caption “Selling Stockholders,”
from time to time, of up to an aggregate of 197,006 shares of Common Stock. We are not selling any shares of Common Stock under
this prospectus, and we will not receive any proceeds from the sale of shares of Common Stock offered hereby by the Selling Stockholders,
although we may receive cash from the exercise of the Warrants.
You
should rely only on the information provided in this prospectus, including any information incorporated by reference. We have not authorized
anyone to provide you with any other information and we take no responsibility for, and can provide no assurances as to the reliability
of, any other information that others may give you. The information contained in this prospectus speaks only as of the date set forth
on the cover page and may not reflect subsequent changes in our business, financial condition, results of operations and prospects.
We
are not, and the Selling Stockholders are not, making offers to sell these securities in any jurisdiction in which an offer or solicitation
is not authorized or permitted or in which the person making such offer or solicitation is not qualified to do so or to any person to
whom it is unlawful to make such an offer or solicitation. You should read this prospectus, including any information incorporated by
reference, in its entirety before making an investment decision. You should also read and consider the information in the documents to
which we have referred you in the sections entitled “Where You Can Find More Information” and “Incorporation of Certain
Information by Reference.”
INFORMATION
REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements that involve risks and uncertainties. You should not place undue reliance on these forward-looking
statements. All statements other than statements of historical facts contained in this prospectus are forward-looking statements. The
forward-looking statements in this prospectus are only predictions. We have based these forward-looking statements largely on our current
expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and
results of operations. In some cases, you can identify these forward-looking statements by terms such as “anticipate,” “believe,”
“continue,” “could,” “depends,” “estimate,” “expects,” “intend,”
“may,” “ongoing,” “plan,” “potential,” “predict,” “project,”
“should,” “will,” “would” or the negative of those terms or other similar expressions, although not
all forward-looking statements contain those words. We have based these forward-looking statements on our current expectations and projections
about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term
business operations and objectives, and financial needs. These forward-looking statements include, but are not limited to, statements
concerning the following:
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our
projected financial position and estimated cash burn rate; |
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our
estimates regarding expenses, future revenues and capital requirements; |
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our
ability to continue as a going concern; |
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our
need to raise substantial additional capital to fund our operations; |
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our
ability to compete in the global space industry; |
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our
ability to obtain and maintain intellectual property protection for our current products and services; |
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our
ability to protect our intellectual property rights and the potential for us to incur substantial costs from lawsuits to enforce
or protect our intellectual property rights; |
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the
possibility that a third party may claim we have infringed, misappropriated or otherwise violated their intellectual property rights
and that we may incur substantial costs and be required to devote substantial time defending against these claims; |
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our
reliance on third-party suppliers and manufacturers; |
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the
success of competing products or services that are or become available; |
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our
ability to expand our organization to accommodate potential growth and our ability to retain and attract key personnel; and |
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the
potential for us to incur substantial costs resulting from lawsuits against us and the potential for these lawsuits to cause us to
limit our commercialization of our products and services. |
These
forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk
Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is
not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus
may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
You
should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events
and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither
we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation
to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual
results or to changes in our expectations.
You
should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the registration
statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and
events and circumstances may be materially different from what we expect.
PROSPECTUS
SUMMARY
The
following summary highlights selected information contained elsewhere in this prospectus and is qualified in its entirety by the more
detailed information and financial statements included elsewhere in this prospectus. It does not contain all the information that may
be important to you and your investment decision. You should carefully read this entire prospectus, including the matters set forth under
“Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
and our financial statements and related notes included elsewhere in this prospectus. In this prospectus, unless context requires otherwise,
references to “we,” “us,” “our,” “Sidus Space” “Sidus,” or “the Company”
refer to Sidus Space, Inc.
Company
Overview
Founded
in 2012, we are a growing U.S. commercial space company with an established manufacturing business who has been trusted to provide mission-critical
space hardware to many of the top aerospace businesses for over a decade. We plan to offer on-orbit services as the space economy expands;
said services are either in a developmental phase or soon to achieve flight heritage. We have strategically decided to expand our business
by moving up the satellite value chain by becoming a provider of responsive and scalable on-orbit infrastructure as well as collecting
Space and Earth observational data to capture larger market needs.
To
address Commercial and Government customer needs and mission sets, we plan to organize into three core business lines: manufacturing
services; space-infrastructure-as-a-service; and space-based data and insights. Our vertically integrated model is complementary across
each line of business aiming to expand existing and unlock new potential revenue generating opportunities. Additionally, we look to further
transition into a subscription-based model upon the digitization of our manufacturing process as we expand alongside our space-based
focus.
Products
and Services
●
Manufacturing Services: Our manufacturing business is well-established, trusted by industry leaders and growing. Founded in 2012,
we have been manufacturing mission-critical and satellite hardware for over a decade for our principal customers and have supported major
Government and Commercial space programs like NASA’s Artemis / Lunar Gateway missions, xEVAS, Boeing’s Starliner, Sierra’s
Dream Chaser, Airbus’ OneWeb Satellites and the International Space Station.
Our
manufacturing business operates within a 35,000 square foot facility and is adjacent to our clean-room facility. We hold an AS9100 Aerospace
certification, and we are International Traffic In Arms Regulations (ITAR) compliant thereby positioning us, in combination with our
existing tooling and capability, to address unique high-precision manufacturing requirements.
●
Space-Infrastructure-as-a-Service: We are in the process of developing and launching space-based infrastructure and establishing
related ground-infrastructure support elements. Payload providers are our principal customers and target customers who wish to outsource
constellation operations. Collectively, the end-to-end infrastructure that results is offered as “Space-as-a-Service” to
commercial customers and “Defense-as-a-Service” to certain government customers.
Leveraging
our industry experience and flight heritage, we are producing our own line of additively manufactured (3D printed) satellites in-house
(LizzieSats) that are engineered to have the capacity and adaptability to simultaneously host our payloads for our own purposes (see
Space-Data-as-a-Service below) or offer ‘ride-share’ opportunities for payload customers to deliver data to their end users.
We anticipate “bookings” on our infrastructure in our planned ‘rideshare program’ as a key performance metric.
Our
Space-Infrastructure-as-a-Service offering plans to provide: satellite design, satellite manufacture, constellation operations, and payload
hosting.
As
of September 2023, We have:
●
signed a multi-year and multi-launch agreement with Space-X thereby offering customers by extension a reliable, cost-effective launch
service;
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obtained approval for a 100+ satellite constellation by the International Telecommunication Union (ITU);
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established partnerships with a globally diverse network of 20+ ground stations to provide our users with near continuous high-rate,
“on-orbit to cloud”, communications network;
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secured a mission operations center located on the Florida Space Coast, in Merritt Island, FL capable to manage satellite operations,
orchestrate collection management tasks and satisfy data distribution requests with intentions to automate many elements of this process.
Over
time, we plan to begin introducing additional services beyond on-orbit infrastructure services which may include lunar mapping missions,
in support of government requirements for on-orbit maneuverability. Each business opportunity is evaluated on an individual business
case basis and safeguarded against risk to our core business.
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Space Data-as-a-Service and Insights: We plan to be a global provider of space-based data and insights by exclusively collecting data
that only can be captured from space with no terrestrial alternatives. We plan to initially focus on creating offerings in Earth-based
observations and Space situational awareness. These decisions are reinforced by the growing and large addressable markets they represent.
To
date, the space-based data industry has largely launched one-satellite, one-payload, one-mission constellations to deliver one general
data type. Subsequently, downstream processing and associated analytics, at times, have experienced false-positives and ambiguous data
sets diminishing the value and utility of space-based data.
Our
LizzieSat satellite platform addresses this shortcoming by allowing for differentiated data collection when compared to industry alternatives.
We plan to lead the next generation of Earth and Space data collection by:
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Collecting on-orbit coincident data: LizzieSat is capable of hosting multiple-sensors on the same satellite to collect varying data types
at the same time and with the same collection geometry. On-orbit coincident collection benefits users by decreasing false positives with
complementary datasets that reinforce one another.
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Analyzing data on the satellite on-orbit at “the edge”: To maximize value and speed in data processing, in August 2023, we
acquired substantially all of the assets of Exo-Space, a cutting-edge Artificial Intelligence (AI) company to better facilitate (AI)
and Machine Learning (ML) on-board the satellite through hardware and software development. Our plans include integrating radiation hardened
AI/ML capabilities alongside our on-orbit coincident data collection.
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Reducing data size: By processing data at the edge on-board LizzieSat, we expect to first reduce the file size by transmitting only the
processed answer, not the entire raw dataset. This enables us to move data from low-Earth orbit to higher orbit data relay services (like
Iridium) for a lower-cost and more continual data transmission option to our customers.
The
net value of data collected from our planned LizzieSat constellation allows organizations to make better decisions with higher confidence,
increased accuracy and speed. The Company enriches this processed data with customizable analytics users control for their own-use case,
and in turn provide data as a subscription across industries to organizations so they are able to improve decision-making and mitigate
risk.
We
support a broad range of international and domestic governments and commercial companies with hardware manufacturing including the Netherlands
Organization, U.S. Department of State, the U.S. Department of Defense, NASA, Collins Aerospace, Lockheed Martin, Teledyne Marine, Bechtel,
and L3Harris in areas that include launch vehicles, satellite hardware, and autonomous underwater vehicles. Planned services that benefit
current and future customers include delivering space-based data that can provide critical insight for agriculture, commodities tracking,
disaster assessment, illegal trafficking monitoring, energy, mining, oil and gas, fire monitoring, classification of vegetation, soil
moisture, carbon mass, Maritime AIS, Aviation ADS, and weather monitoring; providing the ability for customers to demonstrate that a
technology (hardware or software) performs successfully in the harsh environment of space and delivering space services. We plan to own
and operate one of the industry’s leading U.S. based low earth orbit (“LEO”) small satellite (“smallsat”
or “smallsats”) constellations focused on earth observation and remote sensing. Our operating strategy is to continue to
enhance the capabilities of our satellite constellation, to increase our international and domestic partnerships and to expand our analytics
offerings in order to increase the value we deliver to our customers. Our two operating assets—our satellite constellation and
hardware manufacturing capability—are mutually reinforcing and are a result of years of heritage and innovation.
Key
Factors Affecting Our Results and Prospects
We
believe that our performance and future success depend on several factors that present significant opportunities but also pose risks
and challenges, including competition from better known and well-capitalized companies, the risk of actual or perceived safety issues
and their consequences for our reputation and the other factors discussed under “Risk Factors.” We believe the factors discussed
below are key to our success.
Growing
our experienced space hardware operations
We
are on track to grow our space and defense hardware operations, with a goal of expanding to two and a half shifts with an increased customer
base in the future. With current customers in space, marine, and defense industries, our contract revenue is growing, and we are in active
discussions with numerous potential customers, including government agencies, large defense contractors and private companies, to add
to our contracted revenue. In the past decade, we have fabricated Ground and Flight products for the NASA SLS Rocket and Mobile Launcher
as well as other Commercial Space and Satellite companies. Customers supported include Boeing, Lockheed Martin, Northrop Grumman, Dynetics/Leidos,
Blue Origin, United Launch Alliance, Collins Aerospace, L3Harris, OneWeb and Space Systems Loral/Maxar. Various products have been manufactured
including fluid, hydraulic and pneumatic systems, electrical control systems, cable harnesses, hardware lifting frames, umbilical plates,
purge and hazardous gas disconnects, frangible bolts, reef cutters, wave guides, customized platforms, and other precision machined and
electrical component parts for all types of Rockets, Ground, Flight and Satellite systems.
Commencing
and Expanding Commercial Satellite Operations
Our
goal is to help customers understand how space-based data can be impactful to day-to-day business. Our strategy includes increasing the
demand downstream by starting out as end user focused. While others are focused on data verticalization strategy specializing on a key
sectors or problem set, we believe that flexibility in production, low-cost bespoke design and ‘Bringing Space Down to Earth’
for consumers will provide a scalable model for growth. With LizzieSat design reviews (PDR and CDR) successfully completed in 2022, we
began LizzieSat integration and testing in Q1 2023. We completed critical command and data system testing which validated the proper
functioning of the communications and data transfer paths between a LizzieSat satellite in space and the KSAT, Atlas Space Operations
and Leaf Space ground stations, a requirement for mission success of the LizzieSat™ constellation.
In
Q1 2023 we signed an agreement with SkyWatch for use of its TerraStream data-management platform. This agreement is expected to accelerate
the expansion of Sidus’ commercial data distribution strategy, which includes white labeling data for the Company’s existing
customers as well as driving growth of new data customers. Serving as a key contributor to the Space data marketplace, the agreement
is expected to generate additional revenue for the Company and engage customers that otherwise may not have connected with Sidus. In
Q3 2023 we announced the acquisition of substantially all the assets of Exo-Space, a cutting-edge California based firm specializing
in Edge Artificial Intelligence (AI) software and hardware applications in order to integrate EdgeAI capabilities into our planned constellation
with ExoSpace’s FeatherEdge AI platform which will enable us to deliver near real-time intelligence derived from Earth Observation
data. Further expanding the capabilities of our constellation, we announced an agreement with SatLab to implement its second-generation
automated identification system (AIS) technology into the LizzieSat™ satellite constellation. AIS technology uses sophisticated
systems on board marine vessels to identify and track ships to prevent collisions and protect life at sea. The integration of this technology
into Sidus’s satellites will enable more accurate vessel tracking and monitoring while providing valuable information about ship
movements in real time.
We
have previously been approved for our X-band and S-band radio frequencies licensing through a published filing by the ITU on April 4,
2021. Such licenses are held through Aurea Alas, Ltd., an Isle of Man company, which is a VIE to us. The ITU filing contains approved
spectrum use for multiple X-Band and S-Band frequencies and seven different orbital planes, including 45 degrees. In August 2023, the
FCC approved the LizzieSat-1 launch and operating license for launch and deploy on a SpaceX Falcon 9. In addition, we filed a Part 25
license request with the FCC for the LizzieSat constellation through LizzieSat six mission. The FCC Part 25 license request is currently
in the review period. A NOAA License request was approved to fly Dragonfly Gecko on LizzieSat One. The Gecko images will be integrated
into our FeatherBox AI onboard processor and Automated Information Systems (AIS) to detect marine traffic migration and illegal fishing
activities. Any delays in commencing our commercial launch operations, including due to delays or cost overruns in obtaining NOAA licenses
or other regulatory approvals for future operations or frequency requirements, could adversely impact our results and growth plans.
Our
Vertically Integrated Space Infrastructure
We
are designing, developing, manufacturing, and planning to operate a constellation of proprietary smallsats. These satellites are designed
for multiple missions and customers and form the foundation of our satellite platform. Weighing approximately 100 kilograms each, these
hybrid 3D printed, modular satellites are more functional than cubesats and nanosatellites and less expensive to manufacture than the
larger satellites in the 200-600kg range. Launched into a LEO and operating in diverse orbits (28°-98° inclination, 300-650km
altitude) as approved by the International Telecommunication Union (ITU) in February 2021, our constellation will be optimally distributed
to provide maximum coverage for our customers in the government and commercial sectors. With six initial globally distributed ground
stations, our constellation is designed for rapid tasking, collection, and delivery of high-revisit, high-resolution imagery and data
analytics. As our satellite constellation grows, the amount of data we collect will scale, and we expect our revisit rate will improve.
Our
cost-efficient smallsats are designed from the ground-up to optimize performance per unit cost. We can integrate technologies and deliver
data on demand at lower costs than legacy providers due to our vertical integration, use of Customer Off the Shelf (COTS) proven systems,
cost-efficiencies, capital efficient constellation design, and adaptable pricing models.
We
manufacture our satellites at our Cape Canaveral facility. Our current configuration and facility is designed to manufacture 5-10 satellites
a month. Our vertical integration enables us to control our satellites through the entire design, manufacturing, and operation process.
Our years of experience manufacturing space hardware means we are able to leverage our manufacturing expertise and commercial best practices
for satellite production. Additionally, leveraging both in-house and partner-provided subsystem components and in-house design and integration
services, as well as operational support of satellites on orbit, to provide turn-key delivery of entire constellations offer “concept
to constellation” in months instead of years. Specifically, our Space and Defense-as-a-Service offerings encompass all aspects
of hosted satellite and constellation services, including hosting customer payloads onto our satellites, and delivering services to customers
from our space platform. These services are expected to allow customers to focus on developing innovative payloads rather than having
to design or develop complete satellite buses or satellites or constellations, which we will provide, along with ancillary services that
are likely to include telemetry, tracking and control (“TT&C”), communications, processing, as well as software development
and maintenance. Our patented technologies include a print head for regolith-polymer mixture and associated feedstock; a heat transfer
system for regolith; a method for establishing a wastewater bioreactor environment; vertical takeoff and landing pad and interlocking
pavers to construct same; and high-load vacuum chamber motion feedthrough systems and methods. Regolith is a blanket of unconsolidated,
loose, heterogeneous superficial deposits covering solid rock. It includes dust, broken rocks, and other related materials and is present
on Earth, the Moon, Mars, some asteroids, and other terrestrial planets and moons. We continue to patent our products including our satellites,
external platforms and other innovations.
Revenue
Generation
We
generate revenue by selling payload space on our satellite platform, providing engineering and systems integration services to strategic
customers on a project-by-project basis, and manufacturing space hardware. Additionally, we intend to add to our revenue by selling geospatial
data and actionable intelligence captured through our constellation. This support is typically contracted to both commercial and government
customers under fixed price contracts and often includes other services. Due to the size and capacity of our satellite, we plan to host
a diverse array of sensors such as Multispectral and Hyperspectral Earth Observing Imagers, Maritime Vessel RF Tracking receivers, UHF
IoT Transceivers, Optical Communications gear and others on a single platform that can simultaneously address the needs of many customer
requirements.
Lowering
Manufacturing Cost and Schedule
We
are developing a manufacturing model that provides rapid response to customer requirements including integration of customers technologies
and space-based data delivery. Our planned satellites are being designed to integrate Customer Off the Shelf (COTS) subsystems that are
space-proven, can be rapidly integrated into the satellite and replaced rapidly when customer needs change or evolve. Our vertically
integrated manufacturing processes give us the flexibility to make changes during the production cycle without impacting launch or costs.
Recent
Developments
October
2023 Registered Direct Offering
On
October 11, 2023, we entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors,
pursuant to which we agreed to issue and sell to such investors, in a registered direct offering (the “Offering”), an aggregate
of 20 shares of the Company’s Series A convertible preferred stock, par value $0.0001 per share and stated value of $100,000 per
share (the “Series A preferred stock”) at an offering price of $100,000 per share. Each share of Series A preferred stock
is convertible into shares of the Company’s Class A common stock at an initial conversion price of 10.152 per share (the “Conversion
Price”). The Conversion Price is subject to customary adjustments for stock dividends, stock splits, reclassifications and the
like, and subject to price-based adjustment, on a “full ratchet” basis, in the event of any issuances of common stock, or
securities convertible, exercisable or exchangeable for common stock, at a price below the then-applicable Conversion Price (subject
to certain exceptions). The Series A preferred stock (and the shares of the Company’s Class A common stock underlying the Series
A preferred stock) were offered by us pursuant to our shelf registration statement on Form S-3 (File No. 333-273430), which was originally
filed with the Securities and Exchange Commission (the “SEC”) on July 26, 2023 and declared effective by the SEC on August
14, 2023.
Concurrently
with the sale of the Series A preferred stock, pursuant to the Purchase Agreement in a concurrent private placement, for each share of
Class A common stock issuable upon conversion of the Series A preferred stock purchased by the investor, such investor received an unregistered
warrant (the “Warrant”) to purchase one share of Class A common stock. Each Warrant will be exercisable for one share of
the Company’s Class A common stock at an exercise price of $10.152 per share, will be exercisable immediately upon issuance, and
will have a term of five years from the date of issuance. The exercise price is subject to customary adjustments for stock dividends,
stock splits, reclassifications and the like, and subject to price-based adjustment, on a “full ratchet” basis, in the event
of any issuances of Class A common stock, or securities convertible, exercisable or exchangeable for Class A common stock, at a price
below the then-applicable exercise price (subject to certain exceptions).
The
Warrants and the shares of Class A common stock issuable upon exercise of the Warrants were sold without registration under the Securities
Act of 1933 (the “Securities Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions
not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors, and in reliance on
similar exemptions under applicable state laws.
Corporate
Information
We
were formed as a limited liability company under the name Craig Technologies Aerospace Solutions, LLC on April 17, 2012. On April 15,
2021, we converted into a Delaware corporation and changed our name to Sidus Space, Inc. on August 13, 2021. Our principal executive
offices are located at 150 N. Sykes Creek Parkway, Suite 200, Merritt Island, FL 32953 and our telephone number is (321) 613-5620. Our
website address is www.sidusspace.com. The information contained on our website is not incorporated by reference into this prospectus,
and you should not consider any information contained on, or that can be accessed through, our website as part of this prospectus or
in deciding whether to purchase our Class A common stock.
Implications
of Being an Emerging Growth Company
As
a company with less than $1.235 billion in revenues during our last fiscal year, we qualify as an emerging growth company as defined
in the Jumpstart Our Business Startups Act (“JOBS Act”) enacted in 2012. As an emerging growth company, we expect to take
advantage of reduced reporting requirements that are otherwise applicable to public companies. These provisions include, but are not
limited to:
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● |
being
permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements,
with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
disclosure in this prospectus; |
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● |
not
being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley
Act”); |
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● |
reduced
disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and
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exemptions
from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute
payments not previously approved. |
We
may use these provisions until the last day of our fiscal year following the fifth anniversary of the completion of our initial public
offering. However, if certain events occur prior to the end of such five-year period, including if we become a “large accelerated
filer,” our annual gross revenues exceed $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year
period, we will cease to be an emerging growth company prior to the end of such five-year period.
The
JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised
accounting standards. As an emerging growth company, we intend to take advantage of an extended transition period for complying with
new or revised accounting standards as permitted by The JOBS Act.
To
the extent that we continue to qualify as a “smaller reporting company,” as such term is defined in Rule 12b-2 under the
Securities Exchange Act of 1934, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as
an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to comply
with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures;
and (iii) the requirement to provide only two years of audited financial statements, instead of three years.
THE
OFFERING
Class
A common stock offered by the Selling Stockholders |
|
Up
to 197,006 shares |
|
|
|
Class
A common stock outstanding immediately prior to this offering(1) |
|
881,726
shares |
|
|
|
Class
A common stock outstanding immediately after this offering(1) |
|
1,078,732
shares, assuming the exercise of all Warrants
|
|
|
|
Use
of proceeds |
|
We
will not receive any proceeds from the sale of the shares of Common Stock by the Selling Stockholders, except for the Warrant exercise
price paid for the Common Stock offered hereby and issuable upon the exercise of the Warrants. See “Use of Proceeds”
on page 13 of this prospectus. |
Risk
factors |
|
See
“Risk Factors” on page 7 and other information included in this prospectus for a discussion of factors to consider
carefully before deciding to invest in shares of our Class A Common Stock. |
|
|
|
Nasdaq
Capital Market symbol |
|
Shares
of our Class A Common Stock are listed on The Nasdaq Capital Market under the symbol “SIDU.” There is no established
trading market for the Warrants, and we do not expect a trading market to develop. We do not intend to list the Warrants on any securities
exchange or other trading market. Without a trading market, the liquidity of the Warrants will be extremely limited. |
(1)
The number of shares of Class A common stock that will be outstanding after this offering is based on 881,726 shares of Class A common
stock and 100,000 shares of Class B common stock outstanding as of December 22, 2023, and excludes:
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● |
100,000
shares of Class A common stock issuable upon conversion of our Class B Common Stock; |
|
● |
85,894
shares of Class A common stock issuable upon conversion of 872 shares of Series A convertible preferred stock; and |
|
● |
9,500
shares of Class A common stock reserved for future issuance under our 2021 Omnibus Equity Incentive Plan. |
RISK
FACTORS
An
investment in our securities involves a high degree of risk. This prospectus contains a discussion of the risks applicable to an investment
in our securities. Prior to making a decision about investing in our securities, you should carefully consider the specific factors discussed
within this prospectus. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties
not presently known to us or that we currently deem immaterial may also affect our operations. The occurrence of any of these known or
unknown risks might cause you to lose all or part of your investment in the offered securities.
Risks
Related to Our Class A Common Stock
We
received a written notice from Nasdaq that we have failed to comply with certain listing requirements of the Nasdaq Stock Market, which
could result in our Class A common stock being delisted from the Nasdaq Stock Market.
On
March 14, 2023, we received a written notice from the Nasdaq Stock Market, LLC indicating that the bid price for our Class A common stock,
for the prior 30 consecutive business days, had closed below the minimum $1.00 per share and, as a result, we are not in compliance with
the $1.00 minimum bid price requirement for the continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2).
In accordance with the Nasdaq Listing Rule 5810(c)(3)(A), we had until September 11, 2023, to regain compliance with the minimum bid
price requirement. To regain compliance, the closing bid price of our Class A common stock must meet or exceed $1.00 per share for a
minimum of ten consecutive business days during this 180 day period. As of September 11, 2023, we had not regained compliance with the
$1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2).
On September 12, 2023, we received a written notice from the Nasdaq Stock Market, LLC indicating that we are eligible for an additional
180 calendar day period, or until March 11, 2024, to regain compliance.
On November 2, 2023, the members of our board of
directors, and on November 2, 2023 and November 9, 2023, the holders of approximately 58.5% and 56.4%, respectively, of our voting stock
approved by written consent, a reverse split of our issued and outstanding Class A common stock and Class B common stock at a specific
ratio within a range of one-for-twenty five (1:25) to a maximum of a one-for-one hundred (1-for-100) split. Our board has the sole discretion
to effect the reverse stock split, if at all, within one year of the date the proposal was approved by our stockholders and to fix the
specific ratio for the combination within a range of one-for-twenty-five (1-for-25) to a maximum of a one-for-one hundred (1-for-100)
split. On November 7, 2023, we received a letter from Nasdaq that as of November 6, 2023, it determined that our securities had a
closing bid price of $0.10 or less for ten consecutive trading days. As a result Nasdaq made a determination to delist our securities
from Nasdaq on November 16, 2023 unless we timely requested a hearing. We requested a hearing. On December 6, 2023, our board approved
a one-for-one hundred (1-for-100) reverse stock split. The reverse stock split became effective as of 4:01 p.m. Eastern Time on December
19, 2023, and our Class A common stock began trading on a split-adjusted basis when the Nasdaq Stock Market opened for trading on December
20, 2023. On December 20, 2023, Nasdaq granted us a temporary exception until January 4, 2024 to regain compliance with the bid price requirement.
In the event we fail to regain compliance with the bid price rule by January 4, 2024, our securities will be delisted.
If
we are delisted from Nasdaq, but obtain a substitute listing for our Class A common stock, it will likely be on a market with less liquidity,
and therefore experience potentially more price volatility than experienced on Nasdaq. Stockholders may not be able to sell their shares
of common stock on any such substitute market in the quantities, at the times, or at the prices that could potentially be available on
a more liquid trading market. As a result of these factors, if our Class A common stock is delisted from Nasdaq, the value and liquidity
of our Class A common stock, Series A convertible preferred stock, and warrants would likely be significantly adversely affected. A delisting
of our Class A common stock from Nasdaq could also adversely affect our ability to obtain financing for our operations and/or result
in a loss of confidence by investors, employees and/or business partners.
Our
stock price may be volatile, and purchasers of our Class A common stock could incur substantial losses.
The
stock market in general has experienced significant price and volume fluctuations that have often been unrelated or disproportionate
to operating performance of individual companies, particularly following a public offering of a company with a small public float. There
is the potential for rapid and substantial price volatility of our Class A common stock following this offering. These broad market factors
may seriously harm the market price of our Class A common stock, regardless of our actual or expected operating performance and financial
condition or prospects, which may make it difficult for investors to assess the rapidly changing value of our Class A common stock.
The
dual-class structure of our common stock as contained in our amended and restated certificate of incorporation, as amended, has the effect
of concentrating voting control with those stockholders who held our Class B Common Stock prior to our initial public offering. This
ownership will limit or preclude your ability to influence corporate matters, including the election of directors, amendments of our
organizational documents, and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transactions
requiring stockholder approval, and that may adversely affect the trading price of our Class A Common Stock.
Our
Class B Common Stock has ten votes per share, and our Class A Common Stock, which is the stock that we sold in our initial public offering,
has one vote per share. CTC holds all of the issued and outstanding shares of our Class B Common Stock, representing approximately 53.14%
of the voting power of our outstanding capital stock as of December 22, 2023. In addition, because of the ten-to-one voting ratio
between our Class B and Class A Common Stock, the holder of our Class B Common Stock could continue to control a majority of the combined
voting power of our common stock and therefore control all matters submitted to our stockholders for approval until converted by our
Class B Common stockholder. This concentrated control may limit or preclude your ability to influence corporate matters for the foreseeable
future, including the election of directors, amendments of our organizational documents and any merger, consolidation, sale of all or
substantially all of our assets or other major corporate transactions requiring stockholder approval. In addition, this concentrated
control may prevent or discourage unsolicited acquisition proposals or offers for our capital stock that you may feel are in your best
interest as one of our stockholders. As a result, such concentrated control may adversely affect the market price of our Class A Common
Stock.
Future
transfers by holders of Class B Common Stock will generally result in those shares converting to Class A Common Stock, subject to limited
exceptions as specified in our amended and restated certificate of incorporation, such as transfers to family members and certain transfers
effected for estate planning purposes. The conversion of Class B Common Stock to Class A Common Stock will have the effect, over time,
of increasing the relative voting power of those holders of Class B Common Stock who retain their shares in the long term. As a result,
it is possible that one or more of the persons or entities holding our Class B Common Stock could gain significant voting control as
other holders of Class B Common Stock sell or otherwise convert their shares into Class A Common Stock.
We
cannot predict the effect our dual-class structure may have on the market price of our Class A Common Stock.
We
cannot predict whether our dual-class structure will result in a lower or more volatile market price of our Class A Common Stock, adverse
publicity or other adverse consequences. For example, certain index providers have announced and implemented restrictions on including
companies with multiple-class share structures in certain of their indices. In July 2017, FTSE Russell announced that it would require
new constituents of its indices to have greater than 5% of the company’s voting rights in the hands of public stockholders, and
S&P Dow Jones announced that it would no longer admit companies with multiple-class share structures to certain of its indices. Affected
indices include the Russell 2000 and the S&P 500, S&P MidCap 400 and S&P SmallCap 600, which together make up the S&P
Composite 1500. Also in 2017, MSCI, a leading stock index provider, opened public consultations on its treatment of no-vote and multi-class
structures and temporarily barred new multi-class listings from certain of its indices; however, in October 2018, MSCI announced its
decision to include equity securities “with unequal voting structures” in its indices and to launch a new index that specifically
includes voting rights in its eligibility criteria. Under such announced and implemented policies, the dual-class structure of our common
stock would make us ineligible for inclusion in certain indices and, as a result, mutual funds, exchange-traded funds and other investment
vehicles that attempt to passively track those indices would not invest in our Class A Common Stock. These policies are relatively new
and it is unclear what effect, if any, they will have on the valuations of publicly-traded companies excluded from such indices, but
it is possible that they may adversely affect valuations, as compared to similar companies that are included. Due to the dual-class structure
of our common stock, we will likely be excluded from certain indices and we cannot assure you that other stock indices will not take
similar actions. Given the sustained flow of investment funds into passive strategies that seek to track certain indices, exclusion from
certain stock indices would likely preclude investment by many of these funds and could make our Class A Common Stock less attractive
to other investors. As a result, the market price of our Class A Common Stock could be adversely affected.
Our
principal stockholders will continue to have significant influence over the election of our board of directors and approval of any significant
corporate actions, including any sale of the company.
Our
founders, executive officers, directors, and other principal stockholders, in the aggregate, beneficially own a majority of our outstanding
stock. These stockholders currently have, and likely will continue to have, significant influence with respect to the election of our
board of directors and approval or disapproval of all significant corporate actions. The concentrated voting power of these stockholders
could have the effect of delaying or preventing an acquisition of the company or another significant corporate transaction.
We
could be subject to securities class action litigation.
In
the past, securities class action litigation has often been brought against companies following a decline in the market price of their
securities. This risk is especially relevant for us because technology companies have experienced significant share price volatility
in recent years. If we face such litigation, it could result in substantial costs and a diversion of management’s attention and
resources, which could harm our business.
If
securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market
price for the shares and trading volume could decline.
The
trading market for our Class A Common Stock will depend in part on the research and reports that securities or industry analysts publish
about us or our business. If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts
who covers us downgrades our Class A Common Stock or publishes inaccurate or unfavorable research about our business, the market price
for our Class A Common Stock would likely decline. If one or more of these analysts cease coverage of our company or fail to publish
reports on us regularly, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume
for our common stock to decline.
We
do not expect to pay dividends in the foreseeable future, and you must rely on price appreciation of your shares of Class A Common Stock
for return on your investment.
We
have paid no cash dividends on any class of our stock to date, and we do not anticipate paying cash dividends in the near term. For the
foreseeable future, we intend to retain any earnings to finance the development and expansion of our business, and we do not anticipate
paying any cash dividends on our stock. Accordingly, investors must be prepared to rely on sales of their shares after price appreciation
to earn an investment return, which may never occur. Investors seeking cash dividends should not purchase our shares. Any determination
to pay dividends in the future will be made at the discretion of our board of directors and will depend on our results of operations,
financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our board deems relevant.
Future
sales of substantial amounts of our Class A common stock or securities convertible into or exchangeable or exercisable for shares of
Class A common stock, either by us or by our existing stockholders, or the possibility that such sales could occur, could adversely affect
the market price of our Class A common stock.
Future
sales in the public market of shares of our Class A common stock or securities convertible into or exchangeable or exercisable for shares
of Class A common stock, shares held by our existing stockholders or shares issued upon exercise of our outstanding stock options or
warrants, or the perception by the market that these sales could occur, could lower the market price of our Class A common stock or make
it difficult for us to raise additional capital.
We
will incur increased costs as a public company, and our management will be required to devote substantial time to new compliance initiatives
and corporate governance practices.
As
a public company, and particularly after we no longer qualify as an emerging growth company, we will incur significant legal, accounting,
and other expenses that we did not incur previously. The Sarbanes-Oxley Act of 2002 (“SOX”), the Dodd-Frank Wall Street Reform
and Consumer Protection Act, the listing requirements of Nasdaq, and other applicable securities rules and regulations impose various
requirements on U.S. reporting public companies, including the establishment and maintenance of effective disclosure and financial controls
and corporate governance practices. Our management and other personnel will need to devote a substantial amount of time to these compliance
initiatives. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities
more time-consuming and costly. For example, we expect that these rules and regulations may make it more expensive for us to obtain director
and officer liability insurance, which in turn could make it more difficult for us to attract and retain qualified senior management
personnel or members for our board of directors. In addition, these rules and regulations are often subject to varying interpretations,
and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.
This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure
and governance practices. Pursuant to Section 404 of SOX (“Section 404”), we will be required to furnish a report by our
senior management on our internal control over financial reporting.
While
we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial reporting
issued by our independent registered public accounting firm. To prepare for eventual compliance with Section 404, once we no longer qualify
as an emerging growth company, we will be engaged in a process to document and evaluate our internal control over financial reporting,
which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside
consultants and adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue
steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement
a continuous reporting and improvement process for internal control over financial reporting. Despite our efforts, there is a risk that
we will not be able to conclude, within the prescribed timeframe or at all, that our internal control over financial reporting is effective
as required by Section 404.
We
are an “emerging growth company,” and the reduced reporting requirements applicable to emerging growth companies may make
our common stock less attractive to investors.
We
are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act (“the JOBS Act”). For
as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that
are applicable to other public companies that are not emerging growth companies, including exemption from compliance with the auditor
attestation requirements of Section 404, reduced disclosure obligations regarding executive compensation and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
approved. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth
anniversary of the closing of our initial public offering, (b) in which we have total annual gross revenue of at least $1.235 billion
or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock held by non-affiliates
exceeds $700 million as of the end of our prior second fiscal quarter, and (2) the date on which we have issued more than $1.0 billion
in non-convertible debt during the prior three-year period.
In
addition, under the JOBS Act, emerging growth companies may delay adopting new or revised accounting standards until such time as those
standards apply to private companies. We may elect not to avail ourselves of this exemption from new or revised accounting standards
and, therefore, may be subject to the same new or revised accounting standards as other public companies that are not emerging growth
companies.
We
cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find
our common stock less attractive as a result, there may be a less active trading market for our common stock and our share price may
be more volatile.
Anti-takeover
provisions contained in our certificate of incorporation and bylaws as well as provisions of Delaware law, could impair a takeover attempt.
Our
certificate of incorporation, bylaws and Delaware law contain provisions which could have the effect of rendering more difficult, delaying
or preventing an acquisition deemed undesirable by our board of directors. Our corporate governance documents include provisions:
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● |
authorizing
“blank check” preferred stock, which could be issued by our board of directors without stockholder approval and may contain
voting, liquidation, dividend, and other rights superior to our common stock; |
|
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● |
limiting
the liability of, and providing indemnification to, our directors and officers; |
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● |
limiting
the ability of our stockholders to call and bring business before special meetings; |
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● |
requiring
advance notice of stockholder proposals for business to be conducted at meetings of our stockholders and for nominations of candidates
for election to our board of directors; |
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● |
controlling
the procedures for the conduct and scheduling of board of directors and stockholder meetings; and |
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providing
our board of directors with the express power to postpone previously scheduled annual meetings and to cancel previously scheduled
special meetings. |
These
provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management.
As
a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the Delaware General Corporation
law, which prevents some stockholders holding more than 15% of our outstanding common stock from engaging in certain business combinations
without approval of the holders of substantially all of our outstanding common stock.
Any
provision of our certificate of incorporation, bylaws or Delaware law that has the effect of delaying or deterring a change in control
could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock and could also affect
the price that some investors are willing to pay for our Class A common stock.
Our
amended and restated certificate of incorporation, as amended, designates the Court of Chancery of the State of Delaware as the sole
and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’
ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or other employees.
Our
certificate of incorporation requires that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery
of the State of Delaware will, to the fullest extent permitted by law, be the sole and exclusive forum for each of the following:
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● |
any
derivative action or proceeding brought on our behalf; |
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● |
any
action asserting a claim for breach of any fiduciary duty owed by any director, officer, or other employee of ours to the Company
or our stockholders, creditors or other constituents; |
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● |
any
action asserting a claim against us or any director or officer of ours arising pursuant to, or a claim against us or any of our directors
or officers, with respect to the interpretation or application of any provision of, the DGCL, our certificate of incorporation or
bylaws; or |
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any
action asserting a claim governed by the internal affairs doctrine; |
provided,
that, if and only if the Court of Chancery of the State of Delaware dismisses any of the foregoing actions for lack of subject matter
jurisdiction, any such action or actions may be brought in another state court sitting in the State of Delaware.
The
exclusive forum provision is limited to the extent permitted by law, and it will not apply to claims arising under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), the Securities Act of 1933, as amended (the “Securities Act”),
or for any other federal securities laws which provide for exclusive federal jurisdiction.
Our
Amended and Restated Certificate of Incorporation, as amended, provides that unless we consent in writing to the selection of an alternative
forum, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting
a cause of action arising under the Securities Act or the Securities Exchange Act of 1934, as amended. Any person or entity purchasing
or otherwise acquiring any interest in shares of our capital stock are deemed to have notice of and consented to this provision.
Furthermore,
Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions. Accordingly,
both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions
and the threat of inconsistent or contrary rulings by different courts, among other considerations, our second amended and restated certificate
of incorporation provides that the federal district courts of the United States of America will be the exclusive forum for resolving
any complaint asserting a cause of action arising under the Securities Act. While the Delaware courts have determined that such choice
of forum provisions are facially valid, a stockholder may nevertheless seek to bring such a claim arising under the Securities Act against
us, our directors, officers, or other employees in a venue other than in the federal district courts of the United States of America.
In such instance, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our second
amended and restated certificate of incorporation.
Although
we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits
to which it applies, this provision may limit or discourage a stockholder’s ability to bring a claim in a judicial forum that it
finds favorable for disputes with us or our directors, officers, or other employees, which may discourage such lawsuits against us and
our directors, officers and other employees. Alternatively, if a court were to find the choice of forum provision contained in our certificate
of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action
in other jurisdictions, which could adversely affect our business and financial condition.
We
note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the
federal securities laws and the rules and regulations thereunder. Although we believe this provision benefits us by providing increased
consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging
lawsuits against our directors and officers.
USE
OF PROCEEDS
We
will not receive any of the proceeds from the sale by the Selling Stockholders of the Common Stock. Upon any exercise of the Warrants
by payment of cash, however, we will receive the exercise price of the Warrants, which, if exercised in cash with respect to the 197,006
shares of Class A common stock offered hereby, would result in gross proceeds to us of approximately $2 million. However, we cannot
predict when and in what amounts or if the Warrants will be exercised by payments of cash and it is possible that the Warrants may expire
and never be exercised, in which case we would not receive any cash proceeds.
DIVIDEND
POLICY
We
have never paid or declared any cash dividends on our Class A common stock, and we do not anticipate paying any cash dividends on our
Class A common stock in the foreseeable future. We intend to retain all available funds and any future earnings to fund the development
and expansion of our business. Any future determination to pay dividends will be at the discretion of our board of directors and will
depend upon a number of factors, including our results of operations, financial condition, future prospects, contractual restrictions,
restrictions imposed by applicable law and other factors our board of directors deems relevant.
DETERMINATION
OF OFFERING PRICE
The
prices at which the shares of Common Stock covered by this prospectus may actually be sold will be determined by the prevailing public
market price for shares of our Class A common stock or by negotiations between the Selling Stockholders and buyers of our Common Stock
in private transactions or as otherwise described in “Plan of Distribution.”
SELLING
STOCKHOLDERS
The
Common Stock being offered by the Selling Stockholders are those issuable to the Selling Stockholders, upon exercise of the Warrants.
For additional information regarding the issuances of those securities, see “Prospectus Summary—Recent Developments—October
2023 Registered Direct Offering” above. We are registering the shares of Common Stock in order to permit the Selling Stockholders
to offer the shares for resale from time to time. Except for the ownership of the Warrants and as noted below, the Selling Stockholders
have not had any material relationship with us within the past three years.
The
table below lists the Selling Stockholders and other information regarding the beneficial ownership of the shares of Common Stock by
each of the Selling Stockholders. The second column lists the number of shares of Common Stock beneficially owned by each Selling Stockholder,
based on its ownership of the shares of Common Stock and Warrants, as of December 22, 2023, assuming exercise of the Warrants held by
the Selling Stockholders on that date, without regard to any limitations on exercises.
The
third column lists the shares of Class A Common Stock being offered by this prospectus by the Selling Stockholders.
In
accordance with the terms of a registration rights agreement with the Selling Stockholders, this prospectus generally covers the resale
of the maximum number of shares of Common Stock issuable upon exercise of the Warrants, determined as if the outstanding Warrants were
exercised in full as of the trading day immediately preceding the date this registration statement was initially filed with the SEC,
each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment as provided in the
registration rights agreement, without regard to any limitations on the exercise of the Warrants. The fourth column assumes the sale
of all of the shares offered by the Selling Stockholders pursuant to this prospectus.
Under
the terms of the Warrants, a Selling Stockholder may not exercise the Warrants to the extent such exercise would cause such Selling Stockholder,
together with its affiliates and attribution parties, to beneficially own a number of shares of Common Stock which would exceed 4.99%
of our then outstanding Common Stock following such exercise, excluding for purposes of such determination shares of Common Stock issuable
upon exercise of such Warrants which have not been exercised. The number of shares in the second and fourth columns do not reflect this
limitation. The Selling Stockholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”
Shares Owned Prior to Offering | |
Shares Owned After Offering | |
Name of Selling
Stockholder | |
Class A
Common
Stock | |
Class A
Common
Stock
Underlying
Series A
Preferred
Stock(1) | | |
Class A
Common
Stock
Underlying
Warrants(1) | | |
Maximum Number of Shares of Class A Common Stock to be Sold in this Offering | | |
Number of Shares of Class A Common Stock Beneficially Owned After Offering | | |
Percentage of Shares Beneficially Owned after Offering(1) | |
Intracoastal Capital LLC(2) | |
- | |
| 19,898 | | |
| 59,102 | | |
| 59,102 | | |
| 19,898 | | |
| 2.2 | |
Sixth Borough Capital Fund, LP(3) | |
- | |
| 49,251 | | |
| 59,102 | | |
| 59,102 | | |
| 49,251 | | |
| 5.3 | |
Iroquois Capital Investment Group, LLC(4) | |
90 | |
| 1,281 | | |
| 32,013 | | |
| 32,013 | | |
| 1,371 | | |
| * | |
Iroquois Master Fund Ltd.(5) | |
- | |
| 6,600 | | |
| 27,088 | | |
| 27,088 | | |
| 6,600 | | |
| * | |
Boothbay Absolute Return Strategies, LP(6) | |
- | |
| 5,871 | | |
| 13,049 | | |
| 13,049 | | |
| 5,871 | | |
| * | |
Boothbay Diversified Alpha Master Fund LP(7) | |
- | |
| 2,994 | | |
| 6,652 | | |
| 6,652 | | |
| 2,994 | | |
| * | |
* less than 1%
(1) |
The
ability to convert the Series A preferred stock or exercise the Warrants held by the Selling Stockholders is subject to a beneficial
ownership limitation that, at the time of initial issuance of the Series A preferred stock and Warrants was capped at 4.99% beneficial
ownership of the Company’s issued and outstanding Class A common stock (post-exercise). These beneficial ownership limitations
may be adjusted up or down, subject to providing advanced notice to the Company. Beneficial ownership as reflected in the selling
stockholder table reflects the total number of shares potentially issuable underlying the Series A preferred stock and Warrants,
and does not give effect to these beneficial ownership limitations. Accordingly, actual beneficial ownership, as calculated in accordance
with Section 13(d) and Rule 13d-3 thereunder may be lower than as reflected in the table. The number of shares of Class A common
stock beneficially owned after the offering assumes the sale of all of the Class A common stock registered hereunder. |
(2) |
Mitchell
P. Kopin (“Mr. Kopin”) and Daniel B. Asher (“Mr. Asher”), each of whom are managers of Intracoastal Capital
LLC (“Intracoastal”), have shared voting control and investment discretion over the securities reported herein that are
held by Intracoastal. As a result, each of Mr. Kopin and Mr. Asher may be deemed to have beneficial ownership (as determined under
Section 13(d) of the Exchange Act) of the securities reported herein that are held by Intracoastal. |
(3) |
Robert
D. Keyser, Jr., the CEO of this Selling Stockholder, holds voting and dispositive power over the shares of common stock held by this
Selling Stockholder. |
(4) |
Richard
Abbe, the Managing Member of this Selling Stockholder, holds voting and dispositive power over the shares of common stock held by
this Selling Stockholder. |
(5) |
Richard
Abbe is the managing member of Iroquois Capital Investment Group LLC. Mr. Abbe has voting control and investment discretion over
securities held by Iroquois Capital Investment Group LLC. As such, Mr. Abbe may be deemed to be the beneficial owner (as determined
under Section 13(d) of the Exchange Act) of the securities held by Iroquois Capital Investment Group LLC. |
(6) |
Boothbay
Absolute Return Strategies, LP, a Delaware limited partnership (“Boothbay Absolute Return”) is managed by Boothbay Fund
Management, LLC, a Delaware limited liability company (“Boothbay Fund Management”). Boothbay Fund Management, in its
capacity as the investment manager of the Fund, has the power to vote and the power to direct the disposition of all securities held
by Boothbay Absolute Return. Ari Glass is the Managing Member of the Boothbay Absolute Return. Each of the Boothbay Absolute Return,
Boothbay Fund Management, and Mr. Glass disclaim beneficial ownership of these securities, except to the extent of any pecuniary
interest therein. |
(7) |
Boothbay
Diversified Alpha Master Fund, LP, a Cayman Islands limited partnership (the “Boothbay Diversified”), is managed by Boothbay
Fund Management. Boothbay Fund Management, in its capacity as the investment manager of the Boothbay Diversified, has the power to
vote and the power to direct the disposition of all securities held by Boothbay Diversified. Ari Glass is the Managing Member of
Boothbay Fund Management. Each of Boothbay Diversified, Boothbay Fund Management, and Mr. Glass disclaim beneficial ownership of
these securities, except to the extent of any pecuniary interest therein. |
PLAN
OF DISTRIBUTION
Each
Selling Stockholder of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any
or all of their securities covered hereby on the principal Trading Market or any other stock exchange, market or trading facility on
which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Stockholder may
use any one or more of the following methods when selling securities:
|
● |
ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
|
● |
block
trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block
as principal to facilitate the transaction; |
|
● |
purchases
by a broker-dealer as principal and resale by the broker-dealer for its account; |
|
● |
an
exchange distribution in accordance with the rules of the applicable exchange; |
|
● |
privately
negotiated transactions; |
|
● |
settlement
of short sales; |
|
● |
in
transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated
price per security; |
|
● |
through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
|
● |
a
combination of any such methods of sale; or |
|
● |
any
other method permitted pursuant to applicable law. |
The
Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933,
as amended (the “Securities Act”), if available, rather than under this prospectus. Broker-dealers engaged by the Selling
Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from
the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be
negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance
with FINRA Rule 2121.
In
connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they
assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan
or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The
Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.
We
are required to pay certain fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify
the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We
agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders
without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for
us to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect
or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar
effect. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state
securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is
complied with.
Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the
Common Stock by the Selling Stockholders or any other person. We will make copies of this prospectus available to the Selling Stockholders
and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).
DESCRIPTION
OF CAPITAL STOCK
General
Our
authorized capital stock consists of 215,000,000 shares, consisting of 200,000,000 shares of Class A common stock, par value $0.0001
per share, 10,000,000 shares of Class B common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value
$0.0001 per share.
As
of December 22, 2023, there were 881,726 shares of Class A common stock, 100,000 shares of Class B common stock and 872 shares of Series
A convertible preferred stock issued and outstanding.
The
following description of our capital stock and provisions of our Amended and Restated Certificate of Incorporation, as amended, and Amended
and Restated Bylaws is only a summary. You should also refer to our Amended and Restated Certificate of Incorporation, as amended, a
copy of which is filed as an exhibit to the registration statement of which this prospectus is a part, and our Amended and Restated Bylaws,
a copy of which is filed as an exhibit to the registration statement of which this prospectus is a part.
Class
A Common Stock and Class B Common Stock
We
have authorized Class A common stock and Class B common stock.
Dividend
Rights
Subject
to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our Class A common stock and Class
B common stock are entitled to share equally, identically, and ratably, on a per share basis, with respect to any dividend or distribution
of cash or property paid or distributed by us if our board of directors, in its discretion, determines to issue dividends and then only
at the times and in the amounts that our board of directors may determine.
Voting
Rights
Holders
of our Class A common stock are entitled to one vote for each share and holders of our Class B common stock are entitled to ten votes
per share, on all matters submitted to a vote of stockholders. The holders of our Class A common stock and Class B common stock will
generally vote together as a single class on all matters submitted to a vote of our stockholders, unless otherwise required by Delaware
law or our certificate of incorporation. Delaware law could require either holders of our Class A common stock or Class B common stock
to vote separately as a single class if (i) we were to seek to amend our certificate of incorporation to increase or decrease the aggregate
number of authorized shares of such class or to increase or decrease the par value of a class of our capital stock, then that class would
be required to vote separately to approve the proposed amendment; or (ii) we were to seek to amend our certificate of incorporation in
a manner that alters or changes the powers, preferences or special rights of a class of our capital stock in a manner that affected its
holders adversely, then that class would be required to vote separately to approve the proposed amendment.
Our
certificate of incorporation will not provide for cumulative voting for the election of directors.
See
the section titled “Risk Factors—Risks Relating to Ownership of Our Common Stock—The dual-class structure of our common
stock as contained in our amended and restated certificate of incorporation has the effect of concentrating voting control with those
stockholders who held our capital stock prior to our initial public offering, including our directors, executive officers and their respective
affiliates. This ownership will limit or preclude your ability to influence corporate matters, including the election of directors, amendments
of our organizational documents, and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate
transactions requiring stockholder approval, and that may adversely affect the trading price of our Class A common stock” for a
description of the risks related to the dual-class structure of our common stock.
Conversion
Each
outstanding share of Class B common stock will be convertible at any time at the option of the holder into one share of Class A common
stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer,
whether or not for value, except for certain permitted transfers described in our certificate of incorporation, including transfers to
family members, trusts solely for the benefit of the stockholder or their family members, and partnerships, corporations and other entities
exclusively owned by the stockholder or their permitted transferees.
Change
of Control Transactions
The
holders of Class A common stock and Class B common stock will be treated equally, identically and ratably, on a per share basis, on (a)
the sale, lease, exclusive license, exchange, or other disposition of all or substantially all of our property and assets, (b) the merger,
consolidation, business combination, or other similar transaction with any other entity, which results in the voting securities outstanding
immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving
entity or its parent) less than fifty percent of the total voting power represented by our voting securities and less than fifty percent
of our total number of outstanding shares of capital stock, in each case as outstanding immediately after such merger, consolidation,
business combination or other similar transaction, and (c) a recapitalization, liquidation, dissolution, or other similar transaction
which results in the voting securities outstanding immediately prior thereto representing (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) less than fifty percent of the total voting power represented
by our voting securities and less than fifty percent of our total number of outstanding shares of capital stock, in each case as outstanding
immediately after such recapitalization, liquidation, dissolution or other similar transaction.
Subdivisions
and Combinations
If
we subdivide or combine in any manner outstanding shares of Class A common stock or Class B common stock, the outstanding shares of the
other classes will be subdivided or combined in the same manner.
No
Preemptive or Similar Rights
Our
Class A common stock and Class B common stock are not entitled to preemptive rights and are not subject to conversion, redemption or
sinking fund provisions, except for the conversion provisions with respect to the Class B common stock described above.
Right
to Receive Liquidation Distributions
If
we become subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would
be distributable ratably among the holders of our Class A common Stock and Class B common stock and any participating preferred stock
outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the
payment of liquidation preferences, if any, on any outstanding shares of preferred stock.
Fully
Paid and Non-Assessable
All
of the outstanding shares of our Class A common stock and Class B common stock are fully paid and non-assessable.
Preferred
Stock
Our
board of directors have the authority, without further action by the stockholders, to issue up to 1,000,000 shares of preferred stock
in one or more series and to fix the designations, powers, preferences, privileges, and relative participating, optional, or special
rights as well as the qualifications, limitations, or restrictions of the preferred stock, including dividend rights, conversion rights,
voting rights, terms of redemption, and liquidation preferences, any or all of which may be greater than the rights of the common stock.
Our board of directors, without stockholder approval, will be able to issue convertible preferred stock with voting, conversion, or other
rights that could adversely affect the voting power and other rights of the holders of common stock. Preferred stock could be issued
quickly with terms calculated to delay or prevent a change of control or make removal of management more difficult. Additionally, the
issuance of preferred stock may have the effect of decreasing the market price of our common stock and may adversely affect the voting
and other rights of the holders of common stock. At present, we have no plans to issue any shares of preferred stock following this offering.
Series
A Convertible Preferred Stock
On
October 12, 2023, we filed the Certificate of Designations of Preferences, Rights and Limitations of Series A Preferred Stock (the “Certificate
of Designations”), designating 2,000 shares of Series A Preferred Stock, with the Secretary of State of the State of Delaware.
Dividends
The
holders of the Series A Preferred Stock will be entitled to dividends of 10% per annum, which will, at our sole election, be payable
quarterly or if not paid, will increase the stated value of the Series A Preferred Stock, in accordance with the terms of the Certificate
of Designations. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations),
including, among other things, the suspension from trading or the failure of the Class A Common Stock to be listed on an Eligible Market,
the failure to cure a Conversion Failure or a Delivery Failure, and our failure to pay any amounts due to the holders of the Series A
Preferred Stock when due, the Series A Preferred Stock will accrue dividends at the rate of 20% per annum. Upon conversion, the
holders of the Series A Preferred Stock are also entitled to receive a dividend make-whole payment calculated at the dividend rate then
in effect and assuming that the stated value of the shares of Series A Preferred Stock remained outstanding through and including the
one year anniversary of the applicable date of conversion. In connection with a Triggering Event,
each holder of Preferred Shares will be able to require us to redeem in cash any or all of the holder’s Preferred Shares at a premium
set forth in the Certificate of Designations.
Conversion
The
Series A Preferred Stock is convertible at any time after the date of issuance into shares of our Class A common stock at an initial
conversion price of $10.152 per share of Class A common stock, subject to adjustment as set forth in the Certificate of Designations.
The Series A Preferred Stock will initially be convertible into an aggregate of 197,006 shares of the Company’s Class A
common stock.
Notwithstanding
the foregoing, our ability to settle conversions is subject to certain limitations set forth in the Certificate of Designations, including
a limit on the number of shares that may be issued until the time, if any, that we obtain stockholder approval. Further, the Certificate
of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of Common Stock issuable
upon conversion of the Certificate of Designations or Warrants.
We
are subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, acquisition and investment transactions,
the existence of liens, the repayment of indebtedness, the payment of cash in respect of dividends (other than dividends pursuant to
the Certificate of Designations), distributions or redemptions, and the transfer of assets, among other matters.
There
is no established trading market for the Series A Preferred Stock and we do not expect a market to develop. In addition, we do not intend
to apply for the listing of the Series A Preferred Stock on any national securities exchange or other trading market. Without an active
trading market, the liquidity of the Series A Preferred Stock will be limited.
Fundamental
Transaction
In
the event of a fundamental transaction, as described in the Certificate of Designations and generally including any reorganization, recapitalization
or reclassification of the Company’s common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of the our outstanding common stock,
or any person or group becoming the beneficial owner of 50% of the voting power represented by the Company’s outstanding common
stock, the holders of the Series A Preferred Stock will be entitled to receive upon conversion of the Series A Preferred Stock the kind
and amount of securities, cash or other property that the holders would have received had they converted the Series A Preferred Stock
immediately prior to such fundamental transaction without regard to any limitations on exercise contained in the Series A Preferred Stock.
Voting
Rights
The
Series A Preferred Stock has no voting rights except as required by law (including under the Delaware General Corporation Law).
Right
to Receive Liquidation Distributions
Upon
any liquidation, dissolution or winding-up of the Company,
whether voluntary or involuntary, or a Liquidation (as defined in the Certificate of Designations), the then holders of the Series A
Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company, before any amount shall be
paid to the holders of any of shares of Junior Stock (as defined in the Certificate of Designations), but pari passu with any Parity
Stock (as defined in the Certificate of Designations) then outstanding, an amount per share of Series A Preferred Stock equal to the
greater of (A) 200% of the Conversion Amount (as defined in the Certificate of Designations) of such share of Series A Preferred Stock
on the date of such payment and (B) the amount per share such Holder would receive if such Holder converted such share of Series A Preferred
Stock into Class A common stock immediately prior to the date of such payment.
Options
Our
2021 Equity Incentive Plan provides for us to sell or issue shares restricted shares of Class A common stock, or to grant incentive stock
options or nonqualified stock options, stock appreciation rights and restricted stock unit awards for the purchase of shares of Class
A Common Stock, to employees, members of the board of directors and consultants. As of December 22, 2023, no options to purchase
shares of Class A Common Stock were outstanding.
Exclusive
Forum
Our
Amended and Restated Certificate of Incorporation, as amended, provides that unless we consent in writing to the selection of an alternative
forum, the State of Delaware is the sole and exclusive forum for: (i) any derivative action or proceeding brought on behalf of us, (ii)
any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of our Company to us or our
stockholders, (iii) any action asserting a claim against us, our directors, officers or employees arising pursuant to any provision of
the DGCL or our Amended and Restated Certificate of Incorporation, as amended, or our Amended and Restated Bylaws, or (iv) any action
asserting a claim against us, our directors, officers, employees or agents governed by the internal affairs doctrine, except for, as
to each of (i) through (iv) above, any claim as to which the Court of Chancery determines that there is an indispensable party not subject
to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court
of Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than
the Court of Chancery, or for which the Court of Chancery does not have subject matter jurisdiction.
Additionally,
our Amended and Restated Certificate of Incorporation, as amended, provide that unless we consent in writing to the selection of an alternative
forum, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting
a cause of action arising under the Securities Act or the Securities Exchange Act of 1934, as amended. Any person or entity purchasing
or otherwise acquiring any interest in shares of our capital stock are deemed to have notice of and consented to this provision.
Anti-Takeover
Effects of Delaware law and Our Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws
The
provisions of Delaware law, our Amended and Restated Certificate of Incorporation, as amended, and our Amended and Restated Bylaws, described
below may have the effect of delaying, deferring or discouraging another party from acquiring control of us.
Section
203 of the Delaware General Corporation Law
We
are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business
combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder,
with the following exceptions:
● | before
such date, the board of directors of the corporation approved either the business combination
or the transaction that resulted in the stockholder becoming an interested stockholder; |
● | upon
completion of the transaction that resulted in the stockholder becoming an interested stockholder,
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
at the time the transaction began, excluding for purposes of determining the voting stock
outstanding (but not the outstanding voting stock owned by the interested stockholder) those
shares owned (i) by persons who are directors and also officers and (ii) employee stock plans
in which employee participants do not have the right to determine confidentially whether
shares held subject to the plan will be tendered in a tender or exchange offer; or |
● | on
or after such date, the business combination is approved by the board of directors and authorized
at an annual or special meeting of the stockholder, and not by written consent, by the affirmative
vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested
stockholder. |
In
general, Section 203 defines business combination to include the following:
● | any
merger or consolidation involving the corporation and the interested stockholder; |
● | any
sale, transfer, pledge, or other disposition of 10% or more of the assets of the corporation
involving the interested stockholder; |
● | subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation
of any stock of the corporation to the interested stockholder; |
● | any
transaction involving the corporation that has the effect of increasing the proportionate
share of the stock or any class or series of the corporation beneficially owned by the interested
stockholder; or |
● | the
receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges
or other financial benefits by or through the corporation. |
In
general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates
and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own,
15% or more of the outstanding voting stock of the corporation.
Board
of Directors Vacancies
Our
Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws authorize only our board of directors
to fill vacant directorships. In addition, the number of directors constituting our board of directors may be set only by resolution
of the majority of the incumbent directors.
Stockholder
Action; Special Meeting of Stockholders
Our
Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws provide that our stockholders may not
take action by written consent. Our Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws further
provide that special meetings of our stockholders may be called by a majority of the board of directors, the Chief Executive Officer,
or the Chairman of the board of directors.
Advance
Notice Requirements for Stockholder Proposals and Director Nominations
Our
Amended and Restated Bylaws provide that stockholders seeking to bring business before our annual meeting of stockholders, or to nominate
candidates for election as directors at our annual meeting of stockholders, must provide timely notice of their intent in writing. To
be timely, a stockholder’s notice must be delivered to the secretary at our principal executive offices not later than the close
of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary
of the preceding year’s annual meeting; provided, however, that in the event the date of the annual meeting is more than 30 days
before or more than 60 days after such anniversary date, or if no annual meeting was held in the preceding year, notice by the stockholder
to be timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and
not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day
following the day on which a public announcement of the date of such meeting is first made by us. These provisions may preclude our stockholders
from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders.
Authorized
but Unissued Shares
Our
authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval and
may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions,
and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more
difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise. If we issue
such shares without stockholder approval and in violation of limitations imposed by the Nasdaq Capital Market or any stock exchange on
which our stock may then be trading, our stock could be delisted.
Transfer
Agent and Registrar
The
transfer agent and registrar for our Class A common stock is Pacific Stock Transfer Company.
Stock
Market Listing
Our
shares of Class A Common Stock are listed on The Nasdaq Capital Market under the symbol “SIDU.”
LEGAL
MATTERS
The
validity of the issuance of the shares of Class A common stock offered hereby will be passed upon for us by Sheppard, Mullin, Richter
& Hampton LLP, New York, New York.
EXPERTS
The
financial statements of Sidus Space, Inc. as of December 31, 2022 and 2021 and for each of the years then ended incorporated by reference
in this Registration Statement, of which this prospectus forms a part, have been so included in reliance on the report of BF Borgers
CPA PC, an independent registered public accounting firm, appearing elsewhere herein, given on the authority of said firm as experts
in auditing and accounting.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus is part of a registration statement we filed with the SEC. This prospectus does not contain all of the information set forth
in the registration statement and the exhibits to the registration statement. For further information with respect to us and the securities
we are offering under this prospectus, we refer you to the registration statement and the exhibits and schedules filed as a part of the
registration statement. You should rely only on the information contained in this prospectus or incorporated by reference into this prospectus.
We have not authorized anyone else to provide you with different information. We are not making an offer of these securities in any jurisdiction
where the offer is not permitted. You should assume that the information contained in this prospectus, or any document incorporated by
reference in this prospectus, is accurate only as of the date of those respective documents, regardless of the time of delivery of this
prospectus or any sale of our securities.
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the
public from commercial document retrieval services and over the Internet at the SEC’s website at http://www.sec.gov.
We
maintain a website at www.sonnetbio.com. You may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free
of charge at our website as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC.
The information contained in, or that can be accessed through, our website is not incorporated by reference into, and is not part of,
this prospectus.
INCORPORATION
OF DOCUMENTS BY REFERENCE
This
prospectus is part of the registration statement but the registration statement includes and incorporates by reference additional information
and exhibits. The SEC permits us to “incorporate by reference” the information contained in documents we file with the SEC,
which means that we can disclose important information to you by referring you to those documents rather than by including them in this
prospectus. Information that is incorporated by reference is considered to be part of this prospectus and you should read it with the
same care that you read this prospectus. Information that we file later with the SEC will automatically update and supersede the information
that is either contained, or incorporated by reference, in this prospectus, and will be considered to be a part of this prospectus from
the date those documents are filed. We have filed with the SEC, and incorporate by reference in this prospectus:
|
● |
our
Annual Report on Form
10-K for the year ended December 31, 2022 filed with the SEC on March 15, 2023; |
|
● |
our
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, filed with the SEC on
May 12, 2023,
August 14,
2023 and November 14, 2023, respectively; |
|
● |
our
Current Reports on Form 8-K filed on March
17, 2023, April
6, 2023, April
10, 2023, June
28, 2023, July
5, 2023, August
22, 2023, September
13, 2023, October
2, 2023, October 13, 2023, October 30, 2023, November 13, 2023, December 6, 2023, and December 19, 2023; |
|
● |
our
definitive Proxy Statement on Schedule
14A for our 2023 Annual Meeting of Stockholders, filed with the SEC on May 10, 2023; and |
|
● |
The
description of our Class A common stock contained in our Registration Statement on Form
8-A12b filed with the SEC on December 10, 2021, and any amendments or reports filed updating such description. |
Notwithstanding
the statements in the preceding paragraphs, no document, report or exhibit (or portion of any of the foregoing) or any other information
that we have “furnished” to the SEC pursuant to the Securities Exchange Act of 1934, as amended shall be incorporated by
reference into this prospectus.
We
will furnish without charge to you, on written or oral request, a copy of any or all of the documents incorporated by reference in this
prospectus, including exhibits to these documents. You should direct any requests for documents to:
Sidus
Space, Inc.
150
N. Sykes Creek Parkway, Suite 200
Merritt
Island, FL 32963
Phone:
(321) 613-5620
You
also may access these filings on our website at http://www.sidusspace.com. We do not incorporate the information on our website into
this prospectus or any supplement to this prospectus and you should not consider any information on, or that can be accessed through,
our website as part of this prospectus or any supplement to this prospectus (other than those filings with the SEC that we specifically
incorporate by reference into this prospectus or any supplement to this prospectus).
Any
statement contained in a document incorporated or deemed to be incorporated by reference in this prospectus will be deemed modified,
superseded or replaced for purposes of this prospectus to the extent that a statement contained in this prospectus modifies, supersedes
or replaces such statement. Any statement contained herein or in any document incorporated or deemed to be incorporated by reference
shall be deemed to be modified or superseded for purposes of the registration statement of which this prospectus forms a part to the
extent that a statement contained in any other subsequently filed document which also is or is deemed to be incorporated by reference
modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed to constitute a part of the registration
statement of which this prospectus forms a part, except as so modified or superseded.
Up
to 197,006 shares of Class A Common Stock
Sidus
Space, Inc.
PRELIMINARY
PROSPECTUS
s,
2023
PART
II—INFORMATION NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution
The
following table sets forth all expenses, other than the underwriting discounts and commissions, payable by the registrant in connection
with the sale of the securities being registered. All the amounts shown are estimates except the SEC registration fee and the FINRA filing
fee.
| |
Amount
to be paid | |
SEC registration fee | |
$ | 110 | |
Legal fees and expenses | |
$ | 30,000 | |
Accounting fees and expenses | |
$ | 5,000 | |
Miscellaneous expenses | |
$ | 2,390 | |
Total | |
$ | 37,500 | |
Item
14. Indemnification of Directors and Officers
Section
102 of the General Corporation Law of the State of Delaware (the “DGCL”) permits a corporation to eliminate the personal
liability of directors of a corporation to the corporation or its stockholders for monetary damages for a breach of fiduciary duty as
a director, except where the director breached his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or
knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law
or obtained an improper personal benefit. Our Amended and Restated Certificate of Incorporation, as amended, provides that no director
of the Company shall be personally liable to it or its stockholders for monetary damages for any breach of fiduciary duty as a director,
notwithstanding any provision of law imposing such liability, except to the extent that the DGCL prohibits the elimination or limitation
of liability of directors for breaches of fiduciary duty.
Section
145 of the DGCL provides that a corporation has the power to indemnify a director, officer, employee, or agent of the corporation, or
a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in
related capacities against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened to be made a party
to any threatened, ending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding,
had no reasonable cause to believe his conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation,
no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable
to the corporation unless and only to the extent that the Court of Chancery or other adjudicating court determines that, despite the
adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity
for such expenses which the Court of Chancery or such other court shall deem proper.
Our
Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws provide indemnification for our directors
and officers to the fullest extent permitted by the DGCL. We will indemnify each person who was or is a party or threatened to be made
a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of us) by reason
of the fact that he or she is or was, or has agreed to become, a director or officer, or is or was serving, or has agreed to serve, at
our request as a director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership,
joint venture, trust or other enterprise (all such persons being referred to as an “Indemnitee”), or by reason of any action
alleged to have been taken or omitted in such capacity, against all expenses (including attorneys’ fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding and any appeal therefrom,
if such Indemnitee acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, our best interests,
and, with respect to any criminal action or proceeding, he or she had no reasonable cause to believe his or her conduct was unlawful.
Our Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws will provide that we will indemnify
any Indemnitee who was or is a party to an action or suit by or in the right of us to procure a judgment in our favor by reason of the
fact that the Indemnitee is or was, or has agreed to become, a director or officer, or is or was serving, or has agreed to serve, at
our request as a director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership,
joint venture, trust or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity, against
all expenses (including attorneys’ fees) and, to the extent permitted by law, amounts paid in settlement actually and reasonably
incurred in connection with such action, suit or proceeding, and any appeal therefrom, if the Indemnitee acted in good faith and in a
manner he or she reasonably believed to be in, or not opposed to, our best interests, except that no indemnification shall be made with
respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to us, unless a court determines
that, despite such adjudication but in view of all of the circumstances, he or she is entitled to indemnification of such expenses. Notwithstanding
the foregoing, to the extent that any Indemnitee has been successful, on the merits or otherwise, he or she will be indemnified by us
against all expenses (including attorneys’ fees) actually and reasonably incurred in connection therewith. Expenses must be advanced
to an Indemnitee under certain circumstances.
We
have entered into separate indemnification agreements with each of our directors and executive officers. Each indemnification agreement
provide, among other things, for indemnification to the fullest extent permitted by law and our Amended and Restated Certificate of Incorporation,
as amended, and Amended and Restated Bylaws against any and all expenses, judgments, fines, penalties and amounts paid in settlement
of any claim. The indemnification agreements provide for the advancement or payment of all expenses to the indemnitee and for the reimbursement
to us if it is found that such indemnitee is not entitled to such indemnification under applicable law and our Amended and Restated Certificate
of Incorporation, as amended, and Amended and Restated Bylaws.
We
also have a general liability insurance policy that covers certain liabilities of directors and officers of our corporation arising out
of claims based on acts or omissions in their capacities as directors or officers.
Item
15. Recent Sales of Unregistered Securities
During
August and September 2021, we sold 30,000 shares of Class A common stock to various investors for gross proceeds of $3,000,000. We deemed
the offer, sale and issuance of such securities to be exempt from registration under the Securities Act in reliance on Section 4(2) of
the Securities Act, including Regulation D and Rule 506 promulgated thereunder, relative to transactions by an issuer not involving a
public offering.
On
September 22, 2021, we issued 2,000 shares of restricted Class A Common Stock to 2 employees. The shares vested immediately upon the
grant date. We deemed the offer, sale and issuance of such securities to be exempt from registration under the Securities Act in reliance
on Section 4(2) of the Securities Act, including Regulation D and Rule 506 promulgated thereunder, relative to transactions by an issuer
not involving a public offering.
On
August 10, 2022, we issued an aggregate of 904 shares of common stock to B. Riley Principal Capital II as consideration for its commitment
to purchase shares of our common stock in one or more purchases that we may, in our sole discretion, direct them to make, from time to
time after the date of this prospectus, pursuant to the Purchase Agreement. The shares of common stock were issued under Section 4(a)(2)
of the Securities Act and Rule 506(b) of Regulation D, in a transaction by an issuer not involving a public offering. B. Riley Principal
Capital II has represented that it is an accredited investor for purposes of Rule 501 of Regulation D and that it is not acquiring such
shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or any applicable
state security laws. The investor also represented that it had been afforded the opportunity to ask questions and receive answers from
us and has sought advice as it considered necessary to make an informed investment decision.
On
October 11, 2023, concurrently with the sale of the Series A Preferred Stock, pursuant to the Purchase Agreement in a concurrent private
placement, for each share of Class A Common Stock issuable upon conversion of the Series A Preferred Stock purchased by the investor,
such investor received from the Company an unregistered warrant (the “Warrant”) to purchase one share of Class A Common Stock
(the “Warrant Shares”). Each Warrant will be exercisable for one share of the Company’s Class A Common Stock at an
exercise price of $10.152 per share, will be exercisable immediately upon issuance, and will have a term of five years from the date
of issuance. The exercise price is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like,
and subject to price-based adjustment, on a “full ratchet” basis, in the event of any issuances of Class A Common Stock,
or securities convertible, exercisable or exchangeable for Class A Common Stock, at a price below the then-applicable exercise price
(subject to certain exceptions).
The
Warrants and the shares of Class A Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”) were sold without
registration under the Securities Act of 1933 (the “Securities Act”) in reliance on the exemptions provided by Section 4(a)(2)
of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited
investors, and in reliance on similar exemptions under applicable state laws.
Item
16. Exhibits and Financial Statement Schedules
EXHIBIT
INDEX
Exhibit
No. |
|
Title
of Document |
3.1 |
|
Amended
and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to Form S-1 filed
with the SEC on December 3, 2021) |
3.2 |
|
Certificate
of Amendment of Amended and Restated Certificate of Incorporation dated August 24, 2021 (incorporated by reference to Exhibit 3.2
to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
3.3 |
|
Certificate
of Amendment of Amended and Restated Certificate of Incorporation dated December 16, 2021(incorporated by reference to Exhibit 3.3
to Form 10-K filed with the SEC on April 5, 2022) |
3.4 |
|
Amended
and Restated Bylaws (incorporated by reference to Exhibit 3.4 to Form 10-K filed with the SEC on April 5, 2022) |
3.5 |
|
Certificate
of Amendment to Amended and Restated Certificate of Incorporation of Sidus Space, Inc. (incorporated by reference to Exhibit 3.1
to Current Report on Form 8-K filed with the SEC on July 5, 2023) |
3.6 |
|
Amendment No. 1 to Amended and Restated Bylaws of Sidus Space, Inc. (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the SEC on October 2, 2023) |
3.7 |
|
Certificate
of Designations of Preferences and Rights of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Current
Report on Form 8-K filed with the SEC on October 13, 2023) |
3.8 |
|
Amendment
No. 2 to Amended and Restated Bylaws of Sidus Space, Inc. (incorporated by reference to Exhibit 3.2 to Current Report on Form 8-K
filed with the SEC on October 13, 2023) |
3.9 |
|
Certificate of Amendment to Amended and Restated Certificate of Incorporation of Sidus Space, Inc. (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the SEC on December 19, 2023). |
4.1 |
|
Form
of Representative’s Warrant (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1 filed with the SEC
on January 13, 2023) |
4.2 |
|
Form
of Pre-Funded Warrant (incorporated by reference to Exhibit 4.2 to Registration Statement on Form S-1 filed with the SEC on January
13, 2023) |
4.3
|
|
Form of Representative’s Warrant (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1 filed with the SEC on January 13, 2023) |
4.4 |
|
Form of Warrant (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on October 13, 2023) |
4.5 |
|
Form
of Placement Agent Warrant (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on October
13, 2023) |
5.1 |
|
Opinion
of Sheppard, Mullin, Richter & Hampton LLP |
10.1 |
|
Sidus
Space, Inc. 2021 Omnibus Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to Form 10-K filed with the SEC on April
5, 2022) |
10.2 |
|
Revenue
Loan and Security Agreement dated December 1, 2021 by and among Sidus Space, Inc., Carol Craig and Decathlon Alpha IV, L.P. (incorporated
by reference to Exhibit 10.2 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
10.3 |
|
Loan
Assignment and Assumption Agreement dated December 1, 2021 by and between Decathlon Alpha IV, L.P., Craig Technical Consulting, Inc.
and Sidus Space, Inc. (incorporated by reference to Exhibit 10.3 to Amendment No. 1 to Form S-1 filed with the SEC on December 3,
2021) |
10.4 |
|
Loan
Agreement dated May 1, 2021 by and between Sidus Space, Inc. and Craig Technical Consulting, Inc. (incorporated by reference to Exhibit
10.4 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
10.5 |
|
Form
of Indemnification Agreement for Directors and Officers (incorporated by reference to Exhibit 10.5 to Amendment No. 1 to Form S-1
filed with the SEC on December 3, 2021) |
10.6 |
|
Lease
Agreement dated as of November 29, 2016 between 400 W. Central LLC and Craig Technologies Properties, LLC (assigned to Sidus Space,
Inc.) (incorporated by reference to Exhibit 10.6 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
10.7 |
|
Lease
Agreement dated as of May 21, 2021 between 400 W. Central LLC and Sidus Space, Inc. (incorporated by reference to Exhibit 10.7 to
Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021). |
10.8 |
|
Commercial
Sublease Agreement dated August 1, 2021 by and between Sykes Creek Limited Partnership, Craig Technical Consulting, Inc. and Sidus
Space, Inc. (incorporated by reference to Exhibit 10.8 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
10.9# |
|
NASA
Contract Award dated November 5, 2018 (incorporated by reference to Exhibit 10.9 to Amendment No. 1 to Form S-1 filed with the SEC
on December 3, 2021) |
10.10 |
|
Employment
Agreement between Sidus Space, Inc. and Carol Craig dated December 16, 2021 (incorporated by reference to Exhibit 10.10 to Form 10-K
filed with the SEC on April 5, 2022) |
10.11 |
|
Consulting
Agreement between Sidus Space, Inc. and EverAsia Financial Group, Inc. dated August 21, 2021 (incorporated by reference to Exhibit
10.11 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
10.12 |
|
Common
Stock Purchase Agreement, dated as of August 10, 2022, by and between Sidus Space, Inc. and B. Riley Principal Capital II, LLC (incorporated
by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 11, 2022) |
10.13 |
|
Registration
Rights Agreement, dated as of August 10, 2022, by and between Sidus Space, Inc. and B. Riley Principal Capital II, LLC (incorporated
by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on August 11, 2022) |
10.14 |
|
Debt
Forgiveness Agreement (incorporated by reference to Exhibit 10.1 to Form 8-K filed with the SEC on June 9, 2022) |
10.15 |
|
Asset
Conveyance Agreement entered as of August 18, 2023, by and among Sidus Space, Inc., Exo-Space Inc. and the equityholders of Exo-Space
(incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on August 22, 2023) |
10.16 |
|
Form
of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on October
13, 2023) |
10.17 |
|
Form
of Registration Rights Agreement (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the SEC on October
13, 2023) |
10.18 |
|
First Amendment to Revenue Loan and Security Agreement dated November 16, 2023 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the SEC on December 6, 2023). |
21.1 |
|
List
of Subsidiaries (incorporated by reference to Exhibit 21.1 to Amendment No. 1 to Form S-1 filed with the SEC on December 3, 2021) |
23.1 |
|
Consent of BF Borgers CPA PC. |
23.2 |
|
Consent
of Sheppard, Mullin, Richter & Hampton LLP (included in Exhibit 5.1) |
24 |
|
Power
of Attorney (included on signature page hereto). |
107 |
|
Filing Fee Table |
#
Pursuant to Item 601(b)(10) of Regulation S-K, certain confidential portions of this exhibit were omitted by means of marking such portions
with an asterisk because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly
disclosed.
Item
17. Undertakings
The
undersigned registrant hereby undertakes:
|
(1) |
To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
|
(i) |
To
include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
|
(ii) |
To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set
forth in the “Calculation of Registration Fee” table in the effective registration statement. |
|
(iii) |
To
include any material information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such information in the
registration statement; |
|
|
|
|
|
provided,
however, that paragraphs (i), (ii) and (iii) do not apply if the registration statement is on Form S-1
and the information required to be included in a post-effective amendment by those paragraphs
is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement; |
|
(2) |
That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof. |
|
(3) |
To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering. |
|
(4) |
That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser: each prospectus filed pursuant to Rule
424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other
than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of
the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the
registration statement or made in any such document immediately prior to such date of first use; and |
|
(5) |
That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities: the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant
to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller
to the purchaser and will be considered to offer or sell such securities to such purchaser: |
|
(i) |
Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424; |
|
(ii) |
Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by
the undersigned registrant; |
|
(iii) |
The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and |
|
(iv) |
Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
|
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933
and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Act and will be governed by the final adjudication of such issue. |
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement on Form S-1
to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Merritt Island, State of Florida, on the 27th
day of December 2023.
|
SIDUS
SPACE, INC. |
|
|
|
By: |
/s/
Carol Craig |
|
|
Carol
Craig |
|
|
Chief
Executive Officer |
POWER
OF ATTORNEY
We,
the undersigned officers and directors of Sidus Space, Inc., hereby severally constitute and appoint Carol Craig, our true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution, for us and in our stead, in any and all capacities, to
sign any and all amendments (including post-effective amendments) to this Registration Statement and all documents relating thereto,
and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing necessary or advisable
to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming
all that said attorney-in-fact and agent or his substitute or substitutes, may lawfully do or cause to be done by virtue thereof.
WITNESS
our hands and common seal on the dates set forth below.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this Registration Statement on Form S-1 has been signed by the following
persons in the capacities and on the dates indicated below.
Signature |
|
Title |
|
Date |
|
|
|
|
|
/s/
Carol Craig |
|
Chief
Executive Officer (Principal Executive Officer) |
|
December
27, 2023 |
Carol
Craig |
|
|
|
|
|
|
|
|
|
/s/
Teresa Burchfield |
|
Chief
Financial Officer |
|
December
27, 2023 |
Teresa
Burchfield |
|
(Principal
Financial and Accounting Officer) |
|
|
|
|
|
|
|
/s/Dana
Kilborne |
|
Director |
|
December
27, 2023 |
Dana
Kilborne |
|
|
|
|
|
|
|
|
|
/s/
Cole Oliver |
|
Director |
|
December
27, 2023 |
Cole
Oliver |
|
|
|
|
|
|
|
|
|
/s/
Leonardo Riera |
|
Chairman |
|
December
27, 2023 |
Leonardo
Riera |
|
|
|
|
Exhibit
5.1
|
Sheppard,
Mullin, Richter & Hampton LLP
30
Rockefeller Plaza
New
York, New York 10112-0015
212.653.8700
main
212.653.8701
fax
www.sheppardmullin.com |
December
27, 2023
VIA
EDGAR
Sidus
Space, Inc.
150
N. Sykes Creek Parkway, Suite 200
Merritt
Island, FL 32953
|
Re: |
Registration
Statement on Form S-1 |
Ladies
and Gentlemen:
We
have acted as counsel to Sidus Space, Inc., a Delaware corporation (the “Company”), in connection with the
preparation and filing by the Company of a Registration Statement on Form S-1 (the “Registration Statement”)
with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended
(the “Securities Act”), on or about the date hereof, with respect to the resale from time to time by the selling
stockholders of the Company, as detailed in the Registration Statement (collectively, the “Selling Stockholders”),
of up to 197,006 shares (the “Warrant Shares”) of the Company’s Class A common stock, par value $0.0001
per share (“Common Stock”) that are issuable upon exercise of warrants (the “Warrants”)
purchased pursuant to securities purchase agreements by and between us and the Selling Stockholders, each dated, October 11, 2023 (the
“Purchase Agreement”).
This
opinion is being furnished in accordance with the requirements of Item 601(b)(5)(i) of Regulation S-K.
In
connection with this opinion, we have reviewed and relied upon the following:
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the
Registration Statement; |
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the
form of Purchase Agreement; |
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the
form of Warrant; |
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the
Amended and Restated Certificate of Incorporation of the Company, as amended, in effect on the date hereof; |
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the
Amended and Restated Bylaws of the Company, as amended, in effect on the date hereof; |
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the
resolutions of the Board of Directors of the Company, adopted on October 9, 2023 authorizing/ratifying the execution and delivery of
the Purchase Agreement, the issuance and sale of the Warrants and the Warrant Shares; and |
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such
other documents, records, certificates, memoranda and other instruments as we deem necessary as a basis for this opinion. |
In
connection with the issuance of this opinion letter, we have examined originals or copies, certified or otherwise identified to our satisfaction,
of such records of the Company and such agreements, certificates and receipts of public officials, certificates of officers or other
representatives of the Company and others, and such other documents as we have deemed necessary or appropriate as a basis for the opinions
stated below. As to any facts relevant to the opinions stated herein that we did not independently establish or verify, we have relied
upon statements and representations of officers and other representatives of the Company and of public officials.
In
our examination, we have assumed (a) the genuineness of all signatures, including endorsements, (b) the legal capacity and competency
of all natural persons and, with respect to all parties to agreements or instruments relevant hereto other than the Company, that such
parties had the requisite power and authority (corporate or otherwise) to execute, deliver and perform such agreements or instruments,
that such agreements or instruments have been duly authorized by all requisite action (corporate or otherwise), executed and delivered
by such parties and that such agreements or instruments are the valid, binding and enforceable obligations of such parties, (c) the authenticity
of all documents submitted to us as originals, (d) the conformity to original documents of all documents submitted to us as facsimile,
electronic, certified or photostatic copies, and the authenticity of the originals of such copies; (e) the accuracy, completeness and
authenticity of certificates of public officials; (f) the truth, accuracy and completeness of the information, representations and warranties
contained in the instruments, documents, certificates and records we have reviewed; and (g) the legal capacity for all purposes relevant
hereto of all natural persons and, with respect to all parties to agreements or instruments relevant hereto other than the Company, that
such parties had the requisite power and authority (corporate or otherwise) to execute, deliver and perform such agreements or instruments,
that such agreements or instruments have been duly authorized by all requisite action (corporate or otherwise), executed and delivered
by such parties and that such agreements or instruments are the valid, binding and enforceable obligations of such parties.
Based
upon the foregoing and subject to the qualifications and assumptions stated herein, we are of the opinion that:
The
Warrant Shares have been duly authorized by all necessary corporate action on the part of the Company and, assuming a sufficient number
of authorized but unissued shares of Common Stock are available for issuance when the Warrants are exercised, the Warrant Shares, when
and if issued, delivered and paid for in accordance with the terms of the respective Warrants, will be validly issued, fully paid and
nonassessable.
Our
opinion set forth above is subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether considered
in a proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing.
This
opinion letter is rendered solely in connection with the registration of the Warrant Shares for resale by the Selling Stockholders under
the Registration Statement. This opinion letter is rendered as of the date hereof, and we assume no obligation to advise you or any other
person with regard to any change after the date hereof in the circumstances or the law that may bear on the matters set forth herein
after the effectiveness of the Registration Statement, even if the change may affect the legal analysis or a legal conclusion or other
matters in this opinion letter.
The
opinion we render herein is limited to those matters governed by New York law as of the date hereof and we disclaim any obligation to
revise or supplement the opinion rendered herein should the above-referenced laws be changed by legislative or regulatory action, judicial
decision, or otherwise. We express no opinion as to whether, or the extent to which, the laws of any particular jurisdiction apply to
the subject matter hereof. We express no opinion as to matters governed by any laws other than New York law.
This
opinion letter is rendered as of the date first written above, and we disclaim any obligation to advise you of facts, circumstances,
events, or developments that hereafter may be brought to our attention or that may alter, affect, or modify the opinion expressed herein.
We
hereby consent to the filing of this opinion as an exhibit to the Registration Statement. We also hereby consent to the reference to
our firm under the heading “Legal Matters” in the Registration Statement. In giving this consent, we do not thereby admit
that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the General Rules and Regulations
under the Securities Act. It is understood that this opinion is to be used only in connection with the offer and sale of the Warrant
Shares being registered while the Registration Statement is effective under the Securities Act.
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Respectfully
submitted, |
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/s/
Sheppard, Mullin, Richter & Hampton LLP |
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SHEPPARD,
MULLIN, RICHTER & HAMPTON LLP |
Exhibit
23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
hereby consent to the incorporation in this Registration Statement on Form S-1 of our report dated April 18, 2023, relating to the consolidated
financial statements of Sidus Space, Inc. for the years ended December 31, 2022 and 2021 and to all references to our firm included in
this Registration Statement.
Certified
Public Accountants
Lakewood,
CO
December
27, 2023
Exhibit
107
Calculation
of Filing Fee Tables
FORM
S-1
(Form
Type)
SIDUS
SPACE, INC.
(Exact
Name of Registrant as Specified in its Charter)
Table
1: Newly Registered Securities
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Security
Type | |
Security
Class Title | |
Fee
Calculation
Rule | | |
Amount
Registered(1) | | |
Proposed
Maximum
Offering
Price per
Share (2) | | |
Maximum
Aggregate
Offering
Price | | |
Amount of
Registration
Fee | |
Fees to Be Paid | |
Equity
| |
Class A Common Stock, $0.0001 par value (2) | |
| 457 (c) | | |
| 197,006 | | |
$ | 3.77 | | |
$ | 742,713 | | |
$ | 110 | |
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Total Offering Amounts | | |
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$ | 110 | |
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Total Fees Previously Paid | | |
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$ | 0 | |
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Total Fee Offsets | | |
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$ | 0 | |
| |
Net Fee Due | | |
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$ | 110 | |
(1) |
Pursuant
to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, this registration statement also covers any additional
securities that may be offered, issued or become issuable in connection with any stock split, stock dividend or similar transaction or
pursuant to anti-dilution provisions of any of the securities. |
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(2) |
Estimated
solely for the purpose of calculation of the registration fee pursuant to Rule 457(c) under the Securities Act based on a per share
price of $3.77, the average of the high and low reported sales prices of the registrant’s common stock on the Nasdaq Capital
Market on December 22, 2023. |
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