Sidus Space 2021 Earnings Report Shows Lower Revenues & Higher Losses

CAPE CANAVERAL, Fla. (Sidus Space PR) — Sidus Space, Inc. (NASDAQ:SIDU), a Space-as-a-Service satellite company focused on commercial satellite design, manufacture, launch, and data collection, today announced financial and corporate results for its fourth quarter and year ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights:

  • Revenue increased to $523,419 for the three-month period ended December 31, 2021, from $268,507 during the same period in 2020, an increase of 95%
  • Loss from operations increased to $1,620,017 for the three-month period ended December 31, 2021 versus $363,472 in the comparable period of 2020.
  • Net loss was $2,426,490 for the three-month period ended December 31, 2021 compared to a net loss of $364,575 during the same period in 2020. The loss was primarily a result of expansion of staff and costs associated with the Company’s initial public offering in December of 2021.

Full Year 2021 Financial Highlights:

  • Revenue decreased from $1,807,182 in 2020 to $1,408,724 in 2021, a decrease of 22%. The decrease was primarily attributable to a slowdown from COVID-19 which caused delays in the supply chain and production capacity due to protocols to protect employees’ health.
  • Gross Profit decreased to ($366,324) in 2021 from $20,772 in 2020. This was due to material and hardware acquisitions in 2021 for revenue to be recognized in Q1 of 2022.
  • Operating Expenses increased from $1,553,909 in 2020 to $3,146,957 for 2021. This was primarily due to of the expansion of staff and costs associated with the initial public offering in December of 2021 along with capital expenditures that include a mobile satellite processing clean room, facility enhancements and growth in production staffing.
  • Total Assets increased to $17,299,951 on December 31, 2021, compared to $1,844,856 on December 31, 2020.
  • Cash position increased to $13,710,845 on December 31, 2021, compared to $20,162 on December 31, 2020.
  • Total liabilities decreased to $6,639,880 on December 31, 2021, from $8,430,316 on December 31, 2020.
  • Net loss was $3,746,138 or $0.34 EPS in 2021 compared to a net loss of $1,542,906 or $0.15 EPS in 2020. The primary reason for this increase was increased operating expenses due to costs associated with the initial public offering.

2021 Operational Highlights and Recent Developments:

  • Received multiple contracts including a subcontract valued at over $5 million to support NASA’s Mobile Launcher 2 (ML2). Sidus also received over $1.5 million in purchase orders for space hardware and services supporting four primary customers. The purchase orders consist of both new orders and modification to a previous purchase order. The majority of these contracts are expected to be completed during the first half of 2022
  • Continued working with some of the largest companies in the industry on high visibility projects including manufacturing hardware for a large Government Space and Communication Systems customer for the 6th consecutive year
  • Completed partnerships with well-known and strategically significant companies within the space industry including Aitech Systems, Red Canyon Software and Kongsberg Satellite Services (KSAT), operator of the world’s largest ground station for support of polar orbiting satellites
  • Completed and delivered multiple manufactured products including a patented EMI Filter Box to the Department of State and Reef Test Cutters for the Orion Crew Module Parachute System
  • Improved intellectual property portfolio with three new patents issued and one notice of allowance received. Additionally, one patent application was filed with additional patents in the process of being filed
  • Carol Craig was presented with the U.S. Women’s Chamber of Commerce “Innovation and Performance Award” given to a contractor who exhibits outstanding innovation and performance on a key contract that will significantly bolster their ability to secure future opportunities. The award was a result of Carol’s efforts to help facilitate NASA’s vision of commercialization that is leading the way to new business opportunities.

“2021 was a groundbreaking year for Sidus Space. The company, built on more than a decade of experience manufacturing and assembly for commercial, military and government customers, has positioned itself to become one of the leading companies in the satellite industry. We hired key personnel, established strong partnerships, added customers, and began manufacturing our own satellites – readying for launch later this year. We are confident in our ability to deliver premier data and products to our customers and strong results to our investors. We believe the standards of excellence and the foundation we built in 2021 will result in significant customer and partnership growth in 2022,” commented Carol Craig, Founder and CEO of Sidus Space.

SIDUS SPACE, INC.CONSOLIDATED BALANCE SHEETS

 December 31, 2021December 31, 2020
Assets  
Current assets  
Cash13,710,845 20,162
Accounts receivable130,856 166,450
Accounts receivable – related parties443,282 175,769
Inventory127,502 205,942
Prepaid and other current assets1,595,099 14,294
Total current assets16,007,584 582,617
   
Property and equipment, net775,070 952,198
Operating lease right-of-use assets504,811 297,555
Other12,486 12,486
Total Assets17,299,951 1,844,856
   
Liabilities and Stockholders’ Equity (Deficit)  
Current Liabilities  
Accounts payable and other current liabilities1,845,460 260,191
Accounts payable and accrued interest – related party588,797 –
Deferred revenue – related party63,411 –
Due to shareholder 7,302,422
Notes payable 338,311
Notes payable – related party1,000,000 –
Operating lease liability261,674 121,613
Finance lease liability50,927 73,184
Total Current Liabilities3,810,269 8,095,721
   
Notes payable – non-current1,120,051 –
Notes payable – related party – non-current1,350,000 –
Operating lease liability – non-current262,468 185,210
Finance lease liability – non-current97,092 149,385
Total Liabilities6,639,880 8,430,316
   
Commitments and Contingencies –
   
Stockholders’ Equity (Deficit)  
Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding –
Common stock: 110,000,000 authorized; $0.0001 par value 
Class A common stock: 100,000,000 shares authorized; 6,574,040 and 0 shares issued and outstanding657 –
Class B common stock: 10,000,000 shares authorized; 10,000,000 issued and outstanding1,000 1,000
  
Additional paid-in capital26,074,292 5,083,280
Accumulated deficit(15,415,878) (11,669,740)
Total Stockholders’ Equity (Deficit)10,660,071 (6,585,460)
Total Liabilities and Stockholders’ Equity (deficit)17,299,951 1,844,856

SIDUS SPACE, INC.CONSOLIDATED STATEMENTS OF OPERATIONS 

  Year Ended Year Ended
  December 31, 2021December 31, 2020
    
Revenue $789,400$1,631,413
Revenue – related parties  619,324175,769
Total Revenue  1,408,7241,807,182
Cost of revenue  1,775,2991,786,410
Gross profit (loss)  (366,575)20,772
    
Operating expenses   
Payroll expenses  1,503,236905,012
Sales and marketing expenses  71,111711,111
Lease Expense  253,311159,122
Depreciation expense  34,76741,521
Professional fees  335,60419,216
General and administrative expense  948,928274,654
Total operating expenses  3,146,9571,553,909
    
Net loss from operations  (3,513,532)(1,533,137)
    
Other income (expense)   
Other income  –10,000
Other expense  (504)(1,500)
Interest expense  (42,882)(18,269)
Interest expense – related party  (54,145)
Gain on forgiveness of PPP loan  633,830
Finance expense  (768,905)
Total other income (expense)  (232,606)
    
Loss before income taxes  (3,746,138)(1,542,906)
Provision for income taxes  –
Net loss $(3,746,138)$(1,542,906)
    
Basic and diluted loss per Common Share $(0.34)$(0.15)
    
Basic and diluted weighted average number of common shares outstanding  11,161,18110,000,000