Sidus Space Satellite Related Revenue for Q1
2023 Increases Over 100% from Q1 2022
Sidus Space, Inc. (NASDAQ:SIDU), a Space and
Defense-as-a-Service satellite company focused on commercial
satellite design, manufacture, launch, and data collection, today
announced financial results for the first quarter ending March 31,
2023 and provided a business update. Sidus will webcast a
conference call to discuss the results on May 15, 2023 at 9:00 am
Eastern Time. Participants can join the webcast by visiting this
link or visiting the IR calendar on the Investors Relations site at
https://investors.sidusspace.com. A replay of the call will be
available on the site for three months.
“We are excited about the future of our company,” said Teresa
Burchfield, Chief Financial Officer of Sidus Space. “Several
successful initiatives position us well for long-term success. The
capital raised recently allows us to secure multiple launches that
rapidly expand our satellite constellation which is expected to
drive revenue growth. We also purchased long lead time flight
hardware that we believe will accelerate our satellite production
rate to meet mission demands.”
"We have laid a strong foundation for the rest of the year, and
remain on track to launch LizzieSat™, our hybrid 3D printed
satellite, later this year. While the precise timeline is dependent
on the small satellite launch industry, we have completed critical
milestones including successful integrated testing of our onboard
command and control system which drives the satellite on-orbit. Our
confidence in our ability to execute our vision is based on over a
decade of commercial, defense and government manufacturing
experience combined with a proven track record of success, space
qualification experience, existing customers and pipeline, and
heritage hardware. With over 10 years of manufacturing experience
and capabilities we are uniquely positioned to go beyond LEO and to
support missions to MEO, GEO, the Moon, Mars and beyond. We
continue to advance active discussions with numerous prospective
customers, including U.S. and international government agencies,
for payload hosting and data related to our planned satellite
launches over the next 24 months," said Carol Craig, Founder and
CEO of Sidus Space.
Financial Highlights for the quarter Ending March 31,
2023
- Revenue increased to $2,263,627 for the quarter ended March 31,
2023, compared to $1,799,335 for the same period in 2022. Revenue
growth of 26% is primarily attributable to more than doubling
satellite revenue, as this segment of the business begins to
mature.
- Gross profit was $895,799, or 40%, for the quarter ended March
31, 2023, impacted by contract mix, increased materials purchases,
and continued supply chain impacts.
- Total Operating Expenses increased to $3,542,169 for the
quarter ended March 31, 2023 from $3,242,783 for the quarter ended
March 31, 2022 primarily as a result of increased headcount as we
scale our business.
Capital Structure
- As of March 31, 2023, the Company had $2.8 million in cash.
Subsequent to the end of the quarter, the Company executed a common
stock and warrant offering in which the Company sold an aggregate
of approximately 8.6 million shares of Class A common Stock and
pre-funded warrants to purchase up to an aggregate of approximately
21.7 million shares of Class A Common Stock along with warrants to
purchase up to approximately 30.3 million shares of Class A Common
Stock. In addition, the Company sold approximately 3.8 million
shares of Class A Common Stock and approximately 3.8 million
accompanying warrants to purchase shares of Class A Common Stock
pursuant to a partial exercise of the underwriter’s over-allotment
option. Gross proceeds from the offering were approximately $11.2
million.
- The Company intends to use the net proceeds to execute its
strategic plan which includes continued satellite production at an
accelerated pace and fulfillment of a steady launch cadence.
Operational Highlights
We continue to take meaningful steps toward the launch of our
LizzieSat™ constellation and we have accomplished additional key
milestones and developments as we drive our mission of delivering
Space and Defense-as-a-Service to both government and commercial
customers worldwide. In the first quarter of 2023, we formed
several new partnerships and announced new contract awards.
We implemented further steps toward the execution of the launch
of our constellation:
- Sidus Space and its partner, KSAT successfully tested the
integrated command and control systems between Sidus Mission
Control Center (MCC), Florida, KSAT Earth Stations around the
world, and LizzieSat™’s onboard radios and command and control
systems.
- Sidus successfully tested the onboard Artificial Intelligence
(AI) computing capability it intends to fly on every satellite to
ensure every piece of data being downlinked from LizzieSat™ is high
value and ready for immediate consumption by customers.
- The Company executed an updated agreement with SpaceX that
nearly doubled contracted launches with the launch provider,
providing four additional Transporter missions in 2024 and 2025 to
establish a regular launch cadence for Sidus and its
customers.
The Company executed several satellite-related contracts:
- The Company was awarded a follow-on contract for the next phase
of NASA’s Autonomous Satellite Technology for Resilient
Applications (ASTRA) project.
- As part of an effort to expand its reach into the international
market, Sidus Space was awarded a $2.5 million agreement with The
Netherlands Organization for Applied Scientific Research (TNO) to
deploy and test TNO's laser communications technology aboard a
Sidus LizzieSat™ satellite. The Company also announced plans to
increase its presence in Europe by opening a new office in the
Netherlands.
We formed multiple key partnerships since the beginning of
2023:
- In order to accelerate the expansion of Sidus’ commercial data
distribution strategy and broadening of its customer base, the
Company signed an agreement with SkyWatch for use of its
TerraStream data-management platform.
- The Company announced additional technology for integration
into its satellite constellation including: an agreement with
SatLab to implement its second-generation automated identification
system (AIS) technology into the Company’s LizzieSat™ satellite
constellation to power advanced solutions for the maritime industry
and an MOU with SkyServe to integrate and deploy its edge computing
software to provide on-orbit testing and establish integration
processes for future missions as the companies plan to
collaboratively develop services to support various customer
segments.
- In May, the Company signed an MOU with Lulav Space, an Israeli
robotics company specializing in space applications, to cooperate
in the US market by providing a complete guidance navigation and
control (GN&C) solution for both lunar satellite and lunar
lander missions.
The Company also continues to build key relationships with
customers in its mission-critical hardware manufacturing business
including selection for the manufacturing of 13 Propulsion Plant
Team Trainer Maneuvering Area Panels for Bechtel Plant Machinery,
Inc. (BPMI).
Another important highlight is Sidus’ Mentor/Protégé
relationship with L3 Harris. Sidus announced it was selected as a
Protégé with L3Harris Technologies for the Department of Defense
Mentor-Protege Program, which helps businesses expand their
footprint in the defense contracting space by partnering with
larger companies. Designed to grow protege firms, program success
is measured by the increase in dollar value of contract and
subcontract awards, and revenue to protégé firms and an increase in
the employment levels of protégé firms.
About Sidus Space
Sidus Space, located in Cape Canaveral, Florida, operates from a
35,000-square-foot manufacturing, assembly, integration, and
testing facility focused on commercial satellite design,
manufacture, launch, and data collection. The company’s rich
heritage includes the design and manufacture of many flight and
ground component parts and systems for various space-related
customers and programs. Sidus Space has a broad range of
Space-As-a-Service offerings including space-rated hardware
manufacturing, design engineering, satellite manufacturing and
platform development, launch and support services, data analytics
services and satellite constellation management.
Sidus Space has a mission of Bringing Space Down to Earth™ and a
vision of enabling space flight heritage status for new
technologies while delivering data and predictive analytics to
domestic and global customers. Any corporation, industry, or
vertical can start their journey off-planet with Sidus Space’s
rapidly scalable, low-cost satellite services, space-based
solutions, and testing alternatives. More than just a
"Satellite-as-a-Service" provider, Sidus Space is a trusted Mission
Partner–from concept to Low Earth Orbit and beyond. Sidus is ISO
9001:2015, AS9100 Rev. D certified, and ITAR registered.
Forward-Looking Statements
Statements in this press release about future expectations,
plans and prospects, as well as any other statements regarding
matters that are not historical facts, may constitute
‘forward-looking statements’ within the meaning of The Private
Securities Litigation Reform Act of 1995. The words ‘anticipate,’
‘believe,’ ‘continue,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘intend,’
‘may,’ ‘plan,’ ‘potential,’ ‘predict,’ ‘project,’ ‘should,’
‘target,’ ‘will,’ ‘would’ and similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Actual
results may differ materially from those indicated by such
forward-looking statements as a result of various important
factors, including: the uncertainties related to market conditions
and other factors discussed in Sidus Space’s Annual Report on Form
10-K for the year ended December 31, 2022, and other periodic
reports filed with the Securities and Exchange Commission. Any
forward-looking statements contained in this press release speak
only as of the date hereof, and Sidus Space, Inc. specifically
disclaims any obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
SIDUS SPACE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
March 31,
December 31,
2023
2022
Assets
Current assets
Cash
$
2,818,737
$
2,295,259
Accounts receivable
1,471,444
850,340
Accounts receivable - related parties
306,676
168,170
Inventory
806,289
583,437
Contract asset
60,932
60,932
Contract asset - related party
21,859
14,982
Prepaid and other current assets
4,597,651
3,476,748
Total current assets
10,083,588
7,449,868
Property and equipment, net
3,699,040
2,554,992
Operating lease right-of-use assets
184,255
249,937
Other assets
44,275
42,778
Total Assets
$
14,011,158
$
10,297,575
Liabilities and Stockholders’
Equity
Current Liabilities
Accounts payable and other current
liabilities
$
4,750,568
$
3,415,845
Accounts payable - related party
541,991
566,636
Contract liability
60,932
60,932
Contract liability - related party
21,859
14,982
Asset-based loan liability
1,138,260
502,349
Notes payable
1,687,870
1,599,150
Operating lease liability
168,349
199,158
Total Current Liabilities
8,369,829
6,359,052
Operating lease liability -
non-current
25,481
63,310
Total Liabilities
8,395,310
6,422,362
Commitments and contingencies
Stockholders’ Equity
Preferred Stock: 5,000,000 shares
authorized; $0.0001 par value; no shares issued and outstanding
-
-
Common stock: 110,000,000 authorized;
$0.0001 par value
Class A common stock: 100,000,000 shares
authorized; 25,272,736 and 8,022,736 shares issued and outstanding,
respectively
2,527
802
Class B common stock: 10,000,000 shares
authorized; 10,000,000 shares issued and outstanding
1,000
1,000
Additional paid-in capital
37,309,226
32,129,257
Accumulated deficit
(31,696,905
)
(28,255,846
)
Total Stockholders’ Equity
5,615,848
3,875,213
Total Liabilities and Stockholders’
Equity
$
14,011,158
$
10,297,575
SIDUS SPACE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2023
2022
Revenue
$
1,914,724
$
1,360,388
Revenue - related parties
348,903
438,947
Total - revenue
2,263,627
1,799,335
Cost of revenue
1,367,828
820,998
Gross profit
895,799
978,337
Operating expenses
Payroll expenses
1,716,543
751,198
Sales and marketing expenses
188,597
90,461
Lease expense
86,387
84,999
Professional fees
487,442
1,322,292
General and administrative expense
1,063,200
993,833
Total operating expenses
3,542,169
3,242,783
Net loss from operations
(2,646,370
)
(2,264,446
)
Other income (expenses)
Interest expense
(187,527
)
(65,908
)
Asset-based loan expense
(40,933
)
-
Finance expense
(566,229
)
-
Total other income (expenses)
(794,689
)
(65,908
)
Loss before income taxes
(3,441,059
)
(2,330,354
)
Provision for income taxes
-
-
Net loss
$
(3,441,059
)
$
(2,330,354
)
Basic and diluted loss per Common
Share
$
(0.12
)
$
(0.14
)
Basic and diluted weighted average number
of common shares outstanding
29,714,403
16,600,707
SIDUS SPACE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
2023
2022
Cash Flows From Operating
Activities:
Net loss
$
(3,441,059
)
$
(2,330,354
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock based compensation
566,229
1,209,000
Depreciation
3,361
105,211
Lease liability amortization
(2,956
)
(1,218
)
Changes in operating assets and
liabilities:
Accounts receivable
(621,104
)
(694,170
)
Accounts receivable - related party
(138,506
)
(365,012
)
Inventory
(222,852
)
(31,272
)
Contract asset
-
(60,932
)
Contract asset - related party
(6,877
)
-
Prepaid expenses and other assets
(1,122,400
)
(420,502
)
Accounts payable and accrued
liabilities
1,515,926
123,573
Accounts payable and accrued liabilities -
related party
(24,645
)
15,362
Contract liability
-
60,932
Contract liability - related party
6,877
(63,411
)
Net Cash used in Operating Activities
(3,488,006
)
(2,452,793
)
Cash Flows From Investing
Activities:
Purchase of property and equipment
(1,147,409
)
(541,264
)
Net Cash used in Investing Activities
(1,147,409
)
(541,264
)
Cash Flows From Financing
Activities:
Cash proceeds from issuance of common
stock units
4,615,465
-
Proceeds from asset-based loan
agreement
1,857,524
-
Repayment of asset-based loan
agreement
(1,221,613
)
-
Repayment of notes payable
(92,483
)
(34,627
)
Payment of lease liabilities
-
(12,513
)
Repayment of notes payable - related
party
-
(250,000
)
Net Cash provided by (used in) Financing
Activities
5,158,893
(297,140
)
Net change in cash
523,478
(3,291,197
)
Cash, beginning of period
2,295,259
13,710,845
Cash, end of period
$
2,818,737
$
10,419,648
Supplemental cash flow information
Cash paid for interest
$
48,402
$
1,949
Cash paid for taxes
$
-
$
-
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005296/en/
Investor Relations Heather Crowell Executive Vice President
Gregory FCA heather@gregoryfca.com 321-450-5633 x407
Media Contact Katie Kennedy Senior Vice President Gregory FCA
katiek@gregoryfca.com 1-610-731-1045
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