Sidus space, inc. reports third quarter 2022 results and business update
Cape canaveral, fla.--(business wire)--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 results for the third quarter ended september 30, 2022 and provided company business updates. sidus will webcast a conference call to discuss the results at 9:00 am eastern time. the webcast is available on sidus’ investor relations website at https://investors.sidusspace.com. a replay of the call will be available on the site for three months. “sidus once again grew revenue during the quarter as compared to the previous year, and we continue to make solid progress on our fiscal 2022 plan as well as a number of our strategic initiatives. with revenue growth of over 450% as compared to the same year-to-date 2021 period, we are pleased with our progress in the third quarter. we signed several new and significant contracts and partnerships, and we expect these agreements to generate future revenue streams driving increased annual recurring revenue,” said teresa burchfield, sidus’ cfo. “we saw significant progress implementing our space-as-a-service strategy including launch agreements for our proprietary lizziesat™ with spacex, securing propulsion technology from dawn aerospace that will allow for more precise missions and additional time in orbit, and enabling critical space weather data collection in partnership with mission space. our manufacturing division continues to expand relationships throughout the industry as represented by our continued momentum with large purchase orders,” said carol craig, founder and ceo of sidus space. “we are excited to execute on the massive opportunity offered by the emerging space economy and are confident our vertically-integrated offerings position us well to capture significant market share. as we near our one year anniversary as a public company, i am thrilled with the acknowledgment our team is receiving as they continue to scale up to meet increasing demand for our products and services, as we prioritize progress toward profitability and creating value for our shareholders.” financial highlights for the quarter and year-to-date period ended september 30, 2022 revenue increased to $1.32 million for the three months ended september 30, 2022 from $500,000 in the comparable period of 2021, an increase of 164%. on a year-to-date basis, the company has generated gross profit of 25% as compared to (19%) for the previous 2021 period. on a year-to-date basis, the company’s cost of revenue has benefited from variation in types and lengths of contracts and an increase in its higher margin satellite-as-a-service business line. capital structure as of september 30, 2022, the company had $4.4 million in cash. the company has continued to invest in expanding operations and in equipment related to the satellite side of its business. on august 10, 2022, to further improve the company’s balance sheet and enable the company’s growth, the company entered into a common stock purchase agreement that enables the company to raise up to $30 million of additional equity as funding needs arise. during the quarter, the company raised $3.54 million through the issuance of shares under the common stock purchase agreement. during the quarter, the company raised $3.54 million through the issuance of shares under the common stock purchase agreement. operational highlights the company continues to take meaningful steps toward the inaugural launch of its lizziesat™ constellation: the company signed a memorandum of understanding (“mou”) with exo-space to integrate exo-space’s featheredge data processing platform into its hybrid 3d printed satellite, lizziesat™. sidus was also awarded a contract for integration and launch of exo-space’s artificial intelligence software technology on earth observation satellites. a multi-launch agreement was signed with spacex for five lizziesat rideshare missions. these 5 satellite missions will support previously announced customers that sidus continues to layer into its pipeline. the company signed an mou with momentus inc. to explore launching its lizziesat™ satellites utilizing momentus’ vigoride orbital service vehicle (“osv"). the mou also seeks to foster collaboration between the two companies to use their joint capabilities to seek new opportunities together, expanding both firms’ reach. the company signed a memorandum of understanding with mission space for a partnership for space weather intelligence data collection, which is expected to create an incremental revenue stream through the sale of this data in addition to using it for its own internal purposes. an agreement with dawn aerospace was signed to implement its green, chemical propulsion technology into lizziesat™ to provide precision pointing and maneuvering otherwise not available to smaller cubesats. propulsion also provides a longer life on orbit which means continued data transfer and revenue opportunity. the company continues to build key relationships with customers in its mission-critical hardware manufacturing business: the company reported that over $1.9 million in new purchase orders were received during the quarter for space and defense hardware and services indicating sustained growth in this revenue stream. sidus announced that it will continue producing hardware to support parsons corporation’s tranche 1 (t1) launch. as part of this arrangement, sidus space will fabricate flight cables for parsons evolved secondary payload adapter (espa) ring on t1. the company was also acknowledged with multiple awards for technological distinction, leadership and emerging talent. 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, 2021, 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) september 30, december 31, 2022 2021 assets current assets cash $ 4,359,051 $ 13,710,845 accounts receivable 918,174 130,856 accounts receivable - related party 5,811 443,282 inventory 397,135 127,502 contract asset 60,932 - prepaid and other current assets 3,157,349 1,595,099 total current assets 8,898,452 16,007,584 property and equipment, net 1,961,834 775,070 operating lease right-of-use assets 314,819 504,811 other 35,483 12,486 total assets $ 11,210,588 $ 17,299,951 liabilities and stockholders’ equity current liabilities accounts payable and other current liabilities $ 1,409,152 $ 1,845,460 accounts payable and accrued interest - related party 527,476 588,797 contract liability 60,932 - contract liability - related party - 63,411 notes payable - related party - 1,000,000 operating lease liability 229,652 261,674 finance lease liability - 50,927 total current liabilities 2,227,212 3,810,269 notes payable - non-current 1,043,486 1,120,051 notes payable - related party - non-current - 1,350,000 operating lease liability - non-current 99,742 262,468 finance lease liability - non-current - 97,092 total liabilities 3,370,440 6,639,880 commitments and contingencies stockholders’ equity preferred stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding - - common stock: 110,000,000 authorized; $0.0001 par value class a common stock: 100,000,000 shares authorized; 7,936,274 and 6,574,040 shares issued and outstanding, respectively 794 657 class b common stock: 10,000,000 shares authorized; 10,000,000 shares issued and outstanding 1,000 1,000 additional paid-in capital 31,968,719 26,074,292 accumulated deficit (24,130,365 ) (15,415,878 ) total stockholders’ equity 7,840,148 10,660,071 total liabilities and stockholders’ equity $ 11,210,588 $ 17,299,951 sidus space, inc. condensed consolidated statements of operations (unaudited) three months ended nine months ended september 30, september 30, 2022 2021 2022 2021 revenue $ 1,260,146 $ 123,182 $ 4,099,626 $ 412,823 revenue - related party 57,101 376,669 864,319 472,482 total - revenue 1,317,247 499,851 4,963,945 885,305 cost of revenue 1,402,870 480,997 3,724,467 1,057,137 gross profit (loss) (85,623 ) 18,854 1,239,478 (171,832 ) operating expenses payroll expenses 1,627,241 500,881 3,769,890 943,743 sales and marketing expenses 192,305 - 394,919 71,111 lease expense 80,019 81,926 251,370 165,934 depreciation expense 28,015 8,880 96,611 24,478 professional fees 681,582 49,680 2,135,796 80,173 general and administrative expense 1,180,633 276,832 3,130,171 436,244 total operating expenses 3,789,795 918,199 9,778,757 1,721,683 net loss from operations (3,875,418 ) (899,345 ) (8,539,279 ) (1,893,515 ) other income (expense) other expense - - - (504 ) interest expense (50,880 ) (32,766 ) (175,208 ) (59,459 ) gain on forgiveness of ppp loan - 309,370 - 633,830 total other income (expense) (50,880 ) 276,604 (175,208 ) 573,867 loss before income taxes (3,926,298 ) (622,741 ) (8,714,487 ) (1,319,648 ) provision for income taxes - - - - net loss $ (3,926,298 ) $ (622,741 ) $ (8,714,487 ) $ (1,319,648 ) basic and diluted loss per common share $ (0.23 ) $ (0.06 ) $ (0.52 ) $ (0.13 ) basic and diluted weighted average number of common shares outstanding 17,178,648 10,836,332 16,886,582 10,281,841 sidus space, inc. condensed consolidated statements of cash flows (unaudited) nine months ended september 30, 2022 2021 cash flows from operating activities: net loss $ (8,714,487 ) $ (1,319,648 ) adjustments to reconcile net loss to net cash used in operating activities: stock based compensation 1,209,000 200,000 depreciation and amortization 238,859 294,629 bad debt - 618 lease liability amortization (4,756 ) 10,391 gain on forgiveness of ppp loan - (633,830 ) changes in operating assets and liabilities: accounts receivable (787,318 ) 11,149 accounts receivable - related party 437,471 175,769 inventory (269,633 ) 149,207 contract asset (60,932 ) - prepaid expenses and other assets (1,585,247 ) (27,130 ) accounts payable and accrued liabilities (299,165 ) 162,254 accounts payable and accrued liabilities - related party 10,939 394,924 contract liability (2,479 ) 62,712 net cash used in operating activities (9,827,748 ) (518,955 ) cash flows from investing activities: purchase of property and equipment (1,425,623 ) (30,266 ) net cash used in investing activities (1,425,623 ) (30,266 ) cash flows from financing activities: proceeds from issuance from common stock 3,060,809 2,694,335 due to shareholder - 89,872 proceeds from notes payable - 307,610 repayment of notes payable (213,708 ) (16,266 ) payment of lease liabilities (148,019 ) (62,180 ) repayment of notes payable - related party (797,505 ) (250,000 ) net cash provided by financing activities 1,901,577 2,763,371 net change in cash (9,351,794 ) 2,214,150 cash, beginning of period 13,710,845 20,162 cash, end of period $ 4,359,051 $ 2,234,312 supplemental cash flow information cash paid for interest $ 19,951 $ 6,713 cash paid for taxes $ - $ - non-cash investing and financing transactions: debt forgiveness related party $ 1,624,755 $ 3,392,294 note payable - related party issued exchange with due to shareholder $ - $ 4,000,000
