Sidus Space, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Organization and Description of Business

Organization and Description of Business

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Note 1. Organization and Description of Business

Organization

Sidus Space Inc. (“Sidus”, “we”, “us” or the “Company”), was formed as Craig Technologies Aerospace Solutions, LLC, in the state of Florida, on July 17, 2012. On April 16, 2021, the Company filed a Certificate of Conversion to register and incorporate with the state of Delaware and on August 13, 2021 changed the company name to Sidus Space, Inc.

Description of Business

Founded in 2012, we are a vertically integrated provider of Space and Defense-as-a-Service solutions including end-to-end satellite support. The Company combines complex mission critical hardware manufacturing; multi-disciplinary engineering services; and satellite and earth observation/remote sensing solutions with a vision to lead the growth of the space ecosystem by enabling space flight heritage status for new technologies and delivering data and predictive analytics to both domestic and global customers. Our advanced space-based data offering will provide imagery in hyperspectral, multispectral and visible bands based upon latest industry needs such as weather, greenhouse gasses, agriculture and supply chain tracking. We have 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. We provide solutions for both government and commercial in-space missions for all destinations through the solar system, not just LEO.

We are developing, building, launching and operating a multi-mission constellation of company-owned Earth observation/remote sensing satellites using our multi-mission hybrid 3D printed multipurpose satellites. We have designed and are manufacturing LizzieSat (LS) for our LEO satellite constellation operating in diverse orbits (28°-98° inclination, 300-650km altitude) as approved by the International Telecommunication Union (ITU) in February 2021. LS is expected to begin operations in 2023. Initial launches are planned via SpaceX launch service rideshare contracts and the NASA CRS2 program agreement. We have secured a number of rideshare opportunities with SpaceX and continue to evaluate additional launch providers to ensure robust access to space for our mission and our customers. Each LS is 100kg with up to 35kg dedicated to customer payload requirements including Sidus owned remote sensing instruments for space-based data collection. Payloads (Sidus or customer owned) can collect data over multiple Earth based locations, record it onboard, and downlink via ground passes to the Sidus Mission Control Center (MCC) in Merritt Island, FL. We have executed multiple agreements for global ground station coverage with leading providers of services along with ample backhaul cloud storage services to provide reduced data aging and persistent refresh.

Products and Services

Leveraging our existing manufacturing operations and facilities, flight hardware manufacturing experience and space proven commercial-off-the-shelf (COTS) subsystem hardware, we believe we can deliver customer sensors to orbit in months, rather than years. In addition, we intend on delivering high-impact data and actionable intelligence for insights on aviation, maritime, weather, space services, earth intelligence and observation, financial technology (Fintech) and the Internet of Things. While our business has historically been centered on the design and manufacture of space hardware, our expansion into manufacture of spacecraft as well as on-orbit constellation management services and space data applications has led us to innovating in the area of space data applications. We continue to patent our products including our satellites, external platforms and other innovations.

Our end-to-end space and defense solutions include the following product and services offerings:

	●	Mission Critical Hardware Manufacturing: Our Manufacturing as a Service offering is built upon a proven track record of success supporting multiple large U.S. Government space programs and demonstrates our deep knowledge of the industry. Our flight and ground heritage experience provides us with lessons learned that we believe positions us to avoid many of the challenges and issues that many start up space companies have and will likely undergo during their initial phases of growth and operation.

	●	Multi-Disciplinary Engineering Services: Our Operations as a Service offering not only provides engineering and subject matter experience solutions but also management, operations and transfer of information from customer-owned on-orbit satellites via our in-house mission operations center in Merritt Island, Florida.

	●	Satellite Design, Production, Launch Planning, Mission Operations, and In-Orbit Support: We provide both customer requested and Sidus owned integrated design, manufacture, test and assembly of satellites to meet the needs of customer missions. Our manufacturing facilities are located in Cape Canaveral, Florida and include traditional machining, 3D printing, cable and wire harness assembly and cleanroom operations as part of our ground infrastructure. Additionally, we provide customers assistance with the launch of satellites and sensors into space by identifying and securing launch opportunities with launch providers or integrating customer sensors into our own satellite constellation and coordinating and managing all activities leading up to launch. We launch software, payloads and dedicated satellite constellations for our customers that we own and manage on their behalf. Similar to our data and analytics services, our customers have the opportunity to subscribe to the data that is collected during orbit operations.

	●	On-Orbit Testing of Space Ecosystem Technologies and Hardware: Our Satellite as a Service offering provides hosted payload options using available capacity on our satellites to accommodate additional transponders, instruments, or other space sensors. This offering enables our customers, both commercial and government organizations, to rapidly, reliably, and cost efficiently prove out technologies for space operations.

	●	Data and Analytics Derived from Satellite Missions: Our Data as a Service offering uses our Space-based infrastructure of multi-mission satellites with hyperspectral, multi-spectral and other sensors to provide monitoring services and solutions to multiple sectors and industries. The global proprietary data that we expect to collect includes data captured from space with no exact terrestrial alternatives, however, we believe that integration with terrestrial data will provide a more valuable data set for customers. Data of this type is collected once and can be sold to multiple customers and consumers across a growing set of industries including weather, agriculture, maritime and oil and gas. Near real-time data can be easily integrated into our existing and proposed customers’ operations and provide unique aggregated datasets through a recurring subscription as a service model.

Each of these areas and initiatives addresses a critical component of our end-to-end solution and value proposition for the space economy as a Space and Defense-as-a-Service company. The majority of our revenues to date have been from our space related hardware manufacturing, however, 2022 and 2023 revenue includes revenue related to our multi-mission constellation and our hybrid 3D printed LizzieSat satellite. As part of our business strategy, we may expand our offerings from time to time to include the growth of our complex, mission critical hardware manufacturing services to focus on supporting additional launch vehicles for Moon and Mars access.

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.