Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 55

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 55
---
 enhancing the speed and efficiency of data
delivery from LizzieSat® sensors. Orlaith™ offers high-performance on-orbit edge computing and data processing from diverse
sensor sets leveraging Sidus’ proprietary FeatherEdge™ hardware and Cielo™ software. Orlaith’s systemic capabilities
provide industry-leading and differentiated data delivery for a wide range of end uses including methane detection, AIS tracking, border
security, and technology characterization. Orlaith’s data processing can also be seamlessly customized for new and/or esoteric
missions.

    -7-

Note
2. Summary of Significant Accounting Policies

Basis
of Presentation

The
Company prepares its financial statements in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”)
and GAAP in the United States of America. The accompanying interim financial statements have been prepared in accordance with GAAP for
interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by GAAP for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March
31, 2025, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures
presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial
statements and the footnotes thereto for the year ended December 31, 2024, contained in the Company’s Form 10-K filed on March
31, 2025.

Principles
of Consolidation

The
consolidated financial statements include the variable interest entity (“VIE”), Aurea Alas Limited (“Aurea”),
of which we are the primary beneficiary. Aurea is a Limited company organized in the Isle of Man, which entered into a license agreement
with a third party vendor, whereby Aurea licensed the rights to use certain available radio frequency spectrum for satellite communications.
All intercompany transactions and balances have been eliminated on consolidation.

For
entities determined to be VIEs, an evaluation is required to determine whether the Company is the primary beneficiary. The Company evaluates
its economic interests in the entity specifically determining if the Company has both the power to direct the activities of the VIE that
most significantly impact the VIE’s economic performance (“the power”) and the