Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1375

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1375
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 Note, CTC reduced the principal of the Note by $1.4 million for an aggregate principal balance of $2.6 million.
Management believes that the assumption of the Decathlon Note from CTC was in our best interests because in connection therewith, Decathlon
released us from a cross-collateralization agreement it was a party to with CTC for a loan of a greater amount. Also in connection with
the Loan Assignment, on December 3, 2021, we entered into a Revenue Loan and Security Agreement, or RLSA, as amended, with Decathlon
and our CEO, Carol Craig, pursuant to which we pay interest based on a minimum rate of 1 times the amount advanced and make monthly payments
based on a percentage of our revenue calculated as an amount equal to the product of (i) all revenue for the immediately preceding month
multiplied by (ii) the Applicable Revenue Percentage, defined as 4% of revenue for payments due during any month. The Decathlon Note
is secured by our assets and was guaranteed by CTC and matures the earliest of: (i) January 31, 2025, (ii) immediately prior to a change
of control, or (iii) upon an acceleration of the obligations due to a default under the RLSA.

67

During
the year ended December 31, 2022, we repaid $797,505 and the Note and accrued interest was forgiven by CTC. We recorded debt forgiveness
of the Note and accrued interest of $1,624,755 to additional paid in capital.

We
recognized revenue of $798,942 and $952,220 for the years ended December 31, 2024 and 2023, from contracts entered into by CTC and subcontracted
to us for four customers of CTC pursuant to separate subcontracting agreements.

For
the year ended December 31, 2024 and 2023, the Company recorded cost of revenue to Craig Technical Consulting, Inc. of approximately
$712,669 and $654,605, and general and administrative expense of $93,476 and $24,363, respectively.

A
Professional Services Agreement, effective November 15, 2021, was made between us and CTC. The period of performance for this agreement
was December 1, 2021, through November 30, 2022. The agreement was amended, and the term of the agreement was extended to June 30,