Company: SIDU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023543
Chunk: 90

Company: Sidus Space Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 90
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1.4
million as compared to approximately $3.4 million for the nine months ended September 30, 2024. This was primarily driven by the timing
of fixed price milestone contracts revenue. Related party revenue increased 239% to approximately $1.4 million for the nine months ended
September 30, 2025 versus approximately $410,000 for the nine months ended September 30, 2024. This was influenced by the timing of fixed-price
milestone contracts and an increased number of contracts our related party entered into with its customers, requiring increased outsourcing
of its work to us.

40

Cost
of Revenue

Cost
of revenue increased 48% for the nine months ended September 30, 2025 to approximately $6.8 million as compared to approximately $4.6
million for the nine months ended September 30, 2024 and included approximately $1.1 million related party cost of sales as of September
30, 2025 and approximately $272,000 as of September 30, 2024. The overall increase in cost of revenue was primarily driven by a mix of
contracts of varying types, satellite and related software depreciation expense increase of approximately $1.6 million versus 2024 and
higher labor costs associated with more labor-intensive contracts processed in 2025.related to the manufacturing side of our business.

Gross
Profit (Loss)

The
450% decrease in our gross profit for the nine months ended September 30, 2025 to a loss of approximately $3.9 million as compared to
a loss of approximately $719,000 for the nine months ended September 30, 2024, was driven primarily by higher satellite and related depreciation
costs, our mix of varying types of contracts with higher labor expenses and a decrease in our higher margin business.

Selling,
General, and Administrative Expenses

Selling,
general, and administrative expenses increased approximately $3.1 million when compared with the same period in 2024. This was primarily
due to the following:

    ●
    An
    increase of approximately $2.6 million in general and administrative labor costs and benefits to $7.5 million compared to $4.8 million
    in 2024. This increase was primarily driven by approximately $1.8 million related to increased headcount to support the needs of
    the business, $652,000 related to expense accruals associated with equity-based compensation and bonus plans implemented