Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 147

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 147
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 assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash
flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value.

Fair Value Measurements

The Company uses a three-tier fair value hierarchy
to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured
at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use
observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined
as follows:

    ●
    Level
    1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

    ●
    Level
    2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace
    for identical or similar assets and liabilities; and

    ●
    Level
    3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

     F-9 

The Company’s financial instruments, including
cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, and loans payable, are
carried at historical cost. At December 31, 2024 and 2023, the carrying amounts of these instruments approximated their fair values because
of the short-term nature of these instruments.

Business Combinations

Business combinations are recorded using the acquisition
method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible
assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of
the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred.

Intangible Assets

Intangible assets with an indefinite life are not
amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be
impaired.

Intangible assets with finite lives are initially
recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets.

Acquired intangible assets from business combinations
are recognized and measured at fair value at the time of acquisition. The identifiable intangible asset recognized in the