Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1331

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1331
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 from fixed price contracts and time-and-materials contracts that are completed
in the month the work was started are recognized when the work is shipped. To achieve this core principle, we apply the following five
steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price,
allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance
obligation.

Revenues from fixed price service contracts that
contain provisions for milestone payments primarily related to satellite technology related contracts are recognized at the time of the
milestone being met. This method is used because management considers that the payments are nonrefundable unless the entity fails to
perform as promised. If the customer terminates the contract, the Company is entitled to retain any progress payments received from the
customer and the Company has no further rights to compensation from the customer. Even though the payments made by the customer are nonrefundable,
the cumulative amount of those payments is not expected, at all times throughout the contract, to at least correspond to the amount that
would be necessary to compensate the Company for performance completed to date. Accordingly, the Company accounts for the progress under
the contract as a performance obligation satisfied at a point in time. To achieve this core principle, we apply the following five steps:
identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate
the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance
obligation.

The Company accounts for the majority of its fixed
price or time and materials contracts as performance obligations satisfied over times, due to the Company’s enforceable right to
collect based on services provided through any applicable date of termination. Amounts recognized as revenue over time due to this, but
in which the Company does not yet have the right to invoice for due to contractual arrangements are reflected as contract assets until
such time as they are invoiced, and the Company has the right to receive payment.

Cost of revenue

Costs are recognized when incurred. Cost of revenue
consists of direct labor, subcontract, materials, depreciation on machinery and equipment, and other direct costs.

Net Income (Loss) Per Share of Common Stock

The Company has adopted ASC Topic 260, “Earnings
per Share” which requires presentation of basic earnings per share on the face of the statements of operations for all
entities with complex capital structures and requires a reconciliation of the numerator