Company: SIDU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024043
Chunk: 88

Company: Sidus Space Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 88
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% decrease in our gross profit for the six months ended June 30, 2025 to a loss of approximately $2.66 million as compared to a loss
of approximately $757,000 for the six months ended June 30, 2024, was driven primarily by higher satellite and related depreciation costs,
our mix of varying types of contracts with higher material and labor expenses and a decrease in our higher margin business.

Selling,
General, and Administrative Expenses

Selling,
general, and administrative expenses increased approximately $2.0 million when compared with the same period in 2024. This was primarily
due to the following:

    ●
    An
        increase of approximately $2.1 million in general and administrative labor costs and benefits to $5.2 million compared to $3.1
        million in 2024. This increase was primarily driven by approximately $1.1 million related to increased headcount to support the
        needs of the business, $783,000 related to expense accruals associated with equity-based compensation and bonus plans implemented
        in Q1 2025 and $226,000 related to employee severance costs.

    ●
    An increase of approximately
    $271,000 in mission operations related expenses to $616,000 compared to $345,000 in 2024 related to ground support required for tracking
    and communicating with our multiple satellites in orbit. 

    ●
    An
        increase of approximately $106,000 in depreciation expense to approximately $197,000 compared to approximately $91,000 in 2024.

    ●
    An increase of approximately
    $102,000 primarily related to software expenses as we continue to build out the infrastructure to support our business. 

    ●
    An increase of approximately
    $71,000 in fees related to rebooking and payment timing with our launch provider and fees related to the January 2025 payoff of our
    note payable. Total fees were $98,000 compared to $28,000 in 2024.

These
increases were partially offset by the following decreases:

    ●
    A decrease of approximately
    $406,000 in fundraising related expense to $5,000 in 2025 due to timing of capital raises.

    ●
    A decrease of $160,000
    in professional and outside consulting services to $727,000 compared to $887,000 in 2024 primarily related to lower accounting related
    expenses.