Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1110

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1110
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 or all of our technology or services. Irrespective of the validity of any such claims,
we could incur significant costs and diversion of resources in defending against them, and there is no guarantee any such defense would
be successful, which could have a material adverse effect on our business, contracts, financial condition, operating results, liquidity,
and prospects.

Even
if these matters do not result in litigation or are resolved in our favor or without significant cash settlements, these matters, and
the time and resources necessary to litigate or resolve them, could divert the time and resources of our management team, and harm our
business, our operating results and our reputation.

The
majority of our customer contracts may be terminated by the customer at any time for convenience as well as other provisions permitting
the customer to discontinue contract performance for cause (for example, if we do not achieve certain milestones on a timely basis).
If our contracts are terminated or if we experience any other contract-related risks, our results of operations may be adversely impacted.
In addition, some of our customers are government entities, which subjects us to additional risks including early termination, audits,
investigations, sanctions, and penalties.

We
are subject to a variety of contract-related risks. Some of our existing customer contracts, including those with the government, include
provisions allowing the customers to terminate their contracts for convenience, with a termination penalty for at least the amounts already
paid, or to terminate the contracts for cause (for example, if we do not achieve certain milestones on a timely basis). Customers that
terminate such contracts may also be entitled to a pro rata refund of the amount of the customer’s deposit. In addition, some of
our customers are pre-revenue startups or otherwise not fully established companies, which exposes us to a degree of counterparty credit
risk.

25

Part
of our strategy is to market our space and satellite manufacturing and launch and data services to key government customers. We expect
we may derive limited revenue from contracts with NASA and the U.S. government and may enter into further contracts with the U.S. or
foreign governments in the future, and this subjects us to statutes and regulations applicable to companies doing business with the U.S.
government, including the Federal Acquisition Regulation. These U.S. government contracts customarily contain provisions that give the
government substantial rights and remedies, many of which are not typically found in commercial contracts, and which are unfavorable
to contractors. For instance, most U.S. government agencies include provisions that