Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1129

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1129
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 MSCI announced its
decision to include equity securities “with unequal voting structures” in its indices and to launch a new index that specifically
includes voting rights in its eligibility criteria. Under such announced and implemented policies, the dual-class structure of our common
stock would make us ineligible for inclusion in certain indices and, as a result, mutual funds, exchange-traded funds and other investment
vehicles that attempt to passively track those indices would not invest in our Class A common stock. These policies are relatively new
and it is unclear what effect, if any, they will have on the valuations of publicly-traded companies excluded from such indices, but
it is possible that they may adversely affect valuations, as compared to similar companies that are included. Due to the dual-class structure
of our common stock, we will likely be excluded from certain indices and we cannot assure you that other stock indices will not take
similar actions. Given the sustained flow of investment funds into passive strategies that seek to track certain indices, exclusion from
certain stock indices would likely preclude investment by many of these funds and could make our Class A common stock less attractive
to other investors. As a result, the market price of our Class A common stock could be adversely affected.

We
could be subject to securities class action litigation.

In
the past, securities class action litigation has often been brought against companies following a decline in the market price of their
securities. This risk is especially relevant for us because technology companies have experienced significant share price volatility
in recent years. If we face such litigation, it could result in substantial costs and a diversion of management’s attention and
resources, which could harm our business.

If
securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market
price for the shares and trading volume could decline.

The
trading market for our Class A common stock will depend in part on the research and reports that securities or industry analysts publish
about us or our business. If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts
who covers us downgrades our Class A common stock or publishes inaccurate or unfavorable research about our business, the market price
for our Class A common stock would likely decline. If one or more of these analysts cease coverage of our company or fail to publish
reports on us regularly, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume
for our