Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 549

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 549
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 included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

Critical
Audit Matters

The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Revenue
Recognition – Refer to Note 2 to the financial statements

Description
of the Critical Audit Matter 

The
Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration
the Company expects to receive in exchange for those products or services or when an enforceable right to payment for performance to
date exists. The Company offers various mission critical hardware manufacturing and engineering services, along with satellite production
and other orbital support programs.

Significant
judgment is exercised by the Company in determining revenue recognition for these customer agreements, and includes the following:

●Determination
                                            of whether products and services are considered distinct performance obligations that should
                                            be accounted for separately versus together.

●The
                                            pattern of delivery (i.e., timing of when revenue is recognized) for each distinct performance
                                            obligation. 

●Identification
                                            and treatment of contract terms that may impact the timing and amount of revenue recognized,
                                            including contracts that include an enforceable right to payment for performance or other
                                            contractual restrictions.

Given
these factors, the related audit effort in evaluating management’s judgments in determining revenue recognition for these customer agreements
required a high degree of auditor judgment.

How
the Critical Audit Matter Was Addressed in the Audit

Our
principal audit procedures related to the Company’s revenue recognition for these customer agreements included the following, among others: 

●We
                                            evaluated management’s significant accounting policies related to these customer agreements
                                            for reasonableness.

●We
                                            selected a sample of customer agreements and performed the