Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 70

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 70
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31, 2025 and 2024, the Company recorded interest expense of $69,945 and $149,665, respectively, which included
an additional accrual estimate based on the principal and accrued but unpaid interest payment due when the note matures and made payments
of $0 and $150,000, respectively. During the 3 months ended March 31, 2025, the Company also recorded $33,528 in legal and late fees
associated with the January 31, 2025 payoff of the note payable. As of March 31, 2025 from December 31, 2024, the Company recorded principal
amount, accrued interest and legal and late fees of $3,059,767 on the balance sheet. On January 31, 2025 the Company fully paid off principal
amount, accrued interest and interest expense and legal and late fees of $3,163,239.

Note
12. Related Party Transactions

Revenue
and Accounts Receivable

The
Company recognized revenue of $77,790 and $205,044 for the three months ended March 31, 2025 and 2024 and accounts receivable of $647,942
and $641,376 and contract asset and contract liability of $46,953 and $46,953 as of March 31, 2025 and December 31, 2024, respectively,
from contracts entered into by Craig Technical Consulting, Inc, a principal stockholder, and subcontracted to the Company for four customers.

Accounts
Payable

As
of March 31, 2025 and December 31, 2024, the Company owed $632,415 and $581,243 to Craig Technical Consulting, Inc. Advances are unsecured,
due on demand and non-bearing-interest.

As
of March 31, 2025 and December 31, 2024, the Company recorded accounts payable of $62,500 and $92,500, respectively, related to Q1 2025
and Q4 2024 Board of Director compensation payments.

    -17-

Cost
of Revenue and Operating expenses

For
the three months ended March 31, 2025 and 2024, the Company recorded cost of revenue to Craig Technical Consulting, Inc. of $37,687 and
$167,544, and general and administrative expense of $0, respectively.

Professional
Service Agreements

A
Professional Services Agreement, effective November 15, 2021,