Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1256

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1256
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contracts are also generally subject to greater scrutiny by the government, which can initiate reviews, audits, and investigations regarding
our compliance with government contract requirements. In addition, if we fail to comply with government contract laws, regulations and
contract requirements, our contracts may be subject to termination, and we may be subject to financial and/or other liability under our
contracts, the Federal Civil False Claims Act (including treble damages and other penalties), or criminal law. In particular, the False
Claims Act’s “whistleblower” provisions also allow private individuals, including present and former employees, to
sue on behalf of the U.S. government. Any penalties, damages, fines, suspension, or damages could adversely affect our ability to operate
our business and our financial results. If any customer were to unexpectedly terminate, cancel, or decline to exercise an option to renew
with respect to one or more of our significant contracts for any reason, including as a result of our failure to meet certain performance
milestones, or if a government customer were to suspend or debar us from doing business with such government, our business, financial
condition, and results of operations would be materially harmed.

If
we commercialize outside the United States, we will be exposed to a variety of risks associated with international operations that could
materially and adversely affect our business.

As
part of our growth, we aim to establish offices and partnerships outside of the United States. We plan to continue to build our pipeline
of global customers to include joint ventures and strategic partnerships. As we expand internationally, we expect that we would be subject
to additional risks related to entering into international business relationships, including:

    ●
    restructuring
    our operations to comply with local regulatory regimes; 

    ●
    identifying,
    hiring and training highly skilled personnel; 

    ●
    unexpected
    changes in tariffs, trade barriers and regulatory requirements, including through the International Traffic in Arms Regulations,
    or ITAR, Export Administration Regulations, or EAR, and Office of Foreign Assets Control, or OFAC; 

    ●
    economic
    weakness, including inflation, or political instability in foreign economies and markets; 

    ●
    compliance
    with tax, employment, immigration, and labor laws for employees living or traveling abroad; 

    ●
    foreign
    taxes, including withholding of payroll taxes; 

    ●
    the
    need for U.S. government approval to operate our spaceflight systems outside the United States;