Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 262

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 262
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92,500 and $37,500 related to Q4 Board of Director compensation payments.

Note
9. Asset-based loan

The
Company is party to a recourse loan and security agreement with an unrelated lender dated November 30, 2022, whereby the lender will
provide loans secured by certain accounts receivable for up to 90%
of the face amount, which is paid to the Company in the form of a cash advance. The Company has a revolving line of credit for
$3
million with a collateralized loan interest rate of 16.2%
annum and uncollateralized loan interest rate of 19.5%
annum on outstanding balances. In 2024, the Company agreed to increase a revolving line of credit for $7
million. Additionally,
in the event of default the Lender at its option can increase the loan interest rate by 5% per annum for each month or partial month
default on outstanding balances. Under the loan and security agreement, the Company must pay back any invoices that become
uncollectable. As of December 31, 2024 and 2023, the company’s collateralized and uncollateralized asset-based loan balance
was $6,902,636
and $2,587,900,
respectively. For the years ended December 31, 2024 and 2023, the costs and interest incurred by the Company in connection with the
loan and security agreement activities were $542,501
and $155,716,
respectively. As of January 31, 2025 the Company’s revolving line of credit was increased from $7 million to $10.5 million
with same interest rates noted above for collateralized and uncollateralized loan interest rates. The Company used the increase in its
revolving line of credit to pay off the approximately $3.2 million note payable with Decathlon.

    F-16

Note
10. Contract assets and liabilities

At
December 31, 2024 and 2023, contract assets and contract liabilities consisted of the following:

Schedule
of Contract Assets and Liabilities

    Contract assets 
    December 31, 2024  
    December 31, 2023 

    Revenue recognized in excess of amounts paid or payable (contracts receivable) to the
    company on uncompleted contracts (contract asset) that are subject to restrictions on invoicing, excluding retainage 
    $1,331,194