Company: SIDU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023543
Chunk: 3

Company: Sidus Space Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 3
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 maintained in the Company’s general operating account. Balances in the premium savings account
are insured up to $150 million.

Accounts
Receivable

Accounts
receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive plus any
accrued and unpaid interest. The Company provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables,
historical collection information and existing economic conditions. The Company sells certain accounts receivable with recourse in order
to accelerate the receipt of cash.

Bad
Debt and Allowance for Doubtful Accounts

In
compliance with GAAP the Company has determined the following policy will be followed regarding outstanding customer invoices.

An
allowance for doubtful accounts has been established to reflect the anticipated uncollectible value of the related receivable account.
Review procedures have been established to provide a realistic reserve based on past collection experience and anticipated losses on
the receivables.

The
Company will utilize the allowance method based on accounts receivable aging in order to accrue bad debt expense and the contra balance
sheet account, allowance for doubtful accounts. The accounts receivable aging will be reviewed quarterly and necessary adjustments made
to the allowance for doubtful accounts account balance. The Company will review their policy annually to determine if adjustments should
be made based on more recent accounts receivable trends.

During
the nine months ended September 30, 2025 and 2024, the Company did not record bad debt. The Company’s allowance for doubtful accounts
balance at September 30, 2025 and December 31, 2024 was $112,500.

Contract
Assets and Contract Liabilities

The
amounts included within contract assets and contract liabilities are related to the Company’s long-term construction contracts.
The Company accounts for the majority of its fixed price or time and materials contracts as performance obligations satisfied over time,
due to the Company’s enforceable right to collect based on services provided through any applicable date of termination. Amounts
recognized as revenue over time due to this, but in which the Company does not yet have the right to invoice for due to contractual arrangements
are reflected as contract assets until such time as they are invoiced, and the Company has the right to receive payment. Retainage for
which the company has an unconditional right to payment that is only subject to the passage of time is classified as contracts receivable.
Retainage subject to conditions other than the passage of time are included in contract assets