Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1254

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1254
---
 enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking
the validity and enforceability of our intellectual property rights. Our inability to protect our proprietary technology, as well as
any costly litigation or diversion of our management’s attention and resources, could disrupt our business, as well as have a material
adverse effect on our financial condition and results of operations. The results of intellectual property litigation are difficult to
predict and may require us to stop using certain technologies or offering certain services or may result in significant damage awards
or settlement costs. There is no guarantee that any action to defend, maintain or enforce our owned or licensed intellectual property
rights will be successful, and an adverse result in any such proceeding could have a material adverse impact on our business, financial
condition, operating results, and prospects.

In
addition, we may from time-to-time face allegations that we are infringing, misappropriating or otherwise violating the intellectual
property rights of third parties, including the intellectual property rights of our competitors. We may be unaware of the intellectual
property rights that others may claim cover some or all of our technology or services. Irrespective of the validity of any such claims,
we could incur significant costs and diversion of resources in defending against them, and there is no guarantee any such defense would
be successful, which could have a material adverse effect on our business, contracts, financial condition, operating results, liquidity,
and prospects.

Even
if these matters do not result in litigation or are resolved in our favor or without significant cash settlements, these matters, and
the time and resources necessary to litigate or resolve them, could divert the time and resources of our management team, and harm our
business, our operating results and our reputation.

The
majority of our customer contracts may be terminated by the customer at any time for convenience as well as other provisions permitting
the customer to discontinue contract performance for cause (for example, if we do not achieve certain milestones on a timely basis).
If our contracts are terminated or if we experience any other contract-related risks, our results of operations may be adversely impacted.
In addition, some of our customers are government entities, which subjects us to additional risks including early termination, audits,
investigations, sanctions, and penalties.

We
are subject to a variety of contract-related risks. Some of our existing customer contracts, including those with the government, include
provisions allowing the customers to terminate their contracts for convenience, with a termination penalty for at least