Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1329

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1329
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three to ten
years using the straight-line method. Major additions and improvements are capitalized as additions to the property and equipment
accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets, are expensed as
incurred. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events
or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability
of the carrying amounts.

Long-Lived Assets

Long-lived assets are evaluated for impairment whenever
events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the
useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash
flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value.

Fair Value Measurements

The Company uses a three-tier fair value hierarchy
to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured
at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use
observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined
as follows:

    ●
    Level
    1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

    ●
    Level
    2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace
    for identical or similar assets and liabilities; and

    ●
    Level
    3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

     F-9 

The Company’s financial instruments, including
cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, and loans payable, are
carried at historical cost. At December 31, 2024 and 2023, the carrying amounts of these instruments approximated their fair values because
of the short-term nature of these instruments.

Business Combinations

Business combinations are recorded using the acquisition
method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible
assets