Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1246

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1246
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 If delays like this arise or recur, if our remediation measures and
process changes do not continue to be successful or if we experience issues with planned manufacturing improvements or design and safety,
we could experience issues in sustaining the ramp of our spaceflight system or delays in increasing production further.

If
we encounter difficulties in scaling our delivery or servicing capabilities, if we fail to develop and successfully commercialize our
satellites and related technologies, if we fail to develop such technologies before our competitors, or if such technologies fail to
perform as expected, are inferior to those of our competitors or are perceived as less safe than those of our competitors, our business,
financial condition and results of operations could be materially and adversely impacted.

21

Our
customized hardware and software may be difficult and expensive to service, upgrade or replace.

Some
of the hardware and software we use in operations is significantly customized and tailored to meet our requirements and specifications
and could be difficult and expensive to service, upgrade or replace. Although we expect to maintain inventories of some spare parts,
it nonetheless may be difficult, expensive or impossible to obtain replacement parts for the hardware due to a limited number of those
parts being manufactured to our requirements and specifications. Also, our business plan contemplates updating or replacing some of the
hardware and software in our network as technology advances, but the complexity of our requirements and specifications may present us
with technical and operational challenges that complicate or otherwise make it expensive or infeasible to carry out such upgrades and
replacements. If we are not able to suitably service, upgrade or replace our equipment, our ability to provide our services and therefore
to generate revenue could be harmed.

Our
satellites may collide with space debris or another spacecraft, which could adversely affect our operations.

Although
we expect to comply with best practices and international orbital debris mitigation requirements to actively maneuver our satellites
to avoid potential collisions with space debris or other spacecraft, these abilities are limited by, among other factors, uncertainties
and inaccuracies in the projected orbit location of, and predicted collisions with, debris objects tracked and cataloged by governments
or other entities. Additionally, some space debris is too small to be tracked and therefore its orbital location is unknown; nevertheless,
this debris is still large enough to potentially cause severe damage or a failure of our satellites should a collision occur. If our
satellites collide with space debris or other spacecraft, our products and services could be impaired. Also, a failure of one or more
of our satellites or the occurrence