Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 743

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 743
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 2023 and continued increased
supply chain related costs in the manufacturing side of our business.

Gross Profit (Loss)

The 31% decrease in our gross margin for the
twelve months ended December 31, 2024 to a loss of approximately $1.5 million as compared to a profit of approximately $1.6 million
for the twelve months ended December 31, 2023, was driven primarily by higher satellite and related depreciations costs, our mix of
varying types of contracts with higher material and labor expenses and a decrease in our higher margin business.

 51 

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were
in line when compared with the same period in 2023. This was primarily due to the following:

This was primarily related to the following increases:

    ●
    An increase of approximately
    $304,000 in consulting outside services to $635,000 compared to $330,000 in 2023 due to business development and sales consulting
    services and temporary office and operations related labor.

    ●
    An increase of approximately
    $903,000 in mission control related expenses to $976,000 compared to $73,000 in 2023 was primarily due to 2024 post launch satellite
    related services required. 

    ●
    An increase of approximately
    $335,000 in fundraising related expenses to $657,000 compared to $321,000 in 2023, as a result of increased capital raises.

    ●
    An increase of approximately
    $217,000 in Board related cash and stock compensation to approximately $430,000 compared to approximately $213,000 in 2023 as we
    continue to expand and build our Board of Directors. 

These increases were offset by the following decreases:

    ●
    A decrease of $ 356,000
    in D&O insurance to $592,000 compared to $948,000 in 2023 was due to a reduction in insurance rates.

    ●
    A decrease of $838,000
    in professional fees to $1.1 million compared to $1.9 million in 2023 primarily related to lower legal and accounting related expenses.

    ●
    A decrease of $317,000
    in research and development costs to $0.00 compared to $317,000 in 2023 related to initial engineering design and development costs
    of the satellite.