Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 56

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 56
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 obligation to absorb losses or the right
to receive benefits that could potentially be significant to the VIE (“the benefits”). When making the determination on whether
the benefits received from an entity are significant, the Company considers the total economics of the entity and analyzes whether the
Company’s share of the economics is significant. The Company utilizes qualitative factors, and, where applicable, quantitative
factors, while performing the analysis.

Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations.

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of expenses during the reporting period. Some of these judgments can be subjective and complex, and, consequently, actual
results may differ from these estimates. Examples of estimates and assumptions include: for revenue recognition, determining the nature
and timing of satisfaction of performance obligations,, the fair value of and/or potential impairment of property and equipment; product
life cycles; useful lives of our property and equipment; allowances for doubtful accounts; the market value of, and demand for, our inventory;
fair value calculation of warrant; and the potential outcome of uncertain tax positions that have been recognized in our consolidated
financial statements or tax returns.

Cash
and Cash Equivalents

For
purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market
funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company
had no cash equivalents as of March 31, 2025 and December 31, 2024.

Periodically,
the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. The
amount in excess of the FDIC insurance as of March 31, 2025, was $1.1 million. The Company has not experienced losses on these accounts
and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is
not significant. The Company has also mitigated some of the risk through the use of a premium savings account. This account is used for
amounts that are over a set balance maintained in the Company’s general operating account. Balances in the