Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1255

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1255
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 the amounts already
paid, or to terminate the contracts for cause (for example, if we do not achieve certain milestones on a timely basis). Customers that
terminate such contracts may also be entitled to a pro rata refund of the amount of the customer’s deposit. In addition, some of
our customers are pre-revenue startups or otherwise not fully established companies, which exposes us to a degree of counterparty credit
risk.

25

Part
of our strategy is to market our space and satellite manufacturing and launch and data services to key government customers. We expect
we may derive limited revenue from contracts with NASA and the U.S. government and may enter into further contracts with the U.S. or
foreign governments in the future, and this subjects us to statutes and regulations applicable to companies doing business with the U.S.
government, including the Federal Acquisition Regulation. These U.S. government contracts customarily contain provisions that give the
government substantial rights and remedies, many of which are not typically found in commercial contracts, and which are unfavorable
to contractors. For instance, most U.S. government agencies include provisions that allow the government to unilaterally terminate or
modify contracts for convenience, in which case the counterparty to the contract may generally recover only its incurred or committed
costs and settlement expenses and profit on work completed prior to the termination. If the government terminates a contract for default,
the defaulting party may be liable for any extra costs incurred by the government in procuring undelivered items from another source.

Our
government contracts may be subject to the approval of appropriations being made by the U.S. Congress to fund the expenditures under
these contracts. In addition, government contracts normally contain additional requirements that may increase our costs of doing business,
reduce our profits, and expose us to liability for failure to comply with these terms and conditions. These requirements include, for
example:

    ●
    specialized
    disclosure and accounting requirements unique to government contracts; 

    ●
    financial
    and compliance audits that may result in potential liability for price adjustments, recoupment of government funds after such funds
    have been spent, civil and criminal penalties, or administrative sanctions such as suspension or debarment from doing business with
    the U.S. government; 

    ●
    public
    disclosures of certain contract and company information; and 

    ●
    mandatory
    socioeconomic compliance requirements, including labor requirements, non-discrimination and affirmative action programs and environmental
    compliance requirements. 

Government