Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1250

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1250
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 favorable terms, which could
impair our ability to fulfill our orders in a timely manner or increase our costs of production.

Our
ability to manufacture our products is dependent upon sufficient availability of raw materials and supplied components, which we secure
from a limited number of suppliers. Our reliance on suppliers to secure these raw materials and supplied components exposes us to volatility
in the prices and availability of these materials. We may not be able to obtain sufficient supply of raw materials or supplied components,
on favorable terms or at all, which could result in delays in manufacture of our products or increased costs.

In
addition, we have in the past and may in the future experience delays in manufacture or operation as we go through the requalification
process with any replacement third-party supplier, as well as the limitations imposed by International Traffic in Arms Regulations and
other restrictions on transfer of sensitive technologies. Additionally, the imposition of tariffs on such raw materials or supplied components
could have a material adverse effect on our operations. Prolonged disruptions in the supply of any of our key raw materials or components,
difficulty qualifying new sources of supply, implementing use of replacement materials or new sources of supply or any volatility in
prices could have a material adverse effect on our ability to operate in a cost-effective, timely manner and could cause us to experience
cancellations or delays of scheduled launches, customer cancellations or reductions in our prices and margins, any of which could harm
our business, financial condition and results of operations.

23

Failure
of third-party contractors could adversely affect our business.

We
are dependent on various third-party contractors to develop and provide certain of our components of and processes to our products. Should
we experience complications with any of these components and services, we may need to delay our manufacturing activities or delay or
cancel scheduled launches. We face the risk that any of our contractors may not fulfill their contracts and deliver their products or
services on a timely basis, or at all. We have in the past experienced, and may in the future experience, operational complications with
our contractors. The ability of our contractors to effectively satisfy our requirements could also be impacted by such contractors’
financial difficulty or damage to their operations caused by fire, terrorist attack, natural disaster, or other events. The failure of
any contractors to perform to our expectations could result in shortages of certain manufacturing or operational components for our spacecraft
or delays in spaceflights and harm our business. Our reliance on contractors and inability to fully control any operational difficulties
with our