Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 352

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 352
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have been eliminated on consolidation.

For entities determined to be VIEs, an evaluation
is required to determine whether the Company is the primary beneficiary. The Company evaluates its economic interests in the entity specifically
determining if the Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic
performance (“the power”) and the 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.

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 at December 31,
2024 and 2023.

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 December 31, 2024, was $645,275. 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