Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1248

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1248
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 our resources, and we could experience operating difficulties, including difficulties in
hiring, training and managing an increasing number of employees, finding manufacturing capacity to produce our products and related equipment,
and delays in production and launches. These difficulties may result in the erosion of our brand image, divert the attention of management
and key employees and impact financial and operational results. In addition, in order to continue to expand our presence around the globe,
we expect to incur substantial expenses as we continue to attempt to streamline our manufacturing process, increase our launch cadence,
hire more employees, and fund research and development efforts relating to new products and technologies and expand our business. If
we are unable to drive commensurate growth, these costs, which include lease commitments, headcount and capital assets, could result
in decreased margins, which could have a material adverse effect on our business, financial condition and results of operations.

Our
prospects and operations may be adversely affected by changes in consumer preferences and economic conditions that affect demand for
satellite services.

Because
our business is currently concentrated on commercial satellite manufacturing, launch and data services, we are vulnerable to changes
in consumer preferences or other market changes. The global economy has in the past, and will in the future, experience recessionary
periods and periods of economic instability. During such periods, our potential customers may choose not to expend the amounts that we
anticipate based on our expectations with respect to the addressable market for satellite services. There could be a number of other
effects from adverse general business and economic conditions on our business, including insolvency of any of our third-party suppliers
or contractors, decreased consumer confidence, decreased discretionary spending and reduced customer or governmental demand for satellites
and other products we produce, which could have a material adverse effect on our business, financial condition and results of operations.

22

Adverse
publicity stemming from any incident involving us or our competitors, could have a material adverse effect on our business, financial
condition and results of operations.

We
are at risk of adverse publicity stemming from any public incident involving our company, our people or our brand. If any of our launch
partners’ vehicles or our satellites or those of one of our competitors were to be involved in a public incident, accident or catastrophe,
this could create an adverse public perception of satellite launch or manufacturing activities and result in decreased customer demand
for launch and satellite services, which could cause a material adverse effect on our business, financial conditions and results of operations.
Further,