Company: SIDU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023543
Chunk: 88

Company: Sidus Space Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 88
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 labor intensive.

Gross
Profit (Loss)

The
3503% decrease in our gross profit for the three months ended September 30, 2025 to a loss of approximately $1.3 million as compared
to a profit of approximately $38,000 for the three months ended September 30, 2024, was driven primarily by higher satellite and related
depreciation costs, our mix of varying types of contracts with higher labor expenses and a decrease in our higher margin business.

Selling,
General, and Administrative Expenses

Selling,
general, and administrative expenses increased approximately $1.1 million when compared with the same period in 2024. This was primarily
due to the following:

    ●
    An
    increase of approximately $505,000 in general and administrative labor costs and benefits to $2.2 million compared to $1.7 million
    in 2024. This increase was primarily driven by approximately $658,000 related to increased headcount to support the needs of the
    business partially offset by a reduction of $130,000 based on company performance related to expense accruals associated with equity-based
    compensation and bonus plans implemented in Q1 2025 and $23,000 lower employee severance costs. 

    ●
    An
    increase of approximately $293,000 fundraising related expenses versus none in 2024 due to timing of capital raises each year.

    ●
    An
    increase of approximately $80,000 rebooking expense related to timing of satellite launches to approximately $89,000 compared to
    approximately $9,000 in 2024.

39

    ●
    An
    increase of approximately $77,000 in mission operations related expenses to $335,000 compared to $258,000 in 2024 related to ground
    support required for tracking and communicating with our multiple satellites in orbit.

    ●
    An
    increase of approximately $61,000 in consulting outside services expense to $287,000 compared to $226,000 in 2024 due to business
    development and sales consulting services as well as temporary office and operations related labor. 

    ●
    An
    increase of approximately $22,000 depreciation expense to approximately $95,000 compared to approximately $72,000 in 2024.

These
increases were partially offset by the following decreases:

    ●
    A
    decrease of approximately $20,000 in insurance expense to approximately $161