Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 297

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 297
---
 Brevard County.

As
of December 31, 2024 and 2023, we owed $527,476 to CTC for cash advances made to the Company. The advances are unsecured, due on demand
and non-bearing-interest.

On
May 1, 2021, we converted $4 million in intercompany accounts receivable owed to CTC into a related party note payable (the “Note”)
which included $1.1 million in payments toward a loan (the “CTC-Decathlon Note) to CTC and us by Decathlon Alpha IV, L.P., or Decathlon.
The principal balance of this Note outstanding (together with any accrued, but unpaid interest thereon) bears interest at a per annum
interest rate equal to the long term Applicable Federal Rate (as such term is defined in Section 1274(d) of the Internal Revenue Code
of 1986, as amended), and matures on September 30, 2025, and is payable in the amount of $250,000 every quarter for four years beginning
on Oct 1, 2021.

On
December 3, 2021, we entered into a Loan Assignment and Assumption Agreement, or Loan Assignment, with Decathlon and CTC pursuant to
which we assumed principal amount of $1 million (the “Decathlon Note”) which was part of the Note. In connection with our
assumption of the Decathlon Note, CTC reduced the principal of the Note by $1.4 million for an aggregate principal balance of $2.6 million.
Management believes that the assumption of the Decathlon Note from CTC was in our best interests because in connection therewith, Decathlon
released us from a cross-collateralization agreement it was a party to with CTC for a loan of a greater amount. Also in connection with
the Loan Assignment, on December 3, 2021, we entered into a Revenue Loan and Security Agreement, or RLSA, as amended, with Decathlon
and our CEO, Carol Craig, pursuant to which we pay interest based on a minimum rate of 1 times the amount advanced and make monthly payments
based on a percentage of our revenue calculated as an amount equal to the product of (i) all revenue for the immediately preceding month
multiplied by (ii) the Applicable Revenue Percentage, defined as 4% of revenue for payments due during any month. The Decathlon Note
is secured by our