Company: SIDU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024043
Chunk: 5

Company: Sidus Space Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 5
---
10-S99. The Company
uses the simplified method to calculate expected term of share options and similar instruments as the Company does not have sufficient
historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date
was determined by current market prices for our common stock. Expected volatility is based on the historical stock price volatility of
comparable companies’ common stock, as our stock does not have sufficient historical trading activity. Risk free interest rates
were obtained from U.S. Treasury rates for the applicable periods.

    11

Fair
Value Measurements

The
Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring
basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement.
The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining
fair value. The three tiers are defined as follows:

    ●
    Level 1—Observable
    inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

    ●
    Level 2—Observable
    inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical
    or similar assets and liabilities; and

    ●
    Level 3—Unobservable
    inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The
Company’s financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable
and accrued liabilities, and loans payable, are carried at historical cost. As of June 30, 2025 and December 31, 2024, the carrying amounts
of these instruments approximated their fair values because of the short-term nature of these instruments.

Revenue
Recognition

The
Company adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core
principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. The
Company’s updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue.
The impact of adopting ASC 606 was not material to the Consolidated Financial Statements.

Revenue