Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 457

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 457
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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 a premium savings account. This account is used for amounts that are over a set balance maintained
in the Company’s general operating account. Balances in the premium savings account are insured up to $150 million.

     F-7 

Accounts Receivable

Accounts receivable are stated at the amount of
consideration from customers of which the Company has an unconditional right to receive plus any accrued and unpaid interest. The
Company provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection
information and existing economic conditions. The Company sells certain accounts receivable with recourse in order to accelerate the
receipt of cash. Bechtel, Craig Technologies and TNO make up approximately 38%, 19%
and 12% of the total revenue respectively in FY24 and 13%, 44% and 34% respectively of December 31, 2024 accounts receivable.
Bechtel and L3 make up approximately 31% and 9% of the total revenue respectively for FY23 and 58%
and 11%
of the total December 31, 2023, accounts receivable respectively.

Bad Debt and Allowance for Doubtful Accounts

Historically the Company has been able to collect
all past due amounts and has not written off past due invoices, therefore there is limited historical data on the company’s historical
losses or expected losses at this time. In compliance with GAAP the Company has determined the following policy will be followed regarding
outstanding customer invoices.

An allowance for doubtful accounts has been established
to reflect the anticipated uncollectible value of the related receivable account. Review procedures have been established to provide
a realistic reserve based