Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 60

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 60
---
 that reasonably reflects the delivery of its services and products to customers
in return for expected consideration and includes the following elements:

    ●
    executed
    contracts with the Company’s customers that it believes are legally enforceable;

    ●
    identification
    of performance obligations in the respective contract;

    ●
    determination
    of the transaction price for each performance obligation in the respective contract;

    ●
    allocation
    of the transaction price to each performance obligation; and

    ●
    recognition
    of revenue only when the Company satisfies each performance obligation.

These
five elements, as applied to each of the Company’s revenue category, are summarized below:

Revenues
from fixed price manufacturing related contracts that are still in progress at month end are recognized on the percentage-of-completion
method, measured by the percentage of total costs incurred to date to the estimated total costs for each contract. This method is used
because management considers total costs to be the best available measure of progress on these contracts. Revenue from fixed price contracts
and time-and-materials contracts that are completed in the month the work was started are recognized when the work is shipped. To achieve
this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in
the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize
revenues when or as the Company satisfies a performance obligation.

Revenues
from fixed price service contracts that contain provisions for milestone payments primarily related to satellite technology related contracts
are recognized at the time of the milestone being met. This method is used because management considers that the payments are nonrefundable
unless the entity fails to perform as promised. If the customer terminates the contract, the Company is entitled to retain any progress
payments received from the customer and the Company has no further rights to compensation from the customer. Even though the payments
made by the customer are nonrefundable, the cumulative amount of those payments is not expected, at all times throughout the contract,
to at least correspond to the amount that would be necessary to compensate the Company for performance completed to date. Accordingly,
the Company accounts for the progress under the contract as a performance obligation satisfied at a point in time. To achieve this core
principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract,
determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when
or