Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 356

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 356
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 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.

     F-9 

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. At December 31, 2024 and 2023, the carrying amounts of these instruments approximated their fair values because
of the short-term nature of these instruments.

Business Combinations

Business combinations are recorded using the acquisition
method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible
assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of
the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred.

Intangible Assets

Intangible assets with an indefinite life are not
amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be
impaired.

Intangible assets with finite lives are initially
recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets.

Acquired intangible assets from business combinations
are recognized and measured at fair value at the time of acquisition. The identifiable intangible asset recognized in the Company’s
acquisitions is a customer list, which will be tested for impairment annually.

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 from the Company is recognized under Topic
606 in a manner 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