Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1265

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1265
---
 due to any of the above hazards and operational
to the manufacturing or operation of our facilities, including from weather conditions, growth constraints, performance by third-party
providers (such as electric, utility or telecommunications providers), failure to properly handle and use hazardous materials, failure
of computer systems, power supplies, fuel supplies, infrastructure damage, disagreements with the owners of the land on which our facilities
are located could result in manufacturing delays or the delay or cancellation of our planned commercial satellite launches and, as a
result, could have a material adverse effect on our business, financial condition and results of operations.

In
addition, our insurance coverage may be inadequate to cover our liabilities related to such hazards or operational risks. Moreover, we
may not be able to maintain adequate insurance in the future at rates we consider reasonable and commercially justifiable, and insurance
may not continue to be available on terms as favorable as our current arrangements. The occurrence of a significant uninsured claim,
or a claim in excess of the insurance coverage limits maintained by us, could harm our business, financial condition and results of operations.

We
have not historically obtained in-orbit insurance coverage for our satellites to address the risk of potential systemic anomalies, failures,
collisions with our satellites or other satellites or debris, or catastrophic events affecting the existing satellite system. If one
or more of our in-orbit satellites or technologies fail, and we have not obtained insurance coverage, we could be required to record
significant impairment charges for the satellite or technology.

We
have not historically obtained and may not maintain launch or in-orbit insurance coverage for our satellites to address the risk of potential
systemic anomalies, failures, collisions with our satellites or other satellites or debris, or catastrophic events affecting the existing
satellite system. If one or more of our in-orbit uninsured satellites or technologies fail, or one or more of our uninsured satellites
is destroyed during failed launch, we could be required to record significant impairment charges for the satellite or technology. We
may review the purchase of launch insurance on a case-by-case basis evaluating the launch history of our launch provider, number of satellites
to be deployed on the launch vehicle, the status of our constellation, our ability to launch additional satellites in the near term,
and the cost of insurance, among other factors. As a result of our case-by-case evaluation process, we have procured launch insurance
for our next four upcoming launches, which policies are subject to the typical terms and conditions regarding, among other things, cancellation
and scope