Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1330

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1330
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 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 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.

     F-10 

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