Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1317

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1317
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 an amount that reflects the consideration
the Company expects to receive in exchange for those products or services or when an enforceable right to payment for performance to
date exists. The Company offers various mission critical hardware manufacturing and engineering services, along with satellite production
and other orbital support programs.

Significant
judgment is exercised by the Company in determining revenue recognition for these customer agreements, and includes the following:

●Determination
                                            of whether products and services are considered distinct performance obligations that should
                                            be accounted for separately versus together.

●The
                                            pattern of delivery (i.e., timing of when revenue is recognized) for each distinct performance
                                            obligation. 

●Identification
                                            and treatment of contract terms that may impact the timing and amount of revenue recognized,
                                            including contracts that include an enforceable right to payment for performance or other
                                            contractual restrictions.

Given
these factors, the related audit effort in evaluating management’s judgments in determining revenue recognition for these customer agreements
required a high degree of auditor judgment.

How
the Critical Audit Matter Was Addressed in the Audit

Our
principal audit procedures related to the Company’s revenue recognition for these customer agreements included the following, among others: 

●We
                                            evaluated management’s significant accounting policies related to these customer agreements
                                            for reasonableness.

●We
                                            selected a sample of customer agreements and performed the following procedures:

-Obtained
                                            and read contract source documents for each selection, including master agreements, and other
                                            documents that were part of the agreement.

-Tested
                                            management’s identification and treatment of contract terms and provisions.

-Assessed
                                            the terms in the customer agreement and evaluated the appropriateness of management’s application
                                            of their accounting policies, along with their use of estimates, in the determination of
                                            revenue recognition conclusions.

●We
                                            tested the mathematical accuracy of management’s calculations of revenue and the associated
                                            timing of revenue recognized in the financial statements.

Fruci
& Associates II, PLLC – PCAOB ID #05525

We have served as the Company’s auditor since 2024.  

Spokane, Washington

March
31, 2025  

 F-1 

-SIDUS SPACE, INC.

CONSOLIDATED BALANCE SHEETS

    December 31,  
    December 31, 

    2024  
    2023 
  
    Assets 

    Current assets 

    Cash 
    $15,703,