Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1182

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1182
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 quarterly and necessary adjustments made to the allowance for doubtful accounts account
balance. The Company will review their policy annually to determine if adjustments should be made based on more recent accounts receivable
trends.

During the years ended December 31, 2024 and 2023,
the Company recorded bad debt of $87,129 and $17,871, respectively. The Company’s allowance for doubtful accounts balance at December
31, 2024 was $112,500 and $25,370 at December 31, 2023.

Stock Based Compensation

The Company accounts for stock-based compensation
awards in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The cost of services received from employees
and non-employees in exchange for awards of equity instruments is recognized in the consolidated statements of operations and comprehensive
income based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite
service period or vesting period. The Company records forfeitures as they occur.

Share-based payments are valued using a Black-Scholes
option pricing model. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting
period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related
to the termination of service.

The expected option term is computed using the “simplified”
method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate expected term of share
options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which
to estimate the expected term. The share price as of the grant date was determined by current market prices for our common stock. Expected
volatility is based on the historical stock price volatility of comparable companies’ common stock, as our stock does not have
sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods.

     F-8 

Contract Assets and Contract Liabilities

The amounts included within contract assets and contract
liabilities are related to the company’s long-term construction contracts. The Company accounts for the majority of its fixed price or time and materials contracts as performance obligations
satisfied over times, due to the Company’s enforceable right to collect based on services provided through any applicable date of
termination. Amounts recognized as revenue over time due to this,