Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 573

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 573
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 46,953  
     43,173 
  
    Total contract assets 
    $1,394,339  
    $479,584 

    Contract liabilities 
    December 31, 2023  
    December 31, 2022 

    Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage 
    $-  
    $- 
  
    Retainage included in contract liabilities due to being conditional on something other than solely passage of time 
     16,192  
     77,124 
  
    Retainage included in contract liabilities due to being conditional on something other than solely passage of time – related party 
     46,953  
     43,173 
  
    Total contract liabilities 
    $63,145  
    $120,297 

Note
11. Leases

Operating
lease

We
have a noncancelable operating lease entered in November 2016 for our warehouse space that expired in July 2021 and had renewal options
to May 2024 The monthly “Base Rent” was $10,392 and the Base Rent was increased by 2.5% each year. In May 2023 the Company
exercised its option and extended the lease to May 31, 2024.

In
May 2021, we entered into a new lease agreement which included both our office and warehouse space that expired May 31, 2024. The Company
had the option to terminate the lease after 12 months and 24 months from the commencement date. The office facility monthly “Base
Rent” was $11,855 and the Base Rent was increased by 2.5% each year.

We
have a new lease contract entered June 1, 2024 which includes both our office facility and warehouse space that expires May 31, 2025.
The monthly “Base Rent” is $11,876 and $12,767.

We
recognized total lease expense, primarily related to our operating leases, on a straight-line basis in accordance with ASC 842.

As
of December 31, 2024 and 2023, the Company recorded a refundable security deposit of $10,000 for its warehouse space and is included
in other assets on the balance sheet.

    F-17

The
operating lease expense were as follows:

Schedule
of Operating Lease