Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1211

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1211
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 during 2021.

Due
to uncertainties surrounding the Company’s ability to generate future taxable income to realize deferred income tax assets arising
as a result of net operating losses carried forward, the Company has not recorded any deferred income tax assets as of December 31, 2024.
The Company has incurred a net operating loss of $17,707,422. The net operating loss carry forwards can offset 80 percent of future taxable
income and carryforward indefinitely as determined by respective tax regulating authorities. The Company’s net operating loss carry
forwards may be subject to annual limitations, which could eliminate, reduce or defer the utilization of the losses because of an ownership
change as defined in Section 382 of the Internal Revenue Code U.S. federal tax returns are closed by statute for years through 2014.
The status of state and non-U.S. tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates.

    F-26

A
reconciliation between expected income taxes, computed at the federal income tax rate of 21% applied to the pretax accounting loss, and
our blended state income tax rate of 5.5% in 2024 and 2023, and the income tax net expense included in the consolidated statements of
operations for the years ended December 31, 2024 and 2023 is as follows:

Schedule
of Income Tax Reconciliation Income Tax Net Expenses

    2024  
    2023 

    Years Ended 

    December 31, 

    2024  
    2023 

    Loss for the year 
    $(17,524,056) 
    $(14,328,348)

    Income tax (recovery) at statutory rate 
    $(3,680,100) 
    $(3,009,000)
  
    State income tax expense, net of federal tax effect 
     (963,800) 
     (788,100)
  
    Permanent difference and other 
     -  
     - 
  
    Change in valuation allowance 
     4,643,900  
     3,797,100 
  
    Income tax expense per books 
    $-  
    $- 

Net
deferred tax assets consist of the following components as of:

Schedule
of Net Deferred Tax Assets

    December 31,  
    December 31, 

    2024  
    2023