Company: SIDU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023543
Chunk: 12

Company: Sidus Space Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 12
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2, whereby the lender will
provide loans secured by certain accounts receivable for up to 90% of the face amount. This was amended in 2024 to also include secured
certain unbilled manufacturing and other works in process for up to 85% of the face amount and secured by certain unbilled delivery orders
for up to 60% of the face amount. These are paid to the company in the form of a cash advance. The Company has a revolving line of credit
for $3 million with a collateralized loan interest rate of 16.2% annum and uncollateralized loan interest rate of 19.5% annum on outstanding
balances. In 2024, the Company agreed to increase a revolving line of credit for $7 million. Additionally, in the event of default the
Lender at its option can increase the loan interest rate by 5% per annum for each month or partial month default on outstanding balances.
Under the loan and security agreement, the Company must pay back any invoices that become uncollectable. As of September 30, 2025 and
December 31, 2024, the Company’s collateralized and uncollateralized asset-based loan balance was $9,124,612 and $6,902,636, respectively.
For the nine months ended September 30, 2025 and 2024, the costs and interest incurred by the Company in connection with the loan and
security agreement activities were $1,225,344 and $252,734, respectively. As of January 31, 2025 the Company’s revolving line of
credit was increased from $7 million to $10.5 million with same interest rates noted above for collateralized and uncollateralized loan
interest rates. The Company used the increase in its revolving line of credit to pay off the approximately $3.2 million note payable
and accrued interest and fees with Decathlon.

    16

Note
9. Contract assets and liabilities

As
of September 30, 2025 and December 31, 2024, contract assets and contract liabilities consisted of the following:

 Schedule of Contract Assets and Liabilities

    Contract assets 
    September 30,  
    December 31, 

    2025  
    2024 

    Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset) that are subject to restrictions on invoicing