Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 61

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 61
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 as the Company satisfies a performance obligation.

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, but in which the Company does not yet have the right to invoice for due to contractual arrangements
are reflected as contract assets until such time as they are invoiced, and the Company has the right to receive payment.

Cost
of revenue

Costs
are recognized when incurred. Cost of revenue consists of direct labor, subcontract, materials, depreciation on machinery and equipment,
and other direct costs.

Net
Income (Loss) Per Share of Common Stock

The
Company has adopted ASC Topic 260, “Earnings per Share” which requires presentation of basic earnings per share on
the face of the statements of operations for all entities with complex capital structures and requires a reconciliation of the numerator
and denominator of the basic earnings per share computation. In the accompanying financial statements, basic loss per share is computed
by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share
is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares
of common stock during the period to reflect the potential dilution that could occur from common stock issuable through contingent share
arrangements, stock options and warrants unless the result would be antidilutive.

    -11-

For
the three months ended March 31, 2025 and 2024, the following common stock equivalents were excluded from the computation of diluted
net loss per share as the result of the computation was anti-dilutive.

Schedule
of Diluted Net Loss Per Share

    March 31,  
    March 31, 

    2025  
    2024 

    (Shares)  
    (Shares) 
  
    Warrants 
     3,171,172  
     260,213 
  
    Stock option 
     329,752  
     64,752 

Warrants

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”)
and ASC 815,