Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 340

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 340
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 rate, we generally use our incremental borrowing rate based on the estimated rate of interest
for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes
any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is
reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the
lease term.

Leases with a lease term of 12 months or less at
inception are not recorded on our balance sheet and are expensed on a straight-line basis over the lease term in our statement of operations.

Stock Option and Warrant Valuation

We use the Black-Scholes option-pricing model to
value all options and Class A common stock warrants. Estimating the fair value of stock options using the Black-Scholes option-pricing
model requires the application of significant assumptions, such as the fair value of our Class A common stock, the estimated term of
the options, risk-free interest rates, the expected volatility of the price of our Class A common stock, and an expected dividend yield.
Each of these assumptions is subjective, requires significant judgment, and is based upon management’s best estimates. If any of
these assumptions were to change significantly in the future, equity-based compensation related to future awards may differ significantly,
as compared with awards previously granted.

JOBS Act

On April 5, 2012, the JOBS Act was enacted. Section
107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (“Securities Act”) for complying with new or revised accounting
standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those
standards would otherwise apply to private companies.

We have chosen to take advantage of the extended
transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until
those standards would otherwise apply to private companies provided under the JOBS Act. As a result, our financial statements may not
be comparable to those of companies that comply with public company effective dates for complying with new or revised accounting standards.

We are in the process of evaluating the benefits
of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to