Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 66

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 66
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, which is 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 March 31, 2025 and December 31, 2024, the Company’s collateralized and uncollateralized asset-based
loan balance was $9,794,642 and $6,902,636, respectively. For the three months ended March 31, 2025 and 2024, the costs and interest
incurred by the Company in connection with the loan and security agreement activities were $432,645 and $95,455, 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 with Decathlon.

Note
9. Contract assets and liabilities

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

Schedule
of Contract Assets and Liabilities

    Contract assets 
    March 31,  
    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, excluding retainage 
    $1,338,054  
    $1,331,194 
  
    Retainage included in contract assets due to being conditional on something other than solely passage of time 
     -  
     16,192 
  
    Retainage included in contract assets due to being conditional on something other than solely passage of time – related party 
     46,