Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 465

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 465
---
 clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account
of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for public
business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption
is permitted. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements.

The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

Note 3. Variable Interest Entity

The consolidated financial statements include Aurea
Alas Limited, which is a variable interest entity of which we are the primary beneficiary, and on August 26, 2020, the Company entered
into a licensing agreement with Aurea. Aurea is a Limited company organized in the Isle of Man, which entered into a license agreement
with a third-party vendor, whereby they licensed the rights to use certain available radio frequency spectrum for satellite communications.
The Company is responsible for 100% of the operations of Aurea and derives 100% of the net profits or losses derived from the business
operations. The assets, liabilities and the operations of Aurea from the date of inception (July 20, 2020), were included in the Company’s
consolidated financial statements.

Through a declaration of trust, 100% of the
voting rights of Aurea’s shareholders have been transferred to the Company so that the Company has effective control over Aurea
and has the power to direct the activities of Aurea that most significantly impact its economic performance. There are no restrictions
on the consolidated VIE’s assets and on the settlement of its liabilities and all carrying amounts of VIE’s assets and liabilities
are consolidated with the Company’s financial statements.

If facts and circumstances change such that the conclusion
to consolidate the VIE has changed, the Company shall disclose the primary factors that caused the change and the effect on the Company’s
financial statements in the periods when the change occurs.

As of December 31, 2024 and 2023, Aurea’s assets
and liabilities are as follows:

 Schedule
of Variable Interest Entities Assets and Liabilities

    December 31,  
    December 31, 

    2024  
    2023 
  
    Assets 

    Cash