Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 666

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 666
---
 ●
    executed
    contracts with the Company’s customers that it believes are legally enforceable;

    ●
    identification
    of performance obligations in the respective contract;

    ●
    determination
    of the transaction price for each performance obligation in the respective contract;

    ●
    allocation
    of the transaction price to each performance obligation; and

    ●
    recognition
    of revenue only when the Company satisfies each performance obligation.

     F-10 

These five elements, as applied to each of the Company’s
revenue category, are summarized below:

Revenues from fixed price manufacturing related contracts
that are still in progress at month end are recognized on the percentage-of-completion method, measured by the percentage of total costs
incurred to date to the estimated total costs for each contract. This method is used because management considers total costs to be the
best available measure of progress on these contracts. Revenue from fixed price contracts and time-and-materials contracts that are completed
in the month the work was started are recognized when the work is shipped. To achieve this core principle, we apply the following five
steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price,
allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance
obligation.

Revenues from fixed price service contracts that
contain provisions for milestone payments primarily related to satellite technology related contracts are recognized at the time of the
milestone being met. This method is used because management considers that the payments are nonrefundable unless the entity fails to
perform as promised. If the customer terminates the contract, the Company is entitled to retain any progress payments received from the
customer and the Company has no further rights to compensation from the customer. Even though the payments made by the customer are nonrefundable,
the cumulative amount of those payments is not expected, at all times throughout the contract, to at least correspond to the amount that
would be necessary to compensate the Company for performance completed to date. Accordingly, the Company accounts for the progress under
the contract as a performance obligation satisfied at a point in time. To achieve this core principle, we apply the following five steps:
identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate
the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance
obligation.

The Company accounts for the majority