Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 576

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 576
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 Decathlon and our CEO, Carol Craig,
pursuant to which we pay interest based on a minimum rate of one (1) times the amount advanced and make monthly payments based on a percentage
of our revenue calculated as an amount equal to the product of (i) all revenue for the immediately preceding month multiplied by (ii)
the Applicable Revenue Percentage, defined as 4% of revenue for payments due during any month. The Decathlon Note was amended November
16, 2023. The maturity date was extended from December 9, 2023 to December 9, 2024 and final payoff of indebtedness and release of security
executed January 29, 2025. The monthly interest was converted to a fixed amount of $50,000 per month. The Decathlon Note is secured by
our assets and is guaranteed by CTC and matures the earliest of: (i) December 9, 2024, (ii) immediately prior to a change of control,
or (iii) upon an acceleration of the obligations due to a default under the RLSA. As a result, on December 31, 2021, the Company recorded
the forgiveness of note payable-related party of $293,836 and the reclass of $1,106,164 from Note Payable – related party to Note
Payable.

During
the years ended December 31, 2024 and 2023, the Company recorded interest expense of $1,192,481 and $721,119, respectively, which included
an additional accrual estimate based on the principal and accrued but unpaid interest payment due when the note matures, and made payments
of $150,000 and $252,983, respectively. As of December 31, 2024 and 2023, the Company recorded principal amount and accrued interest
of $3,059,767 and $2,017,286 on the balance sheet, respectively. On January 31, 2025 the Company fully paid off the principal amount
and accrued but unpaid interest of approximately $3.2 million.

Note
13. Related Party Transactions

Revenue
and Accounts Receivable

The
Company recognized revenue of $798,942 and $952,220 for the years ended December 31, 2024 and 2023 and accounts receivable of $641,376
and $67,447 and contract asset and contract liability of $46,953 and $43,173 as of December 31,