Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1111

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1111
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 allow the government to unilaterally terminate or
modify contracts for convenience, in which case the counterparty to the contract may generally recover only its incurred or committed
costs and settlement expenses and profit on work completed prior to the termination. If the government terminates a contract for default,
the defaulting party may be liable for any extra costs incurred by the government in procuring undelivered items from another source.

Our
government contracts may be subject to the approval of appropriations being made by the U.S. Congress to fund the expenditures under
these contracts. In addition, government contracts normally contain additional requirements that may increase our costs of doing business,
reduce our profits, and expose us to liability for failure to comply with these terms and conditions. These requirements include, for
example:

    ●
    specialized
    disclosure and accounting requirements unique to government contracts; 

    ●
    financial
    and compliance audits that may result in potential liability for price adjustments, recoupment of government funds after such funds
    have been spent, civil and criminal penalties, or administrative sanctions such as suspension or debarment from doing business with
    the U.S. government; 

    ●
    public
    disclosures of certain contract and company information; and 

    ●
    mandatory
    socioeconomic compliance requirements, including labor requirements, non-discrimination and affirmative action programs and environmental
    compliance requirements. 

Government
contracts are also generally subject to greater scrutiny by the government, which can initiate reviews, audits, and investigations regarding
our compliance with government contract requirements. In addition, if we fail to comply with government contract laws, regulations and
contract requirements, our contracts may be subject to termination, and we may be subject to financial and/or other liability under our
contracts, the Federal Civil False Claims Act (including treble damages and other penalties), or criminal law. In particular, the False
Claims Act’s “whistleblower” provisions also allow private individuals, including present and former employees, to
sue on behalf of the U.S. government. Any penalties, damages, fines, suspension, or damages could adversely affect our ability to operate
our business and our financial results. If any customer were to unexpectedly terminate, cancel, or decline to exercise an option to renew
with respect to one or more of our significant contracts for any reason, including as a result of our failure to meet certain performance
milestones, or if a government customer were to suspend or debar us from doing business with such government, our