Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1101

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 1101
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 have a material
adverse effect on our business, financial condition and results of operation.

We
may experience a total loss of our technology and products and our customers’ payloads if there is an accident on launch or during
the journey into space, and any insurance we have may not be adequate to cover our loss.

Although
there have been and will continue to be technological advances in spaceflight, it is still an inherently dangerous activity. Explosions
and other accidents on launch or during the flight have occurred and will likely occur in the future. If such incident should occur,
we will likely experience a total loss of our systems, products, technologies and services and our customers’ payloads. The total
or partial loss of one or more of our products or customer payloads could have a material adverse effect on our results of operations
and financial condition. For some missions, we can elect to buy launch insurance, which can reduce our monetary losses from the launch
failure, but even in this case we will have losses associated with our inability to test our technology in space and delays with further
technology development.

Any
delays in the development and manufacture of satellites and related technology may adversely impact our business, financial condition
and results of operations.

We
have previously experienced, and may experience in the future, delays or other complications in the design, manufacture, launch, production,
delivery and servicing ramp of satellites and related technology. If delays like this arise or recur, if our remediation measures and
process changes do not continue to be successful or if we experience issues with planned manufacturing improvements or design and safety,
we could experience issues in sustaining the ramp of our spaceflight system or delays in increasing production further.

If
we encounter difficulties in scaling our delivery or servicing capabilities, if we fail to develop and successfully commercialize our
satellites and related technologies, if we fail to develop such technologies before our competitors, or if such technologies fail to
perform as expected, are inferior to those of our competitors or are perceived as less safe than those of our competitors, our business,
financial condition and results of operations could be materially and adversely impacted.

21

Our
customized hardware and software may be difficult and expensive to service, upgrade or replace.

Some
of the hardware and software we use in operations is significantly customized and tailored to meet our requirements and specifications
and could be difficult and expensive to service, upgrade or replace. Although we expect to maintain inventories of some spare parts,
it nonetheless may be difficult, expensive or impossible to obtain replacement parts