Sidus Space Reports Full Year 2023 Financial Results and Provides Business Update

March 27, 2024

Sidus Space, Inc. announces financial results for the full year ended December 31, 2023 and provides a business update. Management is scheduled to host a conference call and webcast today, March 27th, at 9:00 a.m. ET.

“2023 was a pivotal year for Sidus, culminating with the successful launch of our first LizzieSat™ on the SpaceX Transporter-10 Rideshare Mission earlier this month. LizzieSat-1 is the first of several satellites planned for launch to Low Earth Orbit. We are quickly building our constellation of 3D-printed, AI-enhanced satellites, with two more LizzeSats manifested for launch before the end of the year,” said Carol Craig, Founder and CEO of Sidus.

“Launching LizzieSat-1 was a major step in executing our strategy of building high-margin, recurring revenue streams from our satellite data, and we have already begun to see the effects of this on our financials with a gross margin of 28% for 2023, an 8% improvement over the prior year,” continued Craig. “Additionally, we bolstered our balance sheet subsequent to year end by raising gross proceeds of $15.2 million, putting us on stronger financial footing as we continue to expand our constellation later this year and into the future.” 

Operational Highlights for the Quarter Ending December 31, 2023:

Successfully Completed LizzieSat Vibration Testing

Announced Issuance of New U.S. Patent for Electromagnetic Interference (EMI) Filter Unit

Integrated FeatherEdge AI into LizzieSat

Received NASA Stennis ASTRA Flight Software and Hardware

Awarded Additional Bechtel Cable Assembly Contract for Mobile Launcher 2

Added Contracts for Data Collected by LizzieSat Satellites

Awarded 5 Year, $10 Million Ceiling (IDIQ) Commercial Contract to Support Commercial Lunar Transportation

Completed Environmental Testing of AI-Enhanced LizzieSat

Subsequent Operational Highlights:

Established Two-Way Communications with State-of-the-Art Hybrid 3D-Printed LizzieSat™ after Successful Launch and Deployment on the SpaceX Transporter-10 Rideshare Mission

Launched LizzieSat from Vandenberg Space Force Base

Completed Contract to Deliver Onboard Computing Flight Hardware

Completed System Requirements & Design Review, Demonstrating Progress Toward Launch of Innovative Precision Positioning, Navigation and Timing Payload

Integrated NASA Stennis ASTRA Engineering Unit into LizzieSat

Announced Publication of New U.S. Patent Application for LizzieSat Platform

Awarded National Geospatial-Intelligence Agency IDIQ Research and Development Contract with $794 Million Ceiling to Solis Applied Science Team, Including Sidus Space

Unveiled Cutting-edge Multi-Material 3D Printed Space Hardware Division

Announced Technology Hosting Payload Contract with ASPINA

Achieved Critical Artificial Intelligence (AI) and Hardware Contract Milestones

Secured NOAA Approval to Provide Imaging Services to Government and Commercial Customers

Corporate Governance and Capital Formation Highlights:

Appointed Bill White as Chief Financial Officer

Subsequent to December 31, 2023, the Company received gross proceeds of $15.2 million through the exercise of warrants and two equity offerings

Financial Highlights for the Full Year Ending December 31, 2023:

Total revenue for the twelve months ended December 31, 2023 totaled approximately $6.0 million, a decrease of $1.3 million compared to total revenue for the twelve months ended December 31, 2022. This decrease was primarily driven by the timing of fixed price milestone contracts offset by satellite payload revenue.

Cost of revenue decreased 26% for the twelve months ended December 31, 2023 to approximately $4.3 million as compared to approximately $5.9 million for the twelve months ended December 31, 2022. The decrease was primarily driven by a mix of contracts and an increase in our higher margin satellite related business, which helped offset continued increased supply chain related costs in the manufacturing side of our business.

Gross profit increased 14% for the twelve months ended December 31, 2023 to approximately $1.6 million as compared to approximately $1.4 million for the twelve months ended December 31, 2022. Gross profit margin increased to 28% for the full year 2023 as compared to 20% for the full year 2022. This improvement was driven by an increase in the Company’s higher margin satellite business.

Selling, general, and administrative expenses for the twelve months ended December 31, 2023 totaled $14.2 million as compared to $13.5 million for the same period the prior year. The increase was primarily due to an increase in professional fees, including legal costs, associated with the acquisition of Exo-Space, as well as an increase in fundraising and employee expenses. This was offset by a decrease in insurance rates, license fees, and IR/PR expenses.

Adjusted EBITDA loss, a non-GAAP measure, for the twelve months ended December 31, 2023 totaled $10.9 million as compared to an Adjusted EBITDA loss of $9.7 million for the same period the prior year. Total non-GAAP adjustments for interest expense, depreciation and amortization, acquisition deal costs, severance costs, capital markets and advisory fees, equity-based compensation, and warrant costs are provided in the reconciliation table below.

Net loss for the twelve months ended December 31, 2023 was $14.3 million as compared to a net loss of $12.8 million for the same period the prior year.

Balance Sheet:

At December 31, 2023, the Company had cash of $1.2 million as compared to $2.3 million at December 31, 2022. Subsequent to December 31, 2023, the Company received gross proceeds of $15.2 million through the exercise of warrants and two offerings.

Accounts Payable and other current liabilities was $6.7 million at December 31, 2023, as compared to $3.4 million at December 31, 2022. Asset-based loan liability was $2.6 million at December 31, 2023 as compared to $502 thousand at December 31, 2022. Notes payable was $2 million at December 31, 2023 as compared to $1.6 million at December 31, 2022. These increases were primarily due to timing of vendor payments, increased utilization of our asset-based loan and accrued interest expense related to our note payable.