Sidus Space Inc.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 13, 2026
SIDU$0.99+6.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001493152-26-023709
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001493152-26-037731
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 139 previous paragraphs and 154 current paragraphs.
110 unchanged; 21 reworded; 20 added; 7 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 19 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
AI-Enabling Edge Computing Systems:
Current report
Total revenue for the three months ended June 30, 2026 decreased approximately $678,000 compared to the three months ended June 30, 2025. Non-related party revenue decreased by approximately 23% for the three months ended June 30, 2026, to approximately $531,000 as compared to approximately $691,000 for the three months ended June 30, 2025. Related party revenue decreased 91% to approximately $52,000 for the three months ended June 30, 2026 versus approximately $570,000 for the three months ended June 30, 2025. These changes were primarily driven by the timing of fixed-price milestone contracts.
Current report
Other income and (expenses) improved by approximately $1.2 million to other income of $910,978 compared to other expense of $334,659 in 2025. The change was primarily due to approximately $912,000 of interest income earned on higher cash balances following our 2026 equity offerings, together with the elimination of asset-based loan expense following repayment of the loan in January 2026.
Current report
Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025
Current report
Revenue
Current report
Cost of Revenue
Current report
Cost of revenue decreased 37% for the six months ended June 30, 2026 to approximately $2.6 million as compared to approximately $4.2 million for the six months ended June 30, 2025 and included approximately $163,000 related party cost of sales for the six months ended June 30, 2026 and approximately $356,000 for the six months ended June 30, 2025. The overall decrease was primarily driven by lower contract volume and a decrease in satellite and related software depreciation expense.
Current report
Gross Profit (Loss)
Current report
Selling, General, and Administrative Expenses
Current report
Total other income (expenses)
Current report
Other income and (expenses) improved by approximately $1.8 million to other income of $1,169,081 compared to other expense of $676,366 in 2025. The change was primarily due to approximately $1.1 million of interest income earned on higher cash balances following our 2026 equity offerings, together with a substantial reduction in asset-based loan expense following repayment of the loan in January 2026.
Current report
As of June 30, 2026, our working capital surplus was primarily due to net proceeds of approximately $146.2 million raised in our April 2026 and May 2026 registered direct offerings, partially offset by cash used to fund operations and the build-out of our LizzieSat satellites.
Current report
April and May 2026 Public Offerings
Current report
On April 21, 2026, we completed a registered direct offering of 11,228,700 shares of Class A common stock and pre-funded warrants to purchase 2,225,000 shares, at an offering price of $4.35 per share, for gross proceeds of approximately $58.5 million and net proceeds of approximately $53.9 million. In connection with the offering, we issued warrants to the placement agent to purchase 961,540 shares of Class A common stock at an exercise price of $5.4375 per share. All of the pre-funded warrants were exercised during the quarter, resulting in the issuance of 2,224,933 shares.
Current report
On May 27, 2026, we priced a registered direct offering of 16,485,038 shares of Class A common stock and pre-funded warrants to purchase 3,200,001 shares, at an offering price of $5.08 per share, for gross proceeds of approximately $100.0 million and net proceeds of approximately $92.3 million. The offering closed on May 29, 2026. In connection with the offering, we issued warrants to the placement agent to purchase 984,252 shares of Class A common stock at an exercise price of $6.35 per share. All of the pre-funded warrants were exercised, resulting in the issuance of 3,200,001 shares.
Current report
Dilution
Current report
Shares of Class A common stock outstanding increased from 65,324,055 at December 31, 2025 to 101,106,203 at June 30, 2026, an increase of 35,782,148 shares, or 55%.
Current report
Net proceeds from the two offerings of approximately $146.2 million represented approximately $4.41 per share issued in those offerings.
Current report
As of June 30, 2026, we also had outstanding warrants to purchase 3,584,073 shares of Class A common stock at a weighted average exercise price of $4.66, options to purchase 286,643 shares at a weighted average exercise price of $3.67, and 232,947 unvested restricted stock units. These securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.
Current report
Six Months ended June 30, 2026 and 2025
Removed paragraphs (7)
Previous report
AI Enabled Edge Computing Systems:
Previous report
Lunar and GEO Program Progress:
Previous report
In 2024 and 2025, we completed commissioning of FeatherEdge™ GEN-2 and activated AI edge-computing capabilities on all three LizzieSat® satellites. Further expanding the capabilities of our satellite fleet, we implemented the SatLab A/S second-generation automated identification system (AIS) technology into the LizzieSat® satellite fleet. AIS technology uses sophisticated systems on board marine vessels to identify and track ships to prevent collisions and protect life at sea. The integration of this technology, combined with data from optical sensors on board LizzieSat®, enables unique vessel tracking and monitoring solutions while providing valuable information about ship movements in real time. In addition to AIS technology, we have integrated visual spectrum and multispectral imagers into our sensor suite and expect to expand the sensors to include software defined multispectral or hyperspectral sensors for future satellite missions.
Previous report
The Company maintains regulatory authorizations from the FCC, NOAA, and ITU supporting current and planned satellite missions. These authorizations enable our current on-orbit operations and support future satellite deployments across LEO, GEO, cislunar, and lunar mission plans.
Previous report
We currently have several satellites in production and expect to launch 2-3 LizzieSat® satellites ranging from 100kg to 400kg over the next three years. We are also actively building satellites for additional customer missions, including under our Lonestar Holdings lunar satellite manufacturing program.
Previous report
Other income (expenses) showed a change to net other income of approximately $258,000 in 2026 compared to net other expense of approximately $342,000 in 2025, primarily due to the elimination of asset-based loan expense following the payoff of the asset-based loan in January 2026 and increased interest income from cash holdings.
Previous report
As of December 31, 2025 the working capital surplus was primarily due to funds raised in our capital raises completed in Q3 and Q4 2025. As of March 31, 2026, our working capital reflects the use of cash for operations and the repayment of the asset-based loan in January 2026.
Reworded paragraphs (21)
Previous wording
Throughout this Quarterly Report on Form 10-Q, references to “we,” “our,” “us,” the “Company,” “Sidus,” or “Sidus Space” refer to Sidus Space, Inc., individually, or as the context requires, collectively with its subsidiary.
Current wording
Throughout this Quarterly Report on Form 10-Q, references to “we,” “our,” “us,” the “Company,” “Sidus,” or “Sidus Space” refer to Sidus Space, Inc., individually, or as the context requires, collectively with its consolidated variable interest entity.
Previous wording
Sidus Space operates as a vertically integrated space and defense technology company providing satellite design and manufacturing, technology integration, mission operations, artificial intelligence-enabled products and services, and space-based data solutions to government, defense, intelligence, and commercial customers. Our operations are supported by in-house engineering, manufacturing, assembly, integration, testing, and mission control capabilities.
Current wording
Sidus Space operates as a vertically integrated space and defense technology company providing satellite design and manufacturing, technology integration, mission operations, artificial intelligence-enabling products and services, and space-based data solutions to government, defense, intelligence, and commercial customers. Our operations are supported by in-house engineering, manufacturing, assembly, integration, testing, and mission control capabilities.
Previous wording
During the three months ended March 31, 2026, our operating activities were focused on advancing satellite programs, supporting customer manufacturing and engineering contracts, expanding mission operations capabilities, and continuing to invest in artificial intelligence-enabled computing and data processing technologies. These initiatives required significant upfront investment in personnel, infrastructure, product development, and regulatory compliance, which impacted operating results and liquidity during the period.
Current wording
During the three months ended June 30, 2026, our operating activities were focused on advancing satellite programs, supporting customer manufacturing and engineering contracts, expanding mission operations capabilities, and continuing to invest in artificial intelligence-enabling computing and data processing technologies. These initiatives required significant upfront investment in personnel, infrastructure, product development, and regulatory compliance, which impacted operating results and liquidity during the period.
Previous wording
Sidus delivers an integrated portfolio of satellite platforms, AI-enabled computing systems, precision manufacturing capabilities, mission operations services, and regulatory support that collectively enable end-to-end space and defense solutions. Through vertically integrated engineering, advanced manufacturing, and flight-proven technologies, Sidus provides flexible and scalable offerings to commercial, government, defense, and intelligence customers.
Current wording
Sidus delivers an integrated portfolio of satellite platforms, AI-enabling computing systems, precision manufacturing capabilities, mission operations services, and regulatory support that collectively enable end-to-end space and defense solutions. Through vertically integrated engineering, advanced manufacturing, and flight-proven technologies, Sidus provides flexible and scalable offerings to commercial, government, defense, and intelligence customers.
Previous wording
Our patented space-related technologies include a print head for regolith-polymer mixture and associated feedstock; a heat transfer system for regolith; a method for establishing a wastewater bioreactor environment; vertical takeoff and landing pad and interlocking pavers to construct same; and high-load vacuum chamber motion feedthrough systems and methods. Regolith is a blanket of unconsolidated, loose, heterogeneous superficial deposits covering solid rock. It includes dust, broken rocks, and other related materials and is present on earth, the moon, Mars, some asteroids, and other terrestrial planets and moons. We continue to patent our products including our satellites, external platforms and other innovations. We hold 15 issued patents and 11 pending patent applications as of March 31, 2026.
Current wording
Our patented space-related technologies include a print head for regolith-polymer mixture and associated feedstock; a heat transfer system for regolith; a method for establishing a wastewater bioreactor environment; vertical takeoff and landing pad and interlocking pavers to construct same; and high-load vacuum chamber motion feedthrough systems and methods. Regolith is a blanket of unconsolidated, loose, heterogeneous superficial deposits covering solid rock. It includes dust, broken rocks, and other related materials and is present on earth, the moon, Mars, some asteroids, and other terrestrial planets and moons. We continue to patent our products including our satellites, external platforms and other innovations. We hold 16 issued U.S. patents and 10 pending patent applications as of June 30, 2026.
Previous wording
Continue to penetrate international markets. We have expanded our strategic focus to include international markets, actively building a pipeline of prospective partnerships with small, underrepresented governments and global companies that can benefit from our expertise and services. As part of this initiative, we have signed partnership agreements with companies in Germany, Japan, India, Spain, the Netherlands, and Belgium to explore potential joint venture opportunities.
Current wording
Continue to penetrate international markets. We have expanded our strategic focus to include international markets, actively building a pipeline of prospective partnerships with small, underrepresented governments and global companies that can benefit from our expertise and services. As part of this initiative, we have entered into customer agreements with companies in Spain, the Netherlands, and Israel, and non-binding memoranda of understanding with companies in India, Belgium, Germany, Japan, and Israel. We remain actively engaged with counterparties in each of these markets.
Previous wording
Cost of revenue decreased 25% for the three months ended March 31, 2026 to approximately $1.4 million as compared to approximately $1.9 million for the three months ended March 31, 2025 and included approximately $31,000 related party cost of sales for the three months ended March 31, 2026 and approximately $38,000 for the three months ended March 31, 2025. The overall decrease in cost of revenue was primarily driven by lower satellite and related software depreciation expense and improved cost discipline in the manufacturing side of our business.
Current wording
Cost of revenue decreased 47% for the three months ended June 30, 2026 to approximately $1.2 million as compared to approximately $2.3 million for the three months ended June 30, 2025 and included approximately $132,000 related party cost of sales for the three months ended June 30, 2026 and approximately $318,000 for the three months ended June 30, 2025. The overall decrease in cost of revenue was primarily driven by a lower volume of contract activity and a decrease in satellite and related software depreciation expense.
Previous wording
The 36% improvement in our gross loss for the three months ended March 31, 2026 to a loss of approximately $1.1 million as compared to a loss of approximately $1.6 million for the three months ended March 31, 2025, was driven primarily by higher revenue and lower satellite and related software depreciation costs following the satellite impairment write-off in Q4 2025.
Current wording
The 39% improvement in our gross loss for the three months ended June 30, 2026 to a loss of approximately $630,000 as compared to a loss of approximately $1.0 million for the three months ended June 30, 2025, was driven primarily by lower satellite and related software depreciation costs and reduced contract material and labor expenses, partially offset by lower revenue.
Previous wording
Selling, general, and administrative expenses decreased approximately $25,000 (less than 1%) when compared with the same period in 2025. This was primarily due to the following:
Current wording
Selling, general, and administrative expenses increased approximately $799,000 (19%) when compared with the same period in 2025. This was primarily due to the following:
Previous wording
Total revenue for the three months ended March 31, 2026 increased approximately $121,000 or 51% compared to the three months ended March 31, 2025. Non-related party revenue increased by approximately 56% for the three months ended March 31, 2026, to approximately $250,000 as compared to approximately $161,000 for the three months ended March 31, 2025. This was primarily driven by the addition of new customer contracts including Lonestar Data Holdings and Teledyne Marine. Related party revenue increased 40% to approximately $109,000 for the three months ended March 31, 2026 versus approximately $78,000 for the three months ended March 31, 2025. This was influenced by increased work performed for our related party as their contract activity grew.
Current wording
Total revenue for the six months ended June 30, 2026 decreased approximately $557,000 compared to the six months ended June 30, 2025. Non-related party revenue decreased by approximately 8% for the six months ended June 30, 2026, to approximately $781,000 as compared to approximately $852,000 for the six months ended June 30, 2025. Related party revenue decreased 75% to approximately $161,000 for the six months ended June 30, 2026 versus approximately $648,000 for the six months ended June 30, 2025. These changes were primarily driven by the timing of fixed-price milestone contracts.
Previous wording
Liquidity is the ability of a company to generate funds to support asset growth, satisfy disbursement needs, maintain reserve requirements, and otherwise operate on an ongoing basis. We had insufficient operating revenues, so we are currently dependent on debt financing and sale of equity to fund operations.
Current wording
Liquidity is the ability of a company to generate funds to support asset growth, satisfy disbursement needs, maintain reserve requirements, and otherwise operate on an ongoing basis. Our operating revenues have not been sufficient to fund our operations, and we have historically financed our operations through sales of equity securities and, prior to January 2026, borrowings. Following the completion of our April 2026 and May 2026 registered direct offerings and the repayment in full of our asset-based loan in January 2026, we had no outstanding indebtedness as of June 30, 2026 and expect to fund our operations and planned capital expenditures from cash on hand.
Previous wording
We had an accumulated deficit of approximately $95.0 million and working capital of approximately $29.3 million as of March 31, 2026 compared to accumulated deficit of approximately $89.8 million and working capital of approximately $35.7 million as of December 31, 2025. As of March 31, 2026, we had approximately $27.3 million of cash as compared to approximately $43.2 million as of December 31, 2025.
Current wording
We had an accumulated deficit of approximately $99.8 million and working capital of approximately $167.6 million as of June 30, 2026 compared to accumulated deficit of approximately $89.8 million and working capital of approximately $35.7 million as of December 31, 2025. As of June 30, 2026, we had approximately $166.5 million of cash as compared to approximately $43.2 million as of December 31, 2025.
Previous wording
Current assets decreased by approximately $17.3 million to approximately $33.4 million as of March 31, 2026 from approximately $50.7 million as of December 31, 2025. The decrease is primarily attributable to the use of cash to repay the asset-based loan and fund operations.
Current wording
Current assets increased by approximately $122.1 million to approximately $172.8 million as of June 30, 2026 from approximately $50.7 million as of December 31, 2025. The increase is primarily attributable to an increase in cash from our 2026 equity offerings.
Previous wording
Current liabilities decreased significantly to approximately $4.1 million as of March 31, 2026 from approximately $15.0 million as of December 31, 2025. The decrease is primarily attributable to the repayment of the asset-based loan in January 2026 and the repayment of related party advances.
Current wording
Current liabilities decreased to approximately $5.2 million as of June 30, 2026 versus approximately $15.0 million as of December 31, 2025, primarily related to the repayment of our asset-based loan liability in January 2026.
Previous wording
For the three months ended March 31, 2026, net cash flows used in operating activities was approximately $5.6 million compared to approximately $3.2 million during the three months ended March 31, 2025.
Current wording
For the six months ended June 30, 2026, net cash flows used in operating activities was approximately $9.11 million compared to approximately $7.85 million during the six months ended June 30, 2025.
Previous wording
Cash flows used in operating activities for the three months ended March 31, 2025 of approximately $3.2 million is comprised of a net loss of approximately $6.4 million, which was reduced by non-cash expenses of approximately $252,000 for stock-based compensation and approximately $935,000 for depreciation, approximately $20,000 of non-cash fees on the asset-based loan and a decrease in net working capital of approximately $2.0 million.
Current wording
Cash flows used in operating activities for the six months ended June 30, 2026 of approximately $9.11 million is comprised of a net loss of approximately $9.99 million, which was reduced by non-cash expenses of approximately $197,000 for stock-based compensation and approximately $1.22 million for depreciation, and partially offset by an increase in net working capital of approximately $534,000.
Previous wording
Cash flows used in operating activities for the three months ended March 31, 2026 of approximately $5.6 million is comprised of a net loss of approximately $5.2 million, which was reduced by non-cash expenses of approximately $215,000 for stock-based compensation, approximately $612,000 for depreciation, and a decrease in net working capital of approximately $1.3 million.
Current wording
Cash flows used in operating activities for the six months ended June 30, 2025 of approximately $7.8 million is comprised of a net loss of approximately $12.0 million, which was reduced by non-cash expenses of approximately $437,000 for stock-based compensation, approximately $2.1 million for depreciation, and a decrease in working capital of approximately $1.7 million.
Previous wording
During the three months ended March 31, 2026 and 2025, Sidus Space invested approximately $3.7 million and $3.0 million respectively, in property and equipment primarily related to purchasing satellite related components and software.
Current wording
During the six months ended June 30, 2026 and 2025, we invested approximately $7.33 million and $4.35 million, respectively, in property and equipment primarily related to purchasing satellite related components and software.
Previous wording
During the three months ended March 31, 2026, net cash used in financing activities of approximately $6.5 million primarily consisted of the repayment of the asset-based loan of approximately $8.2 million, partially offset by proceeds from the exercise of warrants of approximately $1.7 million.
Current wording
During the six months ended June 30, 2026, net cash provided by financing activities of approximately $139.79 million included net proceeds of approximately $146.22 million from our April 2026 and May 2026 registered direct offerings and approximately $1.79 million from the exercise of warrants, partially offset by repayment of the asset-based loan of approximately $8.21 million.
Previous wording
During the three months ended March 31, 2025, net cash provided in financing activities of approximately $2.2 million included proceeds from the exercise of warrants from our December 2024 capital raise of approximately $2.4 million and net proceeds of approximately $2.9 million from an asset-based loan and repayment of notes payable of approximately $3.1 million.
Current wording
During the six months ended June 30, 2025, net cash provided by financing activities of approximately $131,000 included proceeds from the exercise of warrants from our December 2024 capital raise of approximately $2.4 million and proceeds from our asset-based loan of approximately $4.4 million, partially offset by repayments of our asset-based loan of approximately $3.6 million and repayments of notes payable of approximately $3.1 million.
Previous wording
We adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. Our updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements.
Current wording
The Company adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. Our updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The 37% improvement in our gross loss for the six months ended June 30, 2026 to a loss of approximately $1.68 million as compared to a loss of approximately $2.66 million for the six months ended June 30, 2025, was driven primarily by lower satellite and related software depreciation costs and reduced contract material and labor expenses.
Current report — wording carried from elsewhere
Selling, general, and administrative expenses increased approximately $774,000 (9%) when compared with the same period in 2025. This was primarily due to the following:
Current report — wording carried from elsewhere
The following table reconciles adjusted EBITDA to net loss (the most comparable GAAP measure) for the six months ended June 30, 2026 and 2025:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Three Months ended March 31, 2026 and 2025