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Sidus Space Reports Full Year 2023 Financial Results and Provides Business UpdateSidus Space, Inc. (NASDAQ:SIDU) (the "Company" or "Sidus"), a Space and Data-as-a-Service satellite company, 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:
Subsequent Operational Highlights:
Corporate Governance and Capital Formation Highlights:
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. Conference Call and Webcast
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Wednesday, April 10, 2024, at 11:59 P.M. ET and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13745176. An online archive of the webcast will be available for three months following the event at investors.sidusspace.com. About Sidus Space Sidus Space (NASDAQ: SIDU) is a multi-faceted Space and Data-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support. The Company is in Cape Canaveral, Florida, where it operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on vertically integrated Space-as-a-Service solutions including end-to-end satellite support. Sidus Space has a mission of Bringing Space Down to Earth™ and a vision of enabling space flight heritage status for new technologies while delivering data and predictive analytics to domestic and global customers. More than just a "Satellite-as-a-Service" provider, Sidus Space's products and services are offered through its four business units: Space and Defense Hardware Manufacturing, Satellite Manufacturing and Payload Integration, Space-Based Data Solutions, and AI/ML Products and Services to support customers from concept to Low Earth Orbit and beyond. Sidus Space is ISO 9001:2015, AS9100 Rev. D certified, and ITAR registered. Forward-Looking Statements Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute 'forward-looking statements' within the meaning of The Private Securities Litigation Reform Act of 1995. The words 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' 'would' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in Sidus Space's Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Sidus Space, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. NON-GAAP MEASURES To provide investors with additional information in connection with our results as determined in accordance with GAAP, we use non-GAAP measures of adjusted EBITDA. We use adjusted EBITDA in order to evaluate our operating performance and make strategic decisions regarding future direction of the company since it provides a meaningful comparison to our peers using similar measures. We define adjusted EBITDA as net income (as determined by U.S. GAAP) adjusted for interest expense, depreciation and amortization expense, acquisition deal costs, severance costs, capital market and advisory fees, equity-based compensation and warrant costs. These non-GAAP measures may be different from non-GAAP measures made by other companies since not all companies will use the same measures. Therefore, these non-GAAP measures should not be considered in isolation or as a substitute for relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. The following table reconciles adjusted EBITDA to net loss (the most comparable GAAP measure) for the twelve months ended December 31, 2023, and 2022:
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