Forward-Looking Statements and Industry Data

? our estimates regarding expenses, future revenues and capital requirements;

? our ability to continue as a going concern;

? our need to raise substantial additional capital to fund our operations;

? our ability to compete in the global space industry;

? our ability to obtain and maintain intellectual property protection for our

? our ability to protect our intellectual property rights and the potential for

misappropriated or otherwise violated their intellectual property rights and

that we may incur substantial costs and be required to devote substantial time

? the success of competing products or services that are or become available;

? our ability to expand our organization to accommodate potential growth and our

ability to retain and attract key personnel;

? the potential for us to incur substantial costs resulting from lawsuits

against us and the potential for these lawsuits to cause us to limit our

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.

? Access to space through the ISS and commercial launch provider partnership

Key Factors Affecting Our Results and Prospects

Growing our experienced space hardware operations

Commencing and Expanding Commercial Satellite Operations

Our Vertically Integrated Space Platform

Lowering Manufacturing Cost and Schedule

Environmental, social, and corporate governance

We recognize the importance of our employees, the community with which we are situated as well as the global community. This recognition has led us to implement a variety of actions that support society from the individual to global scale.

The following table provides certain selected financial information for the periods presented:

The following table provides selected financial data about us as of June 30, 2022, and December 31, 2021.

We had an accumulated deficit of $20.2 million and working capital of $8.1 million as of June 30, 2022. As of June 30, 2022, we had $6.8 million of cash.

Current liabilities decreased by approximately $948,000 to approximately $2.9 million as of June 30, 2022 from $3.8 million as of December 31, 2021. The decrease was primarily the result of the forgiveness by Craig Technical Consulting, Inc. of Notes payable - related party of $1.0 million.

Cash Flow from Operating Activities

Six Months ended June 30, 2022 and 2021

For the six months ended June 30, 2021, net cash flows used in operating activities comprised of a net loss of approximately $697,000, which was reduced by non-cash expenses of approximately $195,000 for depreciation and amortization, a decrease in net change in working capital of approximately $484,000 and a gain on forgiveness of a PPP note of $324,000.

Cash Flows from Investing Activities

During the six months ended June 30, 2022 and 2021, we purchased property and equipment in the amount of approximately $859,000 and $30,000 respectively.

Cash Flows from Financing Activities

We do not have any off-balance sheet arrangements or relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities.

Critical Accounting Policies and Significant Judgments and Estimates

? executed contracts with our customers that we believe are legally enforceable;

? identification of performance obligations in the respective contract;

? determination of the transaction price for each performance obligation in the

? Allocation of the transaction price to each performance obligation; and

? recognition of revenue only when we satisfy each performance obligation.

These five elements, as applied to each our revenue category, is summarized below:

© Edgar Online, source Glimpses