Gross margin nearly doubles to 37% for the quarter ended June 30, 2023, improving 1,800 basis points year-over-year

Higher-margin satellite revenue increased 126% year-over-year

Sidus Space, Inc. (NASDAQ:SIDU) (the “Company” or “Sidus”), a Space and Data-as-a-Service satellite company, announces its financial results and is providing a business update for the second quarter ending June 30, 2023.

“During the second quarter of 2023 we achieved several key milestones, including significantly expanding our margins period-over-period, as we continue to take meaningful steps toward the launch of our AI driven LizzieSat^TM constellation. The increase in gross margin was the result of an increase in our satellite revenue. For the six months ended June 30, 2023 our satellite revenue was over 100% higher than full year 2022,” said Carol Craig, Founder and CEO of Sidus. “We are developing an advanced hybrid 3D printed satellite constellation with a focus on building a multi-mission space infrastructure for a diverse customer base in advance of our ten LizzeSat launches scheduled over the next two years with SpaceX. As we get closer to initiating these launches, we continue to develop new, high-margin revenue streams focusing on the sale of both data and payloads on these missions. We believe this will drive both revenue and profit margin over time, as well as value for our shareholders. A key factor to achieving this growth is the in-house development of our 3D-printed satellites, LizzieSat.”

“In addition, several partnerships with new and existing customers were executed during the quarter - a testament to our reputation, expertise and quality of work in the space community where we play a vital role as a mission critical manufacturing partner. These projects further validate Sidus’ ability to deliver mission critical hardware to key partners and vendors. Our ability to provide space infrastructure, as well as critical data, creates a high-margin, rapidly-scalable, recurring-revenue business model,” continued Craig.

Financial Highlights for the Quarter Ending June 30, 2023

• Sidus reported revenue of $1.4 million for the quarter ended June 30, 2023, compared to $1.8 million for the same period in 2022. While revenue declined period-over-period, primarily due to timing of fixed price milestone contracts, higher margin satellite revenue increased 126% year-over-year.
• Gross profit was approximately $508,000 or 37%, for the quarter ended June 30, 2023, compared to approximately $347,000 or 19% for the second quarter of 2022, an increase of 1,800 basis points. The increase in gross profit margin was primarily attributed to the mix of contracts and an increase in our higher margin satellite business.
• Total Operating Expenses increased to approximately $3.6 million for the quarter ended June 30, 2023, from approximately $2.7 million for the quarter ended June 30, 2022, primarily due to expansion of the Company’s staff to support the growth of the business.
• As of June 30, 2023, the Company had $7.9 million in cash.

Operational Highlights for the Quarter Ending June 30, 2023

• Announced agreement to launch industry leading hyperspectral and multispectral imaging and Edge Artificial Intelligence on LizzieSat missions beginning in 2024.
• Granted additional hardware manufacturing subcontract to support NASA’s Artemis Program and Space Launch System Manned Vehicle.
• Selected by Airbus OneWeb Satellites to design and build machined parts, to be integrated into the portfolio of Arrow commercial small satellites manufactured by AOS, which is producing satellites for Airbus, in support of U.S. government programs.
• Awarded a new subcontract to produce hardware in support of Parsons Corporation’s Launch Manifest Systems Integration contract.
• Awarded contracts for two projects with Israeli partners Maris-Tech and Lulav Space by Space Florida under the Florida-Israel Innovation Partnership, the first time Sidus has received two awards from the same round of projects from the Florida-Israel Innovation Partnership.
• Announced a collaboration with Lulav Space, to provide a complete guidance navigation and control, or GN&C, solution, for both lunar satellite and lunar lander missions.
• Announced agreement with SOLAR MEMS to host its star tracker as a part of Sidus’ payload rideshare program.
• Selected ATLAS Space Operations to expand the Company’s ground station services, significantly increasing the global network of ground stations for the LizzieSat constellation.
• Announced agreement with Leaf Space to progress and broaden Sidus’ ground station network and to extend the availability of Earth Observation data to both established and emerging markets.
• Announced plans to integrate Exo-Space’s FeatherEdge Data Processing Platform into LizzieSat.
• Signed MOU with SkyServe to leverage the latest advancements in artificial intelligence and machine learning-based analytics.
• Selected as a protégé with L3Harris Technologies for the Department of Defense Mentor-Protege Program.

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Tuesday, August 29, 2023, at 11:59 PM 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: 13740440.

To submit a question for the Company to answer in the Q&A portion of the call, please email sidus@kcsa.com.

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a Space Data-as-a-Service and Defense-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 located 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. Any corporation, industry, or vertical can start their journey off-planet with Sidus Space’s rapidly scalable, low-cost satellite services, space-based solutions, and testing alternatives. More than just a "Satellite-as-a-Service" provider, Sidus Space is a trusted Mission Partner–from concept to Low Earth Orbit and beyond. Sidus 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, 2022, 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.

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