NASDAQ: SIDU

Sidus
Space represents the strategic evolution of this heritage, transforming from a manufacturing-focused organization into a fully integrated
space and defense technology company in 2021, encompassing satellite design and production, advanced AI-enabled computing, mission operations,
and space-based data solutions. With our mission of Space Access Reimagined®, we are committed to rapid innovation, adaptable and
cost-effective solutions, and the optimization of space system and data collection performance.

Business
Model:

Sidus
Space’s business model supports multiple customer engagement pathways across the space mission lifecycle. The Company generates
revenue through a combination of:

●
Satellite platform sales and customization

●
Payload hosting and mission services

●
Engineering and systems integration services

●
Space and defense hardware manufacturing

●
Sales of proprietary computing products

●
Emerging subscription-based access to space-derived
data and analytics

Customer
contracts may be fixed-price or milestone-based and vary in scope, duration, and technical complexity depending on mission requirements,
funding structures, and regulatory approvals. As a result, the timing and amount of revenue recognized may fluctuate between reporting
periods.

Products
and Services:

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.

LizzieSat®
Satellite Platform:

LizzieSat
(LS) is a modular, hybrid 3D-printed satellite architecture designed to support multi-mission deployments across LEO, GEO, cislunar,
and lunar orbits. The platform supports a broad range of payloads and mission objectives and is designed to enable rapid customer technology
integration.

Sidus has successfully launched
three LizzieSat platforms (LS-1, LS-2, and LS-3) since 2024, with additional missions planned. Current platform configurations include:

●LizzieSat
Gen 1 (LS1-3): 100-125 kg

●LizzieSat
Gen 2 (LS4+): 100, 200, and 400 kg

●GeoLizzie™:
400-800kg

●LunarLizzie™:
400-800kg with expanded power and precision timing

5

AI
Enabled Edge Computing Systems:

Sidus has developed the Orlaith AI Ecosystem, integrating
the FeatherEdge™ radiation-tolerant edge processor with the Cielo™ AI software suite. These technologies enable on-orbit data
processing and near real-time analytics for applications including maritime monitoring, environmental intelligence, space situational
awareness, and defense use cases.

Sidus has also developed the
Fortis™ VPX family of modular computing products, designed to support SOSA and MOSA-aligned architectures for command, data handling,
AI/ML processing, and precision navigation across air, land, sea and space domains.

Manufacturing
and Engineering Services:

Sidus operates a vertically integrated manufacturing
and engineering facility supporting precision machining, additive manufacturing, avionics and assembly, cable harness fabrication, and
environmental testing. The Company’s manufacturing operations are certified to ISO 9001 and AS9100 standards and support space-grade
and defense-grade hardware production.

Mission
Operations and Regulatory Support:

Sidus provides end-to-end mission operations services,
including mission planning, payload integration, satellite monitoring and control, and data delivery. The Company operates a 24/7 Mission
Control Center and maintains regulatory authorizations from the FCC, NOAA, and ITU, supporting current and planned satellite missions.

Key
Programs, Partnerships, and Operational Milestones:

During
fiscal year 2025, Sidus Space advanced multiple satellite missions, technology development initiatives, customer programs, and strategic
partnerships that support its space and defense offerings. These activities included the continued expansion of its on-orbit satellite
fleet, progress in artificial intelligence-enabled computing systems and open-architecture avionics, and execution of manufacturing,
integration, and mission services contracts across commercial, government, intelligence and defense markets.

Mission
and Satellite Milestones:

●

Successfully launched LizzieSat-3 (LS-3) on March 14, 2025, aboard SpaceX
Transporter-13 rideshare mission, marking the third satellite added to Sidus’ on-orbit satellite fleet.

●
Completed successful bus-level
commissioning of LS-3, including verification of hybrid 3D-printed structural subsystems and onboard AI-enhanced processing capabilities.

●
Established communications
with customer payloads on LS-3, enabling real-time mission tasking and data delivery.

●
Commissioned the Automatic
Identification System (AIS) sensor on LS-3, confirming maritime domain awareness capability.

●
Received successful on-orbit
images during commissioning of the HEO USA NEI imager aboard LS-3, validating imaging payload performance.

Advanced
Computing, AI and VPX Platform Development:

●
Introduced Sidus VPX technology, including:

○
Sidus Single Board Computer
(SSBC): a SOSA-aligned, OpenVPX-based computing module.

○
Position, Navigation, and
Timing (PNT) Card: designed to support operations in GPS-denied or contested environments.

●
Launched the Orlaith™ AI Ecosystem, integrating FeatherEdge™ hardware with Cielo™ AI software for near real-time analytics across space, air, land, and sea domains.

●
Completed commissioning of FeatherEdge™ GEN-2, the Company’s next-generation onboard edge compute platform.

●
Completed design of FeatherEdge™ 248Vi, advancing scalable AI/ML processing for space and defense applications.

●
Received a Notice of Allowance for the Modular Satellite Platform patent, strengthening intellectual property protection for Sidus’ adaptable satellite architecture.

●
Expanded the Company’s intellectual property portfolio through continued filings supporting modular satellite manufacturing, ruggedized multi-domain compute architectures, and AI-enabled mission payloads. As of fiscal year 2025, Sidus holds 15 issued patents and 11 pending patent applications.

6

Lunar
and GEO Program Progress:

●
Amended and extended the
Lonestar Holdings lunar satellite manufacturing contract, increasing the total value to $120 million.

●
Signed a contract to integrate
the Lonestar Commercial Pathfinder Mission onto LizzieSat-5.

●
Completed System Requirements
Review (SRR) and mission kickoff for Lonestar’s Pathfinder program, with initial milestone payment received.

●
Unveiled LunarLizzie, an
800+-kg-class next-generation lunar spacecraft featuring on-orbit AI for near real-time intelligence.

●
Executed a Memorandum of
Understanding (MOU) with Saturn Satellite Networks to support development of a next-generation GEO satellite platform.

Strategic
Partnership and International Expansion:

●
Executed an MOU with Reflex
Aerospace to explore joint satellite fleet services and expand global mission offerings.

●
Expanded partnership with
Little Place Labs, enabling near real-time maritime intelligence through LizzieSat-powered vessel detection capabilities.

●
Partnered with VORAGO Technologies
to advance radiation-hardened computing for scalable space and defense infrastructure.

●
Maintained multi-launch
agreement with SpaceX, securing access to reliable, recurring rideshare opportunities.

●
Strengthened the Company’s
global customer pipeline, with increased demand for dual-use, SOSA-aligned hardware across commercial and defense markets.

Government
and Defense Contracts:

●
Awarded a ten-year Indefinite Delivery / Indefinite Quantity (IDIQ) contract with Tobyhanna Army Depot (TYAD) to provide fabrication and on-call support for:

○
Electrical harnesses and
cable assemblies

○
Mechanical components and
assemblies

○
Welding services

●
Secured a subcontractor role with MobLobSpace under NASA’s SBIR Radar Initiative, utilizing LizzieSat as the hosting platform

●
Named a contract awardee under the Missile Defense Agency (MDA) Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) IDIQ, a homeland defense program with a total potential ceiling of $151 billion.

Hardware
Deliveries and Engineering Execution:

●
Completed delivery of additional
final hardware enclosures for NASA’s Mobile Launcher 2, supporting Artemis-related infrastructure.

●
Continued expansion of
dual-use hardware production, increasing orders for SOSA-aligned compute modules and subsystem architectures.

●
Delivered a custom FeatherEdge
Data Processing Unit (DPU) for Xiomas Technologies under a NASA Phase II Sequential Award, alongside advanced software and a completed
final technical report supporting thermal imaging missions.

Mission
Operations:

●
Fully staffed and operationalized
Sidus’ 24/7 Mission Control Center, increasing capacity for continuous spacecraft monitoring, health management, and tasking.

●
Initiated early-stage customer
demonstrations and trials across defense and commercial space sectors, showcasing multi-domain operational capabilities.

7

Leadership
and Organizational Advancements:

●
Hired Adarsh Parekh as
Chief Financial Officer, bringing additional experience in capital strategy and financial leadership.

●
Appointed Tiffany Norwood,
a globally recognized technology entrepreneur and business leader, to the Board of Directors.

●
Elected Kelle Wendling,
a seasoned aerospace and defense executive with more than three decades of leadership and government contracting experience, to the
Board of Directors, effective January 1, 2026.

Differentiation:

Sidus
differentiates its offerings through a vertically integrated operating model that combines satellite design and manufacturing, advanced
computing and AI capabilities, mission operations, and space-grade manufacturing within a single organizational structure. This integration
enables rapid customer technology insertion, multi-mission flexibility, on-orbit adaptability through software updates, and reduced reliance
on third-party suppliers.

Sidus’
modular satellite platforms and open-architecture computing systems are designed to support deployment across multiple orbits, mission
profiles, and industry sectors while maintaining flexibility to adapt to evolving customer requirements.

Market
Landscape and Competition:

The
global space economy continues to grow, driven by declining launch costs, advancements in satellite technology, and increased demand
for space-based data and analytics. The small satellite market is capital-intensive and characterized by long development cycles, regulatory
dependencies, and launch schedule variability.

Sidus
competes with a range of commercial space companies including Spire, BlackSky, Hawkeye 360, Satellogic, Iceye, Loft Orbital, York Space
Systems, Apex, and K2Space, as well as larger aerospace and defense contractors. Sidus’ vertically integrated model and ability
to rapidly integrate customer technologies serve as competitive differentiators within this evolving market.

Human
Capital:

As
of December 31, 2025, Sidus employed 99 full-time employees across engineering, software, machining, satellite operations, program management,
and administrative roles. The Company emphasizes training, safety, and STEM engagement.

8

Available
Information

Our
website address is www.sidusspace.com. The contents of, or information accessible through, our website are not part of this Annual
Report on Form 10-K, and our website address is included in this document as an inactive textual reference only. We make our filings
with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments
to those reports, available free of charge on our website as soon as reasonably practicable after we file such reports with, or furnish
such reports to, the SEC. The public may read and copy the materials we file with the SEC at the SEC’s Public Reference Room at
100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the
SEC at 1-800-SEC-0330. Additionally, the SEC maintains an internet site that contains reports, proxy and information statements and other
information. The address of the SEC’s website is www.sec.gov. The information contained in the SEC’s website is not
intended to be a part of this filing.