Sidus Space priced a best‑efforts public offering of 19,230,800 shares of its Class A common stock at $1.30 per share, with an expected closing date of December 24, 2025. The transaction is projected to generate roughly $25 million in gross proceeds before fees and expenses.
The company will deploy the proceeds to expand sales and marketing, accelerate product development, scale manufacturing, and shore up working capital as it continues to transition to a space‑as‑a‑service platform. The financing is intended to bridge the company’s high cash burn until revenue catalysts from the Fortis VPX product line and the LizzieSat‑4/5 satellite launches become operational in 2026.
Sidus has been operating at a high cash burn. In Q3 2025 revenue fell 31% to $1.3 million from $1.8 million in Q3 2024, and the company posted a net loss of $6 million versus $3.9 million in the prior year. Q1 2025 net loss was $6.4 million compared to $3.8 million in Q1 2024. Cash balances were $12.7 million as of September 30, 2025, and the Altman Z‑Score ranged from –2.91 to –3.41, indicating elevated financial risk.
CEO Carol Craig emphasized the strategic importance of the new financing. She described the Fortis VPX module as a “force multiplier for AI‑driven mission systems” and noted that the company’s shift to a space‑as‑a‑service model will accelerate revenue growth once the LizzieSat‑4/5 satellites become operational. She also highlighted Sidus’s “adaptability and scalability” as the foundation for future commercial opportunities.
Investors reacted negatively to the announcement, citing the dilutive nature of the offering and the company’s ongoing cash burn and low profitability. Market concerns were amplified by the weak financial metrics, including the low Altman Z‑Score and the need for additional capital to sustain operations until the 2026 revenue catalysts materialize.
The offering underscores Sidus’s need to secure liquidity to support its product development pipeline, including the Fortis VPX and LizzieSat constellation, while managing the transition to higher‑margin commercial services. The financing will provide a buffer as the company navigates the shift from legacy services to a new commercial model, but it also signals that the company remains in a precarious financial position.
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