Exhibit
99.1

July
21, 2026
Dear
Fellow Shareholders,
The
space industry is entering a period unlike any we have experienced before. Government priorities are shifting toward resilient architectures,
autonomous systems, artificial intelligence, and rapid deployment. Commercial customers increasingly demand faster access to space, greater
mission flexibility, and the ability to transform data into actionable intelligence at the edge rather than relying solely on traditional
cloud infrastructure.
Sidus
Space has spent the past several years intentionally building the technologies and capabilities required for this new
environment.
These
trends have not emerged overnight, nor have they altered our strategy. Rather, they validate the vision upon which
Sidus Space was founded.
As
we move into our next phase of growth, I want to share candidly about where we are today, the decisions we have made, and, most importantly,
where we are headed.
For
several years, our primary objective has been building the technical foundation required to become a vertically integrated
space and defense technology company. That foundation now includes satellite design and manufacturing, mission operations, AI-enabling digital
mission computing architectures, edge computing, and a growing portfolio of intellectual property. We have intentionally built capabilities
that work together rather than assembling disconnected businesses.
Today,
our focus is shifting from proving our technology to scaling its commercial application and that distinction is important. Success is
no longer measured simply by launching satellites or demonstrating technical capability. It will increasingly be measured by
customer adoption, recurring revenue, operating leverage, and long-term shareholder value.
Over
the past several months, a number of external commentaries have focused primarily on Sidus through the lens of historical cash
usage, capital raises, dilution, and stock price volatility. While these are legitimate topics for any public company, they represent only
part of our story.
They
do not fully capture the operational progress occurring inside the business.
Unlike
many companies that entered the public markets during the SPAC era with substantial amounts of capital already on their balance sheets,
Sidus deliberately chose a different path. We pursued a traditional IPO and a staged capital formation strategy, raising capital as technical
milestones were achieved rather than building infrastructure years ahead of commercialization.
| | |
www.sidusspace.com Space
Access Reimagined® | |
This
disciplined approach required difficult decisions. Operating with significantly less capital than many of our peers demanded focus,
prioritization, and operational efficiency. While it occasionally limited the pace at which we could expand, it also forced us to build
a company grounded in engineering discipline, capital efficiency, and execution.
Measured
another way, Sidus has deployed substantially less capital than many publicly traded peers while establishing its
satellite infrastructure, advanced patented technology portfolio, manufacturing capabilities, and commercial offerings. That efficiency
reflects our belief that long-term shareholder value is created not by the amount of capital raised, but by how effectively that capital
is deployed.
We
recognize that equity financing creates dilution. That impact is real and should never be dismissed. However, we view dilution in the
context of what it enables.
Our
recent capital raises were not intended to fund indefinite operating losses. They were designed to strengthen our balance sheet, improve
financial flexibility, reduce financing friction, raise our competitive profile as we target large government programs and provide the
resources necessary to accelerate commercialization from a position of strength rather than necessity.
Combined
with our existing infrastructure and technology investments, we believe this capital provides the resources necessary to execute our
strategy without the financing constraints that historically limited our pace of growth.
Evolving
with the Market
One
important evolution deserves additional context. When Sidus Space began building its space platform, our long-term vision included
developing and operating our own satellite constellation to generate recurring data and services revenue. As the commercial
space market matured, however, customer demand evolved more rapidly than originally anticipated. Government and commercial customers
increasingly sought flexible, software-defined satellites, mission computing, edge AI, and integrated space infrastructure
rather than standardized constellation-based services alone.
Rather
than remain committed to an original business model simply because it was our starting point, we adapted. We redirected our investments
toward technologies and capabilities that we believe offer broader market applicability, stronger customer demand, and multiple recurring
revenue opportunities across satellite manufacturing, digital mission computing, AI-enabled edge processing, mission operations, and
long-term software and support services.
| | |
www.sidusspace.com Space
Access Reimagined® | |
That
evolution required continued investment while the company expanded its technology portfolio and commercial offerings. Throughout that
period, the business still needed to be funded, and our shareholders experienced dilution as we raised the capital necessary to execute
that transition. We recognize that this has been difficult for shareholders, and we do not take that impact lightly.
Positioned
for the Next Phase
Today,
we believe we have emerged from that investment phase with a significantly stronger balance sheet, a broader portfolio of differentiated
technologies, and a business model that is less dependent on any single program or revenue source. We believe the capital we have raised,
combined with the strategic decisions we have made over the past several years, positions Sidus Space to enter its next phase focused
on commercialization, recurring revenue growth, disciplined execution, and long-term shareholder value.
The remainder of
this letter outlines how that strategy is being executed today and why we believe Sidus Space is positioned to compete in the next generation
of the global space economy.
Looking
ahead, our capital allocation priorities are straightforward. We will continue investing in the commercialization of the Fortis
VPX digital mission computing platform and our AI hardware/software portfolio, expanding our manufacturing capacity,
strengthening business development and government capture efforts, accelerating next-generation satellite production, advancing software-defined
mission technologies, and building the operational infrastructure required to support larger customer programs. We believe these investments
position Sidus to meet the growing demand for resilient space and defense capabilities while supporting long-term shareholder returns
through disciplined capital deployment.
Management remains focused
on improving gross margins, increasing recurring revenue, expanding operating leverage, and progressing toward sustainable positive cash
flow. We also understand that investors closely follow management ownership and insider activity. Our executive leadership team and Board
remain aligned with shareholders through meaningful equity ownership and long-term equity-based compensation. Like every public company,
our executives are subject to SEC trading restrictions, blackout periods, and limitations associated with material non-public information.
These requirements often limit opportunities for open-market purchases but do not diminish our confidence in the long-term opportunity
we are building.
At
our Annual Meeting, shareholders approved amendments to our equity incentive plan, providing the flexibility to continue attracting, retaining,
and aligning the interests of the highly specialized engineering, technical, and executive talent required to execute our long-term
growth strategy. We view equity compensation as an important tool for aligning employee and shareholder interests while supporting
disciplined capital management.
| | |
www.sidusspace.com Space
Access Reimagined® | |
For
Sidus Space, commercialization represents the transition from technology development to customer deployment. Many of our products
have progressed beyond engineering design and prototype validation and are now advancing through integration and testing, certification,
manufacturing readiness, customer qualification, and operational training required to support production programs. While qualification
timelines vary by customer and mission, we currently anticipate initial commercial availability of the Fortis VPX platform
in early 2027, subject to final integration activities and customer qualification. This transition positions Sidus to convert technical
innovation into repeatable revenue and long-term customer adoption.
Our
business today is significantly different than it was just a few years ago. As both the market and customer priorities evolved, so did
our strategy. We transformed from a company centered primarily on engineering services, contract manufacturing, and the long-term vision
of operating our own satellite constellation into one commercializing a diversified portfolio of satellite platforms, software-defined
mission computing, AI-enabled technologies, and integrated space infrastructure. We believe this evolution positions Sidus to pursue
a broader range of opportunities while reducing dependence on any single customer, contract, mission, or business model.
Although
we cannot discuss non-public contracts or procurement activities, we continue to see encouraging momentum across both commercial and
government markets.
Government
and Defense Market Alignment
The
current geopolitical environment reinforces the technology priorities that have guided our development roadmap for years. Governments
increasingly require resilient space architectures, autonomous operations, AI-enabled decision making, and distributed computing
capable of operating in contested environments - requirements that align directly with our LizzieSat satellite platform, Fortis VPX digital
mission computing platform, FeatherEdge processing architecture, and Orlaith AI ecosystem.
This
evolution reflects more than changing customer requirements - it represents a shift in national strategy. Government and defense
organizations are increasingly recognizing that future space superiority will depend upon resilient, proliferated, software-defined architectures
that can be deployed rapidly, upgraded continuously, and operated autonomously rather than relying solely on a small number
of highly customized, long-development systems. As national security priorities increasingly align with the commercial space sector’s
speed of innovation, modularity, and scalability, we believe companies capable of rapidly delivering integrated, mission-ready technologies
will play an increasingly important role. Sidus Space has intentionally built its business around these principles through vertically
integrated satellite manufacturing, software-defined mission computing, AI-enabling edge processing, autonomous operations, and agile
production capabilities. We believe this convergence of national strategy and commercial innovation positions Sidus to participate in
the next generation of resilient space infrastructure supporting defense, intelligence, civil, and commercial missions.
| | |
www.sidusspace.com Space
Access Reimagined® | |
While
government procurement cycles can be lengthy and customer confidentiality limits what we can disclose publicly, we remain encouraged
by the increasing number of technical evaluations, demonstrations, and integration activities being discussed.
Our
participation in strategic contract vehicles, including the Missile Defense Agency SHIELD program, together with ongoing engagements
with Department of Defense agencies, intelligence organizations, and major defense prime contractors, continues to expand our opportunity
pipeline.
Supporting
this growth, we have continued to strengthen our security infrastructure, operational compliance, and mission assurance capabilities,
positioning Sidus to pursue increasingly sensitive opportunities across the defense and intelligence communities while meeting the rigorous
requirements expected by these customers.
We
believe this represents an important transition from demonstrating technology to becoming an operational supplier
of mission-critical capabilities.
Fortis
VPX Digital Mission Computing Platform
Fortis
VPX illustrates this evolution particularly well. What started as a rugged, modular computing platform for space applications has evolved
into a multi-domain software-defined digital mission computing architecture that we believe will serve as the intelligent backbone
for next-generation space and defense systems.
Increasingly,
customers are looking beyond raw computing performance to mission execution. Fortis VPX is designed to eliminate many of the
computing bottlenecks that traditionally limit autonomous operations in space and other contested environments. The platform enables
spacecraft to execute complex autonomous rendezvous and docking maneuvers in real time without relying on delayed ground intervention,
process high-bandwidth payload data directly at the edge to reduce latency and communications bandwidth, and simultaneously
perform advanced cybersecurity functions. This includes Secure Boot and cryptographic processing without impacting primary
flight software. By integrating these capabilities into a single software-defined architecture, Fortis enables faster decision-making,
greater mission autonomy, enhanced cyber resilience, and more efficient use of constrained communications resources.
Built
on a modular, SOSA-aligned architecture, Fortis VPX provides the high-performance processing foundation for artificial intelligence,
autonomy, sensor fusion, Assured Positioning, Navigation and Timing (A-PNT), precision timing through atomic clock integration, electronic
warfare, cyber-resilient processing, and multi-domain operations across space, airborne, maritime, and terrestrial platforms. Customers
can deploy fully integrated systems or individual OpenVPX modules to include single board computers (SBCs), GPU accelerators,
PNT, networking, I/O, storage, software, and future expansion modules. This allows customers to tailor solutions to mission-specific
size, weight, power, performance, and cost requirements while preserving flexibility for future upgrades.
| | |
www.sidusspace.com Space
Access Reimagined® | |
What
truly differentiates Fortis VPX is its integration of capabilities specifically engineered for space and defense applications. Rather
than delivering standalone computing, positioning, or AI solutions, Fortis combines high-performance processing, AI-enabling edge computing,
autonomous mission execution, A-PNT, resilient timing, advanced cybersecurity, extensive mission I/O, and software-defined mission flexibility
within a single architecture. This integrated approach reduces system complexity, lowers integration risk, accelerates deployment, increases
mission adaptability, and minimizes non-recurring engineering costs.
Unlike
many competing VPX products built from commercial or automotive-grade components, Fortis is engineered with space-rated components to
provide the reliability required for operation in low Earth orbit and other demanding environments. Its architecture integrates
FPGA-based computing, low-power multicore processors, inertial navigation, GNSS, precision timing, and AI acceleration into a scalable
platform capable of supporting a broad range of mission requirements. The result is performance that has traditionally required larger,
heavier, higher-power, and significantly more expensive customized computing solutions.
Equally
important, Fortis is designed as a commercial off-the-shelf (COTS), plug-and-play platform supporting software-defined mission flexibility
across space, airborne, maritime, and terrestrial applications. Backed by Sidus Space’s engineering, manufacturing, assembly, integration
and test (AIT), and mission operations capabilities, customers gain a partner capable of supporting the complete product lifecycle from
engineering units through production and deployment. We believe this combination of integrated technology, space-qualified reliability,
modularity, and cost-effective scalability uniquely positions Fortis to meet the growing demand for resilient, AI-enabling mission computing
while providing customers with a faster path to deployment, lower program risk, and a more competitive cost than traditional space-specific
computing solutions.
These
differentiators are central to our commercialization strategy because they address customer demand for mission-ready solutions that can
be deployed more quickly, adapted more easily, and scaled more economically than traditional approaches.
Customer
engagement continues to expand as hardware availability increases. Government agencies, defense prime contractors, satellite manufacturers,
and commercial aerospace organizations are actively evaluating the Fortis VPX platform and Orlaith AI ecosystem across a
growing
number of mission applications. While aerospace and defense procurement cycles require patience, these engagements represent important
milestones toward production programs and recurring revenue.
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www.sidusspace.com Space
Access Reimagined® | |
LizzieSat
Satellite Platform & Production
We
are advancing our flexible, orbit-agnostic LizzieSat reference design that can be adapted to support commercial, civil, and national
security missions across LEO, GEO, cislunar, and lunar environments. By building on a common technology foundation, we can accelerate
innovation, improve reliability, and reduce lifecycle costs while expanding our addressable market.
Production
of our next-generation LizzieSat spacecraft continues to progress, following successful environmental testing and ongoing system integration.
Each successive LizzieSat mission builds upon the lessons learned from previous flights, incorporating enhanced capabilities,
greater autonomy, and increased mission flexibility. While all launches remain subject to final integration activities and
launch provider schedules, our team continues to execute against key milestones while advancing a scalable, software-defined satellite
architecture designed to support rapid deployment across multiple orbital regimes and mission profiles. This standardized, repeatable
approach enables us to deliver tailored solutions more efficiently, reduce development timelines, and respond more quickly to evolving
customer requirements.
Lunar
& Cislunar Infrastructure
Our
long-term vision extends well beyond traditional Earth orbit. We continue to believe that the Moon will play a central role in
the next era of space commercialization and national security. While commercial low Earth orbit capabilities continue to expand, current
U.S. space policy and administration priorities continue to emphasize sustained lunar exploration and infrastructure through the Artemis
campaign and the Space Launch System (SLS), establishing a long-term foundation for scientific discovery, national security,
and commercial development. Sidus Space is strategically positioning itself to support this evolving ecosystem through satellite technologies,
edge computing, autonomous mission capabilities, resilient communications, and software-defined computing that can enable lunar missions,
surface operations, and cislunar infrastructure.
We
also see significant long-term opportunity in orbital data centers, where space-based computing can complement terrestrial infrastructure
by providing secure, scalable, and energy-efficient processing capabilities for government and commercial customers. We believe these
capabilities will become increasingly important in supporting not only low Earth orbit operations, but also cislunar and lunar missions
that require resilient, autonomous computing beyond the constraints of terrestrial networks. As these markets mature, we believe
our vertically integrated capabilities and investments in AI-enabling computing platforms position Sidus Space to participate in
both the lunar economy and the emerging space-based digital infrastructure that will
support future exploration, national security, and commercial commerce.
Artificial
Intelligence & Edge Computing Strategy
Artificial
intelligence is another foundational element of our long-term strategy. Rather than transmitting enormous volumes of raw data to centralized
processing locations, our architecture focuses on processing information where it is created, at the edge. This distributed computing
approach reduces latency, conserves bandwidth, enhances resiliency, and enables real time decision making in contested and communications
constrained environments. As AI adoption accelerates, we believe edge computing will serve as a foundational technology enabling autonomous,
data driven operations across space, air, land, maritime, and cyber domains.
| | |
www.sidusspace.com Space
Access Reimagined® | |
Investor
Relations & Public Company Evolution
Our
approach to investor engagement has evolved alongside our technology portfolio. Our recent inclusion in the Russell Indexes represents
another milestone in Sidus Space’s evolution as a public company. We recognize that greater institutional ownership also brings
higher expectations for communication, execution, transparency, and financial discipline and we welcome those expectations because they
align with our own commitment to transparency, accountability, and disciplined execution.
Accordingly,
we are expanding our investor relations efforts through more frequent shareholder communications, enhanced earnings materials, increased
participation in institutional investor conferences, more engagement with prospective investors, strategic public relations initiatives,
and strengthened financial planning capabilities. Our objective is straightforward: Ensure that the investment community understands
both the progress we are making today and the long-term opportunity we are pursuing.
Sidus
Space is not without challenges. Commercializing new technologies is never easy. Space missions are complex, government procurement
cycles require patience, and market conditions will continue to change.
Those
realities are part of our business.
What
has changed is our stage of growth.
We
have moved beyond proving that our technology works. Our focus today is on executing, expanding our customer base, and building a scalable
business that creates long-term value for our shareholders.
The
coming years will increasingly be defined not by prototypes or announcements, but by customer adoption, production programs, recurring
revenue growth, expanding margins, disciplined execution, and responsible capital allocation. Those are the outcomes we are committed
to delivering and the standards by which management expects to be measured.
Sidus
Space is evolving into an integrated, software-defined space infrastructure company positioned at the intersection of commercial innovation
and national security.
On
behalf of our Board of Directors and the entire Sidus Space team, thank you for your continued trust, your thoughtful questions, and
your continued support. We remain committed to communicating candidly, executing with discipline, and creating long-term value
for all shareholders.
We
appreciate your confidence and look forward to sharing our continued progress in the months and years ahead.
Sincerely,

Carol
Craig
Founder,
Chief Executive Officer & Chairman
Sidus
Space, Inc.
| | |
www.sidusspace.com Space
Access Reimagined® | |
Exhibit
99.2
Sidus
Space Issues Letter to Shareholders Highlighting Progress and Next Phase of Growth
Advancing
commercialization, a strengthened balance sheet, an expanding multi-domain defense pipeline, and disciplined capital allocation
CAPE
CANAVERAL, Fla. – July 21, 2026 – Sidus Space, Inc. (NASDAQ: SIDU) (“Sidus” or the “Company”),
an innovative space and defense technology company, today announced that it has released a Letter to Shareholders from its Founder, Chief
Executive Officer and Chairman, Carol Craig, detailing the Company’s transition from technology development to commercialization,
its strengthened balance sheet and capital strategy, and its expanding pipeline across defense, intelligence, civil, and commercial markets.
The
letter outlines the Company’s progress and priorities across commercialization, capital allocation and balance-sheet strength,
technology development, and government and defense market alignment.
“Today,
our focus is shifting from proving our technology to scaling its commercial application and that distinction is important,” said
Carol Craig, Founder, Chief Executive Officer and Chairman of Sidus Space. “Success is no longer measured simply by launching satellites
or demonstrating technical capability. It will increasingly be measured by customer adoption, recurring revenue, operating leverage,
and long-term shareholder value.”
The
Next Chapter of Sidus Space
Key
Highlights from the Letter to the Shareholders include:
| ● | Approximately
$170 million raised over the past six months to strengthen the balance sheet, accelerate
commercialization, and provide long-term financial flexibility. |
| ● | Inclusion
in the Russell 2000, Russell 3000, and Russell Microcap Indexes, expanding institutional
visibility. |
| ● | Successful
design, manufacture, launch, and on-orbit demonstration of multiple generations of the LizzieSat
platform, validating our vertically integrated capabilities. |
| ● | Advancement
of the Fortis VPX digital mission computing platform and Orlaith AI ecosystem through testing
in preparation for customer evaluations and commercialization. |
| ● | Continued
progression through production and integration of two next-generation, software-defined LizzieSat
spacecraft, designed to support rapidly evolving mission requirements on orbit. |
| ● | Expanded
pipeline across defense, intelligence, civil, and commercial markets, including the Missile
Defense Agency SHIELD contract vehicle. |
| ● | Expanded
international presence and strategic partnerships to broaden global market access and diversify
revenue opportunities. |
| ● | Modernization
of 35,000-square-foot vertically integrated manufacturing, assembly, integration, test, and
mission operations footprint to incorporate emerging technologies, enabling the scalable
production of next-generation, orbit-agnostic space and defense solutions. |
The
full CEO Letter to Shareholders is available on the Company’s Investor Relations website: https://investors.sidusspace.com/SIDU-July-2026-Shareholder-Letter
About
Sidus Space
Sidus
Space (NASDAQ: SIDU) is an innovative space and defense technology company offering flexible, cost-effective solutions, including satellite
manufacturing and technology integration, AI-driven space-based data solutions, mission planning and management operations, AI/ML products
and services, and space and defense hardware manufacturing. With its mission of Space Access Reimagined®, Sidus Space
is committed to rapid innovation, adaptable and cost-effective solutions, and the optimization of space systems and data collection performance.
With demonstrated space heritage, including manufacturing and operating its own satellite and sensor system, LizzieSat®,
Sidus Space serves government, defense, intelligence, and commercial companies around the globe. Strategically headquartered on Florida’s
Space Coast, Sidus Space operates a 35,000-square-foot space manufacturing, assembly, integration, and testing facility and provides
easy access to nearby launch facilities. For more information, visit: sidusspace.com.
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. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates.
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 described more fully in the section entitled ‘Risk Factors’ in Sidus Space’s Annual Report on Form
10-K for the year ended December 31, 2025, 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.
Contacts:
Investor
Relations
investor-relations@sidusspace.com
Media
Inquiries
press@sidusspace.com