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Blacksky HEO Space contract: implications for Sidus Space

During another awful month for Blacksky shareholders, some interesting news popped. HEO Space awarded Blacksky contract for obtaining non-earth imagery. HEO Space specializes in taking imagery of satellites and space debris, writing intelligence reports, and selling to governments. Blacksky’s satellites are generally always pointed at the ground. But they are basically unused while over the ocean or on the dark side of the earth. HEO contracted Blacksky to point its satellites at objects in space during these periods of unuse.

Initial proof of concept succeeded. HEO published images of the ISS and a Starlink satellite photographed from a Blacksky Block-2 satellite.

The length and value of the contract was not specified, but HEO Space described the value as “seven-figures.”

This is notable because HEO Space contracted with Sidus Space to host one camera on each of the Lizziesat-2 and 3 satellites. And these appear to be Sidus Space’s best payload revenue sources. Sidus Space shareholders are really looking at Lizziesat to provide substantial revenue to lead the company out of current pattern of repeated dilative financing.

But Sidus management provides no favors to investors, being extremely opaque on Sidus Space revenue guidance from Lizziesat. Neither Sidus nor HEO Space revealed the value of either agreements between the two companies. And a similar “seven figure” hint as seen with the Blacksky announcement is missing from the Sidus Space contract announcement. This alone may suggest the Sidus Space contracts are “six figures.”

The difference between HEO Space’s deal with Blacksky and Sidus Space is:

1. HEO Space does not need to supply cameras to Blacksky. They are renting (and likely paying more to do so) use of Blacksky’s cameras. With Sidus Space, HEO Space furnishes its cameras to Sidus Space and only pays to host these payloads.

2. HEO Space apparently gets access to Blacksky’s entire constellation for tasking. Whereas with Lizziesat, HEO only gets one camera on each of two satellites.

It is hard to read too much into this. But assuming the Blacksky-HEO contract is in the low seven figures, Sidus likely is in line to receive six figures from HEO per contract.  

By spacesr