MCLEAN, Va., Aug. 15, 2025 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) ("Cycurion" or the "Company"), a premier cybersecurity and IT solutions provider, following the release of its second-quarter financial results highlighting a period of strategic integration and debt reduction amid one-time expenses, will be conducting a business update on Tuesday, August 19, 2025 at 5:00PM ET to review additional highlights.
The Company's quarterly results reflect a GAAP net loss of $0.15 per share, however, after adjusting for multiple unusual, non-recurring expenses our adjusted net loss is approximately $0.04 per share, providing a clearer view of the company's underlying performance. These items include:
- Merger Expenses: Incurred $677,000 in costs related to merger activities during the second quarter
- Compensation Expenses: Recorded $1 million in compensation due to consulting costs associated with integration efforts
- Stock Compensation: Issued $1 million in stock compensation to former directors as part of transitional arrangements
- Preferred Stock Conversions: Recognized $900,000 in expenses from conversions to Series G Convertible Preferred Stock
- Integration Costs: Faced additional operational expenses from integrating SLG Innovation Inc., which were previously separate, contributing to elevated short-term costs
Cycurion also successfully converted $3.5 million from debt to equity in the second quarter, improving its financial position and reducing future interest obligations
Outside of the second quarter of 2025 results, Cycurion has made significant strides in recent months, securing high-value contracts and positioning itself for long-term growth as a leading AI-focused cybersecurity company. In June 2025, Cycurion announced over $8 million in new contracts with government and commercial clients, including a $6 million agreement with a major municipal transportation agency for comprehensive IT and cybersecurity solutions.
Additionally, a $33 million contract renewal was secured with a major state-level public higher education group, extending through November 2030, and a $22 million multi-year contract was awarded by a U.S. state police agency in partnership with Journal Technologies. The company also secured three multi-year contracts worth up to $6 million across program management, cybersecurity, and disaster recovery services. These contracts, totaling over $69 million in recent awards, reflect strong market demand for Cycurion's innovative solutions.
By investing in its AI-driven ARx platform and Cyber Shield offerings, Cycurion is capitalizing on higher-margin opportunities in the cybersecurity sector. The Company is committed to shareholder value and has a backlog of 18 months of scopes of work, which is beginning to net results, further strengthening its revenue pipeline.
Continued expansion into new client relationships and strategic partnerships, such as those with NACCHO, LSV-TECH S.A.S., and iQSTEL Inc., solidifies the Company's market presence and sets a foundation for sustainable revenue growth.
To discuss these results and future plans, Cycurion will host a conference call with a Q&A session for shareholders on Tuesday, August 19, 2025, at 5:00 PM EDT. Those wishing to participate via webcast can use this link to directly access the event. For those wishing to participate via telephone, first click on this call link and complete the online registration form. Upon registering they will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Participants will then select a method for joining the call. Either a dial in number and unique PIN are displayed to connect directly from their phone or they can enter their phone number and click "Call Me" for an immediate callback from the system. The call will come from a U.S. number.
About Cycurion, Inc.
Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies, Cloudburst Security, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future.
More info: www.cycurion.com
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion's business.
Many factors could cause Cycurion's actual results, performance, or achievements to be materially different from any future results, performance, or achievements described in this press release, including words such as "continue", "expect", "intend", "will", "hope", "should", "would", "may", "potential", and other similar expressions. Such factors could include, among others, those detailed in its Registration Statement on Form S-1 and in its Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission (the "SEC"). Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in those filings with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and Cycurion does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Cycurion cannot assure that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
These statements, including expectations for revenue conversion from the backlog, the benefits of the iQSTEL alliance and stock exchange, and the success of the digital currency strategy, are based on management's current expectations and are subject to risks and uncertainties, including economic conditions, regulatory changes, and the Company's ability to address liquidity concerns. For a discussion of these risks, please refer to Cycurion's filings with the SEC.
Investor Relations Contact: Cycurion Investor Relations
ir@cycurion.com
(888) 341-6680
Media Relations Contact: Cycurion Communications
media@cycurion.com
(888) 341-6680
| CYCURION, INC. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 1,013,836 | $ | 38,742 | ||||
| Restricted cash | - | 2,048 | ||||||
| Accounts receivable, net | 4,118,888 | 10,353,708 | ||||||
| Other receivables | 400,072 | 434,391 | ||||||
| Prepaid expenses and other current assets | 54,259 | 99,463 | ||||||
| Total current assets | 5,587,055 | 10,928,352 | ||||||
| Deposit for acquisition target | - | 2,000,000 | ||||||
| Property and equipment, net | 16,832 | 20,321 | ||||||
| Software development costs | 4,325,981 | 4,151,981 | ||||||
| Intangible assets, net | 7,917 | 25,000 | ||||||
| Security deposits | 10,351 | 10,351 | ||||||
| Goodwill | 20,788,299 | 6,592,304 | ||||||
| Investments held in trust account | - | 1,834,540 | ||||||
| Total non-current assets | 25,149,380 | 14,634,497 | ||||||
| Total Assets | $ | 30,736,435 | $ | 25,562,849 | ||||
| Liabilities, Mezzanine and Stockholders' Equity: | ||||||||
| Bank loan-revolving credit line | $ | 3,236,167 | $ | 3,249,067 | ||||
| Bank loan - current portion | 620,078 | 774,095 | ||||||
| Loans payable - current portion | 885,240 | 408,516 | ||||||
| Factoring liability | 2,309,160 | - | ||||||
| Subordinated convertible promissory notes | - | 3,333,335 | ||||||
| Promissory notes | 2,669,626 | 2,486,989 | ||||||
| Loans payable - related parties | 150,372 | 148,088 | ||||||
| Accounts payable | 5,088,223 | 3,578,374 | ||||||
| Due to related party | 18,000 | - | ||||||
| Accrued liabilities | 3,848,247 | 3,601,242 | ||||||
| Excise tax payable | 1,167,173 | 1,157,161 | ||||||
| Total current liabilities | 19,992,286 | 18,736,867 | ||||||
| Loans payable - non-current portion | 295,296 | 146,798 | ||||||
| Series A Convertible preferred stock ($0.001 par value, 500,000 shares designated, 0 and 345,528 issued and outstanding, respectively) | - | 1,294,117 | ||||||
| Total non-current liabilities | 295,296 | 1,440,915 | ||||||
| Total liabilities | 20,287,582 | 20,177,782 | ||||||
| Commitments and contingencies (Note 20) | ||||||||
| Mezzanine Equity: | ||||||||
| Common stock subject to possible redemption, $0.0001 par value, 0 and 173,879 shares at redemption value of approximately $11.03 per share, respectively | - | 1,917,309 | ||||||
| Stockholders' Equity: | ||||||||
| Preferred stock ($0.0001 par value, 20,000,000 shares authorized) | ||||||||
| Series A convertible preferred stock ($0.0001 par value, 110,000 shares designated, 106,816 and 0 issued and outstanding, respectively) | 11 | - | ||||||
| Series B convertible preferred stock ($0.0001 par value, 3,000 shares designated, 1 and 3,000 issued and outstanding, respectively) | - | - | ||||||
| Series C convertible preferred stock ($0.0001 par value, 5,000 shares designated, 4,851 issued and outstanding) | - | - | ||||||
| Series D convertible preferred stock ($0.0001 par value, 6,666,700 shares designated, 150,000 and 0 issued and outstanding, respectively) | 15 | - | ||||||
| Series E convertible preferred stock ($0.0001 par value, 100 shares designated, 51 and 0 issued and outstanding, respectively) | - | - | ||||||
| Series F convertible preferred stock ($0.0001 par value, 10,000 shares designated, 0 and 0 issued and outstanding, respectively) | - | - | ||||||
| Series G convertible preferred stock ($0.0001 par value, 10,000 shares designated, 3,318 and 0 issued and outstanding, respectively) | ||||||||
| Common stock ($0.0001 par value, 100,000,000 shares authorized, 40,353,983 and 10,592,607 shares issued and outstanding, respectively) | 4,036 | 1,059 | ||||||
| Additional paid in capital | 32,661,282 | 6,670,060 | ||||||
| Accumulated deficit | (18,650,614 | ) | (3,203,361 | ) | ||||
| Total stockholders' equity attributable to Cycurion | 14,014,730 | 3,467,758 | ||||||
| Equity attributable to noncontrolling interests | (3,565,877 | ) | - | |||||
| Total stockholders' equity | 10,448,853 | 3,467,758 | ||||||
| Total liabilities and stockholders' equity | $ | 30,736,435 | $ | 25,562,849 | ||||
| CYCURION, INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Net revenues | $ | 3,887,915 | $ | 5,001,312 | $ | 7,757,965 | $ | 9,244,167 | ||||||||
| Cost of revenues | 3,651,978 | 3,977,150 | 6,844,265 | 7,873,291 | ||||||||||||
| Gross profit | 235,937 | 1,024,162 | 913,700 | 1,370,876 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses | 4,002,014 | 294,790 | 14,777,281 | 673,767 | ||||||||||||
| Operating (loss)/income | (3,766,077 | ) | 729,372 | (13,863,581 | ) | 697,109 | ||||||||||
| Interest income | - | 20,211 | - | 20,211 | ||||||||||||
| Interest expense | (615,392 | ) | (482,355 | ) | (794,283 | ) | (713,830 | ) | ||||||||
| Loss on debt settlement, net | (907,983 | ) | - | (766,330 | ) | - | ||||||||||
| Other (expense)/income | (962 | ) | 38,866 | (114,706 | ) | (9,871 | ) | |||||||||
| Other expense, net | (1,524,337 | ) | (423,278 | ) | (1,675,319 | ) | (703,490 | ) | ||||||||
| (Loss)/income before income taxes | (5,290,414 | ) | 306,094 | (15,538,900 | ) | (6,381 | ) | |||||||||
| Provision for income tax | - | - | - | - | ||||||||||||
| Net (loss)/income | $ | (5,290,414 | ) | $ | 306,094 | $ | (15,538,900 | ) | $ | (6,381 | ) | |||||
| Less: Net loss attributable to non-controlling interest | 101,659 | - | 101,659 | - | ||||||||||||
| Net (loss)/income attributable to Cycurion | $ | (5,188,755 | ) | $ | 306,094 | $ | (15,437,241 | ) | $ | (6,381 | ) | |||||
| Comprehensive (loss)/income | $ | (5,188,755 | ) | $ | 306,094 | $ | (15,437,241 | ) | $ | (6,381 | ) | |||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | (0.15 | ) | $ | 0.02 | $ | (0.58 | ) | $ | 0.02 | ||||||
| Diluted | $ | (0.15 | ) | $ | 0.01 | $ | (0.57 | ) | $ | 0.01 | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 34,791,716 | 14,968,215 | 26,707,978 | 14,968,215 | ||||||||||||
| Diluted | 34,891,716 | 32,383,372 | 26,807,978 | 16,704,748 | ||||||||||||
| CYCURION, INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| For the Six Months Ended | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (15,538,900 | ) | $ | (6,381 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock based compensation | 10,534,777 | 10,000 | ||||||
| Amortization of debt discount | 213,036 | - | ||||||
| Depreciation of property and equipment | 3,489 | 4,394 | ||||||
| Amortization of software development costs | 17,083 | - | ||||||
| Loss on debt settlement, net | 766,330 | - | ||||||
| Finance expense | 100,000 | - | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net and other receivables | (1,478,433 | ) | (1,267,911 | ) | ||||
| Prepaid expenses and other current assets | 45,204 | 16,050 | ||||||
| Accounts payable and accrued liabilities | (965,708 | ) | 393,435 | |||||
| Net cash used in operating activities | (6,303,122 | ) | (850,413 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash acquired on acquisition of subsidiary | 34,983 | - | ||||||
| Issuance of promissory notes | - | (354,000 | ) | |||||
| Purchase of plant and equipment | (174,000 | ) | (238,000 | ) | ||||
| Cash withdrawn from Trust Account in connection with redemption | 1,001,216 | - | ||||||
| Release of Trust Account to Company's bank account | 833,324 | - | ||||||
| Net cash provided by/(used in) investing activities | 1,695,523 | (592,000 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of warrants | 3,664,671 | - | ||||||
| Redemption of common stock subject to redemption | (1,001,216 | ) | - | |||||
| Proceeds from private placement | - | 1,000,000 | ||||||
| Proceeds from capital raise | 265,504 | - | ||||||
| Net proceeds from line of credit | (12,900 | ) | 39,181 | |||||
| Repayment of bank borrowings | (155,114 | ) | (6,503 | ) | ||||
| Proceeds from convertible notes payable | 2,376,500 | - | ||||||
| Proceeds from notes payable | 513,200 | - | ||||||
| Repayments of notes payable | (70,000 | ) | - | |||||
| Net cash provided by financing activities | 5,580,645 | 1,032,678 | ||||||
| Net increase/(decrease) in cash and cash equivalents | 973,046 | (409,735 | ) | |||||
| Cash and cash equivalents, beginning of period | 40,790 | 607,869 | ||||||
| Cash and cash equivalents, end of period | $ | 1,013,836 | $ | 198,134 | ||||
| CYCURION, INC. AND ITS SUBSIDIARIES RECONCILIATION OF GAPP TO NON-GAAP MEASURES (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
| Net (loss)/income attributable to Cycurion | $ | (5,188,755 | ) | $ | 306,094 | $ | (15,437,241 | ) | $ | (6,381 | ) | ||||
| Interest income | - | (20,211 | ) | - | (20,211 | ) | |||||||||
| Interest expense | 615,392 | 482,355 | 794,283 | 713,830 | |||||||||||
| Other (expense)/income | 962 | (38,866 | ) | 114,706 | 9,871 | ||||||||||
| Depreciation and amortization | 10,530 | 2,197 | 20,572 | 4,394 | |||||||||||
| EBITDA (Non-GAAP) | (4,561,871 | ) | 731,569 | (14,507,680 | ) | 701,503 | |||||||||
| Loss on debt settlement, net | 907,983 | - | 766,330 | - | |||||||||||
| Transaction related expenses | 1,676,228 | - | 12,114,122 | - | |||||||||||
| Finance expense | - | - | 100,000 | - | |||||||||||
| Stock-based compensation expenses | 1,012,443 | - | 1,012,443 | - | |||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | (965,217 | ) | $ | 731,569 | $ | (514,785 | ) | $ | 701,503 | |||||
