Cycurion, Inc. Reports Financial Results for the Second Quarter of 2025

MCLEAN, Va., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a premier cybersecurity and IT solutions provider, today announced its financial results for the second quarter and first half of 2025. Amid headwinds from Department of Government Efficiency (DOGE) budget reductions and postponed government contracts, Cycurion is prioritizing the conversion of its expanding contract pipeline, advancing its digital currency initiatives, and capitalizing on partnerships with NACCHO, LSV-TECH, and IQSTEL, among others, to fuel future growth. Key Financial Results for the Second Quarter Ended June 30, 2025 Net Revenues: $3.9 million, a 22.3% decrease from $5.0 million in Q2 2024Gross Profit: $0.2 million, a 77.0% decrease from $1.0 million in Q2 2024Adjusted EBITDA: $(1.0) million, compared to $0.7 million in Q2 2024Net Loss: $(5.3) million, or $(0.15) per basic and diluted share, compared to net income of $0.3 million, or $0.02 per basic share and $0.01 per diluted share, in Q2 2024Cash and Cash Equivalents: $1.0 million at June 30, 2025 compared to $0.04 million at December 31, 2024 Key Financial Results for the Six Months Ended June 30, 2025 Net Revenues: $7.8 million, a 16.1% decrease from $9.2 million in the prior-year periodGross Profit: $0.9 million, a 33.3% decrease from $1.4 million in the first half of 2024Adjusted EBITDA: $(0.5) million, compared to $0.7 million in the prior-year periodNet Loss: $(15.5) million, or $(0.58) per basic share and $(0.57) per diluted share, versus a net loss of $(0.01) million, or $0.02 per basic share and $0.01 per diluted share, in the prior-year period Management Commentary “Although DOGE budget constraints and deferred contracts impacted our results in the first half of 2025, our third and fourth quarters have traditionally been robust, and we are encouraged by the potential to accelerate revenue from our expanding backlog,” stated Kevin Kelly, CEO and Chairman of Cycurion, Inc. “Through Cycurion Digital Currency’s innovative approach, alongside collaborations with NACCHO, LSV-TECH, and IQSTEL, we are well-equipped to meet rising cybersecurity needs and deliver sustained shareholder value.” Business and Strategic Developments Second-Half Expectations: Cycurion’s Q3 and Q4 have historically driven stronger results from seasonal contract cycles. The Company is actively pursuing conversions from its backlog, which has swelled amid DOGE delays, with anticipated advancements as federal funding stabilizes—though timelines are variableExpanding Pipeline: DOGE cuts have contributed to a larger contract backlog; leadership is committed to realizing these opportunities in the latter half of 2025, contingent on easing government fiscal pressuresDigital Currency Initiative: The launch of Cycurion Digital Currency, a fully owned subsidiary, includes a $10 million commitment to Bitcoin and Ethereum investments, prioritizing long-term holdings, clear reporting, and adherence to regulations. This move broadens the Company’s portfolio in the dynamic digital economyKey Collaborations:NACCHO Collaboration: Teaming with the National Association of County and City Health Officials (NACCHO) enables Cycurion to offer premium cybersecurity services to public health entities, tackling urgent online risksLSV-TECH Collaboration: Partnering with LSV-TECH International Consortium extends Cycurion’s MSSP Cyber Shield platform into Latin America, tapping into LSV-TECH’s ties with Colombian academic institutions and its Nokia-backed network spanning 135 nationsIQSTEL Collaboration: A $1 million stock-swap MOU with IQSTEL establishes an equity alliance to build an AI-enhanced cybersecurity solution for telecom worldwide. Merging Cycurion’s security prowess with IQSTEL’s access to 600+ operators unlocks mutual sales channels and innovative advancements SLG Integration: Cycurion secured a 51% stake in SLG Innovation, Inc. on March 31, 2025, for about $13.5 million, bolstering its tech services lineup and growth trajectoryBalance Sheet Enhancement: In the first half of 2025, Cycurion secured $0.3 million via an equity line and $3.7 million from warrant exercises, while transforming convertible notes and promissory notes into equity for improved financial health Balance Sheet Overview: June 30, 2025 Cash: Cash and cash equivalents totaled $1.0 million, up 2,516.9% from $0.04 million at December 31, 2024, driven by financing activities including warrant exercises and note proceeds.Liquidity: The Company is advancing efficiency measures and funding strategies to enhance liquidity, supported by $5.6 million in net cash from financing activities in the first half of 2025, despite $6.3 million in cash used in operating activities.Working Capital: A working capital shortfall of $14.3 million persists, reflecting a 23.2% increase in current liabilities to $20.0 million from $18.7 million at year-end 2024, primarily due to factoring liabilities and accounts payable growth.Debt: Gross debt totaled $9.9 million, including $3.2 million in revolving credit, $0.6 million in current bank loans, $0.9 million in current loans payable, $2.3 million in factoring liability, $2.7 million in promissory notes, $0.2 million in related-party loans, and $0.3 million in non-current loans, relatively stable compared to $10.5 million at December 31, 2024.Total assets reached $30.7 million, up from $25.6 million at year-end 2024, largely from SLG-related goodwill Nasdaq Update Cycurion is addressing compliance notifications from Nasdaq concerning bid price minimums, market value thresholds, and filing timelines, aiming for resolution by October 2025. Forward Outlook Cycurion is dedicated to overcoming DOGE hurdles and harnessing its backlog for H2 2025 revenue gains, especially in peak Q3 and Q4 periods. With Cycurion Digital Currency and alliances like NACCHO, LSV-TECH, and IQSTEL, the Company is primed to seize cybersecurity and digital innovation prospects. Investments continue in core areas such as advisory consulting, managed security, and SaaS, amplified by the SLG acquisition for broader market reach. Full details are available in Cycurion’s Form 10-Q for the quarter ended June 30, 2025, submitted to the U.S. Securities and Exchange Commission on August 14, 2025. 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 Relationsir@cycurion.com(888) 341-6680 Media Relations Contact: Cycurion Communicationsmedia@cycurion.com(888) 341-6680 CYCURION, INC. AND ITS SUBSIDIARIESCONSOLIDATED 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 SUBSIDIARIESCONSOLIDATED 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 SUBSIDIARIESCONSOLIDATED 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 $198,134 CYCURION, INC. AND ITS SUBSIDIARIESRECONCILIATION OF GAPP TO NON-GAAP MEASURES(Unaudited) For the Three Months Ended For the Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024Net (loss)/income attributable to Cycurion$(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

Cycurion, Inc. Reports Financial Results for the Second Quarter of 2025

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