Cycurion Reports Full Year 2024 Financial Results

MCLEAN, Va., April 17, 2025 (GLOBE NEWSWIRE) -- Cycurion (Nasdaq: CYCU) (“Cycurion” or the “Company”), a trusted leader in IT cybersecurity solutions and AI, reports financial results for full year ended December 31, 2024, and provides a corporate update highlighting a year of strategic execution, operational discipline, and solid financial performance. Cycurion is poised for a strong 2025, driven by a strategic overhaul focused on sustainable growth and innovation. Over the past year, the company streamlined operations, significantly cutting General and Administrative (G&A) expenses while boosting gross profit for greater financial strength. Cycurion invested heavily in AI-driven technology, sharpening its competitive edge. By pivoting away from low-margin clients to high-value opportunities, the Company has built a robust framework for organic growth while paving the way for expansion, entering 2025 with clear momentum and vision. Financial Highlights Revenues of $17.8 millionSG&A expenses reduced by 47.5%, demonstrating operational efficiency and tighter strategic focusAdjusted EBITDA of $2.3 million, up 58.9% year-over-year with an expanded margin of 12.9% vs $1.4 million (7.4% margin) in FY2023, reflecting strong cost management and scalable operations Net income of $1.2 million, a significant turnaround from a net loss of $2.1 million in FY2023 — marking Cycurion’s first full year of net profitability Earnings per share improvement to $0.07 basic and $0.01 fully diluted, versus $(0.14) in both categories in FY2023 Free Cash Flow improvement to $(1.8) million from $(2.5) million despite growth investments in personnel and platform development 2024 & YTD 2025 Strategic, Technological and Corporate Milestones Cycurion significantly expanded its next-generation product and services portfolio, further solidifying its position as a trusted partner in advanced cybersecurity solutions: Listed & Began Trading on Nasdaq: Completed merger with Western Acquisition Ventures in February 2025U.S. Launch of AI-driven SaaS ARx Cybersecurity Platform: New high margin, AI-driven cybersecurity solution expands Company’s reach following strong initial reception in the government and public sectors in March 2025Launched Cyber Shield Managed Security Services Platform (MSSP) Launch: Includes SOC as Service, External Attack Surface Management, Web Application Firewall and Virtual CISO Support & ConsultingExpanded Partnership with Journal Technologies: Secured $22 million multi-year contract with State Police AgencyStrengthened Board of Directors Appointing Two Highly Accomplished IT Professionals: Kevin O’Brien and Reginald Bailey bring a combined 55 years of IT, Big Data and AI industry, entrepreneurial and C-suite experience to Cycurion Management CommentaryKevin Kelly, Cycurion CEO, stated, “We are pleased with Cycurion’s 2024 performance, especially with our ability to produce meaningful adjusted EBITDA growth coupled with positive net income of $1.2 million. This is particularly significant given an 8.2% revenue decrease due to non-recurring, one-time equipment purchases in 2023. Our strong foundation positions us for continued growth with tremendous momentum with both current and new clients, which will become evident over the next 3-6 months underpinning our belief of a promising 2025.” About CycurionBased 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 with a commitment to securing the digital future. Forward Looking StatementsThis 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-4, 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 that filing 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. Investor Contact:CORE IRinvestors@cycurion.com Media Contact:Phone: (703) 555-0123Email: media@cycurion.com Non-GAAP Financial MeasuresStatements in this release include financial information presented in accordance with accounting principles generally accepted in the United States ("GAAP") and also include non-GAAP financial measures that are provided as additional information to enhance the overall understanding of the Company's current financial performance and not as an alternative to the consolidated interim financial statements presented in accordance with GAAP. Management uses these non-GAAP measures (earnings before interest, taxes, depreciation, and amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow) to evaluate the Company's financial performance. These terms might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. The financial information tables that accompany this press release include reconciliations of net income to non-GAAP financial measures. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin provide a measure of the Company's operating results in a manner that is focused on the performance of the Company's core business on an ongoing basis, by removing the effects of non-operating and certain non-cash expenses. These non-operating and non-cash items are specifically identified in the reconciliations of GAAP measures to Non-GAAP measures that accompany this release. Free Cash Flow provides useful information to investors about the amount of cash generated by the business that can be used for strategic opportunities and is computed as Cash Flows from Operating Activities less both the Purchase of Property and Equipment & Purchase of Intangible Assets. CYCURION, INC. AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETS December 31, December 31, 2024 2023 Assets Current assets Cash $38,742 $607,869 Restricted cash 2,048 - Accounts receivable, net 10,353,708 7,093,371 Other receivables 434,391 455,979 Due from sponsor 106,421 - Note receivable - WAVS - 200,000 Prepaid expenses and other current assets 99,463 56,015 Total current assets $11,034,773 $8,413,234 Non-current assets Deposit for acquisition target 2,000,000 2,000,000 Fixed assets, net 4,175,169 3,779,310 Intangible assets, net 25,000 - Security deposits 10,351 10,351 Goodwill 6,592,304 6,592,304 Investments held in Trust Account 1,834,540 - Total non-current assets 14,637,364 12,381,965 Total Assets $25,672,137 $20,795,199 Liabilities, Mezzanine and Stockholders’ Equity Current liabilities Bank loan-revolving credit line 3,249,067 2,996,753 Bank loan-current portion 774,095 742,141 Loans payable 408,516 408,516 Subordinated convertible promissory notes 3,333,335 3,333,335 Promissory notes 2,624,111 1,561,111 Loans payable - related parties (325,600) 587,400 Accounts payable 3,552,674 2,066,760 Due to Trust Account 106,421 - Accrued liabilities 3,601,242 2,158,255 Income Tax Payable 12,500 - Franchise tax payable 13,200 - Excise tax payable 1,157,161 - Advance from Sponsor 330,000 - Deferred revenue 189,150 253,902 Total current liabilities 19,025,872 14,108,173 Long-term loan payable 146,798 146,798 Series A convertible preferred stock ($0.001 par value, 500,000 shares designated, 345,528 issued and outstanding) 1,294,117 1,294,117 Total non-current liabilities 1,440,915 1,440,915 Total Liabilities $20,466,787 $15,549,088 Commitments and contingencies Mezzanine Equity Common stock subject to possible redemption, $0.0001 par value, 173,879 shares at redemption value of approximately $11.03 per share at December 31, 2024 1,917,309 - Stockholders’ Equity Preferred stock ($0.0001 par value, 20,000,000 shares authorized) Series B convertible preferred stock ($1.00 stated value, 3,000 shares designated, 3,000 and 2,000 issued and outstanding, respectively) - - Series C convertible preferred stock ($82.46 stated value, 5,000 shares designated, 4,851 issued and outstanding) - - Common stock ($0.0001 par value, 70,000,000 shares authorized, 10,592,607 and 7,341,607 shares issued and outstanding) 1,059 1,028 Additional paid in capital 6,670,060 9,678,045 Accumulated deficit (3,383,078) (4,432,962)Total Stockholders’ Equity 3,288,041 5,246,111 Total Liabilities and Stockholders’ Equity $25,672,137 $20,795,199 CYCURION, INC. AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Years ended December 31, 2024 2023 Net revenues $17,582,335 $19,350,208 Cost of revenues 14,136,742 16,707,148 Gross profit 3,445,593 2,643,060 Operating expenses: Selling, general and administrative expenses 1,215,763 2,316,649 Operating income (loss) 2,229,830 326,411 Other income (expenses): Interest income 20,211 - Interest expense (1,202,936) (2,074,089)Other income 28,020 - Other expense (25,241) (345,548)Other income (expenses) (1,179,946) (2,419,637) Profit (loss) before income taxes 1,049,884 (2,093,226) Provision before income taxes - 3,787 Net income (loss) $1,049,884 $(2,097,013) Comprehensive income (loss) $1,049,884 $(2,097,013) Net income (loss) per common share Basic income (loss) per common share $0.07 $(0.14)Diluted loss per common share $0.01 $(0.14) Basic and diluted weighted average common shares outstanding 14,968,215 14,782,442 Diluted weighted average common shares outstanding 89,495,790 14,782,442 CYCURION, INC. AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS Years ended December 31, 2024 2023 Cash flows from operating activities Net income (loss) $1,049,884 $(2,097,013)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock based compensation 10,000 327,499 Amortization of debt discount - 1,094,131 Depreciation of fixed assets 27,142 25,822 Changes in operating assets and liabilities: Change of right of use asset and lease liabilities - (7,810)Accounts and other receivables (3,238,749) (4,636,805)Advance and prepayments to suppliers (43,448) (40,917)Accounts and other payables 908,854 3,105,223 Accrued interest (20,211) - Deferred revenue (64,752) 242,099 Net cash used in operating activities (1,371,280) (1,987,771) Cash flows from investing activities Acquisition of WAVS 2,048 - Promissory note issued by WAVS (439,114) (200,000)Purchase of plant and equipment (423,001) (506,707)Purchase of Intangible asset (25,000) - Net cash used in investing activities (885,067) (706,707) Cash flows from financing activities Proceeds from private placement 1,000,000 2,000,000 Net proceeds from line of credit 252,314 5,346 Proceeds from all bank borrowings - - Repayment of all bank borrowings 31,954 (193,305)Proceeds from loans payable - 339,500 Repayments of loans payable - (29,379)Proceeds from notes payable by WAVS 255,000 - Proceeds from notes payable 205,000 550,000 Proceeds from notes payable - related parties 15,000 534,000 Repayments of notes payable - related parties - - Net cash provided by financing activities 1,759,268 3,206,162 Net change in cash and restricted cash (497,079) 511,684 Cash –beginning of period 607,869 96,185 Cash–end of period $110,790 $607,869 Restricted cash - end of period $2,048 $- Cash - end of period $38,742 $- Supplementary cash flow information: Interest paid $- $501,337 Income taxes paid $- $- CYCURION, INC. AND ITS SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited) Years ended December 31, 2024 2023 Net income (loss) $1,049,884 $(2,097,013)Provision for income taxes - 3,787 Interest expense 1,202,936 2,074,089 Interest income (20,211) - Amortization of debt discount - 1,094,131 Depreciation of fixed assets 27,142 25,822 EBITDA (non-GAAP measure) $2,259,751 $1,100,816 Stock compensation expense 10,000 327,499 Adjusted EBITDA (non-GAAP measure) $2,269,751 $1,428,315

Cycurion Reports Full Year 2024 Financial Results

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