Cycurion (CYCU) Registration Filing summary

Company overview and business model

• Operates as a cybersecurity solutions provider, serving federal, state, local government, and commercial clients through consulting, managed IT, and managed security services.

• Growth strategy centers on organic expansion and strategic acquisitions, including Axxum, Cloudburst, and SLG Innovation.

• Offers a broad suite of services: security assessments, risk management, cloud security, virtual CISO, digital modernization, and a proprietary AI-driven security platform.

• Subsidiaries include Cycurion Sub, Cycurion Crypto, Axxum, Cloudburst, Cycurion Innovation, and a 51% stake in SLG Innovation.

• Focuses on high-value government contracts and expanding commercial presence, with a client base spanning healthcare, education, and enterprise sectors.

Financial performance and metrics

• 2024 revenue was $17.8M, down 8% from $19.4M in 2023, attributed to the conclusion of key government contracts.

• Gross profit for 2024 was $3.6M (20.5% margin), up from $2.6M (13.7% margin) in 2023, due to lower contractor expenses.

• Net income for 2024 was $1.2M, compared to a net loss of $2.1M in 2023; however, a net loss of $18.6M was reported for the nine months ended September 30, 2025.

• As of September 30, 2025, accumulated deficit was $21.8M, with a net working capital deficit of $9.6M and $3.7M in cash.

• Company expects continued operating losses and negative cash flow, raising substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Net proceeds from the $6M December 2025 private placement are intended for working capital and general corporate purposes.

• Proceeds from warrant exercises, if any, will be used for similar purposes; company may invest proceeds in short-term, investment-grade instruments pending use.

• Management has broad discretion over capital allocation, with no assurance of improving operating results.