# EDGAR Filing Document

**Accession Number:** 0001868419
**File Stem:** 0001628280-26-034832
**Filing Date:** 2026-5
**Character Count:** 24577
**Document Hash:** c8367e41d827aaec7dcd836af9bbe691
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-034832.hdr.sgml**: 20260514

**ACCESSION NUMBER**: 0001628280-26-034832

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260514

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260514

**DATE AS OF CHANGE**: 20260514

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cycurion, Inc.
- **CENTRAL INDEX KEY:** 0001868419
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 863720717
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41214
- **FILM NUMBER:** 26976047

**BUSINESS ADDRESS:**
- **STREET 1:** 1640 BORO PLACE, FOURTH FLOOR
- **CITY:** MCLEAN
- **STATE:** VA
- **ZIP:** 22102
- **BUSINESS PHONE:** 888-341-6680

**MAIL ADDRESS:**
- **STREET 1:** 1640 BORO PLACE, FOURTH FLOOR
- **CITY:** MCLEAN
- **STATE:** VA
- **ZIP:** 22102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Western Acquisition Ventures Corp.
- **DATE OF NAME CHANGE:** 20210617

?xml version='1.0' encoding='ASCII'? cycu-20260514

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of report (Date of earliest event reported): May 14, 2026

![Image_1.jpg](cycu-20260514_g1.jpg)

**<u>Cycurion, Inc.</u>**

(Exact Name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41214** | **86-3720717** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |

---

 1640 Boro Place, Suite 420C McLean, Virginia(Address of principal executive offices) 22102(Zip Code)

**Registrant's telephone number, including area code:** (888) 341-6680

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| **Common stock, par value $0.0001 per share** | **CYCU** | **The NASDAQ Stock Market LLC** |
| **Redeemable warrants, each exercisable for one share of common stock at an exercise price of $345.00 per share** | **CYCUW** | **The NASDAQ Stock Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 8.01 Other Events.**

On May 14, 2026, the Company issued a press release. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

**Item 9.01. Financial Statements and Exhibits**

(d)Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press Release dated May 14, 2026](exhibit991q12026earningsre.htm)</u> |
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **CYCURION, INC.** | **CYCURION, INC.** |
| Date: | &nbsp;&nbsp;May 14, 2026 | By: | */s/ L. Kevin Kelly* |
|  |  | Name: | L. Kevin Kelly |
|  |  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![image_1a.jpg](image_1a.jpg)

**Cycurion Reports First Quarter 2026 Results**

**Delivers 900 Basis Point Gross Margin Expansion, Net Loss Cut 51% and $21 to $22 Million Annual Revenue Visibility Turnaround Momentum**

McLean, Virginia., May 14, 2026. (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) ("Cycurion" or the "Company"), a leader in AI-driven cybersecurity and national security solutions with trusted relationships across the U.S. Government, numerous leading corporations, and high-profile individuals across all industries, announced today results for the first quarter ended March 31, 2026.

"The first quarter of 2026 marks a clear inflection point in our transformation," said Kevin Kelly, Chairman and Chief Executive Officer of Cycurion. "We nearly doubled gross margins, significantly reduced operating expenses and executed binding agreements to acquire Halo Privacy and HavenX, which adds approximately $7 million in annualized contracted revenues at approximately 55% gross margin once the deal closes. Combined with our existing contracted backlog, which we expect to deliver approximately $15 million to $17 million in annual revenue, the addition of Halo Privacy and HavenX will increase our contracted backlog we estimate to convert to revenue in a one year period to approximately $21 million to $22 million. We are executing with discipline - exiting lower margin legacy work, reducing costs and reinvesting in our AI-driven platforms. I am confident in our path to profitability and long-term shareholder value."

**Highlights of First Quarter 2026 as Compared to Fourth Quarter 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $3.3 million, which reflects the planned wind-down of certain legacy contracts ahead of the ramp of higher-margin replacement work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin expanded 900 basis points to 21.1% from 12.1%, nearly doubling as a result of a deliberate shift to higher-margin contracts and disciplined cost management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Selling, general and administrative expenses decreased $1.3 million, or 31.6%, to $2.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss improved 51.5% to $2.6 million from $5.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EBITDA loss improved 60.2% to $1.9 million from $4.9 million.

**Strategic and Operational Momentum**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Halo Privacy and HavenX Acquisition (Binding Agreement May 2026):</u> Adds approximately $7 million in estimated annualized contracted revenue with a gross margin of approximately 55%. Brings industry-leading secure communications technology (including the Halo Link app) and elite digital investigations/attribution capabilities (HavenX), expanding Cycurion's presence in high-growth markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Robust Contract Backlog:</u> Consistent with prior disclosures, the Company's $112 million contracted backlog is expected to realize approximately $15 million – $17 million over the next twelve months, which the addition of Halo Privacy and HavenX upon closing, this expectation increases to approximately $21 million – $22 million over a one yer period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Cost Reduction Initiatives</u>: Organizational realignment on track to generate over $2.2 million in annualized savings, with meaningful benefits already reflected in first quarter of 2026 selling, general and administrative expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Acquisition Pipeline:</u> Continued advancement of the revised Memorandum of Understanding to acquire Kustom Entertainment's Legacy Video Solutions segment (expected to add approximately $5.1 million in annual revenue and approximately $8 million in contracted backlog).

------

**About Cycurion**

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 LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. For more information, visit <u>www.cycurion.com</u>.

**About Halo Privacy**

Halo Privacy, with more than 10 years of expertise, develops cutting-edge, privacy-first secure communication tools engineered for the highest security standards, including the revolutionary Halo Link app.

**About HavenX**

HavenX is a leading digital investigations and attribution firm focused on cyber-harassment, defamation tracking, OSINT, IP geolocation, breach intelligence, and high-confidence threat actor identification.

**Forward-Looking Statements**

This press release contains forward-looking statements as defined in 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.

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Such statements include, but are not limited to, statements regarding the proposed transaction contemplated by the binding agreement, including the likelihood, timing, structure or consummation of the transaction; the anticipated benefits of the transaction; the acceleration of the Company's inorganic growth strategy; the continued execution on the Company's backlog; and other statements that are not historical facts, including statements which may be accompanied by words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Cycurion and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, risks related to customer performance and satisfaction, contract modifications, delays or terminations, and the Company's ability to fulfill contractual obligations, the outcomes of the Company"s investigations, any potential legal proceedings, or the future performance of the Company's stock. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Cycurion with the U.S. Securities and Exchange Commission. Cycurion anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Cycurion assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Cycurion's plans and expectations as of any subsequent date.

**Cycurion Investor Relations:**

(888) 341-6680

<u>investors@cycurion.com</u>

**Cycurion Media Relations:**

(888) 341-6680

<u>media@cycurion.com</u>

------

**Quarterly Results of Operations and Non-GAAP Financial Measures**

*(Unaudited)*

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Consolidated Results of Operations** | **Quarterly Consolidated Results of Operations** | **Quarterly Consolidated Results of Operations** | **Quarterly Consolidated Results of Operations** |
|  | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended |
|  | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Revenue | $3268620 | $3542644 | $3870050 |
| Cost of revenue | 2580262 | 3114505 | 3192287 |
| &nbsp;&nbsp;&nbsp;Gross profit | 688358 | 428139 | 677763 |
| &nbsp;&nbsp;&nbsp;Gross margin | 21.1% | 12.1% | 17.5% |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 2743695 | 4013876 | 337374 |
| &nbsp;&nbsp;&nbsp;Stock compensation expenses | 315833 | 804424 |  |
| &nbsp;&nbsp;&nbsp;Business combination expenses |  | 630000 | 10437894 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 3059528 | 5448300 | 10775268 |
| &nbsp;&nbsp;&nbsp;Operating loss | (2371170) | (5020161) | (10097505) |
| &nbsp;&nbsp;&nbsp;Interest income | 14236 | 25768 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (204852) | (257174) | (178890) |
| &nbsp;&nbsp;&nbsp;Gain on debt settlement, net |  | (28504) | 141653 |
| &nbsp;&nbsp;&nbsp;Other expense |  |  | (113744) |
| Other expense, net | (190616) | (259910) | (150981) |
| &nbsp;&nbsp;&nbsp;Loss before income taxes | (2561786) | (5280071) | (10248486) |
| Provision for income tax |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | (2561786) | (5280071) | (10248486) |
| Less: Net loss attributable to non-controlling interest | 433324 | 175017 |  |
| &nbsp;&nbsp;&nbsp;Net loss attributable to Cycurion | $(2128462) | $(5105054) | $(10248486) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Net Loss to EBITDA (Non-GAAP) and Adjusted EBITDA (Non-GAAP)** | **Reconciliation of Net Loss to EBITDA (Non-GAAP) and Adjusted EBITDA (Non-GAAP)** | **Reconciliation of Net Loss to EBITDA (Non-GAAP) and Adjusted EBITDA (Non-GAAP)** | **Reconciliation of Net Loss to EBITDA (Non-GAAP) and Adjusted EBITDA (Non-GAAP)** |
|  | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended |
|  | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| Net loss attributable to Cycurion | $(2128462) | $(5105054) | $(10248486) |
| &nbsp;&nbsp;&nbsp;Interest income | (14236) | (25768) |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 204852 | 257174 | 178890 |
| &nbsp;&nbsp;&nbsp;Other expense |  |  | 113744 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1187 | 7665 | 74892 |
| EBITDA (Non-GAAP) | (1936659) | (4865983) | (9880960) |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement, net |  | 28504 | (141653) |
| &nbsp;&nbsp;&nbsp;Transaction related expenses |  | 630000 | 10437894 |
| &nbsp;&nbsp;&nbsp;Finance expense |  |  | 100000 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 315833 | 904424 |  |
| Adjusted EBITDA (Non-GAAP) | $(1620826) | $(3303055) | $515281 |

---

------

**CYCURION, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | March 31, 2026 | December 31, 2025 |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2028718 | $5255235 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 3336047 | 2687479 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 106934 | 60133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 5471699 | 8002847 |
| &nbsp;&nbsp;&nbsp;Software development costs, net | 4735981 | 4606981 |
| &nbsp;&nbsp;&nbsp;Goodwill | 21238450 | 20842508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 25974431 | 25449489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $31446130 | $33452336 |
| **Liabilities and Stockholders' Equity:** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Bank loan-revolving credit line | $2725546 | $2933396 |
| &nbsp;&nbsp;&nbsp;Loans payable - current portion | 669693 | 669693 |
| &nbsp;&nbsp;&nbsp;Factoring liability | 1566887 | 1511678 |
| &nbsp;&nbsp;&nbsp;Convertible notes | 192897 | 192897 |
| &nbsp;&nbsp;&nbsp;Promissory notes | 2500849 | 2499662 |
| &nbsp;&nbsp;&nbsp;Loans payable - related parties | 123650 | 123650 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 1441596 | 1314772 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 4283045 | 4228337 |
| &nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 1306906 | 919825 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 1486041 | 1347787 |
| &nbsp;&nbsp;&nbsp;Excise tax payable | 1167173 | 1167173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 17464283 | 16908870 |
| &nbsp;&nbsp;&nbsp;Loans payable - non-current portion | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 17764283 | 17208870 |
| **Stockholders' Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value, 20,000,000 shares authorized) |  |  |
| &nbsp;&nbsp;&nbsp;Series A convertible preferred stock ($0.0001 par value, 110,000 shares designated, 0 and 0 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Series B convertible preferred stock ($0.0001 par value, 3,000 shares designated, 0 and 1 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Series C convertible preferred stock ($0.0001 par value, 5,000 shares designated, 2,547 and 4,851 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Series D convertible preferred stock ($0.0001 par value, 6,666,700 shares designated, 150,000 and 150,000 issued and outstanding, respectively) | 15 | 15 |
| &nbsp;&nbsp;&nbsp;Series E convertible preferred stock ($0.0001 par value, 100 shares designated, 51 and 51 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Series F convertible preferred stock ($0.0001 par value, 10,000 shares designated, 0 and 0 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Series G convertible preferred stock ($0.0001 par value, 10,000 shares designated, 143 and 143 issued and outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value, 300,000,000 shares authorized, 5,510,021 and 3,642,501 shares issued and outstanding, respectively) | 551 | 364 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 46979742 | 46979762 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (29007543) | (26879081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity attributable to Cycurion | 17972765 | 20101060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deficit attributable to noncontrolling interests | (4290918) | (3857594) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 13681847 | 16243466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $31446130 | $33452336 |

---

------

**CYCURION, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | For the Three Months Ended March 31, | For the Three Months Ended March 31, |
| | 2026 | 2025 |
| Revenue | $3268620 | $3870050 |
| Cost of revenue | 2580262 | 3192287 |
| &nbsp;&nbsp;&nbsp;Gross profit | 688358 | 677763 |
| &nbsp;&nbsp;&nbsp;Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 2743695 | 337374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expenses | 315833 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business combination expenses |  | 10437894 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 3059528 | 10775268 |
| &nbsp;&nbsp;&nbsp;Operating loss | (2371170) | (10097505) |
| &nbsp;&nbsp;Other income/(expenses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 14236 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (204852) | (178890) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on debt settlement, net |  | 141653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net |  | (113744) |
| &nbsp;&nbsp;&nbsp;Other expenses, net | (190616) | (150981) |
| Loss before income taxes | (2561786) | (10248486) |
| &nbsp;&nbsp;&nbsp;Provision for income tax |  |  |
| Net loss | (2561786) | (10248486) |
| &nbsp;&nbsp;&nbsp;Less: Net loss attributable to non-controlling interest | 433324 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to Cycurion | $(2128462) | $(10248486) |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss | $(2128462) | $(10248486) |
| Loss per share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(0.47) | $(15.57) |
| &nbsp;&nbsp;&nbsp;Diluted | $(0.47) | $(7.40) |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 4561976 | 658218 |
| &nbsp;&nbsp;&nbsp;Diluted | 4561976 | 1383507 |

---

------

**CYCURION, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | For the Three Months Ended March 31, | For the Three Months Ended March 31, |
| | 2026 | 2025 |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(2561786) | $(10248486) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 315833 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation - business combination related |  | 9250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 1187 | 64850 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment |  | 1709 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of software development costs |  | 8333 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on debt settlement, net |  | (141653) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance expense |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net and other receivables | (648568) | (1300686) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (46801) | (11415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (184201) | (286114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 96248 | 37673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 138254 | (219320) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (2889834) | (2745109) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Cash acquired on business combination |  | 34983 |
| &nbsp;&nbsp;&nbsp;Capitalized software development costs | (129000) | (70000) |
| &nbsp;&nbsp;&nbsp;Cash withdrawn from Trust Account in connection with redemption |  | 1001216 |
| &nbsp;&nbsp;&nbsp;Release of Trust Account to Company's bank account |  | 833324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)/provided by investing activities | (129000) | 1799523 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 167 | 3309921 |
| &nbsp;&nbsp;&nbsp;Redemption of common stock subject to redemption |  | (1001216) |
| &nbsp;&nbsp;&nbsp;Repayments of revolving line of credit | (207850) | (9300) |
| &nbsp;&nbsp;&nbsp;Repayment of bank borrowings |  | (5114) |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable |  | 386500 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable |  | 513200 |
| &nbsp;&nbsp;&nbsp;Repayments of notes payable |  | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)/provided by financing activities | (207683) | 3173991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (decrease)/increase in cash and cash equivalents | (3226517) | 2228405 |
| Cash and cash equivalents, beginning of period | 5255235 | 40790 |
| Cash and cash equivalents, end of period | $2028718 | $2269195 |

---

<br>