Cycurion, Inc. Offers Insight on Second Quarter 2025 Results and Recent Business Activities

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
[email protected]
(888) 341-6680

Media Relations Contact: Cycurion Communications
[email protected]
(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, 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