Cycurion, Inc. Receives Expected Notification of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q

Rhea-AI Summary

Cycurion (NASDAQ: CYCU) has received a deficiency notification from Nasdaq on May 22, 2025, due to its failure to file its Q1 2025 Form 10-Q on time. The company is now non-compliant with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports. While this notice doesn't immediately affect CYCU's listing status, the company has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant an extension until November 17, 2025, to regain compliance. Cycurion had previously filed a Form NT 10-Q on May 15, 2025, notifying of the delayed filing and continues to work on completing the necessary assessment to file the Form 10-Q.

Positive

• None.

Negative

• Failure to file Q1 2025 Form 10-Q on time, resulting in Nasdaq non-compliance
• Risk of potential delisting if compliance is not achieved within the extended deadline
• Ongoing assessment causing reporting delays indicates potential internal control or accounting issues

Insights

Securities Regulation Expert

Cycurion's Nasdaq deficiency notice indicates compliance issues that could threaten listing status if not resolved within allowable timeframes.

Cycurion has received a deficiency notification from Nasdaq due to its failure to file its Q1 2025 10-Q report on time. While this notice doesn't immediately affect its listing status, it initiates a structured compliance timeline that investors should monitor closely.

The company now has 60 calendar days to submit a remediation plan to Nasdaq. If accepted, Nasdaq may grant an extension of up to 180 calendar days from the original due date (until November 17, 2025) for Cycurion to regain compliance by filing the delayed report.

What's concerning is the vague explanation regarding the delay. The press release references "matters described in the Form NT 10-Q" without providing specifics, and notes that an "assessment" is ongoing. This lack of transparency typically indicates potential accounting issues, internal control weaknesses, or more serious financial reporting concerns that required additional review time.

The timing is particularly notable as this relates to Q1 2025 results, suggesting the issue emerged relatively recently rather than being a long-standing problem. Companies that fail to resolve Nasdaq deficiencies within the allowed timeframe face potential delisting, which would significantly impact liquidity and investor access to the stock.

While management states they intend to take necessary steps to regain compliance "as soon as practicable," the absence of a specific timeline or explanation raises governance concerns that sophisticated investors will view as a red flag requiring close scrutiny of forthcoming disclosures.

MCLEAN, Va., May 29, 2025 (GLOBE NEWSWIRE) -- Cycurion, Inc. (Nasdaq: CYCU) ("Cycurion" or the "Company"), a trusted leader in IT cybersecurity solutions and AI, today announced that it received an expected deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") on May 22, 2025 (the "Notice"). The Notice indicated that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of its failure to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2025 (the "Form 10-Q"), as described more fully in the Company's Form NT 10-Q Notification of Late Filing (the "Form NT 10-Q") filed with the Securities and Exchange Commission (the "SEC") on May 15, 2025. The Listing Rule requires Nasdaq-listed companies to timely file all required periodic reports with the SEC.

The Notice has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Global Select Market.

In accordance with Nasdaq's listing rules, the Company has 60 calendar days after the Notice to submit a plan to regain compliance with the Listing Rule. Pursuant to the Notice, following receipt of such plan, Nasdaq may grant an extension of up to 180 calendar days from the Form 10-Q's due date, or until November 17, 2025, for the Company to regain compliance. The Company intends to take the necessary steps to regain compliance with Nasdaq's listing rules as soon as practicable.

As previously disclosed, the filing of the Form 10-Q was delayed due to the matters described in the Form NT 10-Q. As of today, the assessment described in the Form NT 10-Q is ongoing and all parties continue to work diligently to complete the assessment and to file the Form 10-Q as soon as practicable.

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, Cloudburst Security, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients with a commitment to securing the digital future.

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.

Investor Contact:
CORE IR
investors@cycurion.com

Media Contact:
Phone: (703) 555-0123
Email: media@cycurion.com

FAQ

What is the deadline for Cycurion (CYCU) to submit its compliance plan to Nasdaq?

Cycurion has 60 calendar days from the May 22, 2025 notification to submit its compliance plan to Nasdaq.

Will Cycurion (CYCU) be immediately delisted from Nasdaq due to the deficiency notice?

No, the deficiency notice has no immediate effect on Cycurion's listing or trading status on the Nasdaq Global Select Market.

What is the maximum extension period Nasdaq could grant Cycurion (CYCU) to regain compliance?

Nasdaq may grant an extension of up to 180 calendar days from the Form 10-Q's due date, until November 17, 2025.

What caused Cycurion (CYCU) to delay filing its Q1 2025 Form 10-Q?

The delay is due to an ongoing assessment as described in the Form NT 10-Q, though specific details were not provided in the press release.