Cycurion, Inc. completed its acquisition of substantially all assets, and assumed certain specified liabilities, of Kustom Entertainment’s Video Solutions Business on August 3, 2026. Stated consideration includes $1,250,000 in cash, a secured promissory note with $4,250,000 principal, Series H preferred stock with $600,000 aggregate stated value, and a revenue-based earnout and clawback arrangement tied to 2026 and 2027 performance, capped at $500,000 per year and $1,000,000 in aggregate.
Pro forma operating statements assume both this acquisition and the Secuvant acquisition occurred on January 1, 2025. They report combined revenue of $22,570,960 and net loss of $24,780,776 for 2025, and revenue of $10,161,724 and net loss of $7,603,151 for the six months ended June 30, 2026. These figures are illustrative and are not necessarily indicative of results had the acquisitions occurred on the assumed dates or of future results; the purchase price allocation remains preliminary.
Cycurion amended its acquisition report to add Secuvant’s audited 2025 and 2024 statements, unaudited results for the six months ended June 30, 2026 and 2025, pro forma information and supplemental management discussion. Cycurion acquired all of Secuvant’s membership interests on June 3, 2026, for $2.875 million paid to former members: $875,000 in cash and 888,888 shares of Series I Convertible Preferred Stock. The interim statements use Secuvant’s historical accounting basis, excluding acquisition-related fair-value adjustments, goodwill and intangible assets; pro forma figures are not necessarily indicative of results on the assumed transaction dates or of future results.
Secuvant’s revenue was $2,336,556 in 2025, versus $2,485,868 in 2024, while net income was $786,925 versus $168,532. For the six months ended June 30, 2026, revenue was $1,058,323 and net income was $255,339, compared with $1,194,855 and $422,548 a year earlier; operating cash flow was negative $102,658 versus positive $335,755. Management concluded substantial doubt exists about Secuvant’s ability to continue as a going concern within one year after the statements are available to be issued. Its plans do not alleviate that doubt, and Cycurion is not obligated to provide financial support.
Cycurion, Inc. (CYCU) made board and committee changes effective October 20, 2026. Peter R. Ginsberg stepped down from the Audit, Compensation, and Nominating and Corporate Governance Committees after he and the Board determined that he no longer met applicable independence requirements. The stated reason was his work as outside counsel in certain matters and payments Cycurion made during 2026 to his law firm. Ginsberg remains a director.
The Board appointed J. Derek Penn to fill an existing vacancy, and he joined all three committees effective immediately. The Board determined that Penn meets the applicable director and committee independence requirements. Cycurion said it believes Ginsberg’s independence matter resulted from administrative oversight and is implementing enhanced procedures for director-independence reviews and related-party transaction monitoring.
Cycurion, Inc. reported approximately $383,000 in new and expanded Midwest law-enforcement contracts Digital Ally secured over the past 30 days. It scheduled a November 16, 2026 call on third-quarter results for the quarter ended September 30, 2026, and intends to issue results before the call.
L. Kevin Kelly, Chairman and Chief Executive Officer, outlined a predictive intelligence strategy. Certain new capabilities are in beta testing with several organizations; planned release windows are an AI-driven security operations capability in the coming weeks, an enhanced Panoptic web application this quarter, and a unified platform in early 2027, subject to development, testing, customer feedback, regulatory considerations and other factors. Services make up approximately 80% of the business, and Digital Ally has relationships with more than 800 law-enforcement, municipal and public-safety clients.
Cycurion expects to continue relying on outside capital, and future financings may be dilutive. After regaining Nasdaq minimum bid-price compliance following a reverse split and qualifying bid-price period, it remains subject to continued listing requirements and a Discretionary Panel Monitor through October 1, 2027. A failure to meet a continued listing requirement during the monitor would result in a delisting determination without additional cure time from Nasdaq staff; Cycurion could request a hearing.
Cycurion, Inc. (CYCU) announced a relaunch as a predictive cybersecurity company and described a $54.6 million, 10-year contract, its largest award, through a global consulting firm to modernize and securely operate a state Health and Human Services system. Work starts in November, with revenue beginning in the fourth quarter and ramping gradually through 2027 toward more than $5 million in annual recurring revenue. The company said its Digital Ally Video Solutions acquisition is closed; that business has approximately $5.5 million in annual revenue and more than $1.2 million in EBITDA, while Cycurion cited a pro forma annual revenue run rate of approximately $30 million.
Its new cybersecurity capabilities remain under development: the first AI-driven security operations capability is expected in the coming weeks, Panoptic is planned for re-release this quarter, and a unified predictive intelligence platform is targeted for early 2027; Cycurion says plans and timing may change. Management reiterated a second-quarter 2027 target for break-even and positive operating cash flow, citing second-quarter gross margin of 29.1% versus 6.1% a year earlier and an adjusted EBITDA loss of $1.4 million versus $2.1 million. It also said near-term dilution is likely and expects to pursue conventional bank financing in the new year.
Cycurion, Inc. CEO and director Leo Kevin Kelly reported common-stock acquisitions and gift transfers. Award acquisitions included 100,200 shares on July 29, 2026, with a $2.40-per-share issuance price and vesting that day; 36,564 shares on April 26, 2026; 3,527 on May 1, 2026; and 7,102 on December 9, 2025. A footnote linked to those latter three awards states a $23.52-per-share issuance price and July 1, 2026 vesting. Kelly also acquired 157 shares through a special common stock dividend on December 26, 2025, for which he paid no consideration, and reported gift transfers of 8,742 shares on September 28, 2026, and 3,073 on August 19, 2026. Reported share amounts are adjusted for the 1-for-30 reverse split effective October 27, 2025, and the 1-for-8 reverse split effective August 28, 2026. No Rule 10b5-1 plan is reported.
Cycurion, Inc. (CYCU) reported that Nasdaq confirmed it regained compliance with the $1.00 minimum bid-price requirement after its bid price closed above $1.00 for 10 consecutive trading days following the August 28, 2026 1-for-8 reverse stock split. Its common stock continues to trade on the Nasdaq Capital Market, subject to a Discretionary Panel Monitor from October 1, 2026 through October 1, 2027. If it fails any continued listing requirement during that period, Nasdaq staff will issue a delist determination, without an opportunity to submit a compliance plan or receive additional time from staff; Cycurion may request a hearing.
Chairman and Chief Executive Officer L. Kevin Kelly also discussed Cycurion’s previously announced $54.6 million, 10-year contract for modernization and secure operation of a major state Health and Human Services system. Work is scheduled to commence in November 2026, and the contract is expected to generate more than $5 million in annual revenue. Kelly discussed the acquisition of Digital Ally’s Video Solutions business, which adds approximately $5.5 million in annual revenue, more than $1.2 million in EBITDA, and an installed customer base of over 800 law enforcement agencies. Upon closing, Cycurion’s pro forma gross revenue run rate stands at approximately $30 million.
Cycurion, Inc. reported that director Emmit McHenry notified the company on September 24, 2026, of his resignation from the Board, effective immediately upon receipt of his resignation letter. The company also announced that it resolved a previously disclosed John Doe defamation action in the U.S. District Court for the Eastern District of Virginia. Cycurion said the settlement includes a signed retraction and apology and restrictions on further public commentary and trading in Cycurion securities. The parties will file a stipulated dismissal with prejudice. Separate previously disclosed legal matters remain pending.
Cycurion, Inc. elected to terminate its Equity Purchase Agreement with Yield Point NY LLC for convenience. It sent notice on September 25, 2026; termination is effective one business day after Yield Point receives it. Cycurion said the termination was not due to a disagreement over its operations, policies or practices.
Cycurion forecast approximately $843,028 of calendar 2026 revenue from closed public-safety engagements, including Chicago work: approximately $763,256 for Chicago go-live support, $22,645 for Chicago fire training and $57,127 for a CAD administration position. If that position continues at its current monthly rate for ten years, its projected aggregate value is approximately $3.43 million. The projection assumes that continuation; actual revenue depends on continued authorization, performance and other contract terms, and the ten-year value is not backlog or contracted revenue.
Cycurion appeared before Nasdaq’s Hearings Panel on August 20, 2026, to appeal a delisting determination. Its common stock continued to trade on Nasdaq, and as of September 24, 2026, it had not received a final written decision. The company is developing cyber products intended to help customers identify potential attack paths and prioritize defenses; the planned suite is expected to be available in the near term.
Cycurion, Inc. (CYCU) reported that it has secured several new commercial and public-health engagements totaling approximately $800,000 in annual contract spend. These include a pharmaceutical-industry engagement to support an AI Center of Excellence, a new award from the National Association of County and City Health Officials (NACCHO), and additional commercial and public-health work.
The company states that these awards represent progress on its strategy to expand in commercial healthcare, life sciences, and other non-government sectors while continuing to serve its government and public-safety customers. Work under these contracts covers business continuity and disaster recovery, technology and cybersecurity assessments, program management, organizational change management, and AI operating capability.