CYCU 8-K

Cycurion, Inc. (CYCU)

8-K 2026-08-14 For: 2026-08-14

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Added on August 14, 2026


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

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

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

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


Exhibit No.						Description
99.1						Press Release dated August 14, 2026
104						Inline XBRL for the cover page of this Current Report on Form 8-K


Quarterly Consolidated Results of Operations
	For the Three Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025
Revenue	$	3,757,076		$	3,268,620		$	3,887,915
Cost of revenue	2,663,739			2,580,262			3,651,978
Gross profit	1,093,337			688,358			235,937
Gross margin	29.1		%	21.1		%	6.1		%
Operating expenses:
Selling, general and administrative expenses	2,641,320			2,743,695			2,313,343
Stock compensation expenses	336,722			315,833			1,012,443
Business combination expenses	—			—			676,228
Total operating expenses	2,978,042			3,059,528			4,002,014
Operating loss	(1,884,705)			(2,371,170)			(3,766,077)
Interest income	3,506			14,236			—
Interest expense	(227,941)			(204,852)			(615,392)
Loss on debt settlement, net	(1,930,427)			—			(907,983)
Other expense	—			—			(962)
Other expense, net	(2,154,862)			(190,616)			(1,524,337)
Loss before income taxes	(4,039,567)			(2,561,786)			(5,290,414)
Provision for income tax	—			—			—
Net loss	(4,039,567)			(2,561,786)			(5,290,414)
Less: Net loss attributable to non-controlling interest	283,793			433,324			101,659
Net loss attributable to Cycurion	$	(3,755,774)		$	(2,128,462)		$	(5,188,755)


Quarterly Reconciliation of Net Loss to EBITDA (Non-GAAP) and Adjusted EBITDA (Non-GAAP)
	For the Three Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025
Net loss	$	(4,039,567)	$	(2,561,786)	$	(5,290,414)
Interest income	(3,506)		(14,236)		—
Interest expense	227,941		204,852		615,392
Depreciation and amortization	—		—		10,530
EBITDA (Non-GAAP)	(3,815,132)		(2,371,170)		(4,664,492)
Loss on debt settlement, net (1)	1,930,427		—		907,983
Transaction related expenses (2)	75,237		—		676,228
One-time expenses (3)	90,000		—		—
Stock compensation expenses (4)	336,722		315,833		1,012,443
Adjusted EBITDA (Non-GAAP)	$	(1,382,746)	$	(2,055,337)	$	(2,067,838)


	June 30, 2026		December 31, 2025
Assets:
Cash and cash equivalents	$	1,873,287	$	5,255,235
Accounts receivable, net	3,721,520		2,687,479
Prepaid expenses and other current assets	222,886		60,133
Other receivables	133,058		—
Total current assets	5,950,751		8,002,847
Software development costs, net	4,798,981		4,606,981
Goodwill and intangibles	27,617,398		20,842,508
Total non-current assets	32,416,379		25,449,489
Total assets	$	38,367,130	$	33,452,336
Liabilities and Stockholders' Equity:
Liabilities:
Bank loan-revolving credit line	$	2,421,305	$	2,933,396
Loans payable - current portion	269,068		669,693
Factoring liability	1,300,470		1,511,678
Convertible notes	2,686,748		192,897
Promissory notes	1,161,960		2,499,662
Loans payable - related parties	123,650		123,650
Accounts payable	1,290,801		1,314,772
Accrued liabilities	7,613,943		4,228,337
Accrued compensation and benefits	1,063,856		919,825
Accrued interest payable	432,748		1,347,787
Excise tax payable	1,167,173		1,167,173
Total current liabilities	19,531,722		16,908,870
Loans payable - non-current portion	627,010		300,000
Total non-current liabilities	627,010		300,000
Total liabilities	20,158,732		17,208,870
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, 0 and 0 issued and outstanding, respectively)	—		—
Series B convertible preferred stock ($0.0001 par value, 3,000 shares designated, 0 and 1 issued and outstanding, respectively)	—		—
Series C convertible preferred stock ($0.0001 par value, 5,000 shares designated, 2,547 and 4,851 issued and outstanding, respectively)	—		—
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
Series E convertible preferred stock ($0.0001 par value, 100 shares designated, 51 and 51 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, 143 and 143 issued and outstanding, respectively)	—		—
Series H convertible preferred stock ($0.0001 par value, 10,000 shares designated, 1,900 and 0 issued and outstanding, respectively)	—		—
Series I convertible preferred stock ($0.0001 par value, 888,888 shares designated, 888,888 and 0 issued and outstanding, respectively)	89		—
Common stock ($0.0001 par value, 300,000,000 shares authorized, 11,889,767 and 3,642,501 shares issued and outstanding, respectively)	1,189		364
Additional paid in capital	55,545,133		46,979,762
Accumulated deficit	(32,763,317)		(26,879,081)
Total stockholders' equity attributable to Cycurion	22,783,109		20,101,060
Deficit attributable to noncontrolling interests	(4,574,711)		(3,857,594)
Total stockholders' equity	18,208,398		16,243,466
Total liabilities and stockholders’ equity	$	38,367,130	$	33,452,336


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Revenue	$	3,757,076	$	3,887,915	$	7,025,696	$	7,757,965
Cost of revenue	2,663,739		3,651,978		5,244,001		6,844,265
Gross profit	1,093,337		235,937		1,781,695		913,700
Operating expenses:
Selling, general and administrative expenses	2,641,320		2,313,343		5,385,015		2,650,716
Stock compensation expenses	336,722		1,012,443		652,555		1,012,443
Business combination expenses	—		676,228		—		11,114,122
Total operating expenses	2,978,042		4,002,014		6,037,570		14,777,281
Operating loss	(1,884,705)		(3,766,077)		(4,255,875)		(13,863,581)
Other income/(expenses):
Interest income	3,506		—		17,742		—
Interest expense	(227,941)		(615,392)		(432,793)		(794,283)
Loss on debt settlement, net	(1,930,427)		(907,983)		(1,930,427)		(766,330)
Other expense, net	—		(962)		—		(114,706)
Other expenses, net	(2,154,862)		(1,524,337)		(2,345,478)		(1,675,319)
Loss before income taxes	(4,039,567)		(5,290,414)		(6,601,353)		(15,538,900)
Provision for income tax	—		—		—		—
Net loss	(4,039,567)		(5,290,414)		(6,601,353)		(15,538,900)
Less: Net loss attributable to non-controlling interest	283,793		101,659		717,117		101,659
Net loss attributable to Cycurion	$	(3,755,774)	$	(5,188,755)	$	(5,884,236)	$	(15,437,241)

Comprehensive loss	$	(3,755,774)	$	(5,188,755)	$	(5,884,236)	$	(15,437,241)

Loss per share:
Basic	$	(0.41)	$	(4.31)	$	(0.86)	$	(16.55)
Diluted	$	(0.41)	$	(3.38)	$	(0.86)	$	(16.45)
Weighted average shares outstanding:
Basic	9,065,675		1,204,462		6,826,267		932,849
Diluted	9,065,675		1,532,549		6,826,267		936,209


	For the Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net loss	$	(6,601,353)	$	(15,538,900)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expenses	652,555		1,284,777
Stock-based compensation - business combination related	-		9,250,000
Amortization of debt discount	1,187		213,036
Depreciation of property and equipment	-		3,489
Amortization of software development costs	-		17,083
Loss on debt settlement, net	1,930,427		766,330
Finance expense	-		100,000
Changes in assets and liabilities:
Accounts receivable, net and other receivables	(1,010,583)		(1,478,433)
Prepaid expenses and other current assets	(61,498)		45,204
Accounts payable and accrued liabilities	(1,221,050)		(738,998)
Accrued compensation and benefits	(111,386)		(17,042)
Accrued interest payable	247,525		(209,668)
Net cash used in operating activities	(6,174,176)		(6,303,122)
Cash flows from investing activities:
Net cash acquired on business combination	208,014		34,983
Capitalized software development costs	(192,000)		(174,000)
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 investing activities	16,014		1,695,523
Cash flows from financing activities:
Proceeds from exercise of warrants	167		3,664,671
Redemption of common stock subject to redemption	-		(1,001,216)
Proceeds from capital raise	3,288,138		265,504
Repayments of revolving line of credit	(512,091)		(12,900)
Repayment of bank borrowings	-		(155,114)
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	2,776,214		5,580,645
Net (decrease)/increase in cash and cash equivalents	(3,381,948)		973,046
Cash and cash equivalents, beginning of period	5,255,235		40,790
Cash and cash equivalents, end of period	$	1,873,287	$	1,013,836