EX-99.3 4 ex99-3.htm EX-99.3

 

Exhibit 99.3

 

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

 

Company to host a conference call on August 19, 2025 to discuss in more detail

 

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

ir@cycurion.com

(888) 341-6680

 

Media Relations Contact: Cycurion Communications

media@cycurion.com

(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, 2024 
Net (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