🧾 What This Document Is

This is an 8-K filing with two major attached announcements (Exhibit 99.1 & 99.2). An 8-K is used by public companies to notify investors of important events. Here, Cycurion is doing two things at once: reporting its 2025 financial results and announcing a major lawsuit against a newswire service for spreading a fake press release about the company.

🏢 What The Company Does

👉 In simple terms, Cycurion is a cybersecurity and AI company. They help organizations (like government agencies and hospitals) protect their data and systems. They use their own AI-powered platform called ARx. They became a publicly traded company in February 2025.

💰 Financial Highlights: A Tough 2025

Cycurion had a challenging first year as a public company, primarily due to delays in government contracts.

• Revenue: $15.1 million in 2025, down from $17.8 million in 2024.
• Gross Profit: $1.6 million, down from $3.6 million. The company is intentionally investing in its AI tech now for better profits later.
• Net Loss: A significant loss of $23.7 million. However, $16.8 million of that was from one-time, non-cash expenses related to becoming a public company and stock-based compensation.
• A Key Positive: They have a $112 million backlog of signed contracts, which should fuel future revenue over the next ~4 years.

🚀 Key Moves: Fixing the Foundation

Instead of just growing, 2025 was about strengthening the company's financial health.

• Deleveraging: They slashed their net debt by over 70%, from $10.5 million to just under $3 million. This means less financial risk.
• Boosting Cash: They ended the year with over $5 million in cash, improving their liquidity and safety net.
• Cutting Costs: In early 2026, they implemented $2.2 million in annual cost savings to better match their expenses with their current business size.
• Streamlining Ownership: They simplified their complex "preferred" stock structure, leaving just over 400,000 convertible shares.

⚖️ Legal Action: Fighting a Fraudulent Release

This is a completely separate, serious issue.

• The Problem: On March 16, 2026, a fake press release was sent out via ACCESS Newswire. It falsely claimed Cycurion was acquiring a D.C.-based cybersecurity firm.
• The Response: Cycurion says this was a deliberate, coordinated scheme to manipulate its stock price. They have hired lawyers and are suing ACCESS Newswire and the unknown perpetrators, seeking "damages in the millions of dollars."
• The Action: They are using their own cybersecurity tools to find who did it and are working with regulators (FINRA, Nasdaq). Trading was unusually volatile on the day the fake news hit.

🔮 What's Next: The 2026 Outlook

Management believes the bad stuff in 2025 (government shutdown, spending reviews) was temporary. Their plan for growth includes:

• Revenue Rebound: They expect revenue to pick up in the second half of 2026 as projects from their $112 million backlog start and generate income.
• Margin Growth: They are shifting sales toward higher-profit, recurring services (like managed cybersecurity) to improve their profit margins.
• Sales Push: They hired a new Chief Revenue Officer and expanded their sales team to win more of these recurring service contracts.
• Acquisition: They hinted at a recently announced acquisition expected to close in Q2 2026, which should also add to their backlog.

⚖️ Big Picture: Strengths & Risks

• 👍 Strengths: A much stronger balance sheet (less debt, more cash). A large, contracted backlog ($112M) provides future revenue visibility. Clear strategy to shift to higher-margin, AI-driven services.
• ⚠️ Risks: Execution risk on turning the backlog into revenue and profit. The company is still operating at a loss. The distraction and potential cost of the lawsuit, and the unknown impact of the market manipulation incident on investor trust.

🧠 The Analogy

Think of Cycurion as a house that just survived a storm. Last year (2025), the storm (government delays) damaged the roof and flooded the basement. Instead of just patching leaks, the owners spent the year replacing the foundation (debt reduction), stocking the pantry with food (cash), and planning a new, more efficient kitchen (AI/recurring revenue strategy). Now, with a solid base, they're ready to start cooking up growth again. Meanwhile, someone spray-painted a fake "For Sale" sign on their lawn, and they're now suing the vandal.

🧩 Final Takeaway

Cycurion endured a difficult first year as a public company but used the time to radically strengthen its financial foundation. While it reported a large accounting loss, its future looks anchored by a $112 million contract backlog and a strategic pivot to higher-margin AI services. Separately, it is aggressively fighting back against what it calls a fraudulent market manipulation scheme.