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1. Cycurion is like "Palantir for government cybersecurity and AI solutions."

2. Cycurion is like "a high-tech Booz Allen Hamilton, specializing in advanced AI and cyber for national security."

3. Cycurion is like "a CrowdStrike or Palo Alto Networks, but building bespoke cybersecurity and intelligence solutions exclusively for the US government."

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• Cybersecurity Solutions: Provides robust cybersecurity services and technologies to protect critical infrastructure and data for government clients.
• Artificial Intelligence & Data Science: Develops and implements AI and machine learning capabilities for advanced data analysis and decision support in national security contexts.
• National Security Technology Solutions: Offers specialized engineering and technology integration services to address complex challenges in defense, intelligence, and other national security missions.

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Cycurion (CYCU) primarily sells its advanced technology solutions, including AI, cybersecurity, advanced analytics, and engineering services, to the U.S. federal government.

As such, its major customer is a governmental entity rather than a commercial company or individuals. The U.S. federal government is not a public company and therefore does not have a stock symbol.

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L. Kevin Kelly, Chairman and CEO

L. Kevin Kelly currently serves as the Chairman and CEO of Cycurion. He has extensive public company experience, having previously served as the CEO of Halo Privacy, a cybersecurity company. Prior to that, Mr. Kelly held leadership roles as CEO and President of Asia Pulp & Paper, one of the world's largest paper companies, and as CEO of Heidrick & Struggles International Inc. (Nasdaq: HSII), where he established the company as a global consulting firm operating in 60 countries. He has authored four books on the subject of leadership.

Alvin McCoy, Chief Financial Officer

Alvin McCoy is a co-founder of Cycurion and holds the position of Chief Financial Officer. Before co-founding Cycurion, Mr. McCoy was the Founding Principal and Managing Partner of Quantum Capital Partners, a merchant banking firm that focused on corporate financial advisory, real estate advisory, and niche structured finance transactions. He also served as the President and CEO of The McCoy Group, LLC.

Emmit McHenry, Co-Founder & Chairman of the Board

Emmit McHenry is a co-founder of Cycurion and currently serves as Chairman of the Board. Mr. McHenry has a history of founding several companies prior to Cycurion, including Archura, LLC, NetCom Solutions International, Inc., and Network Solutions, Inc., which was a significant Internet domain name service provider. His career also includes holding management positions at companies such as IBM, Connecticut General, Union Mutual, Valador, and Allstate Insurance Company.

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The key risks to Cycurion (CYCU) are primarily centered around its financial viability, regulatory compliance, and operational effectiveness.

1. Financial Distress and Going Concern Issues: Cycurion faces significant financial challenges, with its Altman Z-Score indicating financial distress and raising concerns about the company's long-term viability. The company has reported substantial net losses, negative operating margins, and a lack of revenue growth over the past three years. Additionally, it has experienced liquidity issues, including a working capital deficit and operating cash outflow, leading to substantial doubt about its ability to continue as a going concern.
2. Nasdaq Listing Compliance and Stock Price Volatility: Cycurion has encountered difficulties in maintaining compliance with Nasdaq listing requirements, including previous issues with timely financial report filings and the minimum bid price. While the company has recently regained compliance with certain rules, the risk of delisting due to failure to meet other ongoing standards, such as the minimum bid price, remains a concern and contributes to stock price volatility.
3. Challenges in Converting Contract Backlog to Revenue and Operational Inefficiencies: Despite securing multi-year contracts and reporting a significant backlog, Cycurion has faced delays in translating these contracts into realized revenue. This is attributed to typical lags between contract signing and service delivery, as well as customer-side deferrals. The company's financial metrics also highlight significant operational inefficiencies, with persistently negative margins indicating a struggle to convert business activities into profitable outcomes.

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The increasing trend of large cloud and technology platform providers (e.g., AWS, Microsoft Azure, Google Cloud) securing comprehensive, multi-billion dollar government contracts for integrated IT, cybersecurity, and AI solutions. This consolidation by major tech giants, offering end-to-end services, could limit direct prime contracting opportunities for smaller, specialized government contractors like Cycurion and potentially shift government procurement preferences away from fragmented service providers.

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Cycurion (CYCU) operates in several key markets related to cybersecurity and artificial intelligence (AI) solutions, primarily serving government agencies and commercial enterprises. The addressable markets for its main products and services are as follows:

• Global Cybersecurity Market: The global cybersecurity market size was valued at approximately USD 193.73 billion in 2024 and is projected to reach USD 562.77 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.40% during the forecast period. North America held a significant market share of 43.41% in this sector in 2024.

• Cybersecurity in Government Market: The global cybersecurity in government market is estimated to be approximately USD 190.2 billion in 2023 and is projected to reach USD 356.7 billion by 2030. Another estimate places the global government and public sector cybersecurity market size at USD 75.14 billion in 2025, expected to reach USD 137.59 billion by 2030, with North America commanding 38.64% of the global revenue in 2024.

• AI in Government and Public Services Market: The global AI in government and public services market size was estimated at USD 22.41 billion in 2024 and is projected to reach USD 98.13 billion by 2033, growing at a CAGR of 17.8% from 2025 to 2033. North America dominated this market with a 32.0% revenue share in 2024.

• Data Modernization Services: null

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Here are 3-5 expected drivers of future revenue growth for Cycurion (CYCU) over the next 2-3 years:

1. Conversion of Record Contract Backlog: Cycurion has a significant contracted backlog of $73.6 million, with multi-year agreements spanning 1-5 years. This backlog provides over 18 months of revenue visibility and is expected to drive increases in revenue in the third and fourth quarters of 2025.
2. Expansion and Monetization of AI-Driven Cybersecurity Platforms (ARx and Cyber Shield): The company is strategically investing in and expanding its proprietary AI-driven ARx platform and Cyber Shield offerings. These solutions are characterized by higher margins, with the ARx platform seeing margins upwards of 70%, and the full rollout of their AI software is anticipated to significantly increase margins and establish a recurring revenue model in 2026.
3. Growth Through New Client Acquisition and Strategic Partnerships: Cycurion is actively pursuing new client relationships and strategic partnerships, such as those with NACCHO, LSV-TECH S.A.S., and iQSTEL Inc. These collaborations and expanded market presence are foundational for sustainable revenue growth.
4. Focus on High-Margin Cybersecurity Services: The company is prioritizing and capitalizing on higher-margin opportunities within the cybersecurity sector. This includes a strategic shift towards capturing and retaining more profitable business and leveraging their innovative solutions in areas like comprehensive IT and cybersecurity, program management, and disaster recovery services.

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Share Repurchases

No information is available regarding dollar amounts of share repurchases made or authorized to be made over the last 3-5 years. The company's buyback yield has been negative, suggesting net issuance rather than repurchases.

Share Issuance

• In April 2025, Cycurion entered into an equity purchase agreement for the offer and sale of up to an aggregate of $15 million in shares of common stock to Yield Point NY LLC.
• Cycurion reduced its debt by $3.2 million through a debt-for-equity exchange involving Series G Convertible Preferred Stock in August 2025. An additional $3.5 million was converted from debt to equity in the second quarter of 2025.
• In September 2025, Cycurion executed a $1 million stock exchange with IQSTEL Inc., where each company issued $1 million worth of its common stock to the other.

Inbound Investments

• Cycurion converted $3.5 million from debt to equity in the second quarter of 2025, improving its financial position. This was also reported as a $3.2 million debt reduction in August 2025 through a debt-for-equity exchange involving Series G Convertible Preferred Stock.
• As part of a strategic alliance, Cycurion and IQSTEL Inc. completed a $1 million stock exchange in September 2025, where each company issued stock to the other.

Outbound Investments

• Cycurion pursued strategic acquisitions, including an MSA/Evergreen contract with SLG Innovation, Inc. which was finalized on March 31, 2025.

Capital Expenditures

• Cycurion's capital expenditures for the second quarter of 2025 were $104,000.
• The forecast for Cycurion's capital expenditures for the upcoming fiscal year is $227,973.
• The company is investing in its AI-driven ARx platform and Cyber Shield offerings to capitalize on higher-margin opportunities in the cybersecurity sector.