Cycurion announces Q2 strategic highlights

Cycurion (CYCU) plans to file its Quarterly Report on Form 10-Q for the second quarter ended June 30, 2025 with the U.S. Securities and Exchange Commission on Thursday, August 14, 2025. Ahead of the filing, the Company is highlighting its significant accomplishments, including a transformative alliance with IQSTEL, an innovative cryptocurrency strategy through Cycurion Crypto, and other key partnerships that strengthen its position for future growth. Strategic Highlights: IQSTEL Alliance and Stock Exchange: Cycurion and IQSTEL signed a Memorandum of Understanding for a $1 million stock exchange, creating a mutual equity partnership to develop an AI-driven cybersecurity platform for the global telecom industry. This alliance leverages Cycurion’s cybersecurity expertise and IQSTEL’s network of over 600 telecom operators to unlock cross-selling opportunities and drive innovation. Notably, half of the exchanged stock will be distributed as a dividend to Cycurion shareholders, thus enhancing shareholder value. Cryptocurrency Strategy: Through its wholly owned subsidiary, Cycurion Crypto, the Company has allocated $10 million from its $60 million equity line of credit to acquire Bitcoin and Ethereum as long-term holdings. This strategic initiative diversifies Cycurion’s financial portfolio, enhances shareholder value, and positions the Company at the forefront of the digital economy with a focus on transparency and regulatory compliance. The Company’s collaboration with the National Association of County and City Health Officials strengthens its delivery of high-margin cybersecurity solutions to public health organizations, addressing critical digital threats. The alliance with LSV-TECH International Consortium expands Cycurion’s Managed Security Services Platform Cyber Shield into Latin America, leveraging LSV-TECH’s relationships with Colombian universities and its global partnership with Nokia to reach 135 countries. On March 31, 2025, Cycurion acquired control of SLG Innovation, Inc. via a variable interest entity, enhancing its technology services portfolio and supporting long-term growth. Department of Government Efficiency (DOGE) budget cuts have contributed to a growing contract backlog, and management is focused on converting these delayed government contracts into revenue in the second half of 2025, particularly during the historically stronger third and fourth quarters. In the first half of 2025, Cycurion raised $0.3 million through an equity line and $3.7 million via warrant exercises, while converting outstanding convertible notes and promissory notes into equity to bolster its balance sheet. As of June 30, 2025, Cycurion reported total assets of $30.7 million, up from $25.6 million as of December 31, 2024, driven by goodwill from the SLG acquisition. Stockholders’ equity stood at $10.4 million, an increase from $5.4 million as of December 31, 2024, reflecting equity issuances and conversions. The Company reported a working capital deficit of $14.3 million and an accumulated deficit of $18.7 million, with management actively pursuing strategies to improve liquidity. Cycurion is focused on converting its growing backlog, driven by DOGE-related delays, into revenue during the second half of 2025, particularly in the historically stronger third and fourth quarters. The Company’s alliance with IQSTEL, cryptocurrency strategy, and partnerships with NACCHO and LSV-TECH, combined with its core offerings in advisory consulting, manage