Cycurion Reports Full Year 2024 Financial Results
Adjusted EBITDA of $2.3 million (+59% y/y); Generated $1.2 million of Net Income
MCLEAN, Va., April 17, 2025 (GLOBE NEWSWIRE) -- Cycurion (Nasdaq: CYCU) ("Cycurion" or the "Company"), a trusted leader in IT cybersecurity solutions and AI, reports financial results for full year ended December 31, 2024, and provides a corporate update highlighting a year of strategic execution, operational discipline, and solid financial performance.
Cycurion is poised for a strong 2025, driven by a strategic overhaul focused on sustainable growth and innovation. Over the past year, the company streamlined operations, significantly cutting General and Administrative (G&A) expenses while boosting gross profit for greater financial strength. Cycurion invested heavily in AI-driven technology, sharpening its competitive edge. By pivoting away from low-margin clients to high-value opportunities, the Company has built a robust framework for organic growth while paving the way for expansion, entering 2025 with clear momentum and vision.
Financial Highlights
-- Revenues of $17.8 million
-- SG&A expenses reduced by 47.5%, demonstrating operational efficiency and
tighter strategic focus
-- Adjusted EBITDA of $2.3 million, up 58.9% year-over-year with an expanded
margin of 12.9% vs $1.4 million (7.4% margin) in FY2023, reflecting
strong cost management and scalable operations
-- Net income of $1.2 million, a significant turnaround from a net loss of
$2.1 million in FY2023 -- marking Cycurion's first full year of net
profitability
-- Earnings per share improvement to $0.07 basic and $0.01 fully diluted,
versus $(0.14) in both categories in FY2023
-- Free Cash Flow improvement to $(1.8) million from $(2.5) million despite
growth investments in personnel and platform development
2024 & YTD 2025 Strategic, Technological and Corporate Milestones
Cycurion significantly expanded its next-generation product and services portfolio, further solidifying its position as a trusted partner in advanced cybersecurity solutions:
-- Listed & Began Trading on Nasdaq: Completed merger with Western
Acquisition Ventures in February 2025
-- U.S. Launch of AI-driven SaaS ARx Cybersecurity Platform: New high margin,
AI-driven cybersecurity solution expands Company's reach following strong
initial reception in the government and public sectors in March 2025
-- Launched Cyber Shield Managed Security Services Platform (MSSP) Launch:
Includes SOC as Service, External Attack Surface Management, Web
Application Firewall and Virtual CISO Support & Consulting
-- Expanded Partnership with Journal Technologies: Secured $22 million
multi-year contract with State Police Agency
-- Strengthened Board of Directors Appointing Two Highly Accomplished IT
Professionals: Kevin O'Brien and Reginald Bailey bring a combined 55
years of IT, Big Data and AI industry, entrepreneurial and C-suite
experience to Cycurion
Management Commentary
Kevin Kelly, Cycurion CEO, stated, "We are pleased with Cycurion's 2024 performance, especially with our ability to produce meaningful adjusted EBITDA growth coupled with positive net income of $1.2 million. This is particularly significant given an 8.2% revenue decrease due to non-recurring, one-time equipment purchases in 2023. Our strong foundation positions us for continued growth with tremendous momentum with both current and new clients, which will become evident over the next 3-6 months underpinning our belief of a promising 2025."
About Cycurion
Based in McLean, Virginia, Cycurion $(CYCU)$ 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 with a commitment to securing the digital future.
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-4, 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 that filing 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.
Investor Contact:
CORE IR
investors@cycurion.com
Media Contact:
Phone: (703) 555-0123
Email: media@cycurion.com
Non-GAAP Financial Measures
Statements in this release include financial information presented in accordance with accounting principles generally accepted in the United States ("GAAP") and also include non-GAAP financial measures that are provided as additional information to enhance the overall understanding of the Company's current financial performance and not as an alternative to the consolidated interim financial statements presented in accordance with GAAP. Management uses these non-GAAP measures (earnings before interest, taxes, depreciation, and amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow) to evaluate the Company's financial performance. These terms might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. The financial information tables that accompany this press release include reconciliations of net income to non-GAAP financial measures.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin provide a measure of the Company's operating results in a manner that is focused on the performance of the Company's core business on an ongoing basis, by removing the effects of non-operating and certain non-cash expenses. These non-operating and non-cash items are specifically identified in the reconciliations of GAAP measures to Non-GAAP measures that accompany this release.
Free Cash Flow provides useful information to investors about the amount of cash generated by the business that can be used for strategic opportunities and is computed as Cash Flows from Operating Activities less both the Purchase of Property and Equipment & Purchase of Intangible Assets.
CYCURION, INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2024 2023
-------------- --------------
Assets
Current assets
Cash $ 38,742 $ 607,869
Restricted cash 2,048 -
Accounts receivable, net 10,353,708 7,093,371
Other receivables 434,391 455,979
Due from sponsor 106,421 -
Note receivable - WAVS - 200,000
Prepaid expenses and other
current assets 99,463 56,015
---------- ----------
Total current assets $ 11,034,773 $ 8,413,234
Non-current assets
Deposit for acquisition target 2,000,000 2,000,000
Fixed assets, net 4,175,169 3,779,310
Intangible assets, net 25,000 -
Security deposits 10,351 10,351
Goodwill 6,592,304 6,592,304
Investments held in Trust Account 1,834,540 -
---------- ----------
Total non-current assets 14,637,364 12,381,965
---------- ----------
Total Assets $ 25,672,137 $ 20,795,199
========== ==========
Liabilities, Mezzanine and
Stockholders' Equity
Current liabilities
Bank loan-revolving credit line 3,249,067 2,996,753
Bank loan-current portion 774,095 742,141
Loans payable 408,516 408,516
Subordinated convertible
promissory notes 3,333,335 3,333,335
Promissory notes 2,624,111 1,561,111
Loans payable - related parties (325,600) 587,400
Accounts payable 3,552,674 2,066,760
Due to Trust Account 106,421 -
Accrued liabilities 3,601,242 2,158,255
Income Tax Payable 12,500 -
Franchise tax payable 13,200 -
Excise tax payable 1,157,161 -
Advance from Sponsor 330,000 -
Deferred revenue 189,150 253,902
---------- ----------
Total current liabilities 19,025,872 14,108,173
Long-term loan payable 146,798 146,798
Series A convertible preferred
stock ($0.001 par value, 500,000
shares designated, 345,528
issued and outstanding) 1,294,117 1,294,117
---------- ----------
Total non-current liabilities 1,440,915 1,440,915
---------- ----------
Total Liabilities $ 20,466,787 $ 15,549,088
---------- ----------
Commitments and contingencies
Mezzanine Equity
Common stock subject to possible
redemption, $0.0001 par value,
173,879 shares at redemption
value of approximately $11.03
per share at December 31, 2024 1,917,309 -
Stockholders' Equity
Preferred stock ($0.0001 par value,
20,000,000 shares authorized)
Series B convertible preferred
stock ($1.00 stated value, 3,000
shares designated, 3,000 and
2,000 issued and outstanding,
respectively) - -
Series C convertible preferred
stock ($82.46 stated value,
5,000 shares designated, 4,851
issued and outstanding) - -
Common stock ($0.0001 par value,
70,000,000 shares authorized,
10,592,607 and 7,341,607 shares
issued and outstanding) 1,059 1,028
Additional paid in capital 6,670,060 9,678,045
Accumulated deficit (3,383,078) (4,432,962)
---------- ----------
Total Stockholders' Equity 3,288,041 5,246,111
---------- ----------
Total Liabilities and Stockholders'
Equity $ 25,672,137 $ 20,795,199
========== ==========
CYCURION, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
Years ended
December 31,
-------------------------
2024 2023
----------- -----------
Net revenues $17,582,335 $19,350,208
Cost of revenues 14,136,742 16,707,148
---------- ----------
Gross profit 3,445,593 2,643,060
Operating expenses:
Selling, general and administrative
expenses 1,215,763 2,316,649
---------- ----------
Operating income (loss) 2,229,830 326,411
Other income (expenses):
Interest income 20,211 -
Interest expense (1,202,936) (2,074,089)
Other income 28,020 -
Other expense (25,241) (345,548)
---------- ----------
Other income (expenses) (1,179,946) (2,419,637)
---------- ----------
Profit (loss) before income taxes 1,049,884 (2,093,226)
Provision before income taxes - 3,787
---------- ----------
Net income (loss) $ 1,049,884 $(2,097,013)
========== ==========
Comprehensive income (loss) $ 1,049,884 $(2,097,013)
========== ==========
Net income (loss) per common share
Basic income (loss) per common share $ 0.07 $ (0.14)
========== ==========
Diluted loss per common share $ 0.01 $ (0.14)
========== ==========
Basic and diluted weighted average
common shares outstanding 14,968,215 14,782,442
========== ==========
Diluted weighted average common shares
outstanding 89,495,790 14,782,442
========== ==========
CYCURION, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended
December 31,
-------------------------
2024 2023
----------- -----------
Cash flows from operating activities
Net income (loss) $ 1,049,884 $(2,097,013)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities:
Stock based compensation 10,000 327,499
Amortization of debt discount - 1,094,131
Depreciation of fixed assets 27,142 25,822
Changes in operating assets and
liabilities:
Change of right of use asset and
lease liabilities - (7,810)
Accounts and other receivables (3,238,749) (4,636,805)
Advance and prepayments to
suppliers (43,448) (40,917)
Accounts and other payables 908,854 3,105,223
Accrued interest (20,211) -
Deferred revenue (64,752) 242,099
---------- ----------
Net cash used in operating activities (1,371,280) (1,987,771)
---------- ----------
Cash flows from investing activities
Acquisition of WAVS 2,048 -
Promissory note issued by WAVS (439,114) (200,000)
Purchase of plant and equipment (423,001) (506,707)
Purchase of Intangible asset (25,000) -
---------- ----------
Net cash used in investing activities (885,067) (706,707)
---------- ----------
Cash flows from financing activities
Proceeds from private placement 1,000,000 2,000,000
Net proceeds from line of credit 252,314 5,346
Proceeds from all bank borrowings - -
Repayment of all bank borrowings 31,954 (193,305)
Proceeds from loans payable - 339,500
Repayments of loans payable - (29,379)
Proceeds from notes payable by WAVS 255,000 -
Proceeds from notes payable 205,000 550,000
Proceeds from notes payable -
related parties 15,000 534,000
Repayments of notes payable -
related parties - -
---------- ----------
Net cash provided by financing
activities 1,759,268 3,206,162
---------- ----------
Net change in cash and restricted cash (497,079) 511,684
Cash --beginning of period 607,869 96,185
---------- ----------
Cash--end of period $ 110,790 $ 607,869
========== ==========
Restricted cash - end of period $ 2,048 $ -
========== ==========
Cash - end of period $ 38,742 $ -
========== ==========
Supplementary cash flow information:
Interest paid $ - $ 501,337
========== ==========
Income taxes paid $ - $ -
========== ==========
CYCURION, INC. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited)
Years ended
December 31,
------------------------
2024 2023
Net income (loss) $1,049,884 $(2,097,013)
Provision for income taxes - 3,787
Interest expense 1,202,936 2,074,089
Interest income (20,211) -
Amortization of debt discount - 1,094,131
Depreciation of fixed assets 27,142 25,822
--------- ----------
EBITDA (non-GAAP measure) $2,259,751 $ 1,100,816
Stock compensation expense 10,000 327,499
--------- ----------
Adjusted EBITDA (non-GAAP measure) $2,269,751 $ 1,428,315
========= ==========
(END) Dow Jones Newswires
April 17, 2025 08:00 ET (12:00 GMT)
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