Acquisition of Kustom Entertainment, Inc. (Nasdaq: KUST) to Enhance Integrated Public Safety: $80 Million Revenue Backlog for AI Cybersecurity Solutions Firm: Cycurion, Inc. (Nasdaq: CYCU)

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Cycurion, Inc. (Nasdaq: CYCU) $CYCU will increase revenues by approximately $5.1 million, or 35% in 2026 compared to 2025, and approximately $8.0 million in backlog from Kustom's established contracts

* Cybersecurity Leader Addressing the Growing Threat of Cyber Attacks and Data Breaches with a Multi-Layered SaaS Solution.

* Serving Some of the Most Complex Government Agencies and Corporations in the World Including Fortune 100 and 500 Companies.

* Clients and Partners Include: US Dept. of Defense, Defense Intelligence Agency, Dept. of Homeland Security, US Navy and Major Private Sector Companies.

* Delivering State-of The-Art, Al-Infused Proprietary Technology Being One of the First to Marry AI and Cybersecurity.

* MOU to Acquire the Video Solutions Division of Kustom Entertainment, Inc.

* Acquisition Expected to Enhance Integrated Public Safety and Cybersecurity Solutions with Higher Revenue and Cross-Selling Opportunities.

* CYCU Debuts on MSSP Alert's 2025 Top 250 MSSPs List, Ranking No. 116 and Earning Top-Tier Industry Recognition.

* Updated Dividend Distribution Ratio of 0.0180 in Connection with $500,000 Common Share Dividend to Be Paid on or About December 30th.

* $6.0 Million Private Placement Priced At-the-Market with a Single Institutional Investor.

* Award of Statewide Management Consulting Services Term Contract by the Florida Department of Management Services.

* Strong Q3 2025 Results and Momentum Into Q4 2025.

* First Quarter 2026 Run-Rate Revenue Expected to be Approximately $4.17 Million, Translating to an Annual Run Rate of Approximately $16.66 Million.

* Strategic Investments in People and Technology Drive Sustained Growth, $80M+ Contract Backlog, and Expanding Pipeline.

Cycurion, Inc. (Nasdaq: CYCU) is a tech-enabled cybersecurity firm that serves some of the most complex government agencies and corporations in the world including Fortune 100 and 500 Companies. Founded by internet pioneer Emmit McHenry - who directly oversaw the first internet protocols and the creation of .com domains - CYCU brings an unparalleled blend of vision, technology, and experience to every project. More than just an MSSP or strategic advisor, CYCU is a full-service security partner capable of guiding any organization through the modern cyber threat landscape.

The flagship Cycurion ARx platform is a unified cybersecurity solution for protecting critical digital assets. Multi-layer protection is focused on inspecting requests to and responses from a digital asset. This non-invasive approach wraps around a digital asset - without hardware requirements or cloud installations - while keeping the client's IP completely private. With every request inspected, malicious threats are logged and blocked in real-time before reaching the asset. This CYCU multi-layer model of cybersecurity is intended to thwart potential attackers via an expanding set of protective layers.

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Memorandum of Understanding ("MOU") to Acquire the Video Solutions Division of Kustom Entertainment, Inc.

On January 22nd CYCU announced that it has entered into a Memorandum of Understanding ("MOU") to acquire the video-solutions division of Kustom Entertainment, Inc. (NASDAQ: KUST), a pioneer in mobile video surveillance technologies, including body-worn cameras, in-car video systems, and digital evidence management solutions for law enforcement, public safety, and commercial sectors.

The contemplated CYCU transaction is valued between $6.0-8.4 million based on the pro forma financial information agreed upon by the parties, with the purchase price to be paid in $1.0-1.4 million of cash and the remainder in Cycurion preferred stock. This enables CYCU to engage in what it believes is a highly accretive acquisition with minimal cash outlay. The addition of Kustom's video-solutions division is anticipated to increase CYCU revenues by approximately $5.1 million, or 35% in 2026 compared to 2025, and approximately $8.0 million in backlog from Kustom's established contracts and recurring subscription models, which may build on the Company's strong momentum and forecasted run-rate growth.

The acquisition is expected to be accretive to the CYCU earnings profile through:

Immediate Revenue and Backlog Addition: Approximately $5.1 million in annual revenue from Kustom's subscription-based video storage, cloud management, and service contracts, plus an $8.0 million secured backlog providing strong visibility into future revenues.

Equity-Heavy Structure: Predominantly paid in Cycurion preferred stock, preserving cash for growth initiatives while aligning Kustom shareholders with CYCU long-term upside.

Margin Expansion and Synergies: Integration of high-margin recurring models with CYCU cybersecurity services enables bundled offerings, operational efficiencies, and accelerated profitability in the mission-critical public safety market.

The MOU, it is expected to provide CYCU immediate access to Kustom's extensive client footprint, which includes agencies from all 50 U.S. states and more than 30 countries, as well as a substantial base of law enforcement, commercial fleet, and event security customers. Kustom has built a broad network serving thousands of end-users through its deployments, including over 300 subscription contracts for its video solutions as of 2025 supporting thousands of individual officers, departments, and organizations.

CYCU Debuts on MSSP Alert's 2025 Top 250 MSSPs List, Ranking No. 116 and Earning Top-Tier Industry Recognition

On December 16th CYCU announced its selection to the 2025 MSSP 250 ranking. CYCU now stands among the world's top leading managed security services providers, according to MSSP Alert, a CyberRisk Alliance resource. CYCU earned a placement in the top 50%, debuting at No. 116. This marks the Company's first year being evaluated for this prestigious ranking of global cybersecurity leaders.

Updated Dividend Distribution Ratio of 0.0180 in Connection with $500,000 Common Share Dividend to Be Paid on or About December 30th

On December 11th CYCU announced that, in connection with the previously announced private placement on December 5, 2025, it is updating its dividend distribution ratio to 0.0180 CYCU common shares for every existing CYCU common share (on a fully diluted basis) held as of the record date, or December 15, 2025, for the previously announced special dividend of CYCU shares valued at $500,000. The dividend is payable on or about December 30, 2025.

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$6.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules with a Single Institutional Investor

On December 4th CYCU announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 1,657,460 shares of common stock and warrants. The agreement is to purchase up to 3,314,920 shares of CYCU common stock at an effective combined price of $3.62 per share and common warrants for aggregate gross proceeds of approximately $6 million. The warrants will also have an exercise price of $3.62 per share.

Award of Statewide Management Consulting Services Term Contract by the Florida Department of Management Services

On December 2nd CYCU announced that it has been officially awarded a position on the State of Florida's Management Consulting Services State Term Contract. This award positions CYCU as an approved vendor eligible to provide expert management consulting services to state agencies and all Eligible Users across Florida.

Under the terms of the statewide contract, CYCU may deliver services aligned with the Management Consulting Services Scope of Work, including strategic planning, program management, organizational assessments, process improvement, policy analysis, and other advisory and consulting services.Through this award, CYCU has the opportunity to bring its extensive government consulting expertise, operational insight, and commitment to service delivery excellence to support Florida agencies statewide.

Q3 2025 Results and Strong Momentum Into Q4 2025 with Run-Rate Revenue Climbing to $4.2 Million in Q1 2026

On November 14th CYCUannounced its financial results for the third quarter ended September 30, 2025, alongside continued revenue acceleration into the fourth quarter of 2025. CYCU has strategically invested in high-caliber talent and technology and is delivering compounding returns with a contract backlog exceeding $80 million, a new data modernization contract for SLG Innovation, Inc. ("SLG") and a forecasted first quarter of 2026 run-rate revenue of $4.2 million.

CYCU Q3 2025 Financial Highlights:

Revenue: $3.83 million for third quarter 2025 (down 13.9% YoY from $4.45 million), and $11.59 million for the nine months ended September 30, 2025 (down 15.4% YoY from $13.69 million), reflecting a deliberate pivot to more profitable SLED contracts amid merger-related disruptions.

Gross Profit: $0.27 million for the third quarter 2025 (7.1% margin), and $1.18 million for the nine months ended September 30, 2025 (10.2% margin).

Balance Sheet Strength: Total assets grew 26.4% to $32.31 million, with cash increasing significantly to $3.65 million (from $0.04 million at year-end 2024).

Cash Flows: Net financing inflow of $10.78 million for the nine months ended September 30, 2025 (capital raises of $5.87 million and warrant exercises of $3.66 million) enabling $8.77 million operating cash outflow, positioning CYCU for growth execution.

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CYCU Q4 2025 and Q1 2026 Momentum: Run-Rate Acceleration Underway

New SLG Contract: Forecasted to contribute $26,500 in November 2025, scaling to $283,042 monthly by January 2026, which is a 10x increase in just 60 days, bolstering the state, local and education revenue base.

Cycurion-Branded Revenue: Kicks off in December 2025 at $12,500, ramping to $58,333 monthly by January 2026, which demonstrates channel and co-sell strategies with high-margin Cyber Shield solutions.

Total Forecasted Revenue: Given the factors mentioned above, CYCU expects first quarter 2026 run-rate revenue to be approximately $4.17 million, translating to an annual run rate of approximately $16.66 million.

For more information on $CYCU visit: http://www.cycurion.com

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Media Contact
Company Name: Cycurion, Inc.
Contact Person: Kevin Kelly, Chairman & CEO
Email: Send Email [http://www.universalpressrelease.com/?pr=acquisition-of-kustom-entertainment-inc-nasdaq-kust-to-enhance-integrated-public-safety-80-million-revenue-backlog-for-ai-cybersecurity-solutions-firm-cycurion-inc-nasdaq-cycu]
Phone: 888-341-6680
Address:1640 Boro Place 4th Floor
City: McLean
State: Virginia
Country: United States
Website: http://www.cycurion.com

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