$5.1 Million Expected Boost to Annual Revenue and 8 Million Backlog via Accelerated Plan to Acquire Video Solutions Division of Kustom Entertainment: Cycurion, Inc. (Nasdaq: CYCU)

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$CYCU Has Released (Below) a New CEO Interview Covering New Contracts, Accelerating Business Momentum and Financial Milestones

* 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.

* Plan to Acquire the Video Solutions Division of Kustom Entertainment, Inc. Advanced in Time and Agreed to by Both Parties.

* Transaction Expected to Add $5.1 Million in Annual Revenue and $8.0 Million Backlog from Established Contracts and Recurring Subscription Revenue.

* CEO Kevin Kelly Discusses New Business Momentum and 2026 Growth Priorities in On-Line Interview.

* Multi-Year Contract Valued at $1 Million in First Year with Fortune 500 Company to Support Major Government Agency.

* Renewed Focus on Growth and Cost Efficiencies Toward Profitability by Saving Over $2.2 Million in 2026.

* Buy Rating with $7 Target Price Issued from Litchfield Hills Research.

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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Update on Revised Memorandum of Understanding to Acquire Kustom Entertainment's Legacy Video Solutions Segment

Both Parties Agree to Accelerate Closing Target Date to Beginning of June 2026

On April 21st CYCU provided an update on the revised non-binding Memorandum of Understanding ("MOU") with Kustom Entertainment, Inc. (NASDAQ: KUST) for the acquisition of Kustom's legacy video solutions segment. The transaction is expected to contribute approximately $5.1 million in annual revenue and an estimated $8.0 million backlog comprised of established contracts and recurring subscription revenue. These figures are based on the pro forma financials jointly prepared by both parties and are consistent with the segment's historical performance.

CYCU and Kustom Entertainment plan to work diligently to close the transaction as quickly as possible, targeting completion by the beginning of June 2026, subject to final due diligence, execution of a definitive agreement, and satisfaction of customary closing conditions.

The MOU remains non-binding, except with respect to certain customary provisions, including exclusivity (no-shop), confidentiality, and expense allocation, and supersedes the prior memorandum of understanding dated January 22, 2026, as amended. As previously disclosed, the agreed purchase price of $5.5 million includes a $1.25 million cash payment at closing and a $4.25 million secured promissory note, together with additional warrants and performance-based earn-out and clawback provisions, as further described in the MOU.

CEO Kevin Kelly Discusses Operational Execution, MultiYear Contract Momentum and 2026 Growth Priorities in Latest Interview

On April 20th CYCU announced the release of a new interview featuring Kevin Kelly, Chairman and Chief Executive Officer.

In the interview, Mr. Kelly reflects on developments over the past several months, including financial reporting, new contract awards, and operational initiatives aimed at strengthening efficiency and scalability. He emphasizes CYCU management focus on transitioning from restructuring to disciplined execution following the company's strategic reorganization, which is expected to generate more than $2.2 million in annual cost savings.

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The discussion also addresses CYCU performance following a challenging 2025, when delayed government spending and contract timing created near-term headwinds. Mr. Kelly outlines early indicators in 2026 that he believes support management's view that those pressures were transitory, pointing to renewed customer engagement, improving demand signals, and improved visibility across the company's pipeline.

Watch the full interview here: https://youtu.be/xQIOqTufAo4 [https://www.globenewswire.com/Tracker?data=UlYbEAYos4IcIbl8XIs2x7OuAnxalqlChS8d3n3nVK73jqsLfkUJ20erjYdV-E_diWdpkXDhgONyfMU0IO45sCiZpDmTrE5ZaOK3tpVqYMSllpVjwbPAcdUPOzNVvQg6]

Sale of Legacy Video Solutions Agreement with June 30th Closing Date

On April 17th CUCU announced the planned sale of the Kustom's Legacy Video Solutions Segment to CYCU for a payment of $5,500,000.

"The acquisition of Kustom's video solutions segment is a cornerstone of our portfolio expansion," added L. Kevin Kelly, Chairman and CEO of CYCU. "Our financial teams have worked closely to validate the pro forma outlook for this business, and we are eager to finalize the documentation and integrate these camera and software solutions into our broader technology offerings."

Multi-Year Contract Valued at Approximately $1 Million in First Year with Fortune 500 Company to Support Major Government Agency

On April 8th CYCU announced a strategic partnership with a Fortune 500 company. The collaboration will deliver advanced AI-driven cybersecurity solutions and application transition and delivery services in support of a major U.S. government agency.

The agreement is a multi-year contract with a minimum 5-year term. The CYCU portion is valued at approximately $1 million for the first year, reflecting strong initial scope with significant potential for expansion in subsequent years.

Through this partnership, CYCU will provide specialized expertise across AI implementation, infrastructure cybersecurity, and technical support. The AI-driven methodology is designed to modernize critical applications securely and efficiently, minimizing risks associated with large-scale transitions and enabling faster, more reliable delivery of mission-critical systems.

2025 Financial Results: Streamlining Costs While Investing in Next-Generation Technology Capabilities

On April 1st CYCU reported financial results for full year ended December 31, 2025 and provided a corporate update.

CYCU navigated a challenging year characterized by curtailed government contract spending and delays in contract starts due to the 2025 federal government shutdown and DOGE efficiency initiatives, while successfully executing a comprehensive recapitalization and strategic repositioning to support long-term scaling

CYCU reduced net debt by over 70%, ending the year at just under $3 million compared to $10.5 million at year-end 2024

Improved Liquidity: Over $5 million of cash at December 31, 2025

CYCU streamlined the preferred capital stack, leaving just over 400,000 convertible shares outstanding

$2.2 million in annualized cost-savings initiatives in early 2026 to align the Company's cost structure with the current operating environment

Gross Profit: $1.6 million for FY2025 vs $3.6 million in FY2024. In support of its strategy to shift toward higher-margin recurring revenue, CYCU increased investments in AI-enhanced technology and its ARx platform during 2025. CYCU anticipates margin expansion in 2026 driven by a transition toward a higher-margin recurring revenue sales mix.

Focus on Growth and Continued Cost Efficiencies Toward Profitability by Saving Over $2.2 Million in 2026

On February 11th CYCU announced a strategic business reorganization that will streamline operations, enhance organizational agility, and position the Company for long-term growth. This operational realignment aims to better position CYCU resources with its core mission of delivering superior cybersecurity solutions and addressing the emerging needs of its clients in an evolving digital landscape.

CYCU restructuring efforts are designed not only to optimize internal operations but also to ensure that its products and services continue to meet the demands of its diverse clientele. As part of this reorganization, CYCU will be realigning key resources and teams to enhance client engagement, strengthen service delivery, and accelerate innovation in areas such as cloud security, AI-driven risk management, and infrastructure protection.

As part of its streamlined operations, CYCU is taking steps to improve efficiency across personnel, operational, and administrative areas. These actions are expected to deliver approximately $2.2 million in total annualized cost efficiencies, while additional initiatives are underway to further strengthen the CYCU cost structure over time. These efforts support a stronger financial foundation and enable continued reinvestment in innovation, client delivery, and strategic growth initiatives.

CYCU also announced the appointment of Rick Finfera as Chief Revenue Officer to lead global sales strategy, focusing on expanding client relationships and driving sustainable revenue growth.

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Buy Rating and $7 Target Price in New Investment Report Issued from Litchfield Hills Research

On February 3rd CYCU announced that Litchfield Hills Research has initiated coverage on CYCU stock with a Buy rating and a $7.00 price target. The target represents significant upside potential from the current CYCU stock price level with InvestingPro [https://www.globenewswire.com/Tracker?data=QQZdZVa1Kj37nS8fw8-t1fq-xO7szTaZKJDJjr6rHfdthzOscXAk5p7_S2kk_qWYI_GcrEp9qmuHoMOFRYjmUVZ2Y7vVL78bHMnzznJRWoQ=] data showing the micro-cap company (market capitalization of just $10.68 million) is trading below its Fair Value.

Litchfield Hills Research highlighted Cycurion's $80 million contracted backlog, approximately four times its fiscal year 2024 revenue, which positions the company for significant revenue growth as contracts convert to billable work.

Even at the $7.00 price target, Litchfield Hills indicated CYCU would trade at 2.9x estimated 2026 revenue versus a peer average of 9.0x, reflecting what the firm called "a steep and unwarranted discount." This valuation perspective aligns with the company's current Price/Book ratio of just 0.53.

Investors may review the Litchfield Hills Research profile of Cycurion (CYCU) at this direct link: https://www.investing.com/news/analyst-ratings/litchfield-hills-initiates-cycurion-stock-with-buy-rating-on-backlog-strength-93CH-4463280 [https://www.globenewswire.com/Tracker?data=JTYX9le6axwS71GhUy462IBEn_sQX9SrApF6-q1S-ZKqJ-wh7ZFaG18RHrboXYMrzOy0ac_US773iaRTCWUTS1RsKgSXL5-KNPey6jfh2QqBN-lvaiXhAfUTDEchjXF6PYXSRDpZAT9UyL0H8R89phaIM1np5fk2O9yaKeXimtuDIBI9HdJpbzSwTI_7SRq7ced5TcHV1SrApIUQcNZODSVc3IGmtEuUQshtfJD1MRVsMEUNhhtT2fbLEin-JmjcPVUHDPZH1bepqKDI24OVMr8nIkvtjeK_iH1bhudTfiof2POSCaoBRuNTeSRKztuWVM0misrKRoZOw8gWHXv5gULI2s9mC5AfxqizOatzddZXpwiI66C2rGhzL43VYVwt6JzDUcBubctAE1hInqj_yg==].

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

Email: info@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=51-million-expected-boost-to-annual-revenue-and-8-million-backlog-via-accelerated-plan-to-acquire-video-solutions-division-of-kustom-entertainment-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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