Powerful Commitment to Defending Shareholder Value Against Improper Trading Actions with Decision for No Reverse Split on Cycurion, Inc. (Nasdaq: CYCU)

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$CYCU is Delivering Real Corporate Growth Including a Ten Year, $58 Million Contract and $8 Million of Contracted Backlog

* 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.

* Completed Asset Purchase Agreement to Acquire Kustom Entertainment's Legacy Video Solutions Segment with 1,000 New Clients and Approx. 58 Patents.

* Legacy Video Solutions Generated $5.1 Million in Annual Revenue with $8.0 Million in Backlog from Recurring Subscriptions and Multi-Year Contracts.

* Completed Acquisition of Secuvant and Flagship Panoptic Platform for AI-Driven Cybersecurity with Automated, Scalable Threat Defense

* Acquisition of Halo Privacy and Integration of HavenX, Creating AI-Driven Platform for Government-Grade Secure Communications and Active Defense.

* Halo Privacy is a Pioneer in Security Communications with Over 10 Years of Specialized Expertise Generating Approximately $7 Million in Annual Revenue.

* HavenX Brings World-Class Digital Investigations, OSINT, Attribution, Cyber-Harassment Tracking and Threat Actor Identification Expertise.

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.

CYCU Management Declines Reverse Stock Split and Intensifies Actions Against Suspected Market Abuse

On July 8th CYCU issued a Letter to Shareholders from Kevin Kelly, Chairman and Chief Executive Officer. Key commentary included the following:

The Company's first obligation is to protect and build CYCU shareholder value, and to maintain our listing through sustainable, fundamentals-driven performance rather than short-term price optics. CYCU has determined that a previously considered reverse stock split is not in the best interest of shareholders at this time.

The most reliable way to protect and grow CYCU shareholder value is to build a stronger, more profitable company. Over the past year CYCU completed two strategic acquisitions: Digital Ally, which contributed approximately $5.1 million in revenue, and Secuvant, which contributed approximately $2.5 million - each expanding the CYCU cybersecurity platform, deepening customer relationships, and adding recurring, high-value services to cross-sell across the base.

CYCU grew organic revenue to approximately $15.5 million and lifted its annual revenue run rate to approximately $28 million. CYCU secured a new ten-year contract valued at $58 million and built approximately $8 million of contracted backlog, giving the Company multi-year revenue visibility.

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Revenue Composition & Annual Run Rate

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Contracted & Committed Forward Value

CYCU management feels that its stock has been the target of trading activity inconsistent with fair and orderly markets is not speculation. In October 2025, approximately 89.9 million shares of CYCU changed hands in a single session against a float of roughly 86.5 million shares. More than 100% of the float turned over in a single day - an event that, in Management's view, is not consistent with legitimate market activity.

The pattern was repeated this spring. On March 16, 2026, CYCU fell approximately 45% intraday - from a prior close near $1.75 to a low of $0.96 - triggering the Regulation SHO Rule 201 short-sale circuit breaker at 9:30:01 a.m. That safeguard is meant to restrain short selling once a stock has dropped 10% or more. Yet on precisely the two days the restriction was in force (March 16 and 17), the records reflect a pronounced surge in short sales, most marked "short exempt" - a designation that, if misused, permits short selling to continue at or below the prevailing bid during the window when it is supposed to be curtailed. The chart below shows both the price collapse and the concentration of short-exempt selling on those two restricted days.

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CYCU price collapse and restricted-day short selling (Feb-Mar 2026)

Trading ecords suggest CYCU trading behavior consistent with additional acts of manipulation, including 'spoofing' - including an unusually high number of orders placed and executed, followed by rapid sequencing of cancellations, creating a false impression of supply and demand.

CYCU intends to follow the evidence and, if appropriate, pursue those parties responsible for improper trading and market manipulation. In connection with these efforts, CYCU is in contact with NASDAQ regarding this trading activity and the actions CYCU is taking, and will continue to work with the exchange as the investigation proceeds.

Asset Purchase Agreement to Acquire Kustom Entertainment's Legacy Video Solutions Segment with 1,000 New Clients and Approximately 58 Patents

On June 29th CYCU announced that it has entered into an Asset Purchase Agreement, dated with Kustom Entertainment, Inc. (NASDAQ: KUST) to acquire substantially all of the assets comprising Kustom's video-solutions division, including the development, sale, licensing, support and servicing of video hardware, camera products, platforms, software and software solutions.

The business includes the well-established Digital Ally-branded in-car video systems, body-worn cameras, and digital evidence management solutions used by law enforcement agencies, municipalities, and public safety organizations across the United States. Kustom currently holds a robust portfolio of approximately 58 patents covering video surveillance, evidence management, and integration technologies, with more patents pending - strengthening its leadership in AI-enhanced rugged video capture, real-time analytics, and secure evidence management.

By combining Kustom's proven video and evidence management capabilities with the CYCU ARx AI-powered cybersecurity platform and the recently acquired Panoptic threat visibility and MDR solutions, CYCU expects to create a differentiated, full-spectrum offering that enhances recurring revenue and supports profitable growth.

Upon closing, CYCU expects to gain access to approximately 1,000 new customer relationships, including numerous police departments and municipal agencies where the Company already provides cybersecurity and managed services. These overlapping relationships create immediate opportunities for cross-selling integrated video, evidence management, and AI-driven security solutions.

The business generated approximately $5.1 million in annual revenue and holds approximately $8.0 million in contracted backlog, primarily from recurring subscriptions and multi-year contracts.

Acquisition of Secuvant, LLC and Flagship Panoptic Cybersecurity Platform

On June 9th CYCU announced the successful closing of its acquisition of Secuvant, LLC, the creator of the groundbreaking Panoptic platform, through a merger transaction completed on June 2, 2026. Panoptic's industry-leading continuous threat and vulnerability visibility, intelligent prioritization, and real-time security insights will significantly expand the CYCU product portfolio and enhance its ability to deliver higher-margin, recurring revenue solutions to enterprise and government clients.

Under the terms of the CYCU Agreement, Merger Sub merged with and into Secuvant in a reverse merger transaction, with Secuvant surviving the merger as a wholly owned subsidiary of CYCU.

Strategic Benefits:

Higher-Margin Expansion: Adds a premium, SaaS-like recurring revenue platform to the portfolio.

Product Leadership: Broadens CYCU cybersecurity offerings with best-in-class threat visibility and prioritization capabilities.

Accelerated Growth: Creates cross-selling opportunities and strengthens the CYCU position in a fast-growing market.

Aligned Economics: Structured with performance-based earn-outs tied directly to Panoptic's future success.

Chief Financial Officer Transition with Appointment of Ana Garcia

On May 28th CYCU announced the appointment of Ana Garcia as Chief Financial Officer. Ms. Garcia succeeds Alvin McCoy III, who will step down as Chief Financial Officer on May 31, 2026 and transition into a strategic advisory role focused on advancing CYCU strategic growth initiatives. Ms. Garcia brings more than 20 years of senior finance leadership experience across public and private technology companies, including businesses in financial services, tech-enabled services and subscription software.

Acquisition of Halo Privacy and Integration of HavenX, Creating AI-Driven Platform for Government-Grade Secure Communications and Active Defense

On May 20th CYCU announced the strategic acquisition of Halo Privacy and the full integration of HavenX, which is expected to close at the end of June 2026, significantly expanding its portfolio of elite, mission-critical security capabilities. This combination unites two highly respected teams and their complementary technologies to deliver an end-to-end integrated solution for high-stakes government and private-sector clients operating in hostile digital environments.

Halo Privacy, a trusted leader in secure communications since 2015, generated $7 million in total revenue in 2025, including $5.5 million in high-quality annual recurring revenue (ARR) and strong gross margins. The company's predictable, high-margin recurring revenue model is anchored by long-term contracts with U.S. government agencies, which represent approximately 95% of its business, along with preferred vendor status and an exceptional track record of renewals. Momentum is accelerating following the award of a multi-year, multimillion-dollar government contract in March 2026.

HavenX brings world-class digital investigations, OSINT, attribution, cyber-harassment tracking, and threat actor identification expertise that complements Halo Privacy's advanced privacy and secure communications infrastructure. Together, they create a seamless, AI-augmented platform that protects users from link analysis and data compromise while enabling proactive intelligence and decisive active defense capabilities.

With this integration, CYCU is now accelerating its expansion into the private sector, bringing the same government-proven privacy and security technologies - enhanced by AI-powered applications including the Halo Link secure messaging app - to high-net-worth individuals, investment banks, healthcare organizations, R&D-intensive enterprises, law firms, C-suite executives, and other organizations that require the highest levels of protection.

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

Email: info@cycurion.com [mailto: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=powerful-commitment-to-defending-shareholder-value-against-improper-trading-actions-with-decision-for-no-reverse-split-on-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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