Cycurion, Inc. reported a net loss of $10.2 million for the first quarter of 2025, a significant increase from a loss of $312,475 in the same period last year. The company's revenues decreased by 8.79% to $3.87 million, down from $4.24 million in the prior year, primarily due to delayed start dates for new contracts. Despite the revenue decline, gross profit improved to $677,763 from $346,714, reflecting a reduction in the cost of revenues, which fell to $3.19 million from $3.90 million.
The company's selling, general, and administrative expenses surged to $10.78 million, a 2,743% increase compared to $378,977 in the previous year. This rise is attributed to costs associated with merger and acquisition activities. Cycurion's total assets increased to approximately $31.6 million as of March 31, 2025, up from $25.6 million at the end of 2024, largely due to a rise in goodwill following the acquisition of SLG Innovation, Inc. The company’s accumulated deficit also widened to $13.46 million from $3.20 million.
Operationally, Cycurion has been focusing on strategic acquisitions to bolster its cybersecurity offerings. The company completed a business combination with Western Acquisition Ventures Corp. on February 14, 2025, which has been accounted for as a reverse recapitalization. This transaction has positioned Cycurion to leverage its expanded capabilities in the cybersecurity market. The company also reported a significant increase in its employee headcount, reflecting its growth strategy.
Looking ahead, Cycurion faces challenges in maintaining compliance with Nasdaq listing requirements, as it has received notifications regarding deficiencies in its stock price and market value. The company has until October 2025 to regain compliance. Management is actively seeking additional financing to support operations and growth initiatives, emphasizing the need to generate positive cash flows to sustain its business model. The outlook remains cautious, with expectations of continued operating losses in the near term as the company navigates its growth strategy and market conditions.
About Cycurion, Inc.
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