Cycurion Files Video Solutions Financials: $5.1M 2025 Revenue, $5.3M Goodwill on $5.3M Deal
CYCU sits 34% above its 52-week low of $2 on light trading volume (0.1× avg).
Summary
Cycurion's 8-K/A supplies the first financials for the video business it bought from Kustom/Digital Ally: $5.1M of 2025 revenue, a $649,830 operating shortfall, and $5.3M of goodwill against a $5.3M purchase price funded mostly with a seller note and preferred stock.
Key Events · M&A and Partnerships · CYCU
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Acquired Business Financials Disclosed
The Video Solutions Business posted FY2025 revenue of $5,100,757 and revenues less direct expenses of $(649,830); 1H2026 revenue was $2,250,619 with a $(1,011,480) shortfall.
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Deal Priced at $5.3M, Mostly Non-Cash
Total preliminary consideration of $5,323,191 comprises $1,250,000 cash, a $3,558,267 fair-valued secured note (face $4,250,000 at 7%), and $514,924 of Series H Preferred (stated $600,000, 12% dividend, convertible at $11.60).
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Goodwill Absorbs Nearly Whole Price
With no identifiable intangibles yet valued, $5,309,136 of the $5,323,191 purchase price was booked as goodwill, creating future impairment exposure.
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Pro Forma Cash Falls to $623,287
Pro forma combined cash after the $1,250,000 cash payment is $623,287; pro forma FY2025 net loss attributable to common stockholders is $(24,459,400) on revenue of $22,570,960.
Analysis · CYCU · Technology
This amendment finally puts numbers on the Digital Ally video business Cycurion closed on August 3, 2026. The acquired unit generated $5.1 million of revenue in 2025 but lost $649,830 at the revenue-less-direct-expenses line, and it brings $6.6 million of deferred revenue and $4.9 million of subscription receivables onto the balance sheet. Payment came largely in paper: only $1.25 million in cash, against a $4.25 million face-value seller note carried at a $3.56 million fair value and $600,000 of 12% Series H preferred convertible at $11.60. Because no intangibles have been valued yet, almost the entire $5.3 million purchase price landed in goodwill ($5.3 million), leaving future impairment risk on the balance sheet. Pro forma cash drops to $623,287 after the cash payment, which is thin for a company that has previously disclosed going-concern doubt.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 31% of the 1656 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.01%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CYCU was trading at $2.69 on NASDAQ in the Technology sector, with a market capitalization of approximately $8M. The 52-week trading range was $2.00 to $56.59. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.