Cycurion, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Cycurion, Inc. (CYCU) on July 23, 2026. The filing addresses an amendment to a previously announced Asset Purchase Agreement with Kustom Entertainment, Inc., regarding the acquisition of Kustom's video-solutions division.
Key Financial Metrics and Transaction Terms
The filing details specific financial considerations related to the extension of the acquisition closing date:
- Cash Payment: Cycurion agreed to an immediate, non-refundable cash payment of $250,000 to the seller.
- Equity Consideration: The original consideration of 2,000,000 warrants was replaced with Series H Preferred Stock having an aggregate stated value of $600,000.
- Preferred Stock Terms: The Series H Preferred Stock accrues dividends at 12.0% per annum, payable quarterly.
- Conversion Rate: Shares are convertible into common stock at a rate of $1.45 per share (calculated as stated value plus accrued dividends divided by $1.45).
The filing does not provide updated revenue, profit, cash flow, margin, debt, or liquidity metrics for the company's ongoing operations.
Material Changes and Transaction Status
The primary material change is the extension of the anticipated closing date for the acquisition of Kustom Entertainment's video-solutions division. The new closing date is set for on or about September 15, 2026. The parties agreed to temporarily forbear from exercising rights related to the failure to close by the original date. All conditions precedent under the original agreement have been satisfied or waived.
Outlook, Risks, and Management Commentary
Management indicates that the parties remain aligned to complete the transaction by the extended closing date. The Registration Rights Agreement was amended to cover shares of common stock issuable upon conversion of or as payment of dividends on the Series H Preferred Stock. No specific risks or contingencies beyond the standard terms of the amendment were detailed in this summary text.
Key Facts for Investor Verification
- Verify the impact of the $250,000 immediate cash outflow on current liquidity.
- Confirm the dilution impact of the Series H Preferred Stock conversion at the $1.45 per share rate.
- Monitor the status of the acquisition closing by the new deadline of September 15, 2026.
- Review the full text of Exhibit 10.1 for detailed terms of the forbearance and extension agreement.