Cycurion, Inc. — 2022 Q1 filing summary
Filing identity caveat: The supplied filing is Western Acquisition Ventures Corp.’s Form 10-Q for the quarter ended March 31, 2022—not a Cycurion, Inc. filing. Western Acquisition identifies itself as a blank-check company and shell company. Verify the issuer before relying on these figures.
Business context and reporting period
Western Acquisition was formed to pursue a business combination and had not commenced operating activities as of March 31, 2022. It completed its IPO in January 2022 and was searching for a target. The filing reports the three months ended March 31, 2022; it provides no Q1 2021 results for comparison.
Financial performance and position
- Revenue: No operating revenue; the company stated it would not expect operating revenue until after a business combination.
- Net loss: $590,409, comprising $530,687 of operating expenses and a $59,722 loss on trust-account investments. Basic and diluted loss per share were each $0.05.
- Cash flow: $802,186 used in operating activities; $116.15 million used in investing activities for the trust deposit; and $117.749 million provided by financing activities. Cash ended the quarter at $800,727.
- Liquidity: Working capital surplus was $853,883. Trust-account investments totaled $116.09 million, largely invested in funds holding U.S. Treasury securities; these funds are subject to business-combination and redemption provisions.
- Debt and liabilities: Current liabilities were $259,677, including accounts payable and accrued expenses of $213,934 and franchise tax payable of $45,743. No related-party note or working-capital loans were outstanding at quarter-end; the $80,000 sponsor note was repaid in January.
- Margins: Not meaningful because the company had no operating revenue.
Changes, outlook, and risks
- The IPO and full exercise of the over-allotment option brought in $115 million of public-unit proceeds; the sponsor’s private placement raised $3.76 million. The trust deposit and redeemable shares explain the major change from the December 31, 2021 balance sheet.
- Management reported no operating revenue and expected continued costs while pursuing an acquisition. No specific financial guidance or target transaction was disclosed.
- The company had until January 13, 2023 to complete a business combination, with up to two three-month extensions requiring sponsor deposits of $1.15 million each. Failure to complete a deal would trigger liquidation and redemption of public shares. Management said this raised substantial doubt about the company’s ability to continue as a going concern.
- Management said additional working capital might be needed and that sponsor, officer, director, or third-party financing was not assured. COVID-19 could hinder target identification, though the impact was not determinable.
- A.G.P. would receive a $5.175 million marketing fee only if a business combination closes. Management said disclosure controls were effective; no material litigation was reported.
Important facts for investors to verify
- Confirm whether this Western Acquisition Ventures filing is relevant to the requested Cycurion, Inc. issuer.
- Check subsequent filings for a business-combination agreement, extensions, financing, redemption activity, or liquidation.
- Review how much trust-account cash remains available after any redemptions and whether operating cash needs additional financing.
- Assess the contingent $5.175 million marketing fee and other deal-related costs when evaluating transaction economics.