Cycurion, Inc.

16. RELATED PARTY TRANSACTIONS

Promissory Note – Related Party

On September 20, 2024, the Company entered into a promissory note with Western Acquisition Ventures Sponsor, LLC (the "Sponsor") for $230,000, pursuant to which the Company may borrow up to an aggregate cash amount of $230,000. The Promissory Note, with an interest rate of 10% per annum is payable upon the sooner of the consummation of the Business Combination with Cycurion. During the year ended December 31, 2024, the Company borrowed the full $255,556, with a discount of $25,556, resulting in net proceeds of $230,000. The Company amortized the discount of 25,556 fully in 2025. As of both June 30, 2026 and December 31, 2025 the balance of these loans was $123,650, with accrued interest balances of $36,009 and $21,089, respectively. These notes are presented separately on the balance sheet as loans payable - related parties.

Personal guarantees were entered by Emmit McHenry, Kurt McHenry and Alvin McCoy III, as former officers and stockholders of the Company in support of the Main Street Bank Loan and Security Agreement.

Axxum purchased an AT&T contract relationship from Archura, LLC, a company owned by Emmit McHenry and Kurt McHenry at the end of 2018. The contract relationship includes five purchase orders to deliver networking services to AT&T and its clients. The total sales of these five purchase orders were $17,321 and $19,470 for the three and six months ended June 30, 2026, respectively, compared to $63,175 and $83,790 for the three and six months ended June 30, 2025, respectively.

Loans Payable - Related Parties

During the three and six months ended June 30, 2025, the Company recorded amortization of debt discount of $971 and $2,284, respectively. As of December 31, 2025 the debt discount was fully amortized, therefore there isno amortization recorded for the three and six months ended June 30, 2026.