Cycurion, Inc.

17. 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 can 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 March 31, 2026 and December 31, 2025 the balance of these loans was $133,334, with accrued interest balances of $20,482 and $17,148, respectively. These notes are presented with other promissory notes on the balance sheet.

Personal guarantees were entered by Emmit McHenry, Kurt McHenry and Alvin McCoy III, as 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 $2,149 and $20,615 for the three months ended March 31, 2026 and 2025, respectively.

Loans Payable - Related Parties

During the three months ended March 31, 2025, the Company recorded amortization of debt discount of $1,313. As of December 31, 2025 the debt discount was fully amortized, therefore there isno amortization for the three months ended March 31, 2026.