Cycurion, Inc.

20. SUBSEQUENT EVENTS

The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued which is up to and through May 14, 2026. There are two types of subsequent events: (i) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing consolidated financial statements, and (ii) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

During the period April 1, 2026 through May 12, 2026, the Company raised approximately $2.3 million through sales of its common stock under the Equity Purchase Agreement with Yield Point, pursuant to which the Company issued and aggregate 3,080,000 shares of common stock.

On April 21, 2026, the Company provided an update on the revised non-binding memorandum of understanding with Kustom Entertainment, Inc. ("Kustom") for the acquisition of Kustom's legacy video solutions segment. The transaction is expected to contribute approximately $5.1 million in annual revenue and an estimated $8.0 million backlog comprised of established contracts and recurring subscription revenue.

On May 7, 2026, the Company announced it has executed a binding agreement to acquire Halo Privacy, an industry-leading secure communications company, and fully integrate its elite digital investigations and attribution arm, HavenX. The Company expects to close the transaction within 45 days. This acquisition builds on Cycurion's disciplined growth strategy by delivering innovative new products and capabilities that directly address its clients' evolving needs for security, privacy, proactive threat defense and operational efficiency.