Cycurion, Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 14, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of Operations
| Table MD&A 1: Consolidated Results of Operations | ||
|---|---|---|
| For the Three Months Ended March 31, | ||
| 2026 | 2025 | |
| Revenue | $3,268,620 | $3,870,050 |
| Cost of revenue | 2,580,262 | 3,192,287 |
| Gross profit | 688,358 | 677,763 |
| Gross margin | 21.1% | 17.5% |
| Operating expenses: | ||
| Selling, general and administrative expenses | 2,743,695 | 337,374 |
| Stock compensation expenses | 315,833 | — |
| Business combination expenses | — | 10,437,894 |
| Total operating expenses | 3,059,528 | 10,775,268 |
| Operating loss | (2,371,170) | (10,097,505) |
| Interest income | 14,236 | — |
| Interest expense | (204,852) | (178,890) |
| Gain on debt settlement, net | — | 141,653 |
| Other expense | — | (113,744) |
| Other expense, net | (190,616) | (150,981) |
| Loss before income taxes | (2,561,786) | (10,248,486) |
| Provision for income tax | — | — |
| Net loss | (2,561,786) | (10,248,486) |
| Less: Net loss attributable to non-controlling interest | 433,324 | — |
| Net loss attributable to Cycurion | $(2,128,462) | $(10,248,486) |
Revenue
Revenues for the three months March 31, 2026 decreased $0.6 million or 15.5% compared to the three months ended March 31, 2025. We attribute this decrease in the revenues for the three months ended March 31, 2026 compared to the same period in 2025 to planned wind-down of certain legacy contracts ahead of the ramp of higher-margin replacement work and the delayed start dates of new federal, state and local contracts.
Cost of revenues
The cost of revenue for the three months ended March 31, 2026, was approximately $2.6 million, compared to $3.2 million for comparable period in 2025. The gross margin improved from 17.5 % to 21.1 % as management focuses on cost cutting efforts and works to improve the overall portfolio of contracts.
Selling, general and administrative expenses
Our selling, general and administrative expenses increased significantly for the three months ended March 31, 2026 compared to the same period in 2025 due to the additional expenses associated with being a publicly traded company, full consolidation of SLG selling, general and administrative expenses and the addition of key individuals for the company's growth strategy.
Stock compensation expenses
Stock compensation expenses were $315,833 for the three months ended March 31, 2026, compared to zero amounts being recognized in the same period 2025.
Business combination expenses
Business combination expenses in the three months ended March 31, 2025 are a result of the business combination with Western.
Interest income
Interest income was $14,236 for the three months ended March 31, 2026 as the company was able to invest cash in money market accounts. No interest earning assets existed in the three months ended March 31, 2025.
Interest expense
Interest expense for both the three months ended March 31, 2026 and 2025, was $0.2 million. Although approximately the same interest expense was incurred, the underlying interest-bearing liabilities varied were different during the two periods. For further information refer to debt footnotes.
Gain on debt settlement, net
The $0.1 million gain on debt settlement, net for the three months ended March 31, 2025 is the result of the conversion of debt to various equity instruments at a lower fair market value than the exchanged debt on the books. No conversions occurred in the three months ended March 31, 2026.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.