Cycurion, Inc. — Form 8-K
Filed August 4, 2026 · analyzed by the 8-K Agent
8-K
▲ Likely positive
significance 72/100
What the filing says
Cycurion closed acquisition of Kustom Entertainment's Video Solutions business on August 3, 2026. Deal structure: $1.25M cash at closing + $4.25M secured promissory note (7% interest, 30 monthly payments starting Feb 2027, with prepayment discounts) + $600K Series H Preferred Stock + contingent earnout/clawback up to $1M each based on 2026–2027 revenue targets ($5.5M FY2026, $5.8M FY2027). Buyer receives 50+ patents, 800+ law enforcement/public safety customers, projected $5M+ revenue and $1.2M+ EBITDA contribution; seller gets 3-year non-compete and clawback obligation if revenue falls >20% below target.
Why this rating
~$5.9M deal is ~58% of Cycurion's $10.1M market cap—material acquisition. Adds $5M revenue (~17% of pro forma $30M run rate) and immediate 800 customers; strong strategic fit. Financing structured partly via note limits cash strain. Earnout/clawback symmetrical; patent portfolio valuable. Risk: integration, execution, and seller's clawback obligation if underperforms.
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