Business Growth and Strategy - Cycurion reported significant growth driven by organic business solutions and strategic acquisitions in the cybersecurity sector[250]. - The company aims to close the RCR Term Sheet transactions in the second half of the current fiscal year, which involves acquiring accounts receivable from SLG[263]. - Cycurion's growth strategy includes expanding its commercial business through enhanced service offerings and integration of acquired technologies[268]. - The company is focused on maintaining high client retention rates and efficiently acquiring new customers in the cybersecurity market[246]. - Cycurion is actively seeking to attract and retain qualified cybersecurity talent to support its growth initiatives[246]. Acquisitions and Partnerships - The company has established a Master Service Agreement with SLG Innovation, which now represents a majority of Cycurion's revenues[260]. - Cycurion acquired technology assets from Sabres, enhancing its Cycurion Security Platform with Multi-Dimensional Protection, Web Application Firewall, and Bot Mitigation capabilities[265]. - The Cycurion Security Platform utilizes a proprietary cloud-based AI algorithm to improve cybersecurity measures in real-time[266]. - Cycurion's subsidiaries include Axxum Technologies and Cloudburst Security, both of which have established a strong presence in federal government contracts[252][253]. Financial Performance - Net revenues for the three months ended September 30, 2025, decreased by $0.6 million or 13.9% compared to the same period in 2024, and for the nine months ended September 30, 2025, revenues decreased by $2.1 million or 15.4%[271]. - Gross profit for the three months ended September 30, 2025, was $270,479, representing a gross profit percentage of 7.1%, down from 16.1% in the same period of 2024[270]. - Total operating expenses for the nine months ended September 30, 2025, were $19,578,880, significantly higher than $973,000 for the same period in 2024, primarily due to increased SG&A and stock compensation expenses[270]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $8.8 million, compared to $1.2 million for the same period in 2024, driven by additional merger expenses[281]. - The company incurred an accumulated deficit of approximately $21.8 million as of September 30, 2025, compared to $3.2 million as of December 31, 2024[285]. - Interest expense for the three and nine months ended September 30, 2025, was $712,374 and $1.5 million, respectively, compared to $319,666 and $1.0 million for the same periods in 2024[278]. - The company expects continued significant operating losses for the next few years, indicating a need for additional financing to sustain operations[286]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $10.8 million, including proceeds from equity lines and convertible notes[283]. - The company completed a business combination with Western Acquisition Ventures Corp. in Q1 2025, contributing to increased operational expenses[276].
Western Acquisition Ventures(WAVS) - 2025 Q3 - Quarterly Report