Business Growth and Strategy - Cycurion reported significant growth driven by organic business solutions and strategic acquisitions in the cybersecurity sector[250]. - 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 company anticipates closing the RCR Term Sheet transactions in the second half of the current fiscal year, which involves acquiring accounts receivable from SLG[261][263]. - Cycurion's subsidiaries include Axxum Technologies and Cloudburst Security, which provide cybersecurity services to federal and commercial clients[250][252]. - The company aims to maintain high client retention rates and efficiently acquire customers to support its growth strategy[246]. - The company is focused on expanding its commercial business through enhanced service offerings from the integrated Sabres technology[268]. - Cycurion's growth strategy includes attracting and retaining qualified cybersecurity talent to support its operations and expansion plans[246]. Financial Performance - Cycurion's financial performance in Q3 2025 reflects the impact of strategic acquisitions and operational efficiencies[269]. - 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, resulting in a gross profit percentage of 7.1%, down from 16.1% in the same period of 2024[270]. - Selling, general and administrative expenses increased significantly to $2,719,600 for the three months ended September 30, 2025, compared to $299,233 in the same period of 2024[274]. - Stock compensation expenses rose to $2,082,000 for the three months ended September 30, 2025, reflecting new compensation agreements with executives[275]. - 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, primarily due to additional merger expenses[281]. - As of September 30, 2025, the company had $3.7 million in cash and cash equivalents, an increase of $3.6 million from approximately $38,742 as of December 31, 2024[286]. - The accumulated deficit increased to approximately $21.8 million as of September 30, 2025, compared to $3.2 million as of December 31, 2024, due to net losses during the nine months[285]. - For the nine months ended September 30, 2025, net cash provided by financing activities was $10.8 million, including $5.9 million from an equity line of credit[283]. - The company expects continued significant operating losses for the next few years and is dependent on obtaining additional financing to continue operations[286]. - The total assets increased to approximately $32.3 million as of September 30, 2025, from approximately $25.6 million as of December 31, 2024, primarily due to increases in goodwill[286].
Western Acquisition Ventures Corp.(WAVSU) - 2025 Q3 - Quarterly Report