Core Viewpoint - Cycurion, Inc. is positioned for strong revenue growth in 2026 due to a significant backlog of $80 million, which is approximately four times its fiscal year 2024 revenue, indicating a robust pipeline for future billable work [2][4]. Group 1: Financial Position and Valuation - Cycurion's current annual revenue stands at $15.67 million, highlighting the substantial growth potential from its backlog [2]. - The company is trading at a market capitalization of $10.68 million, which is below its fair value according to InvestingPro data [1]. - Litchfield Hills Research has set a price target of $7.00 for Cycurion, suggesting a significant upside potential, as this valuation reflects a 2.9x estimated 2026 revenue compared to a peer average of 9.0x, indicating a steep discount [5]. Group 2: Business Strategy and Market Focus - Cycurion is shifting towards higher-margin cybersecurity solutions, focusing on advisory services, managed services, and SaaS solutions primarily for state and local governments and small businesses, which are increasingly targeted by ransomware attacks [3]. - The company has a proven acquisition and integration model, operating as a unified platform under new leadership aimed at simplifying structure, improving margins, and scaling higher-value managed security offerings [4]. Group 3: Leadership and Market Outlook - Kevin Kelly, Chairman and CEO of Cycurion, expressed confidence in the company's undervaluation and the potential for long-term investors to be rewarded as the backlog converts into growing billable revenues [7]. - The global demand for advanced cybersecurity solutions is swelling, further supporting Cycurion's growth prospects [7].

Core Viewpoint - Cycurion, Inc. has entered into a Memorandum of Understanding to acquire the video-solutions division of Kustom Entertainment, Inc., aiming to enhance integrated public safety and cybersecurity solutions while increasing revenue and cross-selling opportunities [1][2][3] Financial Overview - The acquisition is valued between $6.0 million and $8.4 million, with a cash payment of $1.0 million to $1.4 million and the remainder in Cycurion preferred stock [2] - The addition of Kustom's video-solutions division is expected to increase Cycurion's revenues by approximately $5.1 million, or 35%, in 2026 compared to 2025, along with an $8.0 million backlog from established contracts [2][5] Strategic Benefits - The acquisition is anticipated to provide immediate access to Kustom's extensive client base, which includes agencies from all 50 U.S. states and over 30 countries, enhancing cross-selling opportunities [4][5] - Cycurion expects to generate approximately $100,000 per month in additional revenue through cross-selling integrated cybersecurity and video solutions [11] Operational Synergies - The integration of Kustom's high-margin recurring models with Cycurion's cybersecurity services is expected to create bundled offerings and operational efficiencies, leading to accelerated profitability in the public safety market [5][11] - The combination of Kustom's video surveillance technologies with Cycurion's cybersecurity expertise is projected to enable secure data transmission and enhance incident response capabilities [11] Shareholder Impact - The transaction is expected to be transformative and accretive for Cycurion shareholders, delivering immediate top- and bottom-line growth while strengthening recurring revenue [3][5] - A significant portion of the purchase price will be paid in Cycurion's preferred stock, aligning Kustom shareholders with Cycurion's long-term growth potential [5][7]