Cycurion has terminated an equity purchase agreement with Yield Point NY LLC that provided the company with access to up to $60 million through sales of its common stock. The cybersecurity company disclosed the termination in a Sept. 28 Form 8-K, saying it exercised its contractual right to end the agreement for convenience and that the decision was not related to any disagreement with Yield Point over Cycurion’s operations, policies or practices.
Cycurion delivered the termination notice on Sept. 25 under Section 10.6 of the agreement, which was originally signed on April 7, 2025. The termination became effective one business day after Yield Point received the notice. The facility gave Cycurion the right, but not the obligation, to direct Yield Point to purchase as much as $60 million of the company’s common stock, subject to conditions including an effective SEC registration statement.
Under the equity purchase agreement, Yield Point was required to purchase shares at a price equal to 90% of the lowest trading price during the applicable valuation period. The arrangement therefore provided Cycurion with a source of equity financing tied to its market price rather than a conventional fixed-rate loan or committed cash borrowing facility. The company also issued Yield Point a pre-funded warrant as a $1.8 million commitment fee when the agreement was established.
Cycurion had continued using the facility during 2026 before ending it. In its second-quarter filing, the company said it raised approximately $274,904 net of fees from sales under the Yield Point agreement between July 1 and Aug. 14, issuing 1.05 million shares. The company had previously disclosed that it expected to rely on cash, operating receipts, debt financing and equity raises through its equity line as its principal liquidity sources.
The termination comes against a backdrop of significant financing needs. Cycurion reported $1.87 million of cash and cash equivalents as of June 30, 2026, down from $5.26 million at the end of 2025. It also reported a $13.6 million working-capital deficit and an accumulated deficit of $32.8 million, while operating activities used $6.17 million of cash during the first six months of 2026.
Cycurion said in its second-quarter filing that there was substantial doubt about its ability to continue as a going concern. Management said the company needed to generate positive operating cash flow and raise additional capital, and disclosed that it anticipated needing additional financing to support operations for at least 12 months from the filing date.
The Yield Point facility had a maximum commitment rather than an automatic $60 million cash injection. Cycurion could submit put notices specifying the amount of stock it wanted Yield Point to purchase, and the investor’s purchases were subject to conditions in the agreement. Consequently, terminating the facility eliminates access to the remaining contractual financing capacity but does not represent the cancellation of $60 million of cash already committed to Cycurion.
Cycurion has been pursuing other sources of capital while expanding its business through acquisitions and public-sector contracts. In June, the company completed its acquisition of Secuvant, a cybersecurity company, for $875,000 in cash and 888,888 shares of Series I convertible preferred stock valued at approximately $2 million at the acquisition date.
The company also reported in July that it had secured a public-safety contract with an aggregate value of approximately $54.6 million over 10 years, with expected annual revenue exceeding $5 million. Separately, Cycurion’s Sept. 24 disclosure said closed public-safety engagements were forecast to generate approximately $843,028 of revenue during calendar 2026, including work supporting the City of Chicago.
The company’s latest filing does not identify a replacement financing facility connected to the Yield Point termination. Cycurion remains listed on Nasdaq under the CYCU ticker while awaiting a written decision from the Nasdaq Hearings Panel following an August hearing concerning its continued listing. The company said it would disclose any material determination when received.
The termination therefore removes an equity financing mechanism that Cycurion had recently used to raise capital, while the company continues to seek financing and improve operating cash flow. The ultimate effect on liquidity will depend on other financing sources, operating performance and the company’s ability to raise additional capital.
