Investment Thesis
Cycurion is a pre-revenue/near-zero revenue technology services company with severe operational losses and deteriorating financial health. The company is burning cash rapidly with negative free cash flow of -$9.0M against minimal revenue of $11.6M, indicating an unsustainable business model. With only $3.7M in cash, current liabilities exceeding current assets (0.42x current ratio), and no path to profitability visible, the company faces imminent liquidity constraints.
Strengths
- Positive stockholders' equity of $19.1M provides some balance sheet cushion
- No significant long-term debt burden limits leverage risk
- Total assets of $32.3M represent tangible asset base
Risks
- Severe liquidity crisis with current ratio of 0.42x indicating inability to cover short-term obligations
- Massive operating losses of -$18.4M on only $11.6M revenue with negative 158.7% operating margin
- Unsustainable cash burn of -$8.8M in operating cash flow with only $3.7M cash on hand
- Minimal gross profit of $1.2M on $11.6M revenue (10.2% margin) insufficient to cover operating costs
- Negative free cash flow of -$9.0M indicates no cash generation from core operations
- Zero insider purchasing activity suggests lack of management confidence
- ROE of -97.2% and ROA of -57.4% demonstrate value destruction
Key Metrics to Watch
- Cash burn rate and months of runway remaining
- Path to operating profitability or revenue growth acceleration
- Changes in operating expenses and cost structure
- Gross margin sustainability and revenue quality
- Any capital raise or financing activity impacting dilution
Financial Metrics
Revenue
11.6M
Net Income
-18.6M
EPS (Diluted)
$-14.75
Free Cash Flow
-9.0M
Total Assets
32.3M
Cash
3.7M
Profitability Ratios
Gross Margin
10.2%
Operating Margin
-158.7%
Net Margin
-160.1%
ROE
-97.2%
ROA
-57.4%
FCF Margin
-78.0%
Balance Sheet & Liquidity
Current Ratio
0.42x
Quick Ratio
0.42x
Debt/Equity
0.00x
Debt/Assets
52.3%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-23T08:08:10.997760 |
Data as of: 2025-09-30 |
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