Cycurion, Inc. (CYCU) entered into an Asset Purchase Agreement on June 24, 2026, to acquire substantially all of the assets of Kustom Entertainment, Inc.'s video-solutions business. The acquisition covers assets related to video surveillance technologies, body-worn cameras, in-car video systems, and digital evidence management solutions.
Key Details
- Acquisition Terms: The total consideration consists of $1,250,000 in cash at closing, a $4,250,000 secured promissory note, and up to $1,000,000 in contingent cash earnouts.
- Promissory Note: The note has a principal of $4.25 million, bears a 7.0% annual interest rate, and matures in three years.
- Equity Component: Kustom will receive warrants to purchase up to 2,000,000 shares of Cycurion's common stock at an exercise price of $2.80 per share.
- Acquired Business: The assets being acquired include intellectual property, contracts, customer relationships, inventory, and other operational assets of Kustom's video-solutions division.