Kustom to Sell Legacy Video Solutions to Cycurion for $5.5M

Kustom Entertainment, Inc. (Nasdaq: KUST) and Cycurion, Inc. (Nasdaq: CYCU) have entered a revised, non-binding memorandum of understanding to sell Kustom’s legacy video solutions segment to Cycurion. The parties anticipate closing on or prior to June 30, 2026, after definitive documentation.

The aggregate purchase price is $5,500,000. Kustom will receive a $1,250,000 cash down payment at closing and a $4,250,000 secured promissory note bearing 7% interest, paid in 36 monthly installments. Cycurion will also issue 2,000,000 common stock purchase warrants to Kustom with a two-year term and an exercise price of $2.80 per share.

The economics include an earn-out and clawback capped at $1,000,000 tied to net income milestones, with a one-year clawback period and a three-year earn-out period.