Cycurion, Inc. shares fell 18.36% to $0.38 in after-hours trading Thursday after the cybersecurity company disclosed it received a delisting determination letter from The Nasdaq Stock Market LLC for failing to meet the minimum bid price requirement. The stock had closed the regular session up 2.04% at $0.47. The determination, dated July 10, 2026, states that the closing bid price of Cycurion’s common stock was below the $1.00 per share minimum for 31 consecutive business days from May 26, 2026, through July 9, 2026. Consequently, Nasdaq determined that the company does not comply with Nasdaq Listing Rule 5550(a)(1).

Because Cycurion effected a 1-for-30 reverse stock split on October 27, 2025, it is ineligible for the customary 180-calendar day compliance period under Nasdaq Listing Rule 5810(c)(3)(A)(iv). Without a timely hearing request, trading was expected to be suspended at the opening of business on July 21, 2026. The company intends to file a hearing request before the July 17, 2026 deadline. A timely request will stay the suspension of Cycurion’s securities and the filing of a Form 25-NSE pending the Hearings Panel's decision. There is no assurance that the Hearings Panel will grant continued listing or that the company will regain compliance.

Trading Metrics and Strategic Status

Cycurion has a market capitalization of approximately $5.4 million, with a 52-week high of $16.03 and a 52-week low of $0.40. The stock has declined 95.97% over the past 12 months. Cycurion’s Board of Directors and management have determined not to pursue a reverse stock split at this time. The Board continues to evaluate all available options for regaining compliance, including actions related to the hearing process. The company emphasized that this matter does not impact its operations or strategic execution.

Kevin Kelly, Chairman and Chief Executive Officer of Cycurion, stated that the company is fully prepared for the Nasdaq Hearings Panel process. He noted that Cycurion is developing a data-driven record of trading activity supported by internal analysis and external market data to ensure the market valuation reflects underlying fundamentals.

Financial Metrics and Outlook

Cycurion reported that its business momentum remains strong, with an annual revenue run rate exceeding $28 million. This performance is supported by contracted backlog and a growing pipeline of opportunities, including recently secured multi-year agreements. The company continues to generate revenue growth through organic expansion, strategic acquisitions, and long-term customer contracts.

Hearings are typically scheduled approximately 30 to 45 days following the company’s request. The Nasdaq Hearings Panel has broad discretion to consider all relevant factors in determining whether to grant continued listing or an extension. Cycurion is actively preparing its materials, including forensic analysis and engagement with external advisors, to support this process.

Cycurion has determined that a 7-for-1 reverse stock split is not in the best interest of shareholders at this time, citing substantial risks of market manipulation and irregular short selling. The decision follows a forensic review of trading activity, which the company suggests indicates market abuse. Management stated that a reverse split would not resolve underlying issues and would divert focus from building the business through sustainable performance. The company intends to pursue parties responsible for improper trading identified in its review.

Business Growth and Strategic Acquisitions

The company emphasized its focus on expanding operations and increasing profitability. Over the past year, Cycurion completed two strategic acquisitions: Digital Ally, contributing approximately $5.1 million in revenue, and Secuvant, contributing approximately $2.5 million. Organic revenue grew to approximately $15.5 million, lifting the annual revenue run rate to approximately $28 million. The firm also secured a new ten-year contract valued at $58 million and built approximately $8 million of contracted backlog.

Analysis of Reverse Stock Split Risks

Management analyzed the potential impact of a reverse split based on trading patterns from 2025. If a 7-for-1 split had been announced while the stock traded around $0.60, the implied post-split price would have been approximately $4.20. However, historical data suggests the stock could have been driven down to an effective range of $1.20 to $1.50, leaving it vulnerable to falling below $1.00 again. The Board concluded that the risk of reducing shareholder ownership without achieving stable price support was too high.

Evidence of Suspected Market Abuse

Cycurion's review revealed trading activity it deems inconsistent with fair and orderly markets. In October 2025, approximately 89.9 million shares changed hands in a single session against a float of roughly 86.5 million shares, representing more than 100% turnover. On March 16, 2026, the stock fell approximately 45% intraday, triggering the Regulation SHO Rule 201 short-sale circuit breaker. Despite restrictions, records show a surge in short sales marked as "short exempt" on March 16 and 17. The company also identified order patterns consistent with "spoofing," involving rapid sequencing of cancellations to create false impressions of supply and demand. Cycurion is in contact with NASDAQ regarding these findings.