--- title: "Cycurion to Acquire Kustom Video-Solutions Assets for $1.25M Cash, $4.25M Note, Warrants" type: "News" locale: "en" url: "https://longbridge.com/en/news/291337753.md" description: "Cycurion acquired Kustom’s video-solutions assets for $1.25M cash, a $4.25M secured note, and warrants. The deal expands Cycurion's product portfolio with body-worn cameras and evidence management tech. Consideration includes potential earnouts and employment agreements to retain key personnel." datetime: "2026-06-30T21:33:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291337753.md) - [en](https://longbridge.com/en/news/291337753.md) - [zh-HK](https://longbridge.com/zh-HK/news/291337753.md) --- # Cycurion to Acquire Kustom Video-Solutions Assets for $1.25M Cash, $4.25M Note, Warrants Cycurion entered into an Asset Purchase Agreement to acquire Kustom’s video-solutions business, adding body-worn cameras, in-car video, and digital evidence management technologies. Consideration includes $1.25 million in cash, a $4.25 million secured note at 7% maturing in three years, up to $1.0 million in revenue-based earnouts, and warrants for 2,000,000 shares at a $2.80 exercise price. Ancillary agreements address IP transfer, non-compete, seller financing security, registration rights, leak-out limits, and conditions to close. The transaction is designed to expand Cycurion’s product portfolio and customer base while aligning incentives around post-close performance. **Agreement 1: Cycurion to Acquire Kustom Video-Solutions Assets for $1.25M Cash, $4.25M Note, Warrants** - **Agreement type**: Asset Purchase Agreement - **Counterparty**: Kustom Entertainment - **Signed / Effective**: Jun 24 2026 / Jun 24 2026 - **Duration / Termination**: N/A - **Reason**: Expand into video-surveillance and evidence management solutions **Agreement 2: Cycurion and Kustom Sign Assignment and Assumption Agreement for Selected Liabilities** - **Agreement type**: Assignment and Assumption Agreement - **Counterparty**: Kustom Entertainment - **Duration / Termination**: N/A - **Reason**: Define transferred assets and limit assumed obligations **Agreement 3: Cycurion to Receive Patents and Marks Under IP Assignment From Kustom** - **Agreement type**: Intellectual Property Assignment Agreement - **Counterparty**: Kustom Entertainment - **Duration / Termination**: N/A - **Reason**: Secure ownership of core video-solutions IP assets **Agreement 4: Cycurion and Kustom Execute Bill of Sale for Transferred Assets** - **Agreement type**: Bill of Sale - **Counterparty**: Kustom Entertainment - **Duration / Termination**: N/A - **Reason**: Effectuate transfer of acquired assets at closing **Agreement 5: Cycurion Secures Three-Year Non-Compete and Non-Solicit From Kustom** - **Agreement type**: Non-Competition and Non-Solicitation Agreement - **Counterparty**: Kustom Entertainment - **Signed / Effective**: N/A / N/A - **Duration / Termination**: 3 years - **Reason**: Protect acquired business and customer relationships **Agreement 6: Cycurion Offers Employment to Key Personnel With Equity and Severance Terms** - **Agreement type**: Key Employment Agreement - **Duration / Termination**: At will - **Reason**: Retain leadership to ensure smooth integration **Agreement 7: Cycurion Extends Offers to Essential Employees of Acquired Business** - **Agreement type**: Essential Employment Agreement - **Duration / Termination**: At will - **Reason**: Preserve operational continuity post-acquisition **Agreement 8: Cycurion Issues $4.25M Secured Note at 7% to Kustom as Deal Consideration** - **Agreement type**: Secured Promissory Note (7.0%, 36 months) - **Counterparty**: Kustom Entertainment - **Signed / Effective**: N/A / N/A - **Duration / Termination**: 3 years - **Reason**: Finance a portion of the purchase price **Agreement 9: Cycurion Grants First-Priority Lien on Acquired Assets Under Security Agreement** - **Agreement type**: Security Agreement (first-priority lien on acquired assets) - **Counterparty**: Kustom Entertainment - **Signed / Effective**: N/A / N/A - **Duration / Termination**: Until obligations repaid - **Reason**: Provide collateral for seller financing **Agreement 10: Cycurion to Issue 2,000,000 Warrants at $2.80 to Kustom Post-Registration** - **Agreement type**: Warrant Agreement (2,000,000 shares at $2.80) - **Counterparty**: Kustom Entertainment - **Signed / Effective**: N/A / N/A - **Duration / Termination**: 2 years post-effectiveness - **Reason**: Align incentives and complete purchase consideration **Agreement 11: Cycurion Commits to Register Resale of Warrant Shares for Kustom** - **Agreement type**: Registration Rights Agreement - **Counterparty**: Kustom Entertainment - **Duration / Termination**: Until Rule 144 availability or sale completion - **Reason**: Provide liquidity path for warrant shares **Agreement 12: Cycurion and Kustom Set Two-Year Revenue-Based Earnout and Clawback** - **Agreement type**: Earnout and Clawback Agreement - **Counterparty**: Kustom Entertainment - **Duration / Termination**: 2 years - **Reason**: Align price with post-close revenue performance **Agreement 13: Kustom Agrees to 12-Month Leak-Out on Cycurion Warrant Share Sales** - **Agreement type**: Leak-Out Agreement (12 months) - **Counterparty**: Kustom Entertainment - **Duration / Termination**: 12 months - **Reason**: Support orderly market for warrant share resales **Agreement 14: Cycurion Sets Conditions Precedent for Closing Kustom Asset Acquisition** - **Agreement type**: Conditions Precedent Agreement - **Counterparty**: Kustom Entertainment - **Duration / Termination**: Until closing conditions satisfied or waived - **Reason**: Ensure readiness for closing and SEC reporting Original SEC Filing: Cycurion, Inc. \[ CYCU \] - 8-K - Jun. 30, 2026 **Disclaimer** This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC. ### Related Stocks - [CYCU.US](https://longbridge.com/en/quote/CYCU.US.md) - [KUST.US](https://longbridge.com/en/quote/KUST.US.md) - [CYCUW.US](https://longbridge.com/en/quote/CYCUW.US.md) ## Related News & Research - [Cycurion Faces Uncertainty in Halo and havenX Merger](https://longbridge.com/en/news/294238846.md) - [Western Acquisition Ventures’ Cycurion wins $54.6 million 10-year state HHS systems contract](https://longbridge.com/en/news/294364508.md) - [Cycurion Shareholders Approve Governance Changes and Board Structure](https://longbridge.com/en/news/293673579.md) - [Columbus Circle Capital III units begin separate trading of shares, warrants July 31](https://longbridge.com/en/news/294261716.md) - [Vyne Therapeutics issues pre-funded warrants for 133,290 shares in stock exchange deal](https://longbridge.com/en/news/294409414.md)