Cycurion's Nasdaq Hearing Is Thursday. The Rule That Denied It a Cure Period Is Its Own 1-for-30 Split From Last October.

by Adam Kowalczyk · August 17, 2026

Filings & Deals Reporter, The MicroCap Herald

Cycurion, Inc. (Nasdaq: CYCU), a McLean, Virginia cybersecurity services company, is scheduled to appear before a Nasdaq Hearings Panel at 10:00 a.m. Eastern on Thursday, Aug. 20, 2026, according to a company press release issued Friday, Aug. 7. The hearing is the company's only remaining avenue to keep its listing: unlike most micro-caps that fall below Nasdaq's $1.00 bid-price line, Cycurion was not given a compliance period in which to cure. It was sent straight to a delisting determination. This is not our reading of the rulebook against the company's facts — it is what Nasdaq decided and what the company disclosed. The July 16 press release, filed with the SEC as an exhibit, states that "Nasdaq further determined that the Company is not eligible for the customary 180-calendar day compliance period under Nasdaq Listing Rule 5810(c)(3)(A)(iv), which applies when an issuer has effected a reverse stock split within the prior one-year period."

The sequence is laid out in that same July 16 release. Cycurion's closing bid price was below $1.00, the release says, "for the 31 consecutive business days from May 26, 2026 through July 9, 2026." We recounted that interval independently: excluding weekends, Juneteenth (Friday, June 19, 2026) and the Independence Day holiday observed Friday, July 3, 2026, it contains exactly 31 trading days. The company's figure checks out, and it exceeds the 30 consecutive business days the rule requires before a bid-price failure is deemed to exist. On Friday, July 10, 2026, Nasdaq's Listing Qualifications staff issued a delisting determination letter. The company had until July 17 to request a hearing; absent a request, the release states, trading in the shares was expected to be suspended on July 21. Cycurion requested the hearing, and its Aug. 7 release states that "the Company's timely hearing request has stayed the delisting action, to the extent permitted by Nasdaq Listing Rules, pending the Panel's final written decision." That qualifier is the company's own and we retain it. Listing Rule 5815(a)(1)(B) provides that "a timely request for a hearing shall ordinarily stay the suspension and delisting action pending the issuance of a written Panel Decision," and then enumerates situations in which no stay applies — among them a Capital Market company that fails the bid price during a second 180-day compliance period, a security whose closing bid price falls below $0.10, and a failure of the new $5 million Market Value of Listed Securities test. On the record we reviewed, none of the enumerated exceptions describes Cycurion's situation, which is consistent with the fact that the shares are still trading.

What separates this case from the ordinary bid-price notice is that no 180-day clock ever started. Nasdaq Listing Rule 5810(c)(3)(A) normally gives a deficient company 180 calendar days from notification to get back over $1.00, with compliance achieved by meeting the standard for a minimum of 10 consecutive business days. Subparagraph (iv), headed "Excessive Reverse Stock Splits," carves out an exception. The current rulebook text on Nasdaq's Listing Center reads: "Notwithstanding the foregoing, if a Company's security fails to meet the continued listing requirement for minimum bid price and the Company has effected a reverse stock split over the prior one-year period; or has effected one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then the Company shall not be eligible for any compliance period specified in this Rule 5810(c)(3)(A) and the Listing Qualifications Department shall issue a Staff Delisting Determination under Rule 5810 with respect to that security." We took that text from the live rulebook page, not from the 2020-vintage PDF of Rules 5810 and 5815 that also circulates on the Listing Center. The page's amendment stamp for Rule 5810 reads "amended Jul. 22, 2026 (SR-NASDAQ-2026-004)"; the significance of that stamp, and of the stay notice printed beside it, is taken up below.

Note what the one-year limb is measured from. By its words, the bar attaches when "a Company's security fails to meet the continued listing requirement for minimum bid price" and a reverse split has been effected "over the prior one-year period." The reference point is the bid-price failure, not the hearing date. Cycurion completed a 1-for-30 reverse stock split effective Oct. 27, 2025 — the March 31, 2026 Form 10-Q states that "every thirty of the Company's issued shares of common stock was combined into one issued share of common stock" and that the shares "began trading on a split-adjusted basis on The Nasdaq Global Market, when the market opened on October 27, 2025." The new sub-$1.00 stretch began May 26, 2026 and the staff determination issued July 10, 2026. Both dates fall inside one year of Oct. 27, 2025, so the limb is satisfied on either reading, and no part of the analysis turns on Thursday's hearing date. That split was itself a response to an earlier bid-price problem: the same 10-Q states that on Nov. 11, 2025 Nasdaq advised the company it had regained compliance with the bid price requirement, then under Rule 5450(a)(1), the Global Market standard. The consolidation therefore did two things: it cured the 2025 deficiency, and it disqualified the company from any cure period for a bid-price deficiency arising within the following twelve months.

One detail in the company's own announcement does not match the rulebook, and it is worth being precise about which rulebook applies. As of Aug. 7, 2026 the shares trade on the Nasdaq Capital Market — the company's release that day states the stock "continues trading on the Nasdaq Capital Market" under the ticker CYCU — so the 5550 series governs continued listing, not the 5450 Global Market series the company was measured against in November 2025. Within the 5550 series, the July 16 release, as filed with the SEC, identifies the minimum bid price requirement as "Nasdaq Listing Rule 5550(a)(1)." Nasdaq's current Rule 5500 Series text lists the Capital Market continued listing requirements as, in order, "(1) At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid; (2) Minimum bid price of at least $1 per share; (3) At least 300 Public Holders; (4) At least 500,000 Publicly Held Shares; (5) Market Value of Publicly Held Shares of at least $1 million;" and, newly added and currently stayed, "(6) Market Value of Listed Securities of at least $5 million." The bid-price test is 5550(a)(2); 5550(a)(1) is the market-maker requirement. Nothing in the record we reviewed suggests Cycurion has a market-maker deficiency, and the release also cites 5810(c)(3)(A)(iv), which applies only to bid price. This reads as a citation error in the release, not a second deficiency — but it is the kind of error worth catching before it is repeated downstream.

There is a second citation trap here that has nothing to do with Cycurion. The Nasdaq rulebook pages relevant to this story — Rule 5810, Rule 5815 and Rule 5550 — currently display the notice "The SEC has stayed the approval order for this rule filing." That stay attaches to SR-NASDAQ-2026-004, which the exchange filed on Jan. 13, 2026 to adopt a new minimum Market Value of Listed Securities continued listing requirement of at least $5 million. The Commission approved it on July 22, 2026 by Release No. 34-105971 under delegated authority, and a July 29, 2026 letter from the Commission's office states the order is stayed until the Commission orders otherwise, following notices of intention to petition for review. We read the approval order itself rather than relying on a summary. By its own terms it adds Rules 5450(a)(3) and 5550(a)(6), amends Rule 5810(c)(1) to add a deficiency type resulting in immediate delisting, amends Rule 5810(c)(3)(C), amends Rule 5815(a)(1)(B) so that a hearing request will not stay a suspension in the new case, and adds Rule 5815(c)(1)(I) governing what a Panel may do with the new market-value deficiency. It does not amend Rule 5810(c)(3)(A) or subparagraph (iv). (An earlier draft of this story referred to 5815(c)(1)(H); (H) is the pre-existing acquisition-company provision under IM-5101-2, and (I) is the provision added by SR-NASDAQ-2026-004. The distinction does not bear on Cycurion, whose relief, if any, would come under 5815(c)(1)(A).) The stay banner on those pages does not stay the reverse-split bar; that provision is in force, and it is the one Nasdaq cited in Cycurion's determination.

Assuming the Panel does not simply delist, the outer boundary of any relief is fixed. Rule 5815(c)(1)(A) permits a Hearings Panel to "grant an exception to the continued listing standards for a period not to exceed 180 days from the date of the Staff Delisting Determination with respect to the deficiency for which the exception is granted." The 180 days therefore run from the determination, not from the hearing. Cycurion's determination letter is dated July 10, 2026. One hundred eighty days from that date is Wednesday, Jan. 6, 2027. That is a ceiling, not an entitlement: the Panel may grant less time, may condition relief, or may decline to grant an exception at all. Cycurion's Aug. 7 release states that no decision is expected on the hearing date and that "the timing of the Panel's final written decision is determined solely by the Panel."

Three days before the hearing, on Friday, Aug. 14, Cycurion reported second-quarter results. The release put revenue at $3,757,076, gross profit at $1,093,337 for a 29.1% gross margin, an operating loss of $(1,884,705), a net loss of $(4,039,567) and loss per share of $(0.41). Cash and cash equivalents were $1,873,287 and total stockholders' equity was $18,208,398. The balance sheet in that release states 11,889,767 shares of common stock issued and outstanding at June 30, 2026, against 3,642,501 in the comparative column. The release asserts the company "beat Wall Street estimates on both revenue and earnings"; it does not name a source for that consensus, we could not establish whose estimates it refers to, and so we report the claim as the company's rather than adopt the word. Micro-cap consensus figures frequently rest on one or two estimates.

The company also disclosed in that release a $54.6 million, 10-year award received in July 2026 from a global consulting firm to modernize and operate a health and human services system for a state government agency, which it expects to generate more than $5 million in annual recurring revenue with work commencing in November 2026. A contract award of that size is a business fact; it is not a listing cure. Rule 5550(a)(2) is a closing-bid-price test, and nothing in the rule text credits contract backlog, revenue or book value toward it.

The company's only public comment on the hearing itself came in the Aug. 7 listing release, where Chairman and Chief Executive Kevin Kelly said: "We are providing this clarification in response to shareholder inquiries. The hearing has not yet occurred, and Cycurion remains focused on executing its business plan and addressing the Nasdaq process. We will keep investors informed of material developments as they occur, and we appreciate the continued support of our shareholders." That is reproduced in full and in order. A quotation attributed to Mr. Kelly in the July 16 release has been left out of this article: two retrievals of that document returned materially different extents of the same passage, one of them containing an ellipsis splice, and we were not willing to print a quotation we could not pin to a single stable rendering of the filed exhibit.

The risk disclosures belong in plain view. Cycurion's Form 10-Q for the quarter ended March 31, 2026 states that "as of March 31, 2026, there was substantial doubt regarding the Company's ability to continue as a going concern, as the Company had a net working capital deficit and an accumulated deficit resulting from substantial losses incurred during the three months ended March 31, 2026 and from prior periods." It reports an accumulated deficit of $29.0 million, a working capital deficit of $12.0 million, cash used in operating activities of $2.9 million for the quarter and $2,028,718 of cash on hand at quarter end. Those figures are from the filing itself, not from a data aggregator's summary of it. The Aug. 14 second-quarter press release does not use the phrase going concern and does not discuss liquidity; we have not read a second-quarter Form 10-Q, and we make no claim about whether the March 31 disclosure was repeated, modified or removed as of June 30. Cutting the other way, the company announced on July 31, 2026 a warrant inducement transaction for approximately $4.5 million in gross proceeds, and in its Aug. 17 release management referred to "strengthened liquidity from our recent warrant inducement transaction"; that is a post-quarter cash event a reader assessing the March 31 disclosure should know about. No filing we reviewed describes the company as insolvent, and none reports an impairment charge. Delisting risk, dilution and going-concern doubt as disclosed at March 31 are the exposures on the record; nothing here is a prediction about any of them.

Dilution is the other disclosed exposure, and the nouns matter. The cover page of the March 31, 2026 Form 10-Q reported 8,590,021 shares of common stock outstanding as of May 12, 2026. The Aug. 14 release's balance sheet reports 11,889,767 shares issued and outstanding at June 30, 2026 — an increase of roughly 3.3 million shares, about 38%, between those two dates. Over the same stretch, reported total stockholders' equity rose from $13,681,847 at March 31 to $18,208,398 at June 30 even as the company posted a $4.0 million second-quarter net loss, a combination that is difficult to produce without new equity. Neither press release we read itemizes the issuances, and we did not locate a filing in this review that breaks them out; we therefore state the change without assigning it a cause. One near-coincidence should be disposed of rather than left to invite an inference: the July 31 warrant inducement involved 3,341,439 shares of common stock underlying existing warrants exercised at $1.35, with 5,012,159 new warrants issued at an exercise price of $1.65. That figure is close to the 3.3 million share increase, but the transaction was announced on July 31 and therefore cannot account for a change completed by June 30. Those warrant numbers are shares underlying warrants, not outstanding shares, votes or trading volume.

This morning, Aug. 17, the board authorized a repurchase of up to $500,000 of common stock over the next 12 months, described in the release as discretionary and subject to market conditions, and funded in part by what management called strengthened liquidity from the July warrant inducement. The release's characterization of the stock as meaningfully undervalued, and the revenue and EBITDA run-rate figures management cites in it, are the company's statements and are reproduced here as such; this article takes no view on them. What can be said as a matter of rule text is that an authorization is not a purchase, and that neither a repurchase authorization nor completed repurchases are a compliance mechanism under Rule 5810(c)(3)(A) — the only thing that cures a bid-price deficiency under that rule is the closing bid price itself, held at or above $1.00 for the requisite consecutive business days.

On price, the desk could not obtain a same-day quote it was willing to print, and none appears in this article. The market is open as this is published and Cycurion shares are trading; nothing has closed today, and no intraday figure here should be read as a current price. The last close we could source was $0.685 on Friday, Aug. 14, 2026, according to StockInvest.us. A separate aggregator, StockTitan, showed $0.5940 timestamped Aug. 7, 2026 at 19:59, with a market capitalization of about $7.0 million on roughly 11.5 million shares — a share count close to, but not identical to, the 11,889,767 the company itself reported for June 30. Both of those StockTitan figures come from the site's own quote and overview module, not from any filing text or from the "Rhea-AI Filing Summary" gloss the site prints alongside filings. A third page carried a $2.88 quote with no usable timestamp, a figure inconsistent with every dated source and almost certainly stale. Micro-cap quote data goes bad quietly; where renderings disagreed here, we have said so rather than picked one.

Thursday's hearing has not occurred. What a fact-checker can pin down today is narrow and hard: Nasdaq determined that Cycurion is not eligible for the customary 180-day compliance period, and the company disclosed that determination on July 16; the determination letter is dated July 10, 2026; the hearing is set for Aug. 20 at 10:00 a.m. ET; the disqualifying split was 1-for-30 effective Oct. 27, 2025; the governing provision is Rule 5810(c)(3)(A)(iv), which is not among the rules amended by the stayed SR-NASDAQ-2026-004; and any exception the Panel grants cannot run past Jan. 6, 2027. Everything after that — whether an exception is granted, on what conditions, and whether a stock last quoted below $1.00 can produce ten consecutive sessions above it without another consolidation — is undecided, and this article takes no position on it and offers no investment advice.