Cycurion, Inc. Fair Value Disclosure
| Table 19: Fair Value Hierarchy - 2024 | |||||||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Subordinated convertible promissory notes | $ | - | $ | - | $ | 5,490,324 | $ | 5,490,324 | |||||||||||||||
| Series A Convertible Preferred Stock | - | - | 1,294,117 | 1,294,117 | |||||||||||||||||||
| Total liabilities | $ | - | $ | - | $ | 6,784,441 | $ | 6,784,441 | |||||||||||||||
| Equity: | |||||||||||||||||||||||
| Warrants | $ | - | $ | - | $ | 2,687,074 | $ | 2,687,074 | |||||||||||||||
| Total equity | $ | - | $ | - | $ | 2,687,074 | $ | 2,687,074 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2023 | Apr 26, 2024 | |
| 2022 | Mar 31, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.