Castellum, Inc. Retires Promissory Note Early

Rhea-AI Summary

Castellum (NYSE-American: CTM), a cybersecurity and software engineering services company, has announced the early retirement of its promissory note to the Buckhout Charitable Remainder Trust, which was originally issued in November 2019 for the acquisition of Corvus Consulting. The note has been paid off 15 months ahead of schedule, marking a significant improvement in the company's financial position. According to CFO David Bell, this early retirement has contributed to reducing Castellum's total long-term debt from over $12 million in December 2023 to less than $5 million, strengthening the company's balance sheet and lowering its debt service burden.

Positive

• Early retirement of promissory note 15 months before maturity demonstrates strong cash position
• Significant reduction in long-term debt from $12 million to under $5 million
• Improved balance sheet leverage and lower debt service burden
• Complete payoff of Corvus Consulting acquisition financing

Negative

• None.

VIENNA, Va., June 05, 2025 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM) (“Castellum” or “CTM”), a cybersecurity, electronic warfare, and software engineering services company focused on the federal government, announces that it has retired its note payable with the Buckhout Charitable Remainder Trust (the “Buckhout Trust”) 15 months before its maturity date. Castellum originally issued a promissory note to the Buckhout Trust in November 2019 as part of CTM’s acquisition of Corvus Consulting, LLC (“Corvus”).

“Retiring this note not only represents a significant milestone in paying off the financing from our acquisition of Corvus; it also highlights the continued dramatic improvement in our balance sheet leverage, reducing our total long-term debt from over $12 million in December 2023 to less than $5 million. Our balance sheet is stronger, and our debt service load is much lower, allowing us to continue our relentless focus on growing our business and serving our customers,” states David Bell, Chief Financial Officer of Castellum.

About Castellum, Inc. (NYSE-American: CTM):

Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government - https://castellumus.com/.

Cautionary Statement Concerning Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as "estimate," "project," "believe," "anticipate," "shooting to," "intend," "plan," "foresee," "likely," "will," "would," "appears," "goal," "target" or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth and new customer opportunities, improvements to cost structure, and profitability. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth and new customer opportunities and other customers, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, among others: the Company's ability to compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company's revenue due to a delay in the U.S. Congress approving a federal budget, operating under a prolonged continuing resolution, government shutdown, or breach of the debt ceiling, as well as the imposition by the U.S. government of sequestration in the absence of an approved budget; the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience. For a more detailed description of these and other risk factors, please refer to the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission ("SEC") which can be viewed at www.sec.gov. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.

Contact:

Glen Ives
President and Chief Executive Officer
Phone: (703) 752-6157
info@castellumus.com
https://castellumus.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/977524be-d2cc-4f2c-adca-88ce8f652841

FAQ

What is the significance of Castellum (CTM) retiring its promissory note early?

The early retirement of the note demonstrates financial strength, reduces long-term debt from $12M to under $5M, and lowers debt service burden, allowing more focus on business growth.

How much did Castellum (CTM) reduce its long-term debt?

Castellum reduced its total long-term debt from over $12 million in December 2023 to less than $5 million.

When was the original promissory note issued by Castellum (CTM)?

The promissory note was originally issued in November 2019 as part of Castellum's acquisition of Corvus Consulting.

How many months early did Castellum (CTM) retire its promissory note?

Castellum retired the promissory note 15 months before its maturity date.

What was the purpose of Castellum's (CTM) original promissory note to the Buckhout Trust?

The promissory note was issued to finance Castellum's acquisition of Corvus Consulting, LLC in November 2019.