---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-22-031638"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2022-11-14T23:59:59+00:00"
generated_at: "2026-06-21T19:42:53.772259+00:00"
event_type: "earnings"
sentiment: "negative"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# Digital Ally Q3 revenue up 83% to $8.5M but gross profit down 57%; net loss $1.9M

## Summary
- Revenue $8.48M (+83% YoY) driven by TicketSmarter ($4.4M) and Nobility Healthcare ($2.0M) acquisitions.
- Gross profit fell 57% to $596K; cost of sales rose to 93% of revenue from 70% a year ago.
- Operating loss widened to $6.57M from $3.60M; net loss per share ($0.04) vs income $0.16.
- Exchanged warrants for 6.1M shares, cancelling 24.3M warrants; recorded $4.8M gain from extinguishment and fair value change.
- SG&A up 43% to $7.16M mainly from recent acquisitions; company sees further revenue growth from ticketing and medical billing.

## SEC filing metadata
- accession: 0001493152-22-031638
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2022-11-14T23:59:59+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 2.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315222031638/0001493152-22-031638-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315222031638/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-22-031638
- JSON: https://secwatch.observer/filing/0001493152-22-031638.json
- Plain text: https://secwatch.observer/filing/0001493152-22-031638.txt

## Key facts
- Earnings Releases
  KUSTOM ENTERTAINMENT, INC. reported the third quarter ended September 30, 2022 results: revenue $8,484,153.
  - Period: the third quarter ended September 30, 2022
  - Revenue: $8,484,153
  - Result: reported results
  source text: Total revenues increased in the third quarter 2022 to $8,484,153 from $4,639,822 in the third quarter 2021 an improvement of $3,844,331 (83%).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315222031638/0001493152-22-031638-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.