secwatch.observer — SEC 8-K summary
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Issuer:     KUSTOM ENTERTAINMENT, INC. (KUST)
CIK:        0001342958
Form:       8-K
Filed at:   2022-11-14T23:59:59+00:00
Accession:  0001493152-22-031638
Event type: earnings
Sentiment:  negative
Materiality: 0.65
Item codes: 2.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1342958/000149315222031638/0001493152-22-031638-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1342958/000149315222031638/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-22-031638

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