---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-010548"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2023-04-03T23:59:59+00:00"
generated_at: "2026-06-17T06:50:21.611834+00:00"
event_type: "earnings"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Digital Ally reports 2022 net loss of $21.7M, revenue up 73% to $37M

## Summary
- Revenue increased 73% to $37.0M; net loss of ($21.7M) vs prior-year net income of $25.5M.
- Gross profit fell 59% to $2.3M; cost of sales rose to 94% of revenue from 74%.
- TicketSmarter and healthcare acquisitions drove revenue but widened operating loss to $29.7M.
- Contract liabilities (deferred revenue) nearly doubled to $8.0M; Nasdaq bid-price compliance regained.
- 1-for-20 reverse stock split effective Feb 6, 2023; share repurchase program terminated June 30, 2022.

## SEC filing metadata
- accession: 0001493152-23-010548
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2023-04-03T23:59:59+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315223010548/0001493152-23-010548-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315223010548/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-010548
- JSON: https://secwatch.observer/filing/0001493152-23-010548.json
- Plain text: https://secwatch.observer/filing/0001493152-23-010548.txt

## Key facts
- Earnings Releases
  KUSTOM ENTERTAINMENT, INC. reported the year ended December 31, 2022 results: revenue $37,009,895.
  - Period: the year ended December 31, 2022
  - Revenue: $37,009,895
  - Result: reported results
  source text: the Company’s 1-for-20 reverse stock split, which was effective on February 6, 2023. Highlights for the year ended December 31, 2022 ● Total revenues increased in 2022 to $37,009,895 from $21,413,434 in 2021 an improvement of $15,596,461 (73%). The primary reason for the overall revenue increase is an increase of $13,776,856 (113%), in service revenues from
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315223010548/0001493152-23-010548-index.htm

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