secwatch.observer — SEC 8-K summary
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Issuer:     KUSTOM ENTERTAINMENT, INC. (KUST)
CIK:        0001342958
Form:       8-K
Filed at:   2023-04-07T23:59:59+00:00
Accession:  0001493152-23-011561
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Digital Ally issues $3M secured convertible notes at 10% OID, plus warrants
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- Issued $3M Senior Secured Convertible Notes (net $2.7M after 10% OID) and warrants to investors.
- Notes convertible at $5.00/share; warrants exercisable at $5.50, $6.50, $7.50 for 1.125M shares total.
- Notes secured by substantially all assets including headquarters mortgage; rank senior to all other debt.
- Investors may require second closing of up to $3M additional notes within 18 months.
- Company must file resale registration statement within 10 business days; failure triggers 2% monthly damages.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1342958/000149315223011561/0001493152-23-011561-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1342958/000149315223011561/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-011561

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer