---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-038525"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2023-10-27T23:59:59+00:00"
generated_at: "2026-06-09T06:51:12.092940+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# Digital Ally enters $4.88M revolving credit facility with Kompass Kapital to repay existing debt

## Summary
- Gross proceeds of $4.88M from Kompass Kapital; portion to retire $3.1625M in Senior Secured Convertible Notes.
- Revolving loan matures Oct 26, 2025; interest rate = greater of Prime Rate +4% or 8% floor.
- Collateral includes real property at 14001 Marshall Drive, Lenexa, KS and a $97,600 minimum capital reserve account.
- Borrower is Digital Ally and subsidiary Digital Ally Healthcare; jointly and severally liable for obligations.

## SEC filing metadata
- accession: 0001493152-23-038525
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2023-10-27T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 2.01, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315223038525/0001493152-23-038525-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315223038525/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-038525
- JSON: https://secwatch.observer/filing/0001493152-23-038525.json
- Plain text: https://secwatch.observer/filing/0001493152-23-038525.txt

## Key facts
- Debt Financings
  KUSTOM ENTERTAINMENT, INC. incurred revolving credit of $4,880,000 with Kompass Kapital Funding, LLC at the greater of (i) the Prime Rate plus four percent or (ii) eight percent maturing October 26, 2025.
  - Instrument: revolving credit
  - Principal: $4,880,000
  - Counterparty: Kompass Kapital Funding, LLC
  - Rate: the greater of (i) the Prime Rate plus four percent or (ii) eight percent
  - Maturity: October 26, 2025
  - Event: incurrence
  source text: ”) by and between the Company, as grantor, and Kompass, as grantee, and issued a Revolving Note (the “ Revolving Note ”) to Kompass. The gross proceeds to the Company are $4,880,000 before repaying those certain Senior Secured Convertible Notes issued on April 5, 2023 in the aggregate amount of $3,162,500 and paying customary fees and expenses. Pursuant to
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315223038525/0001493152-23-038525-index.htm
- Material Agreements
  KUSTOM ENTERTAINMENT, INC. entered into Loan Agreement with Kompass Kapital Funding, LLC valued at $4,880,000 (effective 2023-10-26).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Kompass Kapital Funding, LLC
  - Value: $4,880,000
  - Effective: 2023-10-26
  source text: On October 26, 2023, Digital Ally, Inc. (the “Company”) entered into a Loan and Security Agreement (the “ Loan Agreement ”) by and between the Company, Digital Ally Healthcare, Inc., a Nevada corporation and wholly-owned subsidiary of the Company (“ Digital Ally Healthcare ” and, together with the Company, the “ Borrower ”), and Kompass Kapital Funding, LLC, a Kansas limited liability company (“ Kompass ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315223038525/0001493152-23-038525-index.htm

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