---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-041394"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2023-11-15T23:59:59+00:00"
generated_at: "2026-06-08T02:08:43.213739+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 down 25% to $6.3M; net loss widens to $3.7M

## Summary
- Q3 2023 revenue $6.34M, down 25% YoY from $8.48M; gross profit up 106% to $1.23M.
- Net loss attributable to common stockholders $3.71M ($1.32 per share) vs $1.90M ($0.76) in Q3 2022.
- Deferred revenue (contract liabilities) rose to ~$9.9M at Sep 30, 2023 from ~$7.2M a year earlier.
- Announced merger of Kustom Entertainment subsidiary with Clover Leaf (CLOE); expects combined co. to list on Nasdaq.
- $4.88M revolver from Kompass Kapital secured by real property; proceeds to retire existing debt and for working capital.

## SEC filing metadata
- accession: 0001493152-23-041394
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2023-11-15T23:59:59+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 2.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315223041394/0001493152-23-041394-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315223041394/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-041394
- JSON: https://secwatch.observer/filing/0001493152-23-041394.json
- Plain text: https://secwatch.observer/filing/0001493152-23-041394.txt

## Key facts
- Earnings Releases
  KUSTOM ENTERTAINMENT, INC. reported third quarter ended September 30, 2023 results: revenue Total revenues for the three months ended September 30, 2023 were $6,337,699.
  - Period: third quarter ended September 30, 2023
  - Revenue: Total revenues for the three months ended September 30, 2023 were $6,337,699
  - Result: reported results
  source text: Total revenues for the three months ended September 30, 2023 were $6,337,699, a decrease of $2,146,454, or (25%), as compared to $8,484,153 for the three months ended September 30, 2022.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315223041394/0001493152-23-041394-index.htm

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