---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-24-012637"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2024-04-02T23:59:59+00:00"
generated_at: "2026-06-04T03:24:56.820831+00:00"
event_type: "earnings"
sentiment: "negative"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Digital Ally reports 2023 revenue down 24%; gross profit up 148%; Nasdaq non-compliance

## Summary
- Total revenue $28.25M, down 24% from $37.01M in 2022; net loss $25.69M ($9.22/share) vs $21.67M ($8.50).
- Gross profit improved 148% to $5.76M; entertainment segment revenue fell 33%, healthcare revenue down 15%.
- Entered $1.425M senior secured note with Mosh Man LLC to fund Kustom Entertainment operations until merger.
- Nasdaq notified company of audit/compliance committee deficiency after director resignation; cure period through Jan 2025.
- Clover Leaf merger (Kustom Entertainment) still pending; S-4 filed, Country Stampede assets acquired in March 2024.

## SEC filing metadata
- accession: 0001493152-24-012637
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2024-04-02T23:59:59+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315224012637/0001493152-24-012637-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315224012637/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-24-012637
- JSON: https://secwatch.observer/filing/0001493152-24-012637.json
- Plain text: https://secwatch.observer/filing/0001493152-24-012637.txt

## Key facts
- Earnings Releases
  KUSTOM ENTERTAINMENT, INC. reported the year ended December 31, 2023 results: revenue $28,248,344.
  - Period: the year ended December 31, 2023
  - Revenue: $28,248,344
  - Result: reported results
  source text: more efficient management of our supply chain through outsourcing production, quantity purchases and more effective purchasing practices. ● Total revenues decreased in 2023 to $28,248,344 from $37,009,895 in 2022 a deterioration of $8,761,551 (24%). The primary reason for the overall revenue decrease is a decrease of $6,253,892 (41%) in service revenues from 2022
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315224012637/0001493152-24-012637-index.htm

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