---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-24-042723"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2024-10-28T23:59:59+00:00"
generated_at: "2026-05-30T09:37:23.162304+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Digital Ally receives default notice over missed $100K payment, faces collateral sale on Nov 5, 2024

## Summary
- Missed $100,000 payment due Oct 10, 2024 triggered default under Senior Secured Promissory Note.
- Administrative agent Softforge accelerated all ~$1.6M principal + interest and demands lockbox control.
- Softforge scheduled a UCC Article 9 public sale of collateral for Nov 5, 2024 at 11:00 AM ET.
- Company disputes defaults and intends to seek injunctive relief and damages.

## SEC filing metadata
- accession: 0001493152-24-042723
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2024-10-28T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 2.04
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315224042723/0001493152-24-042723-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315224042723/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-24-042723
- JSON: https://secwatch.observer/filing/0001493152-24-042723.json
- Plain text: https://secwatch.observer/filing/0001493152-24-042723.txt

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