---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-24-043934"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2024-11-07T23:59:59+00:00"
generated_at: "2026-05-30T03:22:45.205553+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Digital Ally raises $3M in private placement of secured notes; cash runway of only 3 months

## Summary
- Issued $3.6M principal in 90-day senior secured notes and 808,377 shares for $3.0M gross proceeds.
- ~$2.015M of net proceeds used to repay Mosh Man Note, ending public sale of collateral.
- Remaining funds expected to cover operations for only ~3 months; company will need additional capital.
- Company plans to sell its video solutions business in the short term to raise funds.
- Must file registration for public offering within 30 days; use proceeds to retire notes.

## SEC filing metadata
- accession: 0001493152-24-043934
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2024-11-07T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315224043934/0001493152-24-043934-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315224043934/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-24-043934
- JSON: https://secwatch.observer/filing/0001493152-24-043934.json
- Plain text: https://secwatch.observer/filing/0001493152-24-043934.txt

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