---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-24-044282"
form_type: "8-K/A"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2024-11-08T23:59:59+00:00"
generated_at: "2026-05-30T02:44:19.015035+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# Digital Ally enters $3M private placement of notes and stock; cash runway only ~3 months

## Summary
- Issued $3.6M senior secured notes and 808,377 common shares for $3.0M gross proceeds in private placement on Nov 7.
- Net proceeds of ~$2.015M used to repay Mosh Man Note, ending public sale of collateral.
- Remaining net proceeds expected to fund operations for only about three months; additional funding needed.
- Company plans to sell its video solutions business in the short term to raise cash.
- Must file registration statement within 30 days for public offering and resale of shares; proceeds to repay notes.

## SEC filing metadata
- accession: 0001493152-24-044282
- form_type: 8-K/A
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2024-11-08T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315224044282/0001493152-24-044282-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315224044282/form8-ka.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-24-044282
- JSON: https://secwatch.observer/filing/0001493152-24-044282.json
- Plain text: https://secwatch.observer/filing/0001493152-24-044282.txt

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