secwatch.observer — SEC 8-K summary
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Issuer:     KUSTOM ENTERTAINMENT, INC. (KUST)
CIK:        0001342958
Form:       8-K/A
Filed at:   2024-11-08T23:59:59+00:00
Accession:  0001493152-24-044282
Event type: debt
Sentiment:  negative
Materiality: 0.90
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1342958/000149315224044282/0001493152-24-044282-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1342958/000149315224044282/form8-ka.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-044282

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