secwatch.observer — SEC 8-K summary
======================================

Issuer:     KUSTOM ENTERTAINMENT, INC. (KUST)
CIK:        0001342958
Form:       8-K
Filed at:   2025-09-17T23:59:59+00:00
Accession:  0001493152-25-013877
Event type: debt
Sentiment:  neutral
Materiality: 0.75
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Digital Ally closes $806K secured convertible note and $25M ELOC financing
--------------------------------------------------------------------------

- Issued $806,452 principal senior secured convertible notes (8% interest) and warrants for 476,569 shares at $2.124, gross proceeds $750K after 7% OID.
- Conversion price set at 10% discount to 5-day VWAP; note ranks senior to all existing and future debt, secured by substantially all assets.
- Entered $25M committed equity facility (ELOC) where investor buys shares at 92% of lowest daily price; term 36 months, subject to Nasdaq caps.
- Purchaser cannot sell more than 20% of daily trading volume under Leak-Out Agreement; second closing of $250K notes contingent on registration effectiveness.
- Proceeds from ELOC and note will be used for general corporate purposes; shares issued are unregistered under Section 4(a)(2) and Rule 506.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1342958/000149315225013877/0001493152-25-013877-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1342958/000149315225013877/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-25-013877

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer