{"schema_version":"secwatch.filing_event.v1","accession":"0001493152-26-016301","form_type":"8-K","ticker":"KUST","cik":"0001342958","company_name":"KUSTOM ENTERTAINMENT, INC.","filed_at":"2026-04-13T23:59:59+00:00","discovered_at":"2026-05-14T18:02:32.176702+00:00","generated_at":"2026-05-15T06:33:27.564035+00:00","sec_items":["2.02","7.01","9.01"],"event_type":"earnings","sentiment":"positive","materiality_score":0.75,"calibrated_materiality_score":0.75,"confidence":"high","headline":"Kustom Entertainment FY2025 net loss improves $11.9M; strategic pivot to live entertainment","bullets":["Revenue $13,755K (+$235K YoY); net loss from continuing ops improved $11,945K to $5,955K.","SG&A improved $2,275K to $12,230K, including a non-cash impairment charge of $2,535K.","Sold medical billing RCM business effective Jan 1, 2026; MOU to sell video solutions to Cycurion (CYCU) for $6M-$8.5M.","Stockholders' equity increased $11.4M; working capital improved $17.9M year-over-year."],"urls":{"canonical":"https://secwatch.observer/filing/0001493152-26-016301","json":"https://secwatch.observer/filing/0001493152-26-016301.json","markdown":"https://secwatch.observer/filing/0001493152-26-016301.md","text":"https://secwatch.observer/filing/0001493152-26-016301.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1342958/000149315226016301/0001493152-26-016301-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1342958/000149315226016301/form8-k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-05-15T06:33:27.564035+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"affc238703db940578d7e11dec5c4de0f5f55341","claim":"KUSTOM ENTERTAINMENT, INC. reported fiscal year ended December 31, 2025 results: revenue $13,755,000, net income $5,955,000.","evidence_excerpt":"Financial Highlights for Fiscal Year 2025 ● Revenue Growth: Total revenues from continuing operations rose to approximately $13,755,000, an increase of $235,000 year-over-year. ● Operating Efficiency: Selling, General, and Administrative (SG&A) expenses improved by $2,275,000 year-over-year to approximately $12,230,000 in 2025. This improvement was achieved despite a one-time, non-cash charge of $2,535,000 for goodwill and intangible asset impairment during 2025. ● Non-Operating Income: Non-operating income increased by $11,440,000 year over year. This was driven primarily by a $4,575,000 improvement in the fair value of warrant derivative liabilities and a $2,715,000 reduction in interest expense. ● Bottom Line Improvement: Net loss from continuing operations improved by approximately $11,945,000 to $5,955,000 compared to $17,900,000 for the prior fiscal year. ● Balance sheet: Total stockholders’ equity increased $11.4 million and net working capital position improved by $17.9 million","evidence_source":"SEC 8-K Item 2.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1342958/000149315226016301/0001493152-26-016301-index.htm","confidence":0.95,"family_label":"Earnings Releases","details":[{"label":"Period","value":"fiscal year ended December 31, 2025"},{"label":"Revenue","value":"$13,755,000"},{"label":"Net income","value":"$5,955,000"},{"label":"Result","value":"reported results"}],"fact_type":"earnings_release"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}