secwatch.observer — SEC 8-K summary
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Issuer:     KUSTOM ENTERTAINMENT, INC. (KUST)
CIK:        0001342958
Form:       8-K
Filed at:   2026-04-17T23:59:59+00:00
Accession:  0001493152-26-017152
Event type: m_and_a
Sentiment:  neutral
Materiality: 0.55
Item codes: 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Kustom revises MOU with Cycurion to sell video segment for $5.5M, targeting close by June 30, 2026
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- Total purchase price $5.5M: $1.25M cash at closing, $4.25M secured note at 7% over 36 months, plus 2M warrants at $2.80.
- Warrants have two-year term after shares become registered; exercise price $2.80.
- Earn-out/clawback up to $1M based on net income milestones over one- and three-year periods.
- Expected closing on or before June 30, 2026; 30-day no-shop exclusivity period.
- Replaces prior MOU from January 22, 2026.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1342958/000149315226017152/0001493152-26-017152-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1342958/000149315226017152/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-26-017152

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