{"schema_version":"secwatch.filing_event.v1","accession":"0001493152-26-035942","form_type":"8-K","ticker":"KUST","cik":"0001342958","company_name":"KUSTOM ENTERTAINMENT, INC.","filed_at":"2026-08-04T13:35:39+00:00","discovered_at":"2026-08-04T13:37:00.647667+00:00","generated_at":"2026-08-04T13:37:04.562988+00:00","sec_items":["1.01","2.01","9.01","8.01"],"event_type":"m_and_a","sentiment":"positive","materiality_score":0.8,"calibrated_materiality_score":0.8,"confidence":"high","headline":"Kustom Entertainment closes $6.1M divestiture of video solutions business to Cycurion","bullets":["Closed sale of video solutions assets to Cycurion (CYCU) for $1.25M cash, $4.25M secured note (7% interest, 3-year term), and $600K Series H Preferred (12% cumulative dividend).","Earnout potential up to $1M based on 2026/2027 revenue targets ($5.5M/$5.8M); symmetrical clawback if revenue falls >20% below target.","Company pivots to pure-play live entertainment and ticketing; plans to expand Country Stampede festival to 35,000 capacity in 2027.","Pro forma balance sheet shows $2.47M cash, $4.63M notes receivable, and $305K investment in Cycurion preferred stock post-divestiture.","Amended ELOC purchase agreement with investor to adjust maximum share purchases based on beneficial ownership limitation."],"urls":{"canonical":"https://secwatch.observer/filing/0001493152-26-035942","json":"https://secwatch.observer/filing/0001493152-26-035942.json","markdown":"https://secwatch.observer/filing/0001493152-26-035942.md","text":"https://secwatch.observer/filing/0001493152-26-035942.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1342958/000149315226035942/0001493152-26-035942-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1342958/000149315226035942/form8-k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-08-04T13:37:04.562988+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":[],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}