---
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"
generated_at: "2026-08-04T13:37:04.562988+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Kustom Entertainment closes $6.1M divestiture of video solutions business to Cycurion

## Summary
- 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.

## SEC filing metadata
- 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
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.01, 9.01, 8.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-035942
- JSON: https://secwatch.observer/filing/0001493152-26-035942.json
- Plain text: https://secwatch.observer/filing/0001493152-26-035942.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.