---
schema_version: "secwatch.filing_event.v1"
accession: "0001641172-25-011874"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2025-05-21T23:59:59+00:00"
generated_at: "2026-05-20T22:18:19.987645+00:00"
event_type: "earnings"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Digital Ally Q1 net income $4.3M ($1.41/share) vs. year-ago loss of $3.9M; revenue down 19%

## Summary
- Revenue fell 19% to $4.4M; gross margin expanded to 35.8% from 27.6%.
- Operating loss improved 73.2% to $974,680; non-operating gains of $5.2M drove net profit.
- Working capital turned positive to $3.4M; stockholders' equity rose to $11.6M from deficit.
- Completed $14.3M public equity offering in Q1 2025; still working to regain Nasdaq bid price compliance.
- Entertainment segment expects improved revenue from Country Stampede Music Festival June 26-28.

## SEC filing metadata
- accession: 0001641172-25-011874
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2025-05-21T23:59:59+00:00
- event_type: earnings
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000164117225011874/0001641172-25-011874-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000164117225011874/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001641172-25-011874
- JSON: https://secwatch.observer/filing/0001641172-25-011874.json
- Plain text: https://secwatch.observer/filing/0001641172-25-011874.txt

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