Recent Updates — DGLY
On October 22, 2026, Kustom Entertainment filed a Certificate of Amendment with the Nevada Secretary of State to increase its authorized capital stock from approximately 11.3 million to 1.2 billion shares. The amendment classifies 1 billion shares as common stock and 200 million shares as preferred stock, both with a $0.001 par value. This change was approved by stockholders at the annual meeting held on October 5, 2026. Kustom Entertainment operates in the entertainment industry.
Kustom Entertainment executed a one-for-ten reverse stock split of its common stock, reducing outstanding shares from approximately 6.5 million to roughly 650,686 and authorized shares from 13.3 million to 1.3 million. The split became effective on October 1, 2026, with trading beginning on a split-adjusted basis that day. This action was taken to increase the per-share trading price to comply with Nasdaq's minimum $1.00 bid price requirement for continued listing. Additionally, shareholders approved an amendment to increase authorized capital stock and ratified director elections at their annual meeting. Kustom Entertainment operates in the live event production industry, specializing in large-scale music festivals and proprietary ticketing technology.
Kustom Entertainment, Inc. entered into a Unit Purchase Agreement on August 31, 2026, to acquire 100% of TFL, LLC (dba Tickets For Less) for aggregate consideration of $89.6 million in cash and $22.4 million in restricted common stock. The company will also repay $35.0 million of TFL’s outstanding indebtedness at closing. Transaction terms include a $11.2 million holdback of shares contingent on achieving specified Target EBITDA through calendar year 2027, with an outside date for closing set for October 15, 2026. The acquisition is expected to be immediately accretive to revenue and earnings, combining Kustom’s festival production with TFL’s ticketing technology platform. Kustom Entertainment operates in the live entertainment industry, specializing in large-scale music festival production and event management.
On August 7, 2026, Kustom Entertainment, Inc. issued an aggregate of 2,625,000 shares of common stock to consultants, advisors, service providers, financing sources, and strategic partners. The issuance was made in consideration for services rendered or to be rendered, accrued obligations, asset acquisitions, and incurred debt pursuant to various agreements. These transactions were conducted privately under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, with shares issued as restricted securities. Kustom Entertainment operates in the entertainment industry, specifically managing live events and concerts.
Kustom Entertainment completed the divestiture of its legacy video solutions business assets to Cycurion for a total consideration valued at $6.1 million. The transaction closed on August 3, 2026, and includes $1.25 million in upfront cash, a $4.25 million secured promissory note bearing 7% annual interest over three years, up to $1 million in contingent earn-out payments based on future revenue performance, and Series H Preferred Stock with a stated value of $600,000 issued by Cycurion. This strategic pivot allows Kustom Entertainment to focus exclusively on live entertainment production and proprietary ticketing technology operations.