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AI brief of an SEC Form 8-K · KUSTOM ENTERTAINMENT, INC. (KUST)

Kustom closes sale of video solutions business to Cycurion for up to $6.1 million

Mixed Impact 4 of 5 m&a Written later

Kustom Entertainment completed the sale of substantially all assets of its video solutions business to Cycurion on August 3, 2026. The filing lists consideration of $1.25 million cash, a $4.25 million secured promissory note, up to $1 million in earnout payments, and $600,000 of Cycurion Series H Preferred Stock. Pro forma figures show lower 2025 revenue and a smaller net loss, because the sold business is no longer included.

Key points

  • Closed August 3, 2026; the $1.25 million cash payment includes a $250,000 extension payment received July 27, 2026.
  • The $4.25 million note bears 7% interest, has a three-year term, and is secured by the transferred assets.
  • Pro forma 2025 revenue was $8.65 million versus $13.75 million historical; pro forma net loss attributable to common stockholders was $6.07 million versus $6.67 million historical.
  • A Second Amendment to a Common Stock Purchase Agreement with an unnamed investor was also entered into August 3, 2026.

The filing

CompanyKUSTOM ENTERTAINMENT, INC. (KUST)
Form8-K, current report
Filed with the SECAug 4, 2026, 9:35 AM ET
Accession number0001493152-26-035942

Items reported: 1.01 Material Definitive Agreement2.01 Acquisition or Disposition Completed8.01 Other Events

Read the filing on SEC.gov ↗

Written by AI on Nov 9, 2026, 10:08 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 04, 2026.

Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.