KUST · Kustom Entertainment, Inc.
Substantial doubt about the company's ability to continue as a going concern.
“These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year from the date of issuance of these condensed consolidated financial statements. In response, management has implemented and continues to implement plans intended to mitigate these conditions, including (i) continued access to the Company's committed equity financing facility (the "ELOC") providing up to $25,000,000 over a 36-month term, (ii) the January 8, 2026 divestiture of Nobility Healthcare, which eliminated the operating losses and working capital requirements of the Revenue Cycle Management segment, (iii) ongoing cost-reduction initiatives, including headcount reductions and facility consolidations in the Video Solutions segment, and (iv) continued evaluation of additional debt and equity financing alternatives. There can be no assurance that the Company will be successful in restoring positive cash flows and profitability, or that it will be able to raise additional financing on terms acceptable to the Company.Notwithstanding these measures, substantial doubt about the Company's ability to continue as a going concern has not been alleviated as of the date of issuance of these condensed consolidated financial statements.”View the 10-Q filed May 15, 2026
Trades by corporate insiders — officers, directors and holders of more than 10% of the shares — disclosed to the SEC on Forms 3, 4 and 5. Form 4 must be filed within two business days of the trade.
Insider Sentiment Score
Peer-relative 0–100 rank of how aggressively insiders accumulated over the trailing 90 days. See the full ranking.
| Date | Insider | Role | Type | Security | Shares |
|---|---|---|---|---|---|
| 2026-07-01 | HRT FINANCIAL LP |
10% Owner |
Sell↓
|
Common Stock
|
54,638 |
| 2026-06-30 | HRT FINANCIAL LP |
10% Owner |
Buy↑
|
Common Stock
|
25,791 |
| 2026-01-22 | Anderson Charles M |
Director |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects the reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 3,333 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining a director on such date. |
Employee Stock Option (Right to Buy)
|
3,333 |
| 2026-01-22 | RICHIE LEROY C |
Director |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects the reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 58,333 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining a director on such date. |
Employee Stock Option (Right to Buy)
|
5,000 |
| 2026-01-22 | Daughtery Daniel Duke |
Director |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 58,333 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining a director on such date. |
Employee Stock Option (Right to Buy)
|
3,333 |
| 2026-01-22 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects that reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 22,500 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining an officer on such date. |
Employee Stock Option (Right to Buy)
|
22,500 |
| 2026-01-22 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 58,333 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining an officer on such date. |
Employee Stock Option (Right to Buy)
|
58,333 |
| 2026-01-22 | Han Peng |
Chief Operating Officer |
Award↑
Filing footnotes — Employee Stock Option (Right to Buy) (Direct)
Reflects the reverse stock split, which occurred on January 8, 2026. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 58,333 shares of common stock, effective as of January 22, 2026, under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027, contingent upon the Reporting Person remaining an officer on such date. |
Employee Stock Option (Right to Buy)
|
22,500 |
| 2024-12-17 | Anderson Charles M |
Director |
Other↑
|
No Securities Owned
|
0 |
| 2023-10-17 | Daughtery Daniel Duke |
Director |
Award↑
Filing footnotes — Options to Buy (Direct)
The stock options were received as compensation for the reporting person's service as a member of the board of directors pursuant to the issuer's 2022 Stock Option and Restricted Stock Plan and have an exercise price of $2.60 per share, which was the closing price of the issuer's common stock, par value $0.001 per share, on October 16, 2023. |
Options to Buy
|
1,000 |
| 2023-01-10 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Common Stock (Direct)
On January 10, 2023 the Board of Directors granted the Reporting Person 350,000 shares of restricted common stock. The restricted shares will vest one half on January 10, 2024 and one half on January 10, 2025 contingent upon the Reporting Person remaining an officer on such dates. |
Common Stock
|
350,000 |
| 2023-01-10 | Han Peng |
Chief Operating Officer |
Award↑
Filing footnotes — Common Stock (Direct)
On January 10, 2023 the Board of Directors granted the Reporting Person 100,000 shares of restricted common stock. The restricted shares will vest 20,000 shares on January 10, 2024, January 10, 2025, January 10, 2026, January 10, 2027 and January 10, 2028 contingent upon the Reporting Person remaining an officer on such dates. |
Common Stock
|
100,000 |
| 2022-01-05 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Award↑
Filing footnotes — Common Stock (Direct)
This amendment is filed to correct the "Date of Earliest Transaction" on the previously filed Form 4 to January 5, 2022 as opposed to January 5, 2021 as originally included in previously filed Form 4. There were no other changes to the previously filed Form 4. On January 5, 2022 the Board of Directors granted the Reporting Person 75,000 shares of restricted common stock under the 2020 Digital Ally, Inc. 401K and Profit Sharing Plan and Trust, as part of the reporting Persons compensation. The shares are restricted until their vesting date on March 31, 2023, contingent upon the Reporting Person remaining as an officer on such date. |
Common Stock
|
75,000 |
| 2022-01-05 | Han Peng |
Chief Operating Officer |
Award↑
Filing footnotes — Common Stock (Direct)
On January 5, 2022 the Board of Directors granted the Reporting Person 100,000 shares of restricted common stock under the 2020 Digital Ally, Inc. 401K and Profit Sharing Plan and Trust. The restricted shares vest 20,000 shares per year on January 5, 2023, January 5, 2024, January 5, 2025, January 5, 2026 and January 5, 2027 contingent upon the Reporting Person remaining as an officer on such dates. |
Common Stock
|
100,000 |
| 2022-01-05 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Common Stock (Direct)
On January 5, 2022 the Board of Directors granted the Reporting Person 350,000 shares of restricted common stock under the 2020 Digital Ally, Inc. 401K and Profit Sharing Plan and Trust, as part of the Reporting Person's compensation. The restricted shares vest 50% on January 5, 2023 and 50% on January 5, 2024 contingent upon the Reporting Person remaining as an officer on such dates. |
Common Stock
|
350,000 |
| 2021-11-30 | Ross Stanton E |
Director, Chairman, CEO & President |
Buy↑
Filing footnotes — Common Stock (Direct)
This amendment is being filed to correct an inadvertent typographical error regarding the transaction code in the original Form 4. The Form 4 was intended to report a private purchase of the issuer's shares of common stock, par value $0.001 per share (the "Common Stock") using the transaction code "P." The original form incorrectly indicated a transaction code of "S." Represents shares of Common Stock purchased by the reporting person. |
Common Stock
|
40,000 |
| 2021-07-08 | Hutchins Daniel F |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
On July 8, 2021 the Reporting Person was granted options to purchase 100,000 shares of common stock at an exercise price of $1.67 per share. Such options vest as follows: 25,000 shares on July 8, 2021, 25,000 shares on December 31, 2021, 25,000 shares on March 31, 2022 and 25,000 shares on May 31, 2022 subject to the Reporting Person remaining as a member of the Board of Directors at such dates. |
Common Stock Purchase Option
|
100,000 |
| 2021-07-08 | RICHIE LEROY C |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
On July 8, 2021 the Reporting Person was granted options to purchase 100,000 shares of common stock at an exercise price of $1.67 per share. Such options vest as follows: 25,000 shares on July 8, 2021, 25,000 shares on December 31, 2021, 25,000 shares on March 31, 2022 and 25,000 shares on May 31, 2022 subject to the Reporting Person remaining as a member of the Board of Directors at such dates. |
Common Stock Purchase Option
|
100,000 |
| 2021-07-08 | Caulfield Michael |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
On July 8, 2021 the Reporting Person was granted options to purchase 100,000 shares of common stock at an exercise price of $1.67 per share. The options vest on the following schedule: 25,000 on July 8, 2021, 25,000 on December 31, 2021, 25,000 on March 31, 2022 and 25,000 on May 31, 2022 subject to the Reporting Person remaining as a member of the Board of Directors on such dates. |
Common Stock Purchase Option
|
100,000 |
| 2021-01-07 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Award↑
Filing footnotes — Common Stock (Direct)
On January 7, 2021, the Reporting Person was granted 150,000 shares of restricted common stock under the 2020 Digital Ally, Inc. Stock Option and Restricted Stock Plan. These restricted shares vest 50% on January 6, 2022 and 50% on January 6, 2023, contingent upon the Reporting Person continuing as an employee at that point in time. |
Common Stock
|
150,000 |
| 2021-01-07 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Common Stock (Direct)
The Reporting Person was granted 300,000 shares of restricted common stock on January 7, 2021 under the 2020 Digital Ally, Inc. Stock Option and Restricted Stock Plan. These restricted shares vest 50% on January 6, 2022 and 50% on January 6, 2023, contingent upon the Reporting Person remaining as an employee at such point in time. |
Common Stock
|
300,000 |
| 2021-01-06 | Hutchins Daniel F |
Director |
Sell↓
Filing footnotes — Common Stock (Direct)
All sales by the Reporting Person were made pursuant to a 10B-5-1 Plan executed on December 2, 2020. |
Common Stock
|
2,936 |
| 2020-12-10 | Hutchins Daniel F |
Director |
Sell↓
|
Common Stock
|
1,250 |
| 2020-12-08 | Ross Stanton E |
Director, Chairman, CEO & President |
Sell↓
|
Common Stock
|
35,790 |
| 2020-12-07 | Ross Stanton E |
Director, Chairman, CEO & President |
Sell↓
|
Common Stock
|
119,210 |
| 2020-12-04 | Ross Stanton E |
Director, Chairman, CEO & President |
Sell↓
|
Common Stock
|
40,000 |
| 2020-09-09 | RICHIE LEROY C |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
These stock purchase options vest as follows: 18,750 on September 9, 2020, 18,750 on September 30, 2020, 18,750 on December 31, 2020, 18,750 on March 31, 2021 and 18,750 on May 1, 2021 assuming the Reporting Person remains a member of the Company's Board of Directors at such point in time. |
Common Stock Purchase Option
|
75,000 |
| 2020-09-09 | Hutchins Daniel F |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
These stock purchase options vest as follows: 18,750 on September 9, 2020, 18,750 on September 30, 2020, 18,750 on December 31, 2020, 18,750 on March 31, 2021 and 18,750 on May 1, 2020 assuming the Reporting Person remains a member of the Company's Board of Directors at such point in time. |
Common Stock Purchase Option
|
75,000 |
| 2020-09-09 | Caulfield Michael |
Director |
Award↑
Filing footnotes — Common Stock Purchase Option (Direct)
These stock purchase options vest as follows: 18,750 on September 9, 2020, 18,750 on December 31, 2020, 18,750 on March 31, 2021 and 18,750 on May 1, 2021 assuming the Reporting Person remains a member of the Company's Board Of Directors at such point in time. |
Common Stock Purchase Option
|
75,000 |
| 2020-06-09 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Sell↓
Filing footnotes — Common Stock (Direct)
The disposition reported on this Form 4 was effected pursuant to a Rule 10b5-1 Trading Plan adopted by the Reporting Person on May 21, 2019. The disposition of shares was in compliance with the previously adopted Rule 10b5-1 Trading Plan when the market price of the common stock was equal to or exceeded the designated price of $7.00 per share. |
Common Stock
|
55,000 |
| 2020-06-09 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Sell↓
Filing footnotes — Common Stock (Direct)
The disposition reported on this Form 4 was effected pursuant to a Rule 10b5-1 Trading Plan adopted by the Reporting Person on May 21, 2019. The disposition of shares was in compliance with the previously adopted Rule 10b5-1 Trading Plan when the market price of the common stock was equal to or exceeded the designated price of $7.00 per share. |
Common Stock
|
27,500 |
| 2020-06-09 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Sell↓
Filing footnotes — Common Stock (Direct)
The disposition reported on this Form 4 was effected pursuant to a Rule 10b5-1 Trading Plan adopted by the Reporting Person on May 21, 2019. The disposition of shares was in compliance with the previously adopted Rule 10b5-1 Trading Plan when the market price of the common stock was equal to or exceeded the designated price of $7.00 per share. |
Common Stock
|
27,500 |
| 2020-06-09 | Ross Stanton E |
Director, Chairman, CEO & President |
Gift↓
Filing footnotes — Common Stock (Direct)
The disposition reported in this Form 4 was a bona fide gift made to the Greater Kansas City Charitable Foundation. This is not a market transaction therefore no selling price is reported. The disposition is pursuant to a Rule 10b5-1 Trading Plan adopted by the Reporting Person on August 15, 2019 and was initiated when the market price of the shares was equal to or exceeded the designated price of $5.25 in compliance with the Rule 10b5-1 Trading Plan. |
Common Stock
|
87,651 |
| 2020-04-17 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Award↑
Filing footnotes — Common Stock (Direct)
Effective April 17, 2020, the Compensation Committee of the Board of Directors determined that the cash portion of the annual base salaries of the Reporting Person shall be reduced to an annual rate of $150,000. The Committee decided that the $55,384.00 representing the pro-rated reduction in the annual salaries would instead be paid through the issuance of 60,200 restricted shares of common stock based on the closing price of $0.92 per share on such date. |
Common Stock
|
60,200 |
| 2020-04-17 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Common Stock (Direct)
Effective April 17, 2020, the Compensation Committee of the Bard of Directors determined that the cash portion of the annual base salary of the Reporting Person shall be reduced to an annual rate of $150,000, The Committee decided that the $69,230.76 representing the pro-rated reduction in the annual salaries would instead be paid through the issuance of 75,250 restricted shares of common stock based on the closing price of $0.92 per share on such date. |
Common Stock
|
75,250 |
| 2020-01-03 | Ross Stanton E |
Director, Chairman, CEO & President |
Award↑
Filing footnotes — Common Stock (Direct)
The Reporting Person was granted 250,000 shares of Restricted Common Stock on January 3, 2020 under the Digital Ally, Inc. 2018 Stock Option and Restricted Stock Plan. These restricted shares vest 50% on January 2, 2021 and 50% on January 2, 2022, contingent upon the Reporting Person remaining as an employee of the Company at that point in time. |
Common Stock
|
250,000 |
| 2020-01-03 | Heckman Thomas J |
CFO, Treasurer & Secretary |
Award↑
Filing footnotes — Common Stock (Direct)
The Reporting Person was granted 150,000 shares of Restricted Common Stock on January 3, 2020 under the Digital Ally, Inc. 2018 Stock Option and Restricted Stock Plan. These Restricted Shares vest 50% on January 2, 2021 and 50% on January 2, 2022 contingent upon the Reporting Person remaining as an employee of the Company at such points in time. |
Common Stock
|
150,000 |