DGLY Company Report

Kustom Entertainment, Inc. (formerly Digital Ally, Inc.) completed the divestiture of its 51% ownership interest in Nobility Healthcare, LLC on January 8, 2026.
The total estimated proceeds from the sale were $1.45 million, consisting of $100,000 in cash paid at closing, $209,501 in credits, and a promissory note for $1,140,499 bearing 6% interest.
This divestiture reflects a strategic shift for the company to focus exclusively on the live entertainment and online ticketing markets, aiming to expand its presence in the estimated $100 billion global live event market.

Jan 12, 2026, 1:00 PM

Kustom Entertainment, Inc. announces name and ticker change, strategic pivot, and reverse stock split

DGLY

New Projects/Investments

Capital Structure Change

Digital Ally, Inc. has rebranded to Kustom Entertainment, Inc. and will trade under the new ticker symbol KUST on the Nasdaq Capital Market, effective January 8, 2026.
This change reflects a strategic pivot towards the live events and online ticketing markets, with the company intending to focus on servicing the $100 billion plus addressable market.
The company also implemented a 1-for-3 reverse stock split, effective January 8, 2026.
Prior to the reverse stock split, there were 2,402,498 outstanding shares of Common Stock, which were reduced to 801,006 shares after the split. Fractional shares were rounded up to the nearest whole share.

Jan 8, 2026, 9:45 PM

Digital Ally, Inc. Completes Convertible Note Financing and Announces Annual Meeting Results

DGLY

Debt Issuance

Proxy Vote Outcomes

Digital Ally, Inc. completed a subsequent closing of a Senior Secured Convertible Note financing on December 19, 2025, issuing notes with an original principal amount of $267,500 and warrants, generating $250,000 in gross proceeds.
The notes carry an eight percent (8%) annual interest rate and are due on December 19, 2026.
Warrants issued are exercisable for 147,128 shares of common stock at an exercise price of $2.124 per share.
At its Annual Meeting on December 19, 2025, stockholders approved the election of four directors and ratified Victor Mokuolu CPA PLLC as the independent auditor for 2025.
Stockholders also approved transactions related to the securities purchase agreement and the common stock purchase agreement, which include the potential issuance of 20% or more of outstanding common stock upon conversion of notes and exercise of warrants.

Dec 22, 2025, 2:00 PM

Digital Ally, Inc. Announces Third Quarter 2025 Operating Results

DGLY

Earnings

Revenue Acceleration/Inflection

Delisting/Listing Issues

Digital Ally, Inc. reported a 12% increase in total third-quarter revenue to $4.5 million for Q3 2025, compared to $4.1 million in the prior-year period.
Selling, general, and administrative expenses significantly declined by 72.7% to $2.5 million in Q3 2025, down from $9.1 million in the third quarter of 2024.
The company achieved an 84.8% improvement in operating loss, reporting a loss of $1,121,782 for Q3 2025, and an improved net loss attributable to common stockholders of $1,021,867, or $0.59 per diluted share.
Total working capital improved to a deficit of $115,393 as of September 30, 2025, from a deficit of $19,377,507 as of December 31, 2024.
Total stockholders' equity improved to $7,516,665 as of September 30, 2025, from a deficit of $(9,013,430) as of December 31, 2024, following a $14.3 million public equity offering earlier in 2025, and the company regained full compliance with Nasdaq listing requirements on October 17, 2025.

Nov 12, 2025, 2:30 PM

DIGITAL ALLY, INC. Files 8-K Regarding Common Stock Agreement and Commitment Fee

DGLY

DIGITAL ALLY, INC. (DGLY) filed an 8-K on September 17, 2025, detailing an agreement for the purchase and sale of common stock.
The agreement includes a Commitment Fee equal to 3.0% of the Total Commitment, which will be paid in shares of common stock and cash, or entirely in common stock under specific conditions.
The company is obligated to use commercially reasonable efforts to maintain the listing and trading of its Common Stock on The Nasdaq Capital Market and to comply with SEC and exchange rules, including maintaining eligibility for Form S-3 for the resale of registrable securities.
The document outlines various events of default, such as failure to deliver conversion shares, trading suspensions, or delisting notices, which could impact the agreement.