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Kustom Entertainment (NASDAQ: KUST) enacts 1-for-3 reverse split

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Kustom Entertainment, Inc., formerly Digital Ally, Inc., reported that it completed a 1-for-3 reverse stock split of its common stock effective January 8, 2026. Every three pre-split shares were combined into one post-split share, reducing outstanding common shares from 2,402,498 to 801,006, with any fractional shares rounded up to the nearest whole share. The split became effective at 12:01 a.m. Eastern Time, and the stock began trading on Nasdaq on a split-adjusted basis the same day, with a new CUSIP number 25382T 507.

The company also changed its corporate name from Digital Ally, Inc. to Kustom Entertainment, Inc., effective January 8, 2026, and updated its Nasdaq trading symbol from “DGLY” to “KUST”. The board amended the company’s bylaws solely to reflect the new name, without requiring stockholder approval. The name and symbol changes do not affect stockholder rights, and no action is required from stockholders.

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Insights

Company executes 1-for-3 reverse split and rebrands as Kustom Entertainment.

Kustom Entertainment, Inc. implemented a 1-for-3 reverse stock split, reducing outstanding common shares from 2,402,498 to 801,006. Reverse splits consolidate shares without changing total equity value, but they typically raise the trading price per share and can help a company maintain exchange listing standards when needed. Fractional positions were rounded up, slightly increasing individual holdings where fractions arose.

Concurrently, the company rebranded from Digital Ally, Inc. to Kustom Entertainment, Inc. and changed its Nasdaq ticker from DGLY to KUST. These steps align the corporate identity and listing symbol, while the company states that stockholder rights remain unchanged and no stockholder action is required. Future disclosures in company filings may provide additional detail on how the live event production and online ticketing focus develops.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 8, 2026

 

KUSTOM ENTERTAINMENT, INC.

(Exact Name of Registrant as Specified in Charter)

 

Nevada   001-33899   20-0064269
(State or other Jurisdiction   (Commission   (IRS Employer
of Incorporation)   File Number)   Identification No.)

 

6366 College Blvd., Overland Park, KS 66211

(Address of Principal Executive Offices) (Zip Code)

 

(913) 814-7774

(Registrant’s telephone number, including area code)

 

Digital Ally, Inc.

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Stock, $0.001 par value per share   KUST   The Nasdaq Capital Market LLC

 

 

 

 

 

 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

Reverse Stock Split

 

Effective as of January 8, 2026, Digital Ally, Inc. (the “Company”) filed a Certificate of Change (the “Certificate of Change”) to its Articles of Incorporation, as amended (the “Articles of Incorporation”) adopted by the Company’s Board of Directors (the “Board”) and filed with the Secretary of State of the State of Nevada on January 6, 2026, to effect a reverse stock split at a ratio of one-for-three (1-for-3), such that every three (3) shares of the Company’s common stock, par value $0.001 (the “Common Stock”) issued and outstanding would be converted and exchanged into one (1) share of Common Stock (the “Reverse Stock Split”). The Reverse Stock Split became effective at 12:01 a.m. Eastern Time on January 8, 2026, and began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading on January 8, 2026.

 

The number of outstanding shares of Common Stock prior to the Reverse Stock Split was 2,402,498 and the number of outstanding shares of Common Stock following the Reverse Stock Split is 801,006. No fractional shares were issued in connection with the Reverse Stock Split, and any fractional shares that resulted from the Reverse Stock Split were rounded up to the nearest whole share. The new CUSIP number for the Common Stock is 25382T 507.

 

The foregoing description of the Certificate of Change does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the full text of the Certificate of Change, a copy of which is attached to this Current Report on Form 8-K (this “Form 8-K”) as Exhibits 3.1, and which is incorporated by reference herein.

 

Name and Ticker Symbol Change

 

Effective as of January 8, 2026, the Company changed its corporate name from Digital Ally, Inc. to Kustom Entertainment, Inc. pursuant to a Certificate of Amendment (the “Name Change Certificate of Amendment”) to the Articles of Incorporation, as filed with the Nevada Secretary of State on January 6, 2026 (the “Name Change”). The Name Change became effective at 12:03 a.m. Eastern Time on January 8, 2026, and the Company began trading on the Nasdaq Capital Market under the new name at the start of trading on January 8, 2026.

 

Additionally, the Board approved an amendment to the Company’s Amended and Restated Bylaws (the “Bylaws”), effective immediately after the effectiveness of the Name Change. The changes to the Bylaws are solely intended to reflect the Name Change. In accordance with the Nevada Revised Statutes and the provisions of the Company’s organizational documents, the Board approved the Bylaws and stockholder approval was not required for such amendment.

 

The information set forth herein is qualified in its entirety by reference to, and should be read in conjunction with, the complete text of the Name Change Certificate of Amendment and the Bylaws, filed herewith as Exhibits 3.2 and 3.3, respectively, which are incorporated by reference herein.

 

Item 8.01 Other Events.

 

New Nasdaq Ticker Symbol

 

In connection with the Name Change, the Company changed its trading symbol on the Nasdaq Capital Market for the Common Stock, from “DGLY” to “KUST”. The trading symbol change is effective as of the open of trading on January 8, 2026 (the “Symbol Change”).

 

 

 

 

The Symbol Change does not affect the rights of the Company’s stockholders. Stockholders do not need to take any action in connection with the Name Change or Symbol Change. There will be no change to the Company’s CUSIP in connection with the Name Change or Symbol Change.

 

Press Release

 

On January 5, 2026, the Company issued a press release announcing the Name Change, the Symbol Change and the Reverse Stock Split (the “Press Release”). A copy of the Press Release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

 

Forward-Looking Statements

 

Exhibit 99.1 attached to this Form 8-K contains, and may implicate, forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Reverse Stock Split, Name Change or Symbol Change, references to the live event production business and its proprietary on-line ticketing platform, the Company’s expectations and shift in focus to its live event production business and its proprietary on-line ticketing platform, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned, including, without limitation, risks and uncertainties related to the Reverse Stock Split, the Name Change, the Symbol Change, the growth of the live event industry, and there being no guarantee that the trading price of the Company’s common stock will be indicate of the Company’s value. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit

Number

  Description 
3.1   Certificate of Change to the Articles of Incorporation of Digital Ally, Inc., effective on January 8, 2026.
3.2   Certificate of Amendment to the Articles of Incorporation of Kustom Entertainment, Inc., effective on January 8, 2026.

3.3

 

Amendment to the Amended and Restated Bylaws of Kustom Entertainment, Inc., effective on January 8, 2026.

99.1   Press Release dated January 5, 2026.
104   Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: January 8, 2026

 

Kustom Entertainment, Inc.  
     
By: /s/ Stanton E. Ross  
Name: Stanton E. Ross  
Title: Chairman, President and Chief Executive Officer  

 

 

FAQ

What reverse stock split did Kustom Entertainment (DGLY) implement?

Kustom Entertainment, Inc., formerly Digital Ally, Inc., implemented a 1-for-3 reverse stock split, so every three shares of common stock were combined into one share. This reduced outstanding common shares from 2,402,498 to 801,006, with fractional shares rounded up.

When did the Kustom Entertainment reverse split and trading adjustment take effect?

The reverse stock split became effective at 12:01 a.m. Eastern Time on January 8, 2026, and the company’s common stock began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading that same day.

What name change did Digital Ally (DGLY) disclose in this 8-K filing?

The company changed its corporate name from Digital Ally, Inc. to Kustom Entertainment, Inc., effective January 8, 2026, through a Certificate of Amendment to its Articles of Incorporation filed in Nevada.

How did the Nasdaq ticker symbol change for Kustom Entertainment (DGLY)?

In connection with the name change, the Nasdaq ticker symbol for the company’s common stock changed from “DGLY” to “KUST”. The new symbol became effective at the open of trading on January 8, 2026.

Did the Kustom Entertainment name and symbol changes affect stockholder rights?

No. The company states that the name change and ticker symbol change do not affect stockholder rights, and stockholders do not need to take any action in connection with these changes.

Were there any changes to Kustom Entertainment’s bylaws related to the name change?

Yes. The board approved an amendment to the Amended and Restated Bylaws effective immediately after the name change. The changes were solely to reflect the new corporate name, and stockholder approval was not required.

What new CUSIP number applies to Kustom Entertainment’s common stock after the split?

Following the 1-for-3 reverse stock split, the company’s common stock has a new CUSIP number: 25382T 507, as disclosed in the report.

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