Kustom Entertainment Inc. (NASDAQ:KUST) shares jumped 40.28% in after-hours trading on Tuesday to $2.96 after announcing a non-binding agreement to divest its video solutions division. The stock closed at $2.11 in regular trading, down 2.76%, according to Benzinga Pro data.$6-8.5 Million Video Division SaleKustom announced on Jan. 22 that it entered a Memorandum of Understanding with Virginia-based technology-enabled firm Cycurion Inc. (NASDAQ:CYCU) to sell its video solutions business for a transaction val ...

Core Insights - The company is rebranding from Digital Ally, Inc. to Kustom Entertainment, Inc. to align with its strategic focus on the live event production and ticketing market, which is valued at over $100 billion [1] - A 1-for-3 reverse stock split will take effect, with trading on a split-adjusted basis starting January 8, 2026 [2][3] - The company is expanding its live events portfolio nationally, leveraging the success of the Country Stampede Music Festival as a model for large-scale events [4] Market Overview - The global music industry is projected to grow from $105 billion in 2024 to nearly $200 billion by 2035, despite a slowdown in growth to 6.2% in 2024 from 15.6% in 2023 [5] - Live music is expected to grow at a compounded annual growth rate of 7.2% from 2024 to 2030, driven by demand from millennials and Gen Z [6] Strategic Focus - The company's ticketing platform aims to provide a comprehensive solution for both its events and third-party venues, enhancing the overall fan experience [7] - The CEO emphasized the importance of the name change and the focus on live event production and ticketing platforms to meet the growing demand for in-person experiences [8] Company Information - Kustom Entertainment, Inc. specializes in large-scale music festivals and offers end-to-end event management and ticketing solutions across the U.S., with the Country Stampede Festival being a flagship event [11]

Market Overview - U.S. stocks traded higher, with the Nasdaq Composite gaining over 100 points on Wednesday. The Dow rose 0.61% to 47,399.75, the NASDAQ increased 0.55% to 23,151.20, and the S&P 500 climbed 0.51% to 6,800.09 [1] - Utilities shares experienced a notable increase of 0.9% on Wednesday [1] Sector Performance - Communication services stocks fell by 0.3% on Wednesday [2] Company Specifics - Deere & Company (NYSE:DE) shares fell more than 4% after reporting fourth-quarter results and a disappointing fiscal 2026 outlook. The company reported earnings per share of $3.93, exceeding the consensus of $3.88, and an 11% year-over-year increase in quarterly sales to $12.39 billion, surpassing the consensus of $9.85 billion [3][4] - Deere expects fiscal 2026 net income to be between $4.0 billion and $4.75 billion, indicating a year-over-year decline of 20% to 5.5%, and projects operating cash flow of $4.0 billion to $5.0 billion [4] Commodity Market - In commodity news, oil traded up 0.1% to $57.99, gold increased by 1.1% to $4,186.70, silver rose 3.3% to $52.635, and copper gained 1.7% to $5.1765 [5] International Markets - European shares were higher, with the eurozone's STOXX 600 rising 0.9%, Spain's IBEX 35 Index up 0.9%, London's FTSE 100 increasing by 0.8%, Germany's DAX 40 gaining 0.7%, and France's CAC 40 rising 0.7% [6] - Asian markets closed mostly higher, with Japan's Nikkei gaining 1.85%, Hong Kong's Hang Seng up 0.13%, China's Shanghai Composite falling 0.15%, and India's BSE Sensex increasing by 1.21% [7] Stock Movements - Pasithea Therapeutics Corp. (NASDAQ:KTTA) shares surged 66% to $0.8100, while Amber International Holding Limited (NASDAQ:AMBR) rose 60% to $2.52 after reporting better-than-expected third-quarter sales and a $50 million buyback. Boqii Holding Limited (NYSE:BQ) shares increased by 47% to $2.59 [9] - Conversely, Lazydays Holdings, Inc. (NASDAQ:GORV) shares dropped 31% to $0.5284, and MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) fell 24% to $0.1415 following an $8 million registered direct offering [9]

As filed with the U.S. Securities and Exchange Commission November 26, 2025 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 DIGITALALLY, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Nevada 3663 20-0064269 (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) Digital Ally, Inc. 63 ...

Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 As filed with the U.S. Securities and Exchange Commission November 26, 2025 DIGITALALLY, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Nevada 3663 20-0064269 (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) Digital Ally, Inc. 63 ...

Core Points - Digital Ally, Inc. announced the full lineup for the 2026 Country Stampede Music Festival, featuring headliners Treaty Oak Revival, Zach Top, and Rascal Flatts [1][2] - The festival aims to showcase both established artists and emerging talent, with a diverse support lineup including Wyatt Flores, Scotty McCreery, and others [3] - The event will take place on June 25, 26, and 27, 2026, at the Azura Amphitheater in Bonner Springs, Kansas, with various ticketing options available [6] Group 1 - The 2026 Country Stampede will include a pre-party and late-night after parties to enhance fan experiences [4] - An annual Battle of the Bands competition will allow rising artists to compete for a chance to open the Main Stage [5] - Kustom Entertainment emphasizes community engagement and aims to provide a platform for emerging artists alongside established headliners [6] Group 2 - Digital Ally, Inc. operates through subsidiaries engaged in video solution technology, healthcare revenue cycle management, and event production [7] - Kustom Entertainment, a subsidiary of Digital Ally, specializes in producing live entertainment experiences, with the Country Stampede being a flagship event [7]

Company Overview - Digital Ally, Inc. announced its third quarter operating results on November 12, 2025[4] - The company is listed on The Nasdaq Capital Market under the trading symbol DGLY[3] Financial Information - The report does not include specific financial metrics or performance data in the provided content[4] Forward-Looking Statements - The press release includes forward-looking statements that may impact future performance[7]

Core Insights - Digital Ally, Inc. reported significant improvements in its financial performance for the third quarter of 2025 compared to the same period in 2024, highlighting a recovery in revenues and a reduction in operating losses [1][3]. Financial Performance - Total third quarter revenue increased by 12% to $4.5 million, compared to $4.1 million in the third quarter of 2024 [4]. - Selling, general and administrative (SG&A) expenses declined by 72.7% to $2.5 million from $9.1 million in the prior-year period [4]. - The company reported an operating loss of $1,121,782, which is an improvement of $6,260,517 or 84.8% compared to the third quarter of 2024 [4]. - Net loss attributable to common stockholders improved to $1,021,867, or $0.59 per diluted share, compared to a net loss of $3,470,506, or $1,817.02 per diluted share in the previous year [4]. Operational Developments - The company completed a $14.3 million public equity offering earlier in 2025, which significantly improved liquidity and stockholders' equity, exceeding the minimum requirement for continued listing on The Nasdaq Capital Market [3]. - Total stockholders' equity improved to $7,516,665 as of September 30, 2025, compared to a deficit of $(9,013,430) as of December 31, 2024 [4]. Strategic Outlook - The company anticipates continued improvement in its entertainment segment revenues and operating profits, particularly in preparation for the upcoming Country Stampede Music Festival scheduled for June 25-27, 2026 [3]. - Digital Ally is focused on cost reduction, streamlining supply chain logistics, and incentivizing sales efforts to adapt to the competitive market for law enforcement products [3].

Financial Position - The company reported a stockholders' equity deficit of ($2,448,310) as of September 30, 2024, failing to meet the Nasdaq Stockholders' Equity Requirement of $2,500,000[248]. - The company received a notice from Nasdaq on December 20, 2024, regarding non-compliance with the Minimum Bid Price Requirement due to a closing bid price of less than $1 per share for 30 consecutive business days[247]. - The company regained compliance with the Minimum Bid Price Requirement and Stockholders' Equity Requirement as of October 17, 2025, and is now under a one-year Discretionary Panel Monitor[252]. - The company anticipates achieving compliance with Nasdaq requirements and maintaining it, although there are no assurances of continued compliance[251]. - The company has approximately $159,965,000 of federal net operating loss carryforwards available to offset future net taxable income as of September 30, 2025[298]. - The company has a net negative working capital of $115,393 as of September 30, 2025, with accounts receivable and other receivables representing $4,796,447 of net working capital[348]. - Debt obligations totaled $1,003,731 as of September 30, 2025, with current maturities of $865,292[352]. Revenue and Segment Performance - The company entered the revenue cycle management business in the second quarter of 2021, completing four acquisitions of private medical billing companies to enhance service revenues for healthcare organizations[257]. - The video solutions segment generates revenue through subscription models and hardware sales, with revenues recognized upon product delivery and deferred for cloud and warranty subscriptions over 3 to 5 years[256]. - Total net revenues for the three months ended September 30, 2025, were $4,537,157, representing a 12.0% increase from $4,051,711 in 2024[263]. - Entertainment segment revenue was $1,729,773 for the three months ended September 30, 2025, compared to $1,253,557 in 2024, an increase of 37.9%[263]. - Product revenues for the entertainment segment decreased by 12.6% to $434,793 in 2025 from $497,700 in 2024[274]. - Service and other revenues for the entertainment segment increased by 71.3% to $1,294,980 in 2025 from $755,857 in 2024[273]. - Video solutions segment revenue decreased by 25.0% to $229,629 in 2025 from $306,245 in 2024[274]. - Total net revenues for the nine months ended September 30, 2025, were $14,644,460, a decrease of $552,837 (3.6%) from $15,197,297 in 2024[314]. - Revenue cycle management segment revenues decreased to $4,144,008 for the nine months ended September 30, 2025, down $456,738 (9.9%) from $4,600,745 in 2024[314]. - The entertainment segment generated service revenues of $3,911,068 for the nine months ended September 30, 2025, an increase of $743,860 (23.5%) from $3,167,208 in 2024[314]. Profitability and Loss - Total gross profit for the three months ended September 30, 2025, was $1,371,575, down from $1,739,974 in 2024[263]. - Total operating loss for the company was $1,121,782 for the three months ended September 30, 2025, compared to a loss of $7,382,299 in 2024[263]. - The company recorded a net loss before income tax benefit of $(963,342) for the three months ended September 30, 2025, an improvement of $4,507,370 (82.4%) compared to $(5,470,712) in 2024[296]. - Net income improved to $(963,342) for Q3 2025, a $4,507,370 (82.4%) increase from $(5,470,712) in Q3 2024[299]. - Net loss attributable to common stockholders decreased to $(1,021,867) in Q3 2025, an improvement of $2,448,639 (70.6%) from $(3,470,506) in Q3 2024[301]. - Operating loss improved by $6,260,517 (84.8%) to $1,121,782 for the three months ended September 30, 2025, with operating loss as a percentage of revenues improving to 24.7% from 182%[288]. - Net loss improved by $13,239,067 (91.8%) to $(1,185,464) for the nine months ended September 30, 2025, compared to $(14,424,531) in 2024[340]. - Net loss attributable to common stockholders improved to $(1,303,597) for the nine months ended September 30, 2025, compared to $(12,485,388) for the same period in 2024, representing an improvement of $11,181,791 (89.6%) [342]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by $6,628,916 (72.7%) to $2,493,357 for the three months ended September 30, 2025, primarily due to fewer new advertising sponsorships and headcount reductions[285]. - Selling, general and administrative expenses decreased by $9,907,312 (53.7%) to $8,531,984 for the nine months ended September 30, 2025, from $18,439,296 in 2024[322]. - Interest income increased to $17,887 for the three months ended September 30, 2025, from $13,775 in 2024, reflecting higher cash levels due to recent capital raises[289]. - Interest income increased to $95,808 for the nine months ended September 30, 2025, from $63,064 in 2024, reflecting higher cash levels[326]. - Interest expenses decreased significantly to $960,250 for the nine months ended September 30, 2025, from $2,505,536 in 2024, due to debt repayment[327]. - Net cash used in operating activities was $8,996,431 for the nine months ended September 30, 2025, compared to $4,086,023 for the same period in 2024, indicating a deterioration of $4,910,410[345]. - Net cash provided by financing activities was $9,684,796 for the nine months ended September 30, 2025, compared to $3,330,482 for the same period in 2024, driven by a public equity offering generating $14,308,300 in net cash proceeds[346]. Inventory and Asset Management - The company is actively managing inventory, which represents $2,622,542 of net working capital, with a goal to reduce this level during 2025[348]. - The total inventories as of September 30, 2025, amounted to $2,622,542, compared to $2,586,066 as of December 31, 2024, reflecting a slight increase[371][372]. - The reserve for excess and obsolete inventory decreased to $1,766,885 at September 30, 2025, from $2,169,655 at December 31, 2024, representing a reduction in reserves[373]. - Inventory reserves represented 40% of the gross inventory balance at September 30, 2025, down from 46% at December 31, 2024[373]. Impairment and Valuation - The company recorded a non-cash goodwill impairment charge of $4,322,000 for the revenue cycle management segment and $307,000 for the entertainment segment as of September 30, 2024[384]. - The weighted average cost of capital used in the most recent impairment test ranged from 20.9% to 32.5%[382]. - The fair value of the video solutions reporting unit was substantially in excess of its carrying value, while the revenue cycle management and entertainment segments were determined to be impaired[383]. - The company has fully reserved all of its deferred tax assets as of September 30, 2025, and December 31, 2024, due to overall net operating loss carryforwards available[390]. Market and Economic Conditions - Inflation has not materially affected the company during the past fiscal year, and the entertainment segment is expected to generate higher revenue in the second half of the calendar year[393].

Core Insights - Digital Ally, Inc. is focusing on live entertainment event production and ticket brokering services, with a presentation scheduled at the LD Micro Main Event XIX on October 20, 2025 [1][3][8] Company Overview - Digital Ally, Inc. develops and markets advanced video recording products and safety products for various industries, including law enforcement and emergency management [1][6] - The company is expanding its operations through its Kustom Entertainment subsidiary, emphasizing live entertainment and ticket brokering [3][6] Event Details - The LD Micro Main Event XIX will take place from October 19 to 21, 2025, at the Hotel del Coronado in San Diego, California, featuring around 120 companies presenting in half-hour increments [4][5] - The event will include registration, keynote speakers, company presentations, and one-on-one investor meetings, concluding with a closing reception [4][5]