UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 2226, 2026

Digital Ally, Inc

KUSTOM ENTERTAINMENT, INC.

(Exact name of registrant as specified in its charter)

Nevada

001-33899

20-0064269

(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(I.R.S. Employer

Identification Number)

6366 College Blvd., Overland Park, KS 66211

(Address of Principal Executive Offices) (Zip Code)

(913) 814-7774

(Registrant’s telephone number, including area code)

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))

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

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

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. ☐

Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

OnEffective January 22, 2026, ~~Kustom~~the ~~Entertainment,~~Compensation ~~Inc.~~Committee (the “~~Company~~Committee”) ~~issued~~of athe ~~press~~Board ~~release~~of ~~announcing~~Directors ~~that~~(the it“Board ~~has entered into a non-binding Memorandum~~ of ~~Understanding (“MOU~~Directors”) of ~~with~~Kustom ~~Cycurion~~Entertainment, Inc. ~~regarding~~ (the ~~contemplated~~“Company”) ~~divestiture~~approved ofcertain compensatory arrangements for the Company’s executive ~~Video~~officers ~~Solutions~~and ~~Segment,~~members ~~a copy~~ of ~~which~~the isBoard ~~attached~~of ~~as Exhibit 99~~Directors.~~1 to this Current Report on Form 8-K and is incorporated herein by reference.~~

~~Forward-Looking~~The ~~Statements~~Committee set the annual base salaries of Stanton E. Ross, President and Chief Executive Officer of the Company, Peng Han, Chief Operating Officer and Thomas J. Heckman, Chief Financial Officer, Treasurer, and Secretary at $200,000 for Mr. Ross and Mr. Han and $90,000 for Mr. Heckman for the 2026 fiscal year.

~~Exhibit~~The ~~99.1~~Committee ~~attached~~determined ~~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~~Mr. ~~Forward-looking statements include all statements that do not relate solely to historical or current facts~~Ross, ~~including~~Mr. ~~without~~Han ~~limitation statements regarding the MOU, references to the live event production business~~ and ~~its~~Mr. ~~proprietary~~Heckman ~~on-line~~will ~~ticketing~~each ~~platform, and can~~ be ~~identified~~eligible byfor ~~the use~~bonuses of ~~words~~up ~~such~~to asa ~~“may,”~~total ~~“will,”~~of ~~“expect~~$250,”000 ~~“project,”~~for ~~“estimate,”~~2026 ~~“anticipate,”~~based ~~“plan,”~~on ~~“believe,”~~individual ~~“potential,”~~performance ~~“should,”~~during ~~“continue” or~~ the ~~negative versions of those words or other comparable words~~year. ~~Forward-looking~~The ~~statements~~Committee ~~are~~will ~~not~~review ~~guarantees~~each ofexecutive ~~future~~officer’s ~~actions or~~ performance. ~~These forward-looking statements are based~~ on ~~information~~a ~~currently~~periodic ~~available~~basis ~~to the Company and its current plans or expectations and are subject to a number~~during of2026 ~~risks~~ and ~~uncertainties~~determine ~~that~~what ~~could~~if ~~significantly~~any ~~affect~~portion ~~current plans. Should one or more~~ of ~~these~~such ~~risks~~bonus orhas ~~uncertainties~~been ~~materialize, or~~earned ~~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 MOU, and there being no guarantee that the trading price of the Company’s common stock~~ will be ~~indicate~~paid 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~~such ~~United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results~~time.

~~Item~~The Committee 9also approved the issuance of options to acquire shares of the Company’s common stock, par value $0.01001 (the “Common Stock”), under the Company’s 2022 Stock Option and Restricted Stock Plan, as amended (the “Plan”). ~~Financial~~Mr. ~~Statements~~Ross was granted options to acquire 58,333 shares of Common Stock and ~~Exhibits~~Mr. Han and Mr. Heckman were each granted options to acquire 22,500 shares of Common Stock subject to the effectiveness of a Form S-8 Registration Statement registering awards under the Plan. The exercise price for such options is $2.04 per share which was the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026. One hundred percent of the options awarded to these executive officers will vest on January 22, 2027, provided each individual remains an officer of the Company on such date.

~~(d)~~The ~~Exhibits~~Committee also approved the issuance of options to members of the Board of Directors under the Plan. Leroy C Richie was granted options to acquire 5,000 shares of Common Stock, and Duke Daughtery and Charles Anderson were each granted options to acquire 3,333 shares of Common Stock subject to the effectiveness of a Form S-8 Registration Statement. The exercise price for all such options is $2.04 per share which was the closing price of the Common Stock on January 22, 2026. One hundred percent of each director’s option award will vest on January 22, 2027, provided the individual remains a director on such dates.

Exhibit Number		Description
99.1		Press Release dated January 22, 2026.
104		Cover Page Interactive Data File. (Embedded within the Inline XBRL document.)

SIGNATURE

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.

Dated: January 2227, 2026

Kustom Entertainment, Inc.

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

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