Heckman Thomas J 4

What Happened Thomas J. Heckman, CFO, Treasurer & Secretary of Kustom Entertainment, was awarded options to acquire 22,500 shares of the company’s common stock (reported as a derivative award) on January 22, 2026. The options have an exercise price of $2.04 per share (the Nasdaq closing price on Jan 22, 2026) and 100% of the options vest on January 22, 2027, contingent on Heckman remaining an officer on that date. This was a grant/award (not an open-market purchase or sale).

Key Details

• Transaction type: Award/Grant of options (Form 4 code A; derivative transaction).
• Grant date / Period of Report: January 22, 2026.
• Shares covered: options to acquire 22,500 shares.
• Exercise price: $2.04 per share (at-the-money, matching the Jan 22, 2026 closing price).
• Vesting: 100% vests on January 22, 2027, contingent on continued service as an officer.
• Reverse split: Filing notes a reverse stock split effective January 8, 2026, and share counts reflect that change.
• Shares owned after transaction: Not specified in this filing.
• Filing timeliness: Report filed March 2, 2026 — filed several weeks after the Jan 22 grant (later than the usual 2-business-day Form 4 deadline).

Context This is a standard option grant to an executive and does not represent an immediate purchase or sale of shares. Because the exercise price equals the market close on the grant date, the options were effectively granted at-the-money. Vesting is delayed for one year and is contingent on Heckman’s continued service, so the award’s value depends on future stock performance and continued employment. The late filing may be a compliance issue but does not change the nature of the grant.