KUSTOM ENTERTAINMENT, INC. (KUST): Entry into a Material Definitive Agreement
KUSTOM ENTERTAINMENT, INC. (KUST) filed an SEC Form 8-K — Entry into a Material Definitive Agreement. EX-10.1 2 ex10-1.htm EX-10.1 Exhibit 10.1 AMENDMENT NO. 1 AND FORBEARANCE / EXTENSION AGREEMENT TO ASSET PURCHASE AGREEMENT This Amendment No. 1 and Forbearance / Extension Agreement to Asset Purchase Agreement (this “ Amendment ”) is entered into and effective as of July 23, 202
How this was made
The 30-second read
Why it matters
Kustom receives an immediate $250,000 non-refundable extension payment and the original 2,000,000 warrants are cancelled and replaced with CYCU Series H Preferred Stock with $600,000 stated value and 12% cumulative dividends paid in CYCU common shares.
Market read
Traders may reassess Kustom’s deal-close probability and near-term cash/structure implications ahead of the new Sept. 15, 2026 deadline.
What to watch
The Series H Preferred terms include 12% cumulative dividends paid in common shares and conversion mechanics at $1.45, which could affect CYCU’s dilution expectations and, indirectly, deal certainty for Kustom.
Background
Kustom and Cycurion amended an asset purchase agreement originally dated June 23, 2026, extending the closing date from July 15, 2026 to Sept. 15, 2026.
Ticker impact
Kustom entered an amendment extending its asset sale closing to Sept. 15, 2026 and received a $250,000 non-refundable extension payment.
Near-term sentiment likely neutral to mildly positive, with focus on whether the extended closing is achieved by Sept. 15.
The filing is a primary disclosure of deal amendment terms (extension date, cash payment, warrant replacement), but it does not provide deal completion or updated valuation beyond the extension consideration.
Market effects
Limited read-across; this is company-specific deal documentation rather than a sector-wide signal.
No clear regional spillover indicated by the filing.
No global macro or cross-border transaction details beyond the parties’ jurisdictions.
Counterpoint
The extension and warrant-to-preferred replacement could signal underlying closing friction, so the market may treat it as a delay rather than progress.
Key entities
- issuerKustom Entertainment, Inc.
Subject of the 8-K, amending its asset purchase agreement and receiving an extension payment.
- counterpartyCycurion, Inc.
Counterparty requesting the closing extension and providing the extension payment and preferred stock replacement.
- security_termsSeries H Preferred Stock
Preferred stock replacing the original warrants, with conversion, dividends, voting, and liquidation preference terms.
