New York, Jan 28, 2026, 08:52 EST — Premarket
- Kustom Entertainment shares jumped roughly 22% in premarket, rebounding from a nearly 3% drop at Tuesday’s close.
- A recent SEC filing outlined the base salary, bonus targets, and stock option grants for executives and directors in 2026.
- The company submitted an amended report concerning its earlier announced discussions to sell off its video solutions unit.
Kustom Entertainment, Inc. shares jumped roughly 22% in premarket action Wednesday, hitting $2.58 by 8:43 a.m. ET. The Nasdaq-listed microcap had just filed two new documents with U.S. regulators.
The disclosures matter because Kustom is rapidly reshaping itself—cutting back on legacy operations and pushing deeper into live events and ticketing. For a company this small, investors closely watch any signs related to cash flow or capital structure.
Incentives came under the microscope as well. Fresh cash pay, bonus targets, and option awards can help keep a leadership team steady through a pivot. Yet, if the business shift stalls, worries about dilution and cash burn tend to intensify.
A recent SEC filing from Kustom reveals the compensation committee has set the 2026 base salaries at $200,000 for both CEO Stanton E. Ross and COO Peng Han. CFO Thomas J. Heckman’s base salary is pegged at $90,000. Each executive is eligible for performance bonuses up to $250,000. The company also unveiled stock options for executives and directors, priced at $2.04 per share—the closing price on Jan. 22—with vesting scheduled for January 2027, pending the approval of a Form S-8 registration statement used for employee stock plans.
Separately, Kustom submitted an amended 8-K to reclassify a previous disclosure, moving it from Item 5.02 to Item 8.01. This technical adjustment places the report under the SEC’s “other events” category. The update references the company’s earlier announcement about a non-binding memorandum of understanding, or MOU, related to a possible divestiture.
Kustom’s press release tied to the filing detailed that the MOU with Cycurion, Inc. involves selling its video solutions division for an anticipated $6.0 million to $8.5 million. That sum includes $1.0 million to $1.4 million in cash, with the rest paid in Cycurion preferred stock. “This divestiture allows us to sharpen our focus and allocate resources” toward entertainment, Ross said.
The company describes the move as a push into live event production and building an in-house online ticketing platform, a fiercely competitive space where size and marketing muscle usually determine the leaders.
Still, the MOU isn’t binding, and the company stressed any deal would depend on negotiations and closing conditions—so the terms could shift significantly or the deal might fall through. The option awards require a registration step, too, while the preferred-stock portion of a sale may be tough for investors to price right away.
Traders are eyeing any SEC filings that turn the MOU into a binding deal, along with the Form S-8 required to kick off the new option grants. Kustom’s quarterly results are due Feb. 25, per The Wall Street Journal’s market data calendar.
