DIGITAL ALLY, INC. 8-K

What Happened
On January 22, 2026, Digital Ally, Inc. (the filing identifies the company as Kustom Entertainment, Inc.) announced via Form 8‑K that it entered into a non‑binding Memorandum of Understanding (MOU) with Cycurion, Inc. regarding the contemplated divestiture of the Company’s Video Solutions Segment. A press release describing the MOU is attached to the filing as Exhibit 99.1.

Key Details

• Date filed: January 22, 2026.
• Parties: Digital Ally, Inc. (filing name: Kustom Entertainment, Inc.) and Cycurion, Inc.
• Transaction type: Non‑binding MOU contemplating divestiture of the Video Solutions Segment.
• Disclosure: Press release attached as Exhibit 99.1; no financial terms or definitive agreement disclosed.
• Caution: The filing includes forward‑looking statements and states there is no guarantee the transaction will occur or that the company’s stock price reflects its value.

Why It Matters
This 8‑K signals a possible strategic change—if completed, the divestiture would remove the Video Solutions business from the company’s operations, which could affect future revenue mix and investor expectations. Because the MOU is non‑binding and no terms were provided, there is uncertainty until a definitive agreement is announced; investors should watch for subsequent filings or press releases with material terms or closing details.