Business Context and Reporting Period
This Form 8-K filing by Kustom Entertainment, Inc. (KUST) reports on compensatory arrangements approved by the Compensation Committee effective January 22, 2026. The report was filed on January 26, 2026, and signed on January 27, 2026.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive and director compensation details.
- Executive Base Salaries (2026): Stanton E. Ross (CEO) and Peng Han (COO) at $200,000 each; Thomas J. Heckman (CFO) at $90,000.
- Executive Bonuses: Up to $250,000 per executive based on individual performance.
- Stock Options (Executives): 58,333 shares to Mr. Ross; 22,500 shares each to Mr. Han and Mr. Heckman.
- Stock Options (Directors): 5,000 shares to Leroy C. Richie; 3,333 shares each to Duke Daughtery and Charles Anderson.
- Option Exercise Price: $2.04 per share (closing price on January 22, 2026).
- Vesting Schedule: 100% of options vest on January 22, 2027, contingent on continued service.
Material Changes
The filing details new compensation structures for the 2026 fiscal year, including specific salary amounts and the grant of new stock options. No prior period financial data is provided for comparison.
Guidance, Outlook, and Risks
The filing contains no forward-looking financial guidance, management commentary on business outlook, or discussion of risks and contingencies. The primary contingency noted is that stock option vesting is conditional upon the recipients remaining in their respective roles through January 22, 2027.
Investor Verification Checklist
- Verify the effectiveness of the Form S-8 Registration Statement required for the stock option grants.
- Confirm the total number of shares authorized under the 2022 Stock Option and Restricted Stock Plan to assess dilution impact.
- Review the specific performance metrics used to determine the $250,000 executive bonuses.
- Check subsequent filings for any changes to the compensation terms or executive departures.