Kustom Entertainment announces 1-for-10 split: what it means for Digital Ally stock

Kustom Entertainment announced a 1-for-10 reverse split on September 29, 2026, with split-adjusted trading expected to begin on October 1, 2026, according to StockTitan. The transaction marks a new trading frame for the security formerly associated with Digital Ally.

Reverse split changes the trading frame

The company said the split would reduce the number of authorized shares from 13,333,333 to 1,333,334. The announcement also cited a new CUSIP number, 25382T705, for the post-split security and identified Nasdaq Capital Market as the trading venue.

The corporate action follows a broader identity change. Yahoo Finance states that the company was formerly known as Digital Ally and changed its name to Kustom Entertainment in January 2026. The same transition changed the ticker from DGLY to KUST.

Entertainment strategy carries the next test

The operating shift is visible in the latest reported period. Quartr describes second-quarter 2026 revenue as up 88 percent, while losses persisted as the company completed its move toward entertainment.

The same proxy summary says shareholders will vote on 12 proposals, including director elections, auditor ratification, capital structure changes and the proposed acquisition of TFL, LLC. The transaction is valued at USD 112.00 million in cash and stock, plus assumed debt, according to Quartr.

What the split means for Digital Ally stock

The 1-for-10 ratio is the central near-term reference point for holders of the former DGLY security. It changes the share count and trading identifier, while the second-quarter revenue comparison and the USD 112.00 million proposed acquisition show why the company is being assessed through its entertainment strategy rather than its former video-equipment profile.