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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">CURRENT
REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
May 15, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>KIT DIGITAL, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 23%; text-align: center; border-bottom: Black 1pt solid">Delaware</TD>
    <TD STYLE="width: 15%; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 23%; text-align: center; border-bottom: Black 1pt solid">001-34437</TD>
    <TD STYLE="width: 15%; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center; border-bottom: Black 1pt solid">11-3447894</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center">(State or other jurisdiction</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(Commission File Number)</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(IRS Employer</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center">of incorporation)</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center"></TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Identification No.)&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 70%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%; text-align: center">26 West 17<SUP>th</SUP> Street, 2<SUP>nd</SUP> Floor</TD>
    <TD STYLE="width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 30%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">New York, New York</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">10011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's telephone number, including
area code: <U>+1 (646) 553-4845</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT>
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT>
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT> Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT> Pre-commencement
communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B><U> </U></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>CURRENT REPORT
ON FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>KIT digital,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in"><B>May 15, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May&nbsp;15, 2012,&nbsp;KIT digital,
Inc. (the &ldquo;<B>Company</B>&rdquo;)&nbsp;entered into a definitive Securities Purchase Agreement to raise&nbsp;$29,190,000
in gross proceeds, before deducting placement agents&rsquo; fees and other estimated offering expenses, in a private placement
(the &ldquo;<B>Offering</B>&rdquo;) of (i)&nbsp;7,000,000&nbsp;shares of the Company&rsquo;s Common Stock (the &ldquo;<B>Common
Stock</B>&rdquo;) and Warrants to purchase&nbsp;5,250,000&nbsp;shares of Common Stock (the &ldquo;<B>Warrants</B>&rdquo;). After
deducting the fees of the placement agent and other estimated offering expenses, the net proceeds to the Company from the Offering
will be approximately $28,200,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Common Stock and Warrants to purchase
Common Stock were offered and sold pursuant to &nbsp;a Securities Purchase Agreement dated May 15, 2012. The Offering is expected
to close on May 16, 2012, subject to the satisfaction of customary closing conditions. The Company&rsquo;s press release dated
May 15, 2012, announcing the financing (among other things), is filed as Exhibit 99.1 to this Current Report on Form 8-K, and the
relevant information contained therein is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the Securities
Purchase Agreement the Company will be required to issue additional shares of Common Stock at a specified time to the investors
in the event that the price per share of Common Stock in the Offering is greater than the price per share of the Common Stock,
calculated as 90% of the average of the ten lowest volume weighted prices of the Common Stock during the 20 trading day period
starting immediately following the earlier of the date on which the investors&rsquo; securities have been registered for resale
with the U.S. Securities and Exchange Commission (the &ldquo;<B>SEC</B>&rdquo;) or are able to be sold without restriction under
Rule 144 under the Securities Act of 1933, as amended (the &ldquo;<B>Securities Act</B>&rdquo;); <U>provided</U>, that, subject
to the terms and conditions of the Securities Purchase Agreement, the Company may be required to issue further additional shares
of Common Stock at one or more additional specified times if the additional shares of Common Stock are not freely tradable for
certain specified minimum periods. In no event will the number of shares of Common Stock issuable pursuant to this provision be
in excess of NASDAQ's 19.99% share cap, but for each share of Common Stock that would have been issuable, but for the NASDAQ share
cap, the Company will pay the investors the cash value of each such additional share not issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Warrants will be exercisable at an exercise
price of $5.00 per share commencing on the&nbsp;six-month anniversary of the closing date and expiring five years after the date
on which they become exercisable. The exercise price of the Warrants&nbsp;is subject to adjustment under certain circumstances,
including anti-dilution protection upon the issuance of any Common Stock, securities convertible into Common Stock, or certain
other issuances at a price below the then-existing exercise price, with certain exceptions and subject to a &ldquo;floor&rdquo;
price. The Warrants contain limitations that prevent the holder of any Warrants from acquiring shares upon exercise of a Warrant
that would result in the number of shares beneficially owned by it and its affiliates exceeding 4.99% of the total number of shares
of the Company&rsquo;s Common Stock then issued and outstanding (which limit may be raised to 9.99% upon the request of the holder).
In addition, upon certain changes in control of the Company, the holder of a Warrant can elect to receive, subject to certain limitations
and assumptions, cash equal to the Black-Scholes value of the outstanding Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with
the Offering,&nbsp;the Company also entered into a Registration Rights Agreement with the investors. Pursuant to the terms of
the Registration Rights Agreement,&nbsp;the Company granted to the investors certain registration rights related to the
shares of Common Stock issued and issuable in the private placement, including the shares issuable upon exercise of the
Warrants. The Company is required to file a registration statement for the resale of the shares of Common Stock issued and
issuable pursuant to the Securities Purchase Agreement (and the shares of Common Stock issuable upon exercise of the
Warrants) within&nbsp;45&nbsp;days following the closing date of the Offering and to use its reasonable best efforts to cause
such registration statement to be declared effective within&nbsp;90 days following the closing date (or&nbsp;120 days
following the closing date if the SEC determines to review the registration statement). The Company may incur liquidated
damages if it does not meet its registration obligations under the Registration Rights Agreement.&nbsp;The Company also
agreed to other customary obligations regarding registration, including indemnification and maintenance of the registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Registration Rights Agreement, form
of Warrant and&nbsp;Securities Purchase Agreement used in connection with the Offering are filed as Exhibits 4.1, 4.2 and&nbsp;10.1,
respectively, to this Current Report on Form 8-K and such documents are incorporated herein by reference. The foregoing is only
a brief description of the material terms of the Registration Rights Agreement, form of Warrant and&nbsp;Securities Purchase Agreement,
and does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its
entirety by reference to such exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The securities issued in the offering are
exempt from the registration requirements of the Securities Act pursuant to Section&nbsp;4(2) of the Securities Act and/or Regulation&nbsp;D
promulgated thereunder because, among other things, the transaction did not involve a public offering, the investors are accredited
investors, the investors took the securities for investment and not resale and the Company took appropriate measures to restrict
the transfer of the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in"><B>Item 2.02.&#9;Results of Operations
and Financial Condition.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information contained in the&nbsp;press&nbsp;release
issued by&nbsp;the Company on May&nbsp;15, 2012, reporting (among other things) results for the first quarter ended March 31, 2012,
a copy of which is attached hereto as Exhibit 99.1, is incorporated herein by reference. Such information in this Item 2.02 (including
Exhibit 99.1) is furnished pursuant to Item 2.02 and shall not be deemed to be &quot;filed&quot; for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;3.02 Unregistered Sales of Equity Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The response to this item is included in
Item&nbsp;1.01, Entry into a Material Definitive Agreement, and is incorporated herein in its entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(d)&nbsp;Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 16%; border-bottom: black 1pt solid; font-weight: bold">Exhibit Number</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 83%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Description</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">4.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Registration Rights Agreement, dated as of May&nbsp;15, 2012, by and among the
    Company     and the Buyers named therein.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">4.2</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Form of Warrant issued to the Buyers.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">10.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Securities Purchase Agreement, dated as of May 15, 2012, by and among the Company
    and     the     Buyers named therein.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">99.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Press release, dated May&nbsp;15, 2012, issued by the Company.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">KIT DIGITAL, INC.</TD>
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">Date: May 16, 2012</TD>
    <TD STYLE="width: 4%; text-align: justify">By:</TD>
    <TD STYLE="width: 49%; text-decoration: none; text-align: justify; border-bottom: Black 1pt solid">/s/ Barak Bar-Cohen</TD>
    <TD STYLE="width: 1%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Barak Bar-Cohen</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Chief Executive Officer</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
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[{"type": "8-K", "sequence": "1", "filename": "v313553_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 25054}]
{"company-data": {"conformed-name": "KIT digital, Inc.", "cik": "0001076700", "assigned-sic": "8900", "irs-number": "113447894", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34437", "film-number": "12847394"}, "business-address": {"street1": "26 WEST 17TH STREET", "street2": "2ND FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011", "phone": "6465534845"}, "mail-address": {"street1": "26 WEST 17TH STREET", "street2": "2ND FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011"}, "former-company": [{"former-conformed-name": "ROO GROUP INC", "date-changed": "20040312"}, {"former-conformed-name": "VIRILITEC INDUSTRIES INC", "date-changed": "19990326"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 15, 2012
KIT DIGITAL, INC.
(Exact Name of Registrant as Specified in
Charter)
Delaware
001-34437
11-3447894
(State or other jurisdiction
(Commission File Number)
(IRS Employer
of incorporation)
Identification No.)
26 West 17
th
Street, 2
nd
Floor
New York, New York
10011
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code:
+1 (646) 553-4845
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
CURRENT REPORT
ON FORM 8-K
KIT digital,
Inc.
May 15, 2012
Item 1.01 Entry into a Material Definitive Agreement.
On May 15, 2012, KIT digital,
Inc. (the "
Company
") entered into a definitive Securities Purchase Agreement to raise $29,190,000
in gross proceeds, before deducting placement agents' fees and other estimated offering expenses, in a private placement
(the "
Offering
") of (i) 7,000,000 shares of the Company's Common Stock (the "
Common
Stock
") and Warrants to purchase 5,250,000 shares of Common Stock (the "
Warrants
"). After
deducting the fees of the placement agent and other estimated offering expenses, the net proceeds to the Company from the Offering
will be approximately $28,200,000.
The Common Stock and Warrants to purchase
Common Stock were offered and sold pursuant to  a Securities Purchase Agreement dated May 15, 2012. The Offering is expected
to close on May 16, 2012, subject to the satisfaction of customary closing conditions. The Company's press release dated
May 15, 2012, announcing the financing (among other things), is filed as Exhibit 99.1 to this Current Report on Form 8-K, and the
relevant information contained therein is incorporated herein by reference.
Pursuant to the terms of the Securities
Purchase Agreement the Company will be required to issue additional shares of Common Stock at a specified time to the investors
in the event that the price per share of Common Stock in the Offering is greater than the price per share of the Common Stock,
calculated as 90% of the average of the ten lowest volume weighted prices of the Common Stock during the 20 trading day period
starting immediately following the earlier of the date on which the investors' securities have been registered for resale
with the U.S. Securities and Exchange Commission (the "
SEC
") or are able to be sold without restriction under
Rule 144 under the Securities Act of 1933, as amended (the "
Securities Act
");
provided
, that, subject
to the terms and conditions of the Securities Purchase Agreement, the Company may be required to issue further additional shares
of Common Stock at one or more additional specified times if the additional shares of Common Stock are not freely tradable for
certain specified minimum periods. In no event will the number of shares of Common Stock issuable pursuant to this provision be
in excess of NASDAQ's 19.99% share cap, but for each share of Common Stock that would have been issuable, but for the NASDAQ share
cap, the Company will pay the investors the cash value of each such additional share not issued.
The Warrants will be exercisable at an exercise
price of $5.00 per share commencing on the six-month anniversary of the closing date and expiring five years after the date
on which they become exercisable. The exercise price of the Warrants is subject to adjustment under certain circumstances,
including anti-dilution protection upon the issuance of any Common Stock, securities convertible into Common Stock, or certain
other issuances at a price below the then-existing exercise price, with certain exceptions and subject to a "floor"
price. The Warrants contain limitations that prevent the holder of any Warrants from acquiring shares upon exercise of a Warrant
that would result in the number of shares beneficially owned by it and its affiliates exceeding 4.99% of the total number of shares
of the Company's Common Stock then issued and outstanding (which limit may be raised to 9.99% upon the request of the holder).
In addition, upon certain changes in control of the Company, the holder of a Warrant can elect to receive, subject to certain limitations
and assumptions, cash equal to the Black-Scholes value of the outstanding Warrants.
In connection with
the Offering, the Company also entered into a Registration Rights Agreement with the investors. Pursuant to the terms of
the Registration Rights Agreement, the Company granted to the investors certain registration rights related to the
shares of Common Stock issued and issuable in the private placement, including the shares issuable upon exercise of the
Warrants. The Company is required to file a registration statement for the resale of the shares of Common Stock issued and
issuable pursuant to the Securities Purchase Agreement (and the shares of Common Stock issuable upon exercise of the
Warrants) within 45 days following the closing date of the Offering and to use its reasonable best efforts to cause
such registration statement to be declared effective within 90 days following the closing date (or 120 days
following the closing date if the SEC determines to review the registration statement). The Company may incur liquidated
damages if it does not meet its registration obligations under the Registration Rights Agreement. The Company also
agreed to other customary obligations regarding registration, including indemnification and maintenance of the registration
statement.
The Registration Rights Agreement, form
of Warrant and Securities Purchase Agreement used in connection with the Offering are filed as Exhibits 4.1, 4.2 and 10.1,
respectively, to this Current Report on Form 8-K and such documents are incorporated herein by reference. The foregoing is only
a brief description of the material terms of the Registration Rights Agreement, form of Warrant and Securities Purchase Agreement,
and does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its
entirety by reference to such exhibits.
The securities issued in the offering are
exempt from the registration requirements of the Securities Act pursuant to Section 4(2) of the Securities Act and/or Regulation D
promulgated thereunder because, among other things, the transaction did not involve a public offering, the investors are accredited
investors, the investors took the securities for investment and not resale and the Company took appropriate measures to restrict
the transfer of the securities.
Item 2.02.	Results of Operations
and Financial Condition.
The information contained in the press release
issued by the Company on May 15, 2012, reporting (among other things) results for the first quarter ended March 31, 2012,
a copy of which is attached hereto as Exhibit 99.1, is incorporated herein by reference. Such information in this Item 2.02 (including
Exhibit 99.1) is furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 3.02 Unregistered Sales of Equity Securities.
The response to this item is included in
Item 1.01, Entry into a Material Definitive Agreement, and is incorporated herein in its entirety.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number
Description
4.1
Registration Rights Agreement, dated as of May 15, 2012, by and among the
    Company     and the Buyers named therein.
4.2
Form of Warrant issued to the Buyers.
10.1
Securities Purchase Agreement, dated as of May 15, 2012, by and among the Company
    and     the     Buyers named therein.
99.1
Press release, dated May 15, 2012, issued by the Company.
3
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
KIT DIGITAL, INC.
Date: May 16, 2012
By:
/s/ Barak Bar-Cohen
Barak Bar-Cohen
Chief Executive Officer
4