Kustom Entertainment, Inc.

Corporate history and structure

• Incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc.
• Renamed Digital Ally, Inc. after a 2004 merger.
• Common stock began trading on the Nasdaq Capital Market on January 2, 2008.
• Company name changed to Kustom Entertainment, Inc. on January 8, 2026; ticker remains KUST.
• Primary business address: 6366 College Blvd., Overland Park, Kansas 66211.
• SEC filings are publicly available on the SEC website and the company site.

Business segments

Video Solutions

Core activities: design, manufacture and sale of digital video imaging and storage products, disinfectant and related safety products for law enforcement, security and commercial markets.

Key products and technologies:

• In-car video systems: EVO-HD, DVM-800, DVM-800 Lite
• Body-worn cameras: FirstVu Pro, FirstVu II, FirstVu HD
• VuLink: auto-activation and interconnectivity between in-car and body-worn systems
• EVO Web Portal: cloud-based evidence management (AWS-based)
• EVO Fleet, DVM-250, FLT-250: in-car/event recorders for commercial fleets and mass transit
• FleetVu Manager: cloud-based fleet management and evidence tool
• Shield™ disinfectant and PPE

Revenue model:

• Hardware sales combined with recurring service revenues (cloud storage, extended warranties)
• Cloud and warranty subscriptions are generally deferred and recognized over the subscription term (typically 3 or 5 years)

Entertainment

Core activities: live events ticketing and promotion through TicketSmarter, Inc. (TicketSmarter.com).

Key activities and revenue sources:

• Ticket sales and resale marketplace
• Production and promotion of live events (including Kustom 440 events)
• Ticketing service charges (typically a percentage of face value) and sales from company-held inventory

Discontinued operations

• Revenue Cycle Management (Nobility Healthcare) was sold on January 8, 2026 and is reported as discontinued operations.

Financial highlights (selected)

• 2025 total net revenues: $13,754,155
  • Video Solutions: $5,100,757
  • Entertainment: $8,653,398
• 2024 total net revenues: $13,519,152
  • Video Solutions: $5,755,391
  • Entertainment: $7,763,761
• 2024 recognized items included a litigation-related loss of $1,959,396 and a gain on sale of property of $401,743.

Customers and market reach

• TicketSmarter provides access to over 125,000 live events nationwide and more than 48 million tickets across those events.
• TicketSmarter is the official ticket resale partner of more than 35 collegiate conferences and over 300 universities.
• Video Solutions customers include law enforcement agencies, security providers and commercial fleet operators.

Human capital

• As of December 31, 2025, approximately 30 full-time employees:
  • Video Solutions: 22 employees
  • Entertainment: 8 employees

Intellectual property and product protection

• Holds U.S. patents covering VuLink auto-activation technologies and related inter-device coordination.
• EVO Web Portal and FleetVu Manager use cloud-based evidence management and fleet analytics (EVO Web uses AWS GovCloud).
• Protection strategy includes patents, trade secrets and confidentiality agreements with suppliers and employees.

Real estate and facilities

• 2021: Acquired a 71,361 sq. ft. building in Lenexa, KS for about $5.3 million (office and warehouse).
• 2024: Building sold for $5,900,000; net carrying amount $5,461,623; recorded gain of $401,743; space leased back temporarily.
• October 16, 2024: Entered a video-solutions-focused office/warehouse lease (36 months) with monthly payments of $7,251.92; lease runs through October 31, 2027.
• May 8, 2025: New Entertainment Segment warehouse/office lease effective (five-year term to May 2030), triple-net with base rent $16,035/month plus annual increases; includes upfront prepayments and a security deposit.
• September 2025: Former Goody Tickets/TicketSmarter office lease terminated.

Recent developments (as of 2026)

• January 22, 2026: Signed a non-binding Memorandum of Understanding with Cycurion, Inc. concerning a potential divestiture of the Video Solutions segment for approximately $6.0 million to $8.5 million in a combination of cash and Cycurion preferred equity. Transaction is subject to due diligence and definitive agreements.
• January 8, 2026: Completed the sale of Nobility Healthcare (Revenue Cycle Management) to Nobility LLC; purchase agreement includes financing and note terms.

Risk management and supply chain

• Maintains cybersecurity risk management, a cross-functional risk approach and board oversight.
• Acknowledges tariff and supply-chain cost pressures on raw materials and components, and is working to diversify suppliers and manage costs.

Key takeaway

Kustom Entertainment, Inc. operates two primary businesses: Video Solutions (law enforcement/security hardware and cloud-based evidence management) and Entertainment (TicketSmarter and live event production/promotion). Combined 2025 revenues were $13.75 million, with Entertainment contributing the larger share. The company completed the sale of its Revenue Cycle Management business in January 2026 and is pursuing strategic options for the Video Solutions segment.