KUSTOM ENTERTAINMENT, INC.

Kustom Entertainment, Inc. announced an amendment to its Asset Purchase Agreement with Cycurion, Inc. for the divestment of its video-solutions division. The updated agreement extends the closing date to September 15, 2026, and includes an immediate, non-refundable cash payment of $250,000 to Kustom. Additionally, 2,000,000 warrants were replaced with $600,000 in Series H Preferred Stock, which accrues 12.0% annual dividends. This strategic move increases the total deal valuation to $6.1 million and allows Kustom to fully focus on its live entertainment business.

Kustom Entertainment, Inc. announced an upgraded agreement for the divestment of its legacy video solutions business to Cycurion, Inc. The total valuation of the deal increased to $6.1 million, and Kustom received an immediate $250,000 non-refundable cash injection. The agreement also replaces previously planned warrants with $600,000 in high-yield Series H Preferred Stock from Cycurion, offering a 12.0% annual cumulative dividend. This strategic move completes Kustom's transformation into a pure-play live entertainment company, focusing on its rapidly expanding festival footprint and proprietary ticketing technology.

Kustom Entertainment, Inc. announced record-breaking attendance at its 30th anniversary Country Stampede Kansas festival, drawing over 42,000 fans and exceeding expectations by more than 10,000. This marks the largest turnout in the festival's history, with multiple ticket classes selling out. The company also highlighted momentum building from its recently announced multi-season partnership with Gilley’s Park City, which is expected to nearly double venue capacity and host over 20 show days in 2027.

Kustom Entertainment, Inc. announced it has entered into an Asset Purchase Agreement to divest its video-solutions division to Cycurion, Inc. The transaction, valued at up to $5.5 million in cash and a secured promissory note, also includes 2,000,000 warrants to purchase Cycurion common stock. This strategic move is intended to accelerate Kustom's complete focus on its rapidly growing live event production portfolio and proprietary online ticketing operations, aligning with its recent rebranding and Nasdaq ticker symbol "KUST". The divestiture is anticipated to close on July 15, 2026.

Kustom Entertainment, Inc. announced a binding agreement to divest its legacy video solutions division to Cycurion, Inc. for a total consideration of $5.5 million, including $1.25 million in upfront cash and a $4.25 million secured promissory note, plus 2,000,000 warrants for Cycurion common stock. This strategic move aims to accelerate Kustom's focus on its rapidly growing live event production and online ticketing operations. The company also highlighted the expansion of its Country Stampede Music Festival to Gilley's Park City in 2027, which will significantly increase capacity and enhance fan experience.

Kustom Entertainment announced a multi-season partnership with Gilley's Park City, expected to nearly double festival capacity to 35,000 daily attendees and host over 20 show days in 2027. This strategic move follows the company's report of record attendance of over 32,000 for its 30th anniversary Country Stampede Kansas festival, with multiple ticket classes already sold out and limited inventory remaining.

Kustom Entertainment, Inc. announced that its wholly-owned subsidiary, Kustom 440, Inc., entered into a partnership with Ruffin Properties, LLC, owner of Gilley's Park City. This collaboration will produce and host music festivals throughout the spring, summer, and fall seasons beginning in 2027, with select events planned for fall 2026. As part of the agreement, the 2027 Country Stampede Kansas will relocate to Gilley's, nearly doubling its capacity to 35,000 people and enhancing the fan experience with expanded amenities and camping options. The partnership is expected to bring over 20 show days in 2027, establishing Gilley's as a significant live music destination in the Wichita region.

Kustom Entertainment reported a net loss of $(5.89) million for Q1 2026, a significant decline from a net income of $4.27 million in Q1 2025. Total revenue increased by 38.07% to $4.31 million, driven by service revenue growth, despite a decrease in product revenue. The company also completed the sale of its Nobility Healthcare segment, which is now classified as discontinued operations, contributing a loss of $(4.37) million in the quarter. The company changed its legal name from Digital Ally, Inc. to Kustom Entertainment, Inc. and its Nasdaq trading symbol to "KUST" on January 8, 2026.

Kustom Entertainment, Inc. announced the launch of "Global Frequencies," a new high-impact Electronic Dance Music (EDM) event scheduled for Sunday, June 28, 2026, at Azura Amphitheater in Kansas City. The festival will feature a lineup of world-class talent including DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, Alison Wonderland, and KSHMR, with more artists to be announced. This new event will immediately follow the company's 30th-anniversary Country Stampede festival, creating a four-day music destination in Kansas City. Presale tickets for Global Frequencies began on May 13, 2026.

Kustom Entertainment, Inc. announced the launch of "Global Frequencies," a new high-impact EDM event scheduled for Sunday, June 28, 2026, at Azura Amphitheater in Kansas City. The event will feature major artists like DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, and Alison Wonderland, with more to be announced. This new EDM festival will immediately follow the company's 30th anniversary Country Stampede festival, creating a four-day music destination in Kansas City.