Kustom Entertainment acquires Country Stampede festival; Digital Ally issues $1.425M note

On March 1, 2024, Kustom 440 Inc., a Nevada corporation and wholly-owned subsidiary of Kustom Entertainment (“ Kustom 440 ”), entered into an Asset Purchase Agreement (the “ Acquisition Agreement ”) with JC Entertainment, LLC, a Kansas limited liability company (“ JC Entertainment ”). Pursuant to the Acquisition Agreement, Kustom 440 acquired certain assets associated with a music entertainment event (“ Country Stampede ”), including all intellectual property arising out of and relating to Country Stampede (“ Country Stampede Intellectual Property ”) and certain contracts in which JC Entertainment is a party to host and operate the 2024 Country Stampede (the “ Assumed Contracts ”, and together with the Country Stampede Intellectual Property, the “ Purchased Assets ”). As consideration for acquiring the Purchased Assets, Kustom 440 paid JC Entertainment the aggregate purchase price amount of Five Hundred Forty Two Thousands Nine Hundred Fifty Nine and 15/100 Dollars ($542,959.15), with

On March 1, 2024, Digital Ally, Inc. (the “Company”) entered into a Note Purchase Agreement (the “ Agreement ”), by and between the Company, Kustom Entertainment, Inc., a Nevada corporation and wholly-owned subsidiary of the Company (“ Kustom Entertainment ” and, together with the Company, the “ Borrowers ”), and Mosh Man, LLC, a New Jersey limited liability company (the “ Purchaser ”), pursuant to which the Borrowers issued to the Purchaser a Senior Secured Promissory Note (the “ Note ”) with a principal amount of $1,425,000.