KUSTOM ENTERTAINMENT, INC. — fact timeline

KUSTOM ENTERTAINMENT, INC.: Filed Certificate of Change to effect 1-for-5 reverse stock split and reduce authorized shares from 66,666,666 to 13,333,333 (effective 2026-04-22).

“Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. Effective as of April 22, 2026, Kustom Entertainment, Inc. (the “Company”) filed a Certificate of Change (the “Certificate of Change”) to its Articles of Incorporation, as amended (the “Articles of Incorporation”) adopted by the Company’s Board of Directors (the “Board”) and filed with the Secretary of State of the State of Nevada on April 21, 2026, to effect a reverse stock split at a ratio of one-for-five (1-for-5)”

KUSTOM ENTERTAINMENT, INC. reported fiscal year ended December 31, 2025 results: revenue $13,755,000, net income $5,955,000.

“Financial Highlights for Fiscal Year 2025 ● Revenue Growth: Total revenues from continuing operations rose to approximately $13,755,000, an increase of $235,000 year-over-year. ● Operating Efficiency: Selling, General, and Administrative (SG&A) expenses improved by $2,275,000 year-over-year to approximately $12,230,000 in 2025. This improvement was achieved despite a one-time, non-cash charge of $2,535,000 for goodwill and intangible asset impairment during 2025. ● Non-Operating Income: Non-operating income increased by $11,440,000 year over year. This was driven primarily by a $4,575,000 improvement in the fair value of warrant derivative liabilities and a $2,715,000 reduction in interest expense. ● Bottom Line Improvement: Net loss from continuing operations improved by approximately $11,945,000 to $5,955,000 compared to $17,900,000 for the prior fiscal year. ● Balance sheet: Total stockholders’ equity increased $11.4 million and net working capital position improved by $17.9 million”

KUSTOM ENTERTAINMENT, INC. entered into Unit Purchase Agreement with Nobility LLC valued at $1,450,000 (effective 2026-01-01).

“On January 8, 2026, Digital Ally Healthcare, Inc. (the “Seller”), a Nevada corporation and a wholly-owned subsidiary of Kustom Entertainment, Inc. (the “Company”) entered into and closed a Unit Purchase Agreement (the “Agreement”) with Nobility LLC, an Arizona limited liability company (the “Buyer”), and Nobility Healthcare, LLC, a Kansas limited liability company (“Nobility Healthcare” and collectively with the Seller and the Buyer the “Parties”). Pursuant to the Agreement, the Buyer purchased all of the Seller’s units of ownership interest (“Units”) in Nobility Healthcare, for Closing Funds (as defined in the Agreement) and a promissory note (the “Note”), totaling $ 1,450,000, due upon closing (the “Transaction”).”

KUSTOM ENTERTAINMENT, INC. completed a disposition involving Nobility LLC for $1,450,000 (closed 2026-01-08).

“On January 8, 2026, Digital Ally Healthcare, Inc. (the “Seller”), a Nevada corporation and a wholly-owned subsidiary of Kustom Entertainment, Inc. (the “Company”) entered into and closed a Unit Purchase Agreement (the “Agreement”) with Nobility LLC, an Arizona limited liability company (the “Buyer”), and Nobility Healthcare, LLC, a Kansas limited liability company (“Nobility Healthcare” and collectively with the Seller and the Buyer the “Parties”). Pursuant to the Agreement, the Buyer purchased all of the Seller’s units of ownership interest (“Units”) in Nobility Healthcare, for Closing Funds (as defined in the Agreement) and a promissory note (the “Note”), totaling $ 1,450,000, due upon closing (the “Transaction”).”

KUSTOM ENTERTAINMENT, INC.: The Board approved an amendment to the Amended and Restated Bylaws to reflect the name change (effective 2026-01-08).

“the Board approved an amendment to the Company’s Amended and Restated Bylaws (the “Bylaws”), effective immediately after the effectiveness of the Name Change. The changes to the Bylaws are solely intended to reflect the Name Change.”

KUSTOM ENTERTAINMENT, INC.: The company changed its corporate name from Digital Ally, Inc. to Kustom Entertainment, Inc (effective 2026-01-08).

“the Company changed its corporate name from Digital Ally, Inc. to Kustom Entertainment, Inc. pursuant to a Certificate of Amendment (the “Name Change Certificate of Amendment”) to the Articles of Incorporation, as filed with the Nevada Secretary of State on January 6, 2026 (the “Name Change”).”

KUSTOM ENTERTAINMENT, INC. incurred debt of up to an aggregate of $25,000,000 with an certain investor (the "ELOC Investor").

“the Company entered into a Common Stock Purchase Agreement (the "ELOC Purchase Agreement"), with an certain investor (the "ELOC Investor"), providing for a committed equity financing facility, pursuant to which, upon the terms and subject to the satisfaction of the conditions contained in the ELOC Purchase Agreement, the ELOC Investor has committed to purchase, at the Company's direction in its sole discretion, up to an aggregate of $25,000,000”

KUSTOM ENTERTAINMENT, INC. incurred senior notes of aggregate original principal amount of $806,451.61 with a certain investor (the "Purchaser") at eight percent (8%).

“the Company issued and sold to the Purchaser Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61”

KUSTOM ENTERTAINMENT, INC. received a nasdaq noncompliance notice notice regarding stockholders equity (rules 5550(b)(1)).

“January 2, 2025, Nasdaq delivered a written notification notifying the Company that it had regained compliance with the Quarterly Report Requirement. Minimum Stockholders’ Equity Standard On January 2, 2025, the Company”

KUSTOM ENTERTAINMENT, INC. received a nasdaq noncompliance notice notice regarding late filing (rules 5250(c)(1)).

“November 27, 2024, Digital Ally, Inc. (the “Company”) received a notice from the Nasdaq Stock Market LLC (“Nasdaq”), which indicated that, as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q fo”

KUSTOM ENTERTAINMENT, INC.: Elimination of Series A and Series B Preferred Stock certificate of designations, canceling all designations, rights, preferences, and limitations of those series (effective 2024-04-05).

“On April 5, 2024, Digital Ally, Inc., a Nevada corporation (the “Company”), filed with the Secretary of State of the State of Nevada an Elimination of Certificate of Designations of the Preferences, Rights and Limitations of the Series A Convertible Redeemable Preferred Stock (the “Series A Elimination Certificate”) and Elimination of Certificate of Designations of the Preferences, Rights and Limitations of the Series B Convertible Redeemable Preferred Stock (the “Series B Elimination Certificate”) in order to eliminate and cancel all designations, rights, preferences and limitations of the shares of the Company’s Series A Convertible Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) and Series B Convertible Redeemable Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”).”

KUSTOM ENTERTAINMENT, INC. reported the year ended December 31, 2023 results: revenue $28,248,344.

“more efficient management of our supply chain through outsourcing production, quantity purchases and more effective purchasing practices. ● Total revenues decreased in 2023 to $28,248,344 from $37,009,895 in 2022 a deterioration of $8,761,551 (24%). The primary reason for the overall revenue decrease is a decrease of $6,253,892 (41%) in service revenues from 2022”