KUSTOM ENTERTAINMENT, INC.

Listed Company

KUSTCIK 0001342958NasdaqNon-AcceleratedSmaller ReportingRadio & Tv Broadcasting & Communications EquipmentNevadaFY ends Dec 31

Period

FY 2025

Revenue

$13.75M

Net Income

$-6.67M

Total Assets

$19.33M

Equity

$2.37M

Shares Out

2.63M

Op. Cash Flow

$-8.41M

Business

DIGITAL ALLY, INC. is a diversified technology and services company that develops digital video imaging, evidence management and related safety products and provides healthcare revenue cycle and live-event ticketing and production services. Its main offerings include in-car and body-worn video systems, cloud-based evidence and fleet management subscriptions, Shield disinfectant and ThermoVu products, medical billing and back-office revenue cycle management, and ticketing and event production services. The company operates three reportable segments: Video Solutions, Revenue Cycle Management and Entertainment (including TicketSmarter and Kustom 440). It serves domestic and international law enforcement, commercial fleets, private security, healthcare providers and consumers through direct sales, cloud subscriptions, online marketplaces and event production/distribution channels.

Summary from filing dated 2025-05-02

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Total revenue	14	14	28	37	21
Total cost of revenue	12	10	22	35	16
Gross profit	1	3	6	2	6
Research and development expense	551,447	1	3	2	2
Selling, advertising and promotional expense	721,690	2	7	9	6
General and administrative expense	8	11	18	20	13
Goodwill and intangible asset impairment charge	3	508,000	—	—	—
Total selling, general and administrative expenses	12	15	28	32	20
Operating loss	−11	−11	−22	−30	−15
Interest income	116,545	69,509	95,717	131,025	310,200
Interest expense	−1	−4	−3	—	—
Other income	346,024	26,733	144,735	—	—
Loss on litigation	—	−2	−2	—	—
Loss on disposal of intangibles	—	−119,979	—	—	—
Change in fair value of warrant derivative liabilities	3	−1	2	7	37
Gain on the extinguishment of liabilities	2	917,935	550,867	—	—
Loss on extinguishment of debt	—	−753,339	—	—	—
Gain on sale of property, plant and equipment	—	360,082	—	212,831	—
Total other income (expense) from continuing operations	5	−7	−3	11	40
Loss before income tax benefit (provision) from continuing operations	−6	−18	−25	−19	26
Income tax expense benefit (provision)	—	—	—	—	—
Net loss from continuing operations	−6	−18	—	—	—
Loss from discontinued operations (including impairment charge on disposal of $1,527,634 as of December 31, 2025)	−1	−4	—	—	—
Net loss from discontinued operations	−1	−4	—	—	—
Net loss	−7	−22	−25	−19	26
Net income attributable to noncontrolling interests	687,516	2	−224,598	−407,933	−56,453
Net loss attributable to common stockholders	−7	−20	—	—	25
Continuing operations	−15.38	−30,205	—	—	—
Discontinued operations	−1.85	−3,284	—	—	—
Net loss attributable to common stockholders per share basic	−17.23	−33,489	−9.22	−8.5	10.14
Continuing operations	−15.38	−30,205	—	—	—
Discontinued operations	−1.85	−3,284	—	—	—
Net loss attributable to common stockholders per share diluted	−17.23	−33,489	−9.22	−8.5	10.14
Basic	387,144	593	3	3	3
Diluted	387,144	593	3	3	3

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2025 2025-04-30	FY 2024 2024-12-31	FY 2024 2024-09-30	FY 2023 2023-12-31
Cash and cash equivalents	757,369	—	219,311	—	680,549
Accounts receivable-trade, less allowance for doubtful accounts of $10,262 2025 and $208,458 2024	479,559	—	751,743	—	2
Subscriptions receivables, net of $75,000 allowance 2025 and $25,000 2024	3	—	4	—	—
Other receivables	292,503	—	155,851	—	—
Inventories, net	2	—	3	—	4
Prepaid expenses	1	247,105	2	—	6
Assets of revenue-cycle management business held-for-sale	911,753	—	865,625	—	—
Total current assets	9	—	10	—	16
Property, plant, and equipment, net	402,226	—	338,561	—	7
Goodwill and other intangible assets, net	5	—	9	—	17
Operating lease right of use assets, net	1	—	276,940	—	1
Subscriptions receivables long term	3	—	5	—	—
Other assets	355,636	—	754,857	—	7
Assets of revenue-cycle management business held-for-sale	413,752	—	2	—	—
Total assets	19	—	28	—	47
Accounts payable	4	—	11	—	11
Accrued expenses	592,685	—	1	—	3
Current portion of operating lease obligations	180,900	—	90,656	—	279,538
Deferred revenue current	4	—	4	—	3
Notes payable related party current	—	—	3	—	3
Debt obligations current	707,826	—	5	—	1
Warrant derivative liabilities	852,844	—	5	—	1
Income taxes payable	10,441	—	—	—	61
Liabilities of revenue-cycle management business held for sale	138,029	—	401,049	—	—
Total current liabilities	11	—	30	—	23
Debt obligations long term	137,541	—	141,083	—	—
Operating lease obligation long term	841,516	—	186,284	—	827,836
Deferred revenue long term	5	—	6	—	7
Notes payable related party long term	400,110	—	—	—	—
Liabilities of revenue-cycle management business held for sale	299,723	—	373,921	—	—
Total liabilities	17	—	37	—	36
Commitments and contingencies (Note 15)	—	—	—	—	—
Common stock, $0.001 par value; 66,666,667 2025 and 200,000,000 2024 shares authorized; shares issued: 690,022 2025 and 1,068 2024	690	—	1	—	2,801
Additional paid in capital	148	—	130	—	128
Noncontrolling interest in consolidated subsidiary	−2	—	−1	—	673,292
Accumulated deficit	−144	—	−138	—	−118
Total equity (deficit):	2	—	−9	2	11
Total liabilities and equity (deficit)	19	—	28	—	47

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Depreciation and amortization	2	2	2	—	822,489
Goodwill and intangible asset impairment charge	3	508,000	—	—	—
Stock based compensation	39,622	128,519	452,071	1	2
Non-cash interest expense	856,260	3	576,380	—	—
Gain on extinguishment of liabilities	−2	−917,935	−550,867	—	—
Loss on extinguishment of convertible debt	—	753,339	—	—	—
Loss on litigation	—	2	1	—	—
Provision for doubtful accounts receivable	−198,196	111,655	47,932	−39,502	9,990
Provision for doubtful lease receivable	−2,356	20,000	5,000	140,448	—
Derivative liability at issuance	809,425	—	—	—	—
Provision for inventory obsolescence	−250,715	−2	−947,080	2	2
Provision for loss on litigation settlement receivable	289,445	—	—	—	—
Accounts receivable trade	470,380	−1	411,462	722,498	−29,838
Accounts receivable other (including related party)	2	−1	963,888	−2	−693,992
Inventories	506,289	4	4	1	−1
Prepaid expenses	717,106	5	2	1	−4
Operating lease right of use assets	−827,844	15,772	340,672	328,772	180,497
Other assets	415,845	817,786	−1	−3	−738,466
Accounts payable	−4	3	2	5	−2
Accrued expenses	−519,588	−4	289,957	−112,896	166,874
Accrued interest - related party	177,899	397,146	95,031	—	—
Income taxes payable	10,441	—	−8,036	6,270	—
Lease deposit	101,387	−10,445	10,445	—	—
Operating lease obligations	597,076	−23,102	−354,652	−328,772	—
Deferred revenues	−2	−22,054	—	—	—
Net cash used in operating activities continuing operation	−8	−5	—	—	—
Net cash provided by operating activities discontinued operation	141,049	302,749	—	—	—
Purchases of property, plant and equipment	−258,050	−28,795	—	−2	−6
Proceeds from sale of property, plant and equipment	—	541,894	—	609,559	—
Purchases of intangible assets	−92,686	−136,056	−146,541	−116,990	−1
Proceeds from sale of intangible assets	—	90,535	—	18,975	—
Cash paid for acquisition of Country Stampede	—	−514,432	—	−1	−1
Proceeds from sale of land and building	—	425,653	—	—	—
Net cash provided by (used) in investing activities continuing operation	−350,736	378,799	—	—	—
Net cash provided by (used) in investing activities discontinued operation	−16,748	8,750	—	—	—
Net proceeds of February 2025 public equity offering with detachable warrants	14	2	—	—	—
Net proceeds of senior promissory notes with commitment shares	—	3	—	—	—
Net proceeds from September 2025 issuance of senior secured convertible notes with detachable warrants	23,075	—	—	—	—
Net proceeds of unsecured promissory note entertainment segment	600,000	—	—	—	—
Net proceeds of related party note payable	—	140,000	3	—	—
Payments of related party note payable	−162,000	—	—	—	—
Proceeds Commercial Extension of Credit Entertainment Segment	—	1	1	—	—
Payments on Commercial Extension of Credit Entertainment Segment	−100,000	−275,000	—	—	—
Proceeds Merchant Advances Video Solutions Segment	—	1	—	—	—
Payments on Merchant Advances Video Solutions Segment	−2	−2	—	—	—
Payments on Senior Secured Promissory Notes Video Solutions Segment	−4	—	—	—	—
Proceeds Merchant Advances Entertainment Segment	—	2	—	—	—
Payments on Merchant Advances Entertainment Segment	—	−3	—	—	—
Principal payment on EIDL loan	−3,412	−3,286	−2,219	—	—
Issuance of common stock under equity line of credit agreement	227,792	—	—	—	—
Proceeds from issuance of common shares upon exercise of Series B warrants	3,793	973	—	—	—
Net cash provided by financing activities continuing operation	9	5	—	—	—
Net cash used in financing activities discontinued operation	—	−188,470	—	—	—
Net increase (decrease) in cash, cash equivalents and restricted cash	662,359	−323,835	−3	−28	28
Cash payments for interest	45,306	753,569	88,631	49,070	—
Cash payments for income taxes	6,962	8,006	1,606	8,730	1,224
Restricted common stock grant	—	—	35	61	43
Restricted common stock forfeitures	—	—	—	—	—
Commercial extension of credit repaid through accrued revenue Entertainment segment	—	1	—	—	—
ROU and lease liability recorded on extension (termination) of lease	—	234,633	611,702	42,403	—
Assets acquired in business acquisitions	—	605,000	—	190,631	6
Goodwill acquired in business acquisitions	—	225,959	—	2	10
Liabilities assumed in business acquisitions	—	288,000	—	387,005	5
Adjustments of accounts payable with the sale proceeds of property, plant and equipment	—	549,356	—	—	—
Deemed capital contribution related to modification of notes payable - related party	3	—	—	—	—
Fair value of warrants issued with sale of shares	7	3	—	—	—
Transition of warrant derivative liability to equity upon exercise of warrants	8	584,955	—	—	—
Issuance of commitment shares in connection with ELOC purchase agreement	227,792	—	—	—	—
Issuance of common stock upon exercise of pre-funded warrants	—	573	—	—	—
Reduction in proceeds from sale of building for loan, prepaid rent, and other accrued expenses	—	5	—	—	—
Payments to vendors directly from proceeds of sale of common stock	—	334,703	—	—	—
Issuance of commitment shares in connection with bridge financing	—	539,455	—	—	—

Filings

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