EX-99.1 6 ex99-1.htm EX-99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE Kustom Entertainment Closes $6.1 Million Divestiture of Legacy Video Solutions Business to Cycurion Completes strategic transformation into a pure-play live entertainment and ticketing technology company; Secures $1.25M upfront cash, $4.25M secured promissory note, and $600,000 in 12% yielding Preferred Equity. OVERLAND PARK, KS - August 4, 2026 - Kustom Entertainment, Inc. (Nasdaq: KUST) (“Kustom” or the “Company”), an emerging force in live music festival production and proprietary ticketing operations, today announced the successful closing of its previously announced divestiture of its legacy video solutions business assets to Cycurion, Inc. (Nasdaq: CYCU) (“ Cycurion ”). The transaction was completed on August 3, 2026, in accordance with the amended terms executed under the Amendment No. 1 and Forbearance / Extension Agreement to the Asset Purchase Agreement. With the closing of this $6.1 million transaction, Kustom successfully completes its strategic pivot to become a pure-play live entertainment powerhouse. The Company will now focus 100% of its corporate resources and capital on expanding its premier…
Open exhibit ↗Current Report · Items 1.01, 2.01, 8.01, 9.01 · 8-K
Kustom Entertainment, Inc.
KUSTNASDAQEQUITYCurrent
Entry into a Material Definitive Agreement · Completion of Acquisition or Disposition of Assets · Other Events
Item 8.01 Other Events On August 3, 2026, the Company issued a press release announcing the completion of the transaction, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Company context
Digital Ally, Inc. (NASDAQ: DGLY) specializes in the development and manufacturing of video and analytics solutions for law enforcement, emergency management, and commercial applications. With a focus on delivering reliable and innovative technology, Digital Ally empowers organizations to enhance safety, streamline operations, and mitigate risks. For additional news and information please visit www.digitalally.com.
Current securities
Disclosure sections
Item 8.01Item 8.01 - Other Events
Filed exhibits (2)
EX-99.2 7 ex99-2.htm EX-99.2 Exhibit 99.2 Unaudited Pro Forma Condensed Consolidated Financial Statements On August 3, 2026, Kustom Entertainment, Inc. (the “Company,” formerly Digital Ally, Inc.) closed an Asset Purchase Agreement (the “Agreement”) with Cycurion, Inc., a Delaware corporation (“Cycurion”), whereby the Company agreed to sell and convey certain assets, and transfer certain liabilities, of its video solutions business (the “Video Solutions Business”), which develops, sells, licenses, supports and services video hardware, camera products, software and related solutions for law enforcement, public safety and commercial customers, to Cycurion. The transaction was structured as a sale of specific assets and an assumption of specified liabilities rather than a sale of a subsidiary; accordingly, no legal entity or equity interest was transferred. The Agreement was entered into on June 24, 2026, and was amended by Amendment No. 1 and Forbearance / Extension Agreement dated July 23, 2026 (the “Amendment”), and the transaction closed on August 3, 2026, with an effective date of June 30, 2026. Under the Agreement, as amended, the Company agreed to sell and Cycurion agree…
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