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Axon for public safety technology, plus StubHub for event tickets.

A digital solutions provider offering everything from police body cameras (like Axon) to online event tickets (like StubHub).

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• Law Enforcement Video Systems: Provides in-car digital video mirror systems and miniature body-worn cameras for law enforcement agencies.
• Commercial Fleet Video Systems: Offers in-car digital video event recorder systems and web-based tools like FleetVU Manager for commercial fleets.
• Evidence Management Systems: Delivers cloud-based platforms such as VuVault and EVO Web for storing and managing digital evidence.
• Health and Safety Products: Sells non-contact temperature screening instruments (ThermoVu), disinfectants (Shield), and personal protective equipment.
• Healthcare Revenue Cycle Management: Provides back-office services including insurance verification, medical coding, and collections to healthcare organizations.
• Online Event Ticketing: Operates TicketSmarter.com, an online marketplace for buying and reselling tickets to various live events.

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Based on the description provided for Digital Ally, Inc., which Kustom Entertainment (symbol: KUST) is designated to represent for this request, the company serves a diverse customer base across both business-to-business (B2B) and business-to-consumer (B2C) segments. The provided information does not specify if the company sells primarily to one segment over the other, so both are described.

Major Business-to-Business (B2B) Customers:

Kustom Entertainment (as Digital Ally, Inc.) sells products and services to various organizations and entities. Specific names of customer companies are not provided in the background description, therefore, categories of customers are listed instead of individual company names and symbols.

• Law Enforcement Agencies: These customers purchase in-car digital video mirror systems, miniature body-worn digital video systems, VuLink devices, and data management web-based tools (VuVault, EVO Web) for evidence and fleet management.
• Commercial Fleet Operators: Customers in this category acquire in-car digital video event recorder systems and web-based software like FleetVU Manager for fleet tracking and monitoring.
• Healthcare Organizations: This segment utilizes working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections. They also purchase disinfectants, cleansers, and personal protective equipment (PPE).
• Security Firms: These entities procure miniature body-worn digital video systems for private security applications.
• Facilities and Businesses: Customers that need to control entry based on temperature measurements may purchase the ThermoVu non-contact temperature-screening instrument. They may also purchase disinfectants and PPE.

Major Business-to-Consumer (B2C) Customers:

Kustom Entertainment (as Digital Ally, Inc.) serves individual consumers through its Ticketing segment and sales of certain safety products. Up to three categories of individual customers are described below:

1. Individuals Attending Live Events: These customers use TicketSmarter.com, an online ticketing marketplace, to purchase tickets for various live events such as concerts, sporting events, theaters, and performing arts, or to resell their own tickets.
2. General Consumers and Healthcare Workers: These individuals purchase Shield disinfectants and cleansers, as well as other personal protective equipment and supplies including masks, gloves, sanitizer wipes, and electrostatic sprayers.

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Stanton E. Ross, Chairman, President and Chief Executive Officer

Stanton E. Ross serves as the Chairman, President, and Chief Executive Officer of Kustom Entertainment, Inc. He previously held the position of CEO at Digital Ally, Inc., which rebranded to Kustom Entertainment, Inc. in January 2026. Ross has a deep-rooted history in the music industry; his father founded Kustom Amplifiers in the 1960s. He has also owned a record label and actively supported musicians. Under his leadership, Kustom Entertainment is strategically focused on live event production and online ticketing, building on the success of events like the Country Stampade Music Festival. He oversaw Digital Ally's acquisition of TicketSmarter in 2021 and has recently led Kustom Entertainment in divesting its video solutions division and a healthcare billing subsidiary to sharpen the company's focus on entertainment.

Thomas J. Heckman, CFO, Treasurer and Secretary

Thomas J. Heckman is the Chief Financial Officer, Treasurer, and Secretary of Kustom Entertainment, Inc. He has been involved with the company in this capacity, with his compensation package and stock options for 2026 approved, and options scheduled to vest in 2027 contingent on his continued service.

Peng Han, Chief Operating Officer

Peng Han holds the title of Chief Operating Officer at Kustom Entertainment, Inc. In 2026, he received an annual base salary and was made eligible for performance-based cash bonuses, alongside stock options that are set to vest in 2027.

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Key Risks to Kustom Entertainment (KUST)

1. Intense Competition Across Core Business Segments: Kustom Entertainment operates in highly competitive markets for its digital video imaging and storage solutions for law enforcement and commercial applications, as well as its online ticketing marketplace. In the video solutions segment, the company faces significant competition from established players in body-worn and in-car camera systems. Similarly, its TicketSmarter.com platform competes with numerous large and well-funded online ticketing services. This intense competition could lead to pricing pressures, reduced market share, and increased marketing expenditures, ultimately impacting profitability.
2. Vulnerability to the Volatility of the Live Events Industry: The company's TicketSmarter.com segment is directly dependent on the health and stability of the live events industry, including concerts, sporting events, and theater. This industry is susceptible to various external factors such as economic downturns, changes in consumer discretionary spending, public health crises, and geopolitical events. Any significant disruption or decline in the live events market could materially and adversely affect the revenue and profitability of the ticketing segment.
3. Declining Demand for Pandemic-Related Safety and Disinfectant Products: Kustom Entertainment offers products such as ThermoVu (non-contact temperature screening) and Shield brand disinfectants and personal protective equipment. The demand for these products likely surged significantly during the COVID-19 pandemic. However, with the pandemic having subsided and public health concerns diminishing, the demand for these specific products is expected to have normalized or substantially decreased, posing a risk of reduced sales and revenue from this product line compared to peak periods.

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The company's segment focused on disinfectant and safety products, including ThermoVu temperature-screening instruments, Shield disinfectants and cleansers, and personal protective equipment such as masks, gloves, and sanitizer wipes, faces an emerging threat from the declining demand for these specific items as the global COVID-19 pandemic recedes and public health concerns normalize. The surge in demand for these products was largely driven by the pandemic, and the subsequent decrease in necessity represents a clear market shift impacting this revenue stream.

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Kustom Entertainment (NASDAQ: KUST), formerly known as Digital Ally, Inc., operates in the digital video imaging and storage solutions, disinfectant and safety products, and online ticketing markets. The company recently rebranded and shifted its primary focus to live event production and ticketing technology, while maintaining its legacy video solutions business. The addressable markets for its main products and services are as follows:

Video Solutions (Digital Video Imaging, Storage, and Related Safety Products)

This segment encompasses products such as in-car and body-worn digital video systems for law enforcement, security, and commercial applications, as well as data management tools and disinfectant and related safety products. The market for video surveillance systems, which includes many of these products, is substantial.

• The North America video surveillance systems market was estimated at USD 30.41 billion in 2026 and is projected to reach USD 56.73 billion by 2031, with a compound annual growth rate (CAGR) of 13.28% from 2026-2031. The United States accounts for a significant portion of this market.
• More broadly, the global video surveillance market was valued at USD 71.23 billion in 2025 and is projected to reach USD 80.14 billion in 2026, growing to USD 350.68 billion by 2040 with an 11.11% CAGR from 2026 to 2040. North America is anticipated to experience faster growth within this global market.
• For law enforcement-specific software, the global market was valued at USD 1.94 billion in 2025 and is projected to reach USD 2.22 billion in 2026, with North America holding a 30.41% share in 2025. Another estimate places the global law enforcement software market at USD 20.25 billion in 2025, projected to grow to USD 32.96 billion by 2030.

Disinfectant and Related Safety Products

Kustom Entertainment, through its Digital Ally brand, offers Shield disinfectants and cleansers, along with other personal protective equipment.

• The global healthcare disinfectants and sanitizers market size was valued at USD 16.80 billion in 2024 and is projected to grow to USD 19.27 billion in 2025, reaching USD 39.01 billion by 2033, at a CAGR of 9.21% from 2025-2033.
• The global surface disinfectant products market was valued at USD 35.40 billion in 2022 and is expected to grow at a CAGR of 5.3% from 2023 to 2030, reaching USD 53.49 billion by 2030. North America accounted for the largest share of this market, at 33.7% in 2022.

Online Ticketing Marketplace (TicketSmarter.com)

The company operates TicketSmarter.com, an online ticketing marketplace for various live events.

• The global online event ticketing market was valued at USD 39.8 billion in 2024 and is projected to grow from USD 42.67 billion in 2025 to USD 74.42 billion by 2033, with a CAGR of 7.20% from 2025-2033.
• Another report states the online event ticketing market size was USD 53.04 billion in 2025 and is expected to reach USD 56.58 billion in 2026, with a CAGR of 6.7%, growing to USD 71.54 billion by 2030. North America was the largest region in the online event ticketing market in 2025.
• Kustom Entertainment itself has indicated that its online ticketing platform addresses a market valued at over USD 100 billion.

It is important to note that Kustom Entertainment has divested its healthcare billing and revenue cycle management business (Nobility Healthcare, LLC) in connection with its rebranding and strategic shift.

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For Kustom Entertainment (KUST), formerly Digital Ally, Inc., the expected drivers of future revenue growth over the next 2-3 years are primarily centered around its strategic pivot to the live events and online ticketing markets:

1. Expansion of Live Event Production: Kustom Entertainment aims to build a national footprint in large-scale music festivals and live events. Growth will be driven by increasing the number and scale of these events, leveraging its experience with properties like the Country Stampede Music Festival.
2. Growth of Online Ticketing Services: The company's online ticketing marketplace, TicketSmarter, is a core component of its strategic focus. Future revenue growth will stem from increasing the volume of ticket sales, expanding the platform's user base, and securing additional partnerships with venues and event organizers to provide vertically integrated and end-to-end event management solutions.
3. Geographic Expansion in the Live Entertainment and Ticketing Markets: As Kustom Entertainment works to establish a "national footprint" in the live events and ticketing sectors, expanding its operational reach and service offerings into new geographic regions and venues across the United States is anticipated to be a significant driver of revenue growth.

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Outbound Investments

• Kustom Entertainment completed the sale of its 51% stake in Nobility Healthcare in January 2026 for an estimated total of $1.45 million. This divestiture consisted of $100,000 cash, $209,501 in debt and working capital credits, and a $1,140,499 promissory note.
• The company entered into a non-binding Memorandum of Understanding in January 2026 for the contemplated divestiture of its Video Solutions division to Cycurion, Inc., with the transaction expected to be valued between $6.0 million and $8.5 million. The purchase price is structured to include cash consideration of $1.0 million to $1.4 million, with the remainder paid in Cycurion preferred stock.
• These divestitures reflect Kustom Entertainment's strategic shift to streamline operations and focus exclusively on the live entertainment and online ticketing markets.

Capital Expenditures

• Kustom Entertainment's capital expenditures were $6.84 million in fiscal year 2021, $7.90 million in fiscal year 2022, $7.28 million in fiscal year 2023, and $0.37 million in fiscal year 2024.
• For the trailing twelve months ending September 30, 2025, the company reported capital expenditures of approximately $0.48 million.
• In the third quarter of 2025, Kustom Entertainment invested $43,000 in capital expenditures, which represented a decrease of 75.9% from the prior quarter.