Kustom Entertainment Inc 2026年季度报告

FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period endedMarch 31, 2026. or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-33899 KUSTOM ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Nevada20-0064269(State or other jurisdictionof incorporation or organization)(I.R.S. EmployerIdentification No.) 6366 College Blvd., Overland Park, KS 66211(Address of principal executive offices) (Zip Code) (913) 814-7774(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: KUST (Trading Symbol(s) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject tosuch filing requirements for the past 90 days. Yes☐No☒ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required tosubmit such files). Yes☐No☒ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting companyor an emerging growth company. See the definitions of “large accelerated filer” “accelerated filer,” “smaller reporting company,” and “emerginggrowth company” in Rule 12b-2 of Exchange Act. Accelerated filer☐Smaller reporting company☒ Large accelerated filer☐Non-accelerated filer☒Emerging growth company☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying withany new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐No☒ Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: FORM 10-QKUSTOM ENTERTAINMENT, INC.MARCH 31, 2026 TABLE OF CONTENTSPage(s)PART I – FINANCIAL INFORMATIONItem 1. Financial Statements.Condensed Consolidated Balance Sheets – March 31, 2026 (Unaudited) and December 31, 20253Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (Unaudited)4Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2026 and 2025(Unaudited)5Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (Unaudited)6Notes to the Condensed Consolidated Financial Statements (Unaudited)7-46Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.47-66Item 3. Quantitative and Qualitative Disclosures About Market Risk.67Item 4. Controls and Procedures.67PART II - OTHER INFORMATIONItem 1. Legal Proceedings.67Item 1A. Risk Factors.68Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.68Item 3. Defaults Upon Senior Securities.68Item 4. Mine Safety Disclosures.68Item 5. Other Information.68Item 6. Exhibits.68SIGNATURES692 KUSTOM ENTERTAINMENT, INC.(formerly Digital Ally, Inc.)CONDENSED CONSOLIDATED BALANCE SHEETS The accompanying notes are an integral part of these financial statements. KUSTOM ENTERTAINMENT, INC.(formerly Digital Ally, Inc.)CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE MONTHS ENDED(Unaudited) The accompanying notes are an integral part of these financial statements. KUSTOM ENTERTAINMENT, INC.(formerly Digital Ally, Inc.)CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSTHREE MONTHS ENDED(Unaudited) KUSTOM ENTERTAINMENT, INC.(formerly Digital Ally, Inc.)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Kustom Entertainment, Inc. (formerly Digital Ally, Inc.) was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc.and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time themerged entity was renamed Digital Ally, Inc. On January 8, 2026, the Company changed its legal name from Digital Ally, Inc. to Kustom Entertainment, Inc. pursuant to a Certificateof Amendment to its Articles of Incorporation filed with the Secretary of State of the State of Nevada. The name change became effective onJanuary 8, 2026, and the Company began trading on the Nasdaq Capital Market (“Nasdaq”) under its new name at the start of trading on January 8,2026. In connection with the name chan