Kustom Entertainment KUST

Kustom Entertainment Inc is a diversified technology and entertainment company that develops manufactures and sells video imaging and safety products while also operating a ticketing platform for live events. The firm is headquartered in Overland Park Kansas and serves law enforcement security agencies commercial fleet operators and event attendees across the United States. Its core activities include producing in car and body worn camera systems cloud based evidence management software disinfectant products and providing secondary ticket sales and event promotion services. The company reports its results through two operating segments Video Solutions and Entertainment.

Kustom Entertainment generates revenue primarily from the sale of hardware products and from recurring service fees. In the Video Solutions segment the company sells in car video systems body worn cameras disinfectant and safety equipment and offers cloud based storage and warranty subscriptions. In the Entertainment segment the company earns service charges on ticket transactions facilitated through its TicketSmarter platform and realizes revenue from the resale of tickets it acquires from primary sellers. Additional income comes from live event production and promotion activities conducted through its Kustom 440 subsidiary. Customers are charged for products at the point of delivery and for services as they are provided or over the contract term.

The company operates through the following segments: Video Solutions and Entertainment.

• Video Solutions segment focuses on the design manufacture and distribution of digital video imaging and storage products for law enforcement security and commercial markets. Its product line includes in car systems such as the EVO HD DVM 800 and DVM 800 Lite body worn cameras like the FirstVu Pro FirstVu II and FirstVu HD and the VuLink auto activation technology that links cameras and triggers recording. The segment also offers cloud based evidence management platforms EVO Web for law enforcement and FleetVu Manager for commercial fleets and sells disinfectant and personal protective equipment under the Shield brand. Revenue is recognized from product sales upon delivery and from subscription services over the contract period.

• Entertainment segment operates a secondary ticketing platform through TicketSmarter.com that connects buyers and sellers of admission to concerts sports theatre and other live events. The company also purchases tickets from primary sellers for resale and provides live event production and promotion services including artist booking staging vendor coordination and on site management for events ranging from small gatherings to large festivals. Revenue is derived from service charges calculated as a percentage of ticket face value and from the margin on tickets held in inventory. Direct costs include the purchase price of tickets credit card fees platform maintenance and other administrative expenses.

In the Video Solutions market Kustom Entertainment competes with established providers such as Axon Enterprise WatchGuard Video L3Harris Technologies and Panasonic. The company differentiates itself through its patented VuLink auto activation technology its integrated hardware and software ecosystem and its focus on affordable reliable solutions for law enforcement and commercial fleets. Despite having fewer resources than larger rivals the firm leverages its niche expertise and proprietary know how to maintain a competitive position. In the Entertainment segment the company faces competition from major ticketing platforms like Ticketmaster StubHub and Vivid Seats as well as from numerous regional resellers. Kustom Entertainment seeks to stand out by forming partnerships with collegiate conferences universities and venues and by offering combined ticketing and event production services that provide added value to clients.

The company serves law enforcement departments security agencies commercial fleet operators including ambulance and taxi services and providers of mass transit. In the entertainment space its customers include individual consumers purchasing tickets for concerts sports games and theatrical performances as well as promoters venues and organizers seeking ticket distribution and event production support. Specific partner names are not disclosed in the filing.