Kustom Entertainment, Inc. (NASDAQ:KUST) (the "Company"), a leading provider of video solutions which develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety, and event security, today announced a 1-for-5 reverse split (the "Reverse Stock Split") of the Company's common stock (the "Common Stock") and proportional reduction of the number of shares of Common Stock and shares of preferred stock (the "Preferred Stock") authorized (the "Capital Stock Reduction"). The Company anticipates that the Common Stock will begin trading on the Nasdaq Capital Market ("Nasdaq") on a split-adjusted basis at the start of trading on April 22, 2026 and will have a new CUSIP number of 25382T606.

The Reverse Stock Split is being implemented to increase the per share trading price of the Company's Common Stock for the purpose of ensuring a share price high enough to comply with the minimum $1.00 bid price requirement for continued listing on The Nasdaq Capital Market.

On April 5, 2026, the Company's board of directors approved a 1-for-5 Reverse Stock Split. The number of outstanding shares of Common Stock prior to the Reverse Stock Split is 2,633,063 and the number of outstanding shares of Common Stock following the Reverse Stock Split is 526,613, subject to adjustment for the rounding up of fractional shares. The record date for determining the holders of Common Stock entitled to receive shares of Common Stock following the effectiveness of the Reverse Stock Split was April 7, 2026.

The number of authorized shares of Common Stock prior to the Capital Stock Reduction was 66,666,666. The number of authorized shares of Common Stock following the Capital Stock Reduction is 13,333,333. The number of authorized shares of Preferred Stock is not effected.