# EDGAR Filing Document

**Accession Number:** 0001342958
**File Stem:** 0001493152-26-001231
**Filing Date:** 2026-1
**Character Count:** 121077
**Document Hash:** 3796c9b64cb3f83faa0ef66adcdf925d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-001231.hdr.sgml**: 20260112

**ACCESSION NUMBER**: 0001493152-26-001231

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20260112

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260112

**DATE AS OF CHANGE**: 20260112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIGITAL ALLY, INC.
- **CENTRAL INDEX KEY:** 0001342958
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 200064269
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33899
- **FILM NUMBER:** 26524724

**BUSINESS ADDRESS:**
- **STREET 1:** 6366 COLLEGE BLVD.
- **CITY:** OVERLAND PARK
- **STATE:** KS
- **ZIP:** 66211
- **BUSINESS PHONE:** 913-232-5349

**MAIL ADDRESS:**
- **STREET 1:** 6366 COLLEGE BLVD.
- **CITY:** OVERLAND PARK
- **STATE:** KS
- **ZIP:** 66211

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIGITAL ALLY INC
- **DATE OF NAME CHANGE:** 20051031

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): January 12, 2026 (January 8, 2025)**

Digital Ally, Inc

**KUSTOM ENTERTAINMENT, INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-33899** | **20-0064269** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(Commission**<br> **File Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**6366 College Blvd., Overland Park, KS 66211**

**(Address of Principal Executive Offices) (Zip Code)**

**(913) 814-7774**

**(Registrant's telephone number, including area code)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.001 par value | KUST | The Nasdaq Capital Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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 with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01. Entry into a Material Definitive Agreement.** 

On January 8, 2026, Digital Ally Healthcare, Inc. (the "Seller"), a Nevada corporation and a wholly-owned subsidiary of Kustom Entertainment, Inc. (the "Company") entered into and closed a Unit Purchase Agreement (the "Agreement") with Nobility LLC, an Arizona limited liability company (the "Buyer"), and Nobility Healthcare, LLC, a Kansas limited liability company ("Nobility Healthcare" and collectively with the Seller and the Buyer the "Parties").

Pursuant to the Agreement, the Buyer purchased all of the Seller's units of ownership interest ("Units") in Nobility Healthcare, for Closing Funds (as defined in the Agreement) and a promissory note (the "Note"), totaling $1,450,000, due upon closing (the "Transaction"). The Note issued by the Buyer at closing is in the principal amount of $1,140,499 to the Seller. Nobility Healthcare has historically issued a total of one hundred thousand (100,000) Units with Seller owning fifty-one thousand (51,000) of such Units. The Buyer is an affiliate of the owner of the remaining forty-nine thousand (49,000) Units. The Closing Funds are equal to the sum of (i) $100,000 in immediately available funds to be paid to the Seller at closing and (ii) certain credits totaling $209,501, which closing credits consist of (a) $200,000, the total of two advances made by the Buyer to the Seller on December 18, 2024 and January 15, 2025 and (b) $9,501 due to the Buyer from Nobility Healthcare for net working capital advances paid to the Buyer upon signing. The effective date of the Agreement is January 1, 2026. The Parties made customary representations, warranties and covenants in the Agreement. There is no material relationship between the Company or its affiliates and any of the other Parties to the Agreement, other than in connection with Nobility Healthcare.

**Item 2.01. Completion of Acquisition or Disposition of Assets.**

The information set forth in <u>Item 1.01</u> above is incorporated into this <u>Item 2.01</u> by reference.

Accordingly, pro forma financial information required by Item 9.01 of Form 8-K with respect to the disposition is included as Exhibit 99.1, to this Current Report on Form 8-K.

**Item 8.01. Other Events.**

On January 12, 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.

**Item 9.01. Financial Statements and Exhibits.**

*(b) Pro Forma Financial Information.*

The unaudited pro forma condensed consolidated balance sheet of the Company as of September 30, 2025, and the unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2025, and the year ended December 31, 2024, are attached hereto as Exhibit 99.2 and incorporated herein by reference. These unaudited pro forma financial statements give effect to the Nobility Healthcare sale on the basis, and subject to the assumptions, set forth in accordance with Article 11 of Regulation S-X.

*(d) Exhibits.*

---

| | |
|:---|:---|
| 1.1#\* | [Unit Purchase Agreement dated January 8, 2026, by and among Digital Ally Healthcare, Inc., Nobility LLC, and Nobility Healthcare, LLC.](ex1-1.htm) |
| 1.2#\* | [Promissory Note dated January 8, 2026.](ex1-2.htm) |
| 99.1 | [Press Release, dated January 12, 2026, issued by Kustom Entertainment, Inc.](ex99-1.htm) |
| 99.2 | [Kustom Entertainment, Inc. Unaudited Pro Forma Condensed Consolidated Financial Statements. (Filed herewith.)](ex99-2.htm) |
| 104 | Cover Page Interactive Data File. (Embedded within the Inline XBRL document.) |

---

# Certain portions of this exhibit (indicated by "[\*\*\*]") have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K as the Company has determined they (1) are not material and (2) are the type that the Company treats as private or confidential. The Company hereby agrees to furnish a copy of any omitted portion to the SEC upon request.

\* Schedules or exhibits omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: January 12, 2026

---

| | |
|:---|:---|
| **Kustom Entertainment, Inc.** | **Kustom Entertainment, Inc.** |
| By: | */s/ Stanton E. Ross* |
| Name: | Stanton E. Ross |
| Title: | Chairman, President and Chief Executive Officer |

---

## Exhibit 1.1

**Exhibit 1.1**

**UNIT PURCHASE AGREEMENT**

THIS UNIT PURCHASE AGREEMENT (the "Agreement") is executed on January 8, 2026 (the "Execution Date") to be effective as of January 1, 2026 (the "Effective Date") by and among **Digital Ally Healthcare, Inc.**, a Nevada corporation (the "Seller"); **Nobility LLC**, an Arizona limited liability company ("Nobility" or "Buyer") and **Nobility Healthcare, LLC**, a Kansas limited liability company (the "Company").

**<u>R E C I T A L S:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company is engaged in the business of providing insurance claim reimbursement billing, verification, and related services to dental and medical practices (the "Business") from its primary facility at 7465 E. Osborn Road, Scottsdale, AZ 85251 (the "Facility") and other remote locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company has issued one hundred thousand (100,000) units of ownership interest. Seller owns fifty-one thousand (51,000) of such units, equal to fifty-one percent (51%) of the total number of units issued by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Seller desires to sell and Nobility desires to purchase (the "Purchase") all of Seller's Units (as defined below) for the consideration and on the terms and conditions herein provided; and the parties hereto desire to enter into such other transactions as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the parties hereto agree as follows:

**<u>AGREEMENT:</u>**

1. **<u>Purchase of Units</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Terms of the Purchase*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1 The closing of the Purchase (the "Closing") will occur effective as of (i) the Effective Date or (ii) a different date mutually agreed to in writing by the parties. The date on which the Purchase shall be effective shall be the "<u>Effective Date</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2 Before, or simultaneously with, the Closing, the Company and Nobility (i) will execute and file all required certificates and documents with the appropriate governmental agencies or authorities, and (ii) will take all such other actions as may be required under applicable law to make the Purchase effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **Purchase Consideration; Certain Definitions.** For purposes of this Agreement, the following terms will have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1 "<u>Units</u>" means the units of ownership interests of the Company owned by the Seller as set forth in the Operating Agreement of the Company (the "Operating Agreement") as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2 "<u>Closing Funds</u>" means the sum of (i) **One Hundred Thousand Dollars ($100,000)** in immediately available funds to be paid to the Seller at Closing (the "Cash Portion") and (ii) certain credits totaling **Two Hundred and Nine Thousand Five Hundred and One Dollars** ($209,501) (the "Closing Credits"), which Closing Credits consist of $200,000 total amount of two advances (the "Advances") made by Nobility to the Seller on December 18, 2024 and January 15, 2025 and $9,501 due to Nobility from the Company for net working capital advances it made to the Company as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3 "<u>Note</u>" means a promissory note issued by Nobility in the principal amount of **One Million One Hundred Thousand Four Hundred and Ninety Nine Dollars ($1,140,499)** to the Seller in the form set forth as <u>Exhibit C</u>. Nobility shall be responsible for any and all documentary stamp taxes, intangible taxes, or recording fees related to the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4 "<u>Earn-Out Adjustment</u>" and "<u>True-Up Adjustment</u>" The Note will be subject to the earn-out adjustment (the "Earn-Out Adjustment") set forth in Section 3, "Earn-Out Adjustment" and the true-up adjustment (the "True-Up Adjustment") set forth in Section 3, "True-Up Adjustment" of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5 "<u>Purchase Consideration</u>" means the sum of the Closing Funds and the Note totaling **One Million Four Hundred Fifty Thousand Dollars ($1,450,000).**

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **Transfer of Ownership**. At the Closing, the Seller will transfer and assign the Units to Nobility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **Transfer of Funds.** On the Closing Date (as defined below) of the Purchase, Nobility will transfer the Cash Portion of the Closing Funds to the Seller according to the wire instructions provided by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **Further Assurances.** Each party and its officers, directors, managers and members, as the case may be, will execute and deliver all proper documents and do all things necessary or proper to otherwise to carry out the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **Board of Director's Resolutions.** Upon execution of this Agreement, each party will deliver to the other party resolutions, including from its board of directors, authorizing the execution, delivery and performance of the Agreement and consummation of the other transactions contemplated by the Purchase and this Agreement (collectively, the "Transaction").

2. **<u>Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 ***Covenant Not to Compete***. The Seller covenants and agrees for the benefit of Nobility and its successors and assigns that for a period of five (5) years after the Closing Date, that it will not engage in any business or perform any service, directly or indirectly through third parties or entities, or have any interest, whether as a lender, partner, member, investor, principal, agent, or consultant, in any enterprise within the United States, that is in direct or indirect competition with the Business of Company or the business of Nobility or their successors and assigns. If the provisions of this <u>Section 2.1.1</u> are ever deemed to exceed the time, geographic or occupational limitations permitted by the applicable laws, then such provisions shall be reformed to the maximum time, geographic or occupational limitations by the applicable laws.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 ***Non-Solicitation****.* Following the Closing Date, the Seller will not either directly or indirectly for a period of five (5) years: (i) call upon or solicit any business related to the Business from any current or former (during the twelve (12) month period immediately prior to the Effective Date) client of the Company, Nobility, or any of their respective subsidiaries, successors or assigns; (ii) solicit or induce, or attempt to solicit or induce, any current or former (during the twelve (12) month period immediately prior to the Effective Date) employee, consultant or representative of the Company, Nobility, or any of their respective subsidiaries, successors, or assigns to leave his, her or its employment, consultancy or representative relationship with the Company, Nobility, or any of their respective subsidiaries, successors, or assigns or in any way interfere with the relationship between the Company, Nobility, or any of their respective subsidiaries, successors, or assigns on the one hand, and any employee, consultant or representative, on the other hand, or hire any Person who is or was (during the twelve (12) month period immediately prior to the date hereof), an employee, consultant or representative of the Company, Nobility, or any of their respective subsidiaries, successors, or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 ***Further Assurances***. Each party to this Agreement agrees that it shall, at any time and from time to time after the Closing Date, upon request of any other party, do, execute, acknowledge and deliver or will cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may in the opinion of Nobility or the Seller be reasonably necessary or advisable to consummate and fully implement the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 ***Confidentiality***. All information disclosed heretofore or hereafter by either party to the other shall not be used by such other party otherwise than as contemplated in this Agreement and shall be kept confidential by the other and disclosed only to persons whose knowledge thereof is necessary to execute the transaction contemplated by this Agreement, and, of those, only to the other's officers, managers, members, shareholders, employees, counsel, advisors, and accountant(s), and shall not otherwise be disclosed except to the extent that: it was known when received, it is or hereafter becomes lawfully obtainable from other sources; it is necessary to disclose such information to regulatory authorities having jurisdiction over the Seller or Nobility or their subsidiaries or affiliated companies, or as may otherwise be required by law, rule or regulation; or to the extent such duty as to confidentiality is waived by the party entitled to claim benefits of these confidentiality provisions. If this Agreement is terminated prior to the Closing, each party shall return upon request to the other all documents (and reproductions thereof) received from the other that include information not within the exceptions contained in this paragraph. Confidential information includes a party's customer, client and employee lists, business plans, business relationships, products, marketing plans, financial information, designs, drawings, specifications, models, software and operating systems, and information received from others that such party is obligated to treat as confidential. If it appears that a party has disclosed (or has threatened to disclose) the confidential information of another party in violation of this Agreement, the other party shall be entitled to an injunction, a restraining order or other equitable relief to restrain such party from disclosing, in whole or in part, such confidential information, or from providing any services to any party to whom such information has been disclosed or may be disclosed. A party whose confidential information has been disclosed shall not be prohibited by this provision from pursuing other remedies, including a claim for losses or damages. This provision shall survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 ***Notice of Developments***. Each of the Seller and Nobility shall give prompt written notice to the other party of any material adverse development causing a breach of any of its own representations and warranties set forth below in <u>Section 5</u> and <u>Section 6</u> or the occurrence of any event that will prevent such party from performing any covenant contained in this Agreement. No disclosure by a party under this <u>Section 2.4</u> shall be deemed to amend or supplement any schedule hereto or to prevent or cure any misrepresentation, breach of warranty or breach of covenant. Nobility shall provide prompt written notice to the Seller if it becomes aware of any inaccuracy of any representation or warranty being made by Seller hereunder, provided that such notice obligation shall not further obligate Nobility to conduct any research or investigation.

3. **<u>The Closing</u>**. The Closing of the Transaction contemplated by this Agreement shall take place on January 8, 2026 or any other mutually agreed upon date. The date of the Closing is referred to in this Agreement as the "Closing Date."

4. **<u>No Publicity</u>**. Without prior consultation and agreement with each other, neither the Seller nor Nobility, nor their respective employees or agents, shall make any public disclosure of the facts of this Transaction, the parties hereto, the terms or any other related matter, except as required by applicable law, rule or regulation. Until the Closing, Nobility, its counsel, accountants, and other representatives, shall maintain in confidence all information provided by the Seller in connection with the Transaction. The parties will provide each other with advance copies of any proposed public disclosures of the Transaction for their information and consultation.

5. **<u>Representations and Warranties of the Seller</u>**. As a material inducement for Nobility to enter into this Agreement, the Seller hereby represents and warrants to Nobility, both as of the Execution Date and again as of the Closing Date, knowing and intending that Nobility is relying hereon in entering into the Transaction, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 ***Organization; Qualification***. Seller is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted. Seller is duly qualified or licensed and is in good standing to do business in each jurisdiction in which the nature of the business conducted by it has made its qualification or licensing a legal requirement except where failure to be so qualified would not have a material adverse effect on the operation of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1 ***Title to Units.*** Seller represents and warrants that (a) the Units have not been assigned, sold, or pledged to any other person or entity; (b) no person or entity whatsoever has any claim, right, title, interest, or lien in, to, or in the Units; (c) Seller has full authority to sell the Units; (d) there are no voting trusts or other agreements or understandings to which the Seller is a party respecting the Units; (e) the total number of Units owned by the Seller is fifty-one thousand (51,000) and they represent a fifty-one percent (51%) ownership interest in the Company; and (f) the limited liability company membership interests of the Seller in the Company as of the Closing Date, and immediately following the Closing, consist solely of the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 ***Rights to Acquire Units.*** Other than this Agreement, there is no preemptive right, subscription, option, warrant, call, right, convertible security, contract, agreement, commitment, understanding or arrangement relating to the issuance, sale, delivery or transfer of the Units of the Company or of any of the other securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 ***Authority Relative to the Agreements.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 This Agreement will be duly and validly executed and delivered by the Seller and will constitute a valid and binding agreement of the Seller, enforceable against the Seller in accordance with its terms.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2 The Seller has the power and authority to execute and deliver this Agreement and to consummate the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 ***Arms-Length Transaction.*** The parties are related solely by their membership interests in the Company, do not have common officers and directors and/or owners, and are not parties to any other business venture. The transfer of the Units by Seller in exchange for the payment of the Purchase Consideration, as adjusted by Buyer from time to time in accordance with the Note, represents the exchange of fair value that the parties negotiated without duress or coercion. The transfer of the Units by Seller to Buyer does not represent a transfer made in satisfaction of any prior debt owed by Seller to Buyer, excluding the Advances and working capital advances described in Section 1.2.2. Seller acknowledges that Buyer is good faith purchaser of the Units for reasonable equivalent value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 ***Solvency of Seller***. The Seller warrants and represents, which representations and warranties shall survive Closing, that the Seller is solvent on asset and liability basis measured at fair value, and because the Seller is presently able to pay its debts in the ordinary course of business, and that the transaction contemplated by this Agreement will not render the Seller insolvent as the term is defined under applicable fraudulent transfer law, or render the Seller with capital that is insufficient to meet its reasonable business needs in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 ***Avoidance of the Transaction***. If the Transaction described in the Agreement is voided or avoided pursuant to the United States Bankruptcy Code (the "Bankruptcy Code") (including the provisions of the Bankruptcy Code that incorporate state law,) in a case involving the Seller, then Nobility, to the extent of the consideration provided to the Seller, shall have a first priority lien and security interest in the property that is recovered for the benefit of the bankruptcy estate with the rights to credit bid such lien under the Bankruptcy Code and applicable state law in any sale of the recovered property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 ***Compliance with Law; Suits and Proceedings***. To the Knowledge (as defined below) of the Seller, the Seller is not now (nor has been within the past twelve (12) months) in violation of any law, regulation or order of any court of any federal, state, municipal or other governmental department, commission, bureau, agency, or instrumentality as it respects the Units that would have a material adverse effect upon the Transaction. There are no actions, suits, proceedings, investigations or claims pending or, to the Knowledge the Seller, threatened against with respect to the Units, at law or in equity, before or by any federal, state, municipal or any other governmental court, department, commission, agency or instrumentality, domestic or foreign; nor to the Knowledge of the Seller is there any basis for any such claim, suit, proceeding or investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 ***Freedom from Restrictions***. Except as set forth in this Agreement, the execution and delivery of this Agreement, the consummation of the transaction contemplated hereby, and the fulfillment of the terms hereof by the Seller (i) do not violate or conflict with, and will not result in a breach or default, or in any occurrence that, with a lapse of time or action by a third party or both, could result in a breach or default with respect to any contract, agreement, commitment, or undertaking, either written or oral, by which the Seller is a party or is bound; (ii) will not, to the Knowledge of the Seller, violate any applicable domestic law or public policy; or (iii) will not result in an acceleration or increase of any amounts due from the Seller that could adversely affect the Units or the Transaction. Except as set forth in this Agreement, no contract, agreement, commitment, or undertaking, either oral or written, or judgment, order, writ, injunction or decree exists that in any other manner restricts, limits, or affects the execution, delivery or performance of this Agreement or the transferability of the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 ***Completeness of Disclosure***. To the Knowledge of the Seller, no representation or warranty by the Seller, as applicable, in this Agreement nor any information or documents, is in any material respect false or misleading, contains or will contain any untrue statement of a material fact or, to the Knowledge of Seller, omits or will omit to state a material fact required to be stated herein or therein as necessary to make any statement herein or therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 ***Basis for Representations and Warranties***. Prior to executing this Agreement, the Seller has made such affirmative and thorough reviews, searches, inspections and inquiries relating to its business and the Units as the Seller has deemed reasonably appropriate. For purposes of this Agreement, including this <u>Section 5</u>, "Knowledge," means (i)(a) with respect to the Units, the actual knowledge of the Seller, and (b) with respect to a Seller, the actual knowledge of the Seller, and what the Seller should have known after reasonable investigation with respect to the subject matters of said representations and warranties based upon matters which arose prior to the date such representations and warranties are made hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 ***Powers of Attorney***. There are no outstanding powers of attorney executed on behalf of the Seller relating to the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 ***Representation by Counsel***. The Seller (i) has been represented by independent counsel (or has had the opportunity to consult with independent counsel and has declined to do so); (ii) has had the full right and opportunity to consult with such counsel and other advisors and has availed itself of this right and opportunity; (iii) has carefully read and fully understands this Agreement and the other documents to be executed in connection herewith, as applicable, in their entirety and has had them fully explained to the Seller by such counsel; (iv) is fully aware of the contents hereof and the meaning, intent and legal effect thereof; and (v) is competent to execute this Agreement and such other transaction documents, as applicable, and has executed this Agreement and such other transaction documents, as applicable, free from coercion, duress or undue influence.

6. **<u>Representations and Warranties of Nobility</u>**. Nobility represents and warrants now and as of the Closing Date to the Seller as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 ***Organization***. Nobility is a limited liability company duly organized, validly existing and in good standing under the laws of Arizona. Nobility has all power necessary to carry on its business as it is now being conducted and is qualified to do business in each state where it is required to be qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 ***Authorization***. The execution, delivery and performance of this Agreement by Nobility, including performance of the obligations and consummation of the Transaction, is not inconsistent with and will not violate or contravene Nobility's Articles of Organization or Operating Agreement, as amended, and has been duly authorized by the Nobility's Board of Managers or other governing body. Nobility has the power, authority and legal right to execute, deliver and perform this Agreement. When executed and delivered, this Agreement and all other documents and instruments hereunder shall constitute legal, valid and binding obligations of Nobility enforceable against Nobility in accordance with the terms thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 ***Freedom from Restrictions; No Required Consents***. The execution and delivery of this Agreement, the consummation of the Transaction, and the fulfillment of the terms hereof by Nobility (i) do not violate or conflict with, and will not result in a breach or default, or in any occurrence that, with a lapse of time or action by a third party or both, could result in a breach or default with respect to any contract, agreement, commitment, or undertaking, either written or oral, by which Nobility is a party or is bound; and (ii) will not violate any applicable domestic law or public policy. No contract, agreement, commitment, or undertaking, either oral or written, or judgment, order, writ, injunction or decree exists that in any manner restricts, limits, or affects the execution, delivery or performance of this Agreement or the consummation of the Transaction. There are no consents necessary from any person, association, entity, or governmental authority necessary to render the Transaction lawful and effective in accordance with the terms of this Agreement, and in compliance with any requirements by which Nobility is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 ***Arms-Length Transaction.*** The parties are related solely by their membership interests in the Company, do not have common officers and directors and/or owners, and are not parties to any other business venture. The transfer of the Units by Seller in exchange for the payment of the Purchase Consideration, as adjusted by Buyer from time to time in accordance with the Note, represents the exchange of fair value that the parties negotiated without duress or coercion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 ***Solvency of Buyer***. The Buyer warrants and represents, which representations and warranties shall survive Closing, that the Buyer is solvent on asset and liability basis measured at fair value, and because the Buyer is presently able to pay its debts in the ordinary course of business, and that the Transaction contemplated by this Agreement will not render the Buyer insolvent as the term is defined under applicable fraudulent transfer law, or render the Buyer with capital that is insufficient to meet its reasonable business needs in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 ***Completeness of Disclosure***. To the Knowledge of the Buyer, no representation or warranty by the Buyer, as applicable, in this Agreement nor any information or documents, is in any material respect false or misleading, contains or will contain any untrue statement of a material fact or, to the Knowledge of the Buyer, omits or will omit to state a material fact required to be stated herein or therein as necessary to make any statement herein or therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 ***Basis for Representations and Warranties***. Prior to executing this Agreement, the Buyer has made such affirmative and thorough reviews, searches, inspections and inquiries relating to its business and the Units as the Buyer has deemed reasonably appropriate. For purposes of this Agreement, including this <u>Section 6</u>, "Knowledge," means (i) with respect to a Buyer, the actual knowledge of the Buyer, and what the Buyer should have known after reasonable investigation with respect to the subject matters of said representations and warranties based upon matters which arose prior to the date such representations and warranties are made hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 ***Representation by Counsel***. Nobility (i) has been represented by independent counsel (or has had the opportunity to consult with independent counsel and has declined to do so); (ii) has had the full right and opportunity to consult with such counsel and other advisors and has availed itself of this right and opportunity; (iii) has carefully read and fully understands this Agreement and the other documents to be executed in connection herewith, as applicable, in their entirety and has had them fully explained to Nobility by such counsel; (iv) is fully aware of the contents hereof and the meaning, intent and legal effect thereof; and (v) is competent to execute this Agreement and such other transaction documents, as applicable, and has executed this Agreement and such other transaction documents, as applicable, free from coercion, duress or undue influence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 ***Sale of Business Prior to Maturity of the Note.*** If Nobility sells or otherwise transfers (i) the Units purchased under this Agreement or (ii) all or substantially all of the assets of the Company to a third party prior to the payment in full of the Note, then concurrent with such sale or transfer, Nobility shall make a lump sum cash payment to the Seller in an amount equal to the then outstanding principal amount of the Note, together with accrued interest, within five business days of such sale or transfer.

7. **<u>Conditions to the Closing</u>**. If any of the following conditions are not satisfied to the satisfaction of Nobility or the Seller, as applicable, each acting in good faith, as of or before the Closing Date then Nobility or the Seller, as applicable, shall have the right to (i) terminate this Agreement and obligations of Nobility or the Seller to consummate the Transaction by delivering written notice to the Seller or Nobility, as applicable, not later than 5:00 pm Central Standard Time on the Closing Date, whereupon the parties shall have no further obligations or liabilities, to each other hereunder, (ii) waive such condition, or (iii) extend the Closing Date to permit such condition additional time to be satisfied. Except for (x) <u>Section 7.3</u>, (y) those provisions of <u>Section 7.4</u> which relate to Nobility's representations, warranties and covenants and (z) those provisions of <u>Sections 7.8</u> that require delivery or performance by Nobility, the obligations of Nobility to consummate the transaction contemplated by this Agreement are expressly conditioned and contingent upon the satisfaction of the following conditions precedent not later than the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 ***Tax, Lien and Litigation Searches***. Receipt by Nobility of satisfactory tax, lien, UCC, litigation and other searches with respect to the Seller indicating the existence of no adverse liens or encumbrances against any of the Units that will not be discharged as of the Closing Date. The Seller will obtain and pay for the foregoing searches and confirmations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 ***Consents and Approvals***. Nobility's and the Seller's receipt of all necessary consents and approvals of third parties, governmental or otherwise, to effectuate transfer of the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 ***Representations, Warranties and Covenants***. The truthfulness and accuracy in all material respects of the representations and warranties made by the Seller and Nobility in this Agreement, as applicable, each of which shall be deemed made as of the Effective Date and the Closing Date. On or before the Closing Date, the Seller and Nobility, as applicable, shall have performed all obligations and complied with all covenants required to be performed by the Seller, or Nobility, as applicable, under this Agreement prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 ***Delivery of Documents***. The documents to be delivered to Nobility and the Seller shall have been found reasonably acceptable to Nobility and the Seller, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 ***Adverse Facts***. Neither party shall have become aware of any fact (including any currently existing fact) which has or may have, in such party's sole discretion, materially adverse significance with respect to any aspect of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 ***Instruments of Conveyance and Transfer***. The conveyance, transfer, assignment and delivery of the Units and consummation of the Transaction shall be effected by documents as contemplated by this Agreement, each in form and as shall reasonably be required by Nobility, the Company or their respective counsel, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.1 *Equity Ownership Assignment and Amendment of Articles of Organization and Operating Agreement.* The Seller shall deliver the assignment for the Units set forth as <u>Exhibit A</u> and the Company will deliver an amendment to the Articles of Organization and Operating Agreement for the replacement of the Seller as a member of the Company to the parties duly executed in forms acceptable to the Seller and Nobility set forth as <u>Exhibit B</u>. Any cost for recording or filing such amendments shall be the sole responsibility of Nobility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2 *Note*. Nobility shall deliver the Note executed in favor of the Seller in form set forth as <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3 *Nobility's Certificate*. At the Closing, Nobility shall deliver to the Seller a certificate, signed by Nobility, evidencing the resolutions referenced in <u>Section 1.6</u> and certifying that the conditions stated in this <u>Section 7</u> that relate to Nobility have been fulfilled as of the Closing Date, set forth as <u>Exhibit D</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.4 *Seller's Certificate*. At the Closing, the Seller shall deliver to Nobility a certificate evidencing the resolutions referenced in <u>Section 1.6</u> and certifying that the conditions stated in this Section <u>7</u> that relate to the Seller have been fulfilled as of the Closing Date, set forth as <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.5 *Good Standing Verification – the Seller*. At or before the Closing, the Seller shall deliver to Nobility a verification satisfactory to Nobility of the Good Standing of the Seller in the state of Nevada dated not more than ten (10) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.6 *Good Standing Verification* – *Nobility*. At or before the Closing, Nobility shall deliver to the Seller a verification satisfactory to the Seller of Good Standing for Nobility in the state of Arizona dated not more than ten (10) days prior to the Closing Date.

8. **<u>Covenants of Seller.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 *Bankruptcy Filing*. The Seller shall not be a voluntary debtor in a bankruptcy proceeding within four years after the Effective Date, and Nobility shall be entitled to an order dismissing any such bankruptcy case with prejudice. The Seller shall use its best efforts to oppose the filing of an involuntary bankruptcy petition against it, and in any bankruptcy case in which it is a debtor, shall oppose the request for the appointment of any Chapter 11 or Chapter 7 trustee or examiner with or without special powers. If the limitation on the Seller's ability to file a bankruptcy petition is held to be unenforceable, then, notwithstanding the foregoing: (1) any bankruptcy filing by the Seller shall be filed in the United States Bankruptcy Court for the District of Arizona, and (2) any such filing shall be made under Chapter 11 of the Bankruptcy Code. The Seller acknowledges that it is not a Small Business Debtor as the Bankruptcy Code defines the term, and, regardless, intentionally waives the right to seek a reorganization under any other provision of the Bankruptcy Code. Notwithstanding the foregoing, any bankruptcy filing by the Seller shall not be effective unless it is approved in writing by all of the Seller's members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 *Plan Provisions*. In a Chapter 11 bankruptcy case of the Seller, the Seller shall not propose or support a plan of reorganization that materially changes the terms of the Agreement without the consent of Nobility which Nobility may withhold in its sole and absolute discretion. Nobility shall have the right to cause any such plan to be denied confirmation as failing to meet the requirements of Bankruptcy Code Section 1129(a)(1)-(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 *Executory Contracts.* The Agreement is not an executory contract that the Seller may reject in a bankruptcy case of the Seller. The Seller acknowledges that the Agreement after the Effective Date only requires the payment of money by Nobility and does not impose any executory obligations on the part of the Seller. Notwithstanding the foregoing, the Seller agrees in any bankruptcy case of the Seller not to seek rejection of the Agreement under Bankruptcy Code Section 365. With the consent of Nobility, which Nobility may withhold in its sole and absolute discretion, Nobility may agree to the assumption of the Agreement.

9. **<u>Brokers</u>**. There are no other brokers or financial intermediaries involved in connection with the Transaction.

10. **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 ***By Seller****.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 The Seller agrees to indemnify, defend and hold harmless Nobility and the Company from any and all: (i) liabilities, losses, costs or damages actually incurred ("Loss") and (ii) any and all reasonable attorneys,' accountants,' and/or experts fees and expenses and other out-of-pocket expenses actually incurred in defending or prosecuting any claim resulting from a Loss ("Fees") to the extent such Loss results from or by virtue of: (a) any breach of warranty or inaccuracy of any representation made by the Seller in this Agreement or in any schedules attached to this Agreement or (b) the failure of any covenant of the Seller in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 A claim for indemnification by Nobility or the Company shall be made only by Nobility or the Company providing notice in accordance with <u>Section 12</u> of this Agreement, to the Seller of the existence of the claim for which indemnification is sought. Seller shall have thirty (30) days following the receipt of a notice of a claim for indemnification to contest such notice of claim, in writing, pursuant to <u>Section 12</u>. If Seller contests a claim for indemnification, the dispute resolutions provisions of <u>Section 12</u> shall apply. If a claim for indemnification involves a claim by a third party, the Seller shall thereafter be entitled, at its option, to control any prosecution or defense relating to such claim for indemnity (including without limitation decisions to settle or appeal with the reasonable consent of Nobility) through attorneys and agents of its choosing, all at the expense of the Seller (except in any suit by Nobility against the Seller) and so long as (i) the Seller notifies Nobility that it will defend such claim and indemnify Nobility with respect to the Loss and Fees that Nobility may suffer as a result thereto, (ii) the Seller conducts the defense of such claim diligently and actively, (iii) such third party claim involves only monetary damages and does not seek an injunction or other equitable relief, and (iv) the settlement of or judgment with respect to such claim will not in the Seller's good faith judgment likely establish a precedential custom or practice materially adverse to the continuing business interests of Nobility. The foregoing shall not prohibit Nobility from retaining co-counsel at its sole cost and expense to participate in the defense of such third-party claim. If the Seller fails to diligently and actively prosecute the defense of any such third-party claim, Nobility shall have the right to control the defense of such claim (at the Seller's expense). The results of any such prosecution or defense shall be binding upon Nobility and the Seller for purposes of resolving any claim for indemnity. To the extent a claim is Resolved (as defined below), the Resolved portion of such claim may be set off by Nobility against any payments to be made to the Seller under the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3 For purposes of this <u>Section 10.1</u> only, "Resolved" shall mean resolution of a claim for indemnification as a result of any of the following: by agreement between Nobility and the Seller, by failure of the Seller to contest a claim for indemnity within thirty (30) days following receipt of notice from Nobility, by failure due to nonaction of the Seller to diligently prosecute a claim for indemnity it has contested by nonaction or failing to respond for a period of twenty (20) days by settlement, by court action or other form of resolution binding upon the Seller and Nobility. Subject to the limitations set forth in this Agreement, any claims for indemnity, or portions thereof, in excess of the aggregate amount due pursuant to the Note, if any, shall be the responsibilities of the Seller and paid to Nobility on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 ***By Nobility****.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1 Nobility hereby agrees to indemnify, defend and hold harmless the Seller from any Loss and Fees actually incurred by the Seller relating to or arising from or by virtue of: (i) any breach of warranty or inaccuracy of any representation made by Nobility in this Agreement or in any schedules attached to this Agreement or (ii) failure of any covenant of Nobility in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2 A claim for indemnification by the Seller shall be made only by the Seller providing notice, in accordance with <u>Section 12</u> of this Agreement, to Nobility of the existence of the claim for which indemnification is sought. Nobility shall have thirty (30) days following the receipt of such notice in which to contest a claim for indemnity. If Nobility contests a claim for indemnification, the dispute resolutions provisions of <u>Section 12</u> shall apply. In the event a claim for indemnification involves a claim by a third party, Nobility shall thereafter be entitled, at its option, to control any prosecution or defense relating to such claim for indemnity (including without limitation decisions to settle or appeal with the reasonable consent of the Seller, as applicable) through attorneys and agents of its choosing, all at the expense of Nobility (except in any suit by the Seller against Nobility) and so long as (i) Nobility notifies the Seller that it will defend such claim and indemnify the Seller with respect to the Loss and Fees that the Seller may suffer as a result thereof, (ii) Nobility conducts the defense of such claim diligently and actively, (iii) such third party claim involves only monetary damages and does not seek an injunction or other equitable relief, and (vi) the settlement of or judgment with respect to such claim will not in Nobility's good faith judgment likely establish a precedential custom or practice materially adverse to the continuing business interests of the Seller. The foregoing shall not prohibit the Seller from retaining co-counsel at its/their sole cost and expense to participate in the defense of such third-party claim. If Nobility fails to diligently and actively prosecute the defense of any such third-party claim, the Seller shall have the right to control the defense of such claim (at Nobility's expense). The results of any such prosecution or defense shall be binding upon Seller and Nobility for purposes of resolving any claim for indemnity.

10.3 ***Survival of Indemnities, Warranties and Representations***. The provisions of this Agreement, including without limitation all indemnities, warranties and representations made shall survive the Closing. Each representation and warranty set forth in this Agreement shall survive the Closing Date for two (2) years, except that all representations and warranties relating to tax matters shall survive until the latest applicable statute of limitations period of all governing tax authorities with jurisdiction thereover.

10.4 ***Sole Remedy****.* The sole and exclusive remedy of Nobility, the Company or the Seller for any and all Loss and Fees under this Agreement, shall be the indemnification rights set forth in this <u>Section 10</u>. In no event shall any party be liable for punitive, incidental, special or consequential damages, including loss of profits.

11. **<u>Termination; Extension of Closing Date</u>**. The parties may terminate this Agreement or extend the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 ***Agreement***. Nobility and the Seller may terminate this Agreement or extend the Closing Date upon their mutual consent at any time in writing prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 ***Termination or Extension by Seller***. If any of the conditions precedent for the Company to Close as set forth in <u>Section 7</u> are not satisfied to the satisfaction of the Seller, acting in good faith, as of the date immediately preceding the scheduled Closing Date, then the Seller shall have the right to (i) terminate this Agreement and the Seller's obligations to consummate the transaction described herein, whereupon the parties shall have no further obligations or liabilities to each other hereunder, (ii) waive such condition, or (iii) extend the Closing Date for up to thirty (30) calendar (the "Extended Closing Date") days to permit such condition additional time to be satisfied, failing which, the Seller may terminate the Agreement or waive such condition and close by the Extended Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 ***Termination or Extension by Nobility***. If any of the conditions precedent for Nobility to the Closing Date as set forth in <u>Section 7</u> are not satisfied to the satisfaction of Nobility, acting in good faith, as of the date immediately preceding the scheduled Closing Date, then Nobility shall have the right to (i) terminate this Agreement and Nobility's obligations to consummate the transaction described herein, whereupon the parties shall have no further obligations or liabilities to each other hereunder, (ii) waive such condition, or (iii) extend the Closing Date for up to thirty (30) calendar days to permit such condition additional time to be satisfied, failing which, Nobility may terminate the Agreement or waive such condition and close by the Extended Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 ***Effect of Termination***. If this Agreement is terminated pursuant to this <u>Section 11</u>, all rights and obligations of the parties hereunder terminate without any further liability or obligation to the other parties and except for any liability of a party hereto resulting from its, his or her prior breach or default hereunder.

12. **<u>Dispute Resolution.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 ***<u>Dispute</u>*.** As used in this Agreement, "Dispute" means any dispute or disagreement between the Seller and Nobility arising after the Closing Date concerning the interpretation of this Agreement, the validity of this Agreement, any breach or alleged breach by any party of this Agreement or any other matter relating in any way to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 ***<u>Process</u>*.** If a Dispute arises, the parties will follow the procedures specified in subsections 12.3 through 12.13 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 ***<u>Notice of Dispute</u>***. If a Dispute arises, then the Seller or Nobility, as applicable, will serve a written notice (the "Notice of Dispute") on the other party specifying the existence of the Dispute and setting forth in reasonably specific detail the grounds of the Dispute. The Notice of Dispute shall be given not later than ten (10) business days after the Dispute has arisen. The parties will promptly attempt to resolve any Dispute by negotiations between the Seller and Nobility. Either the Seller or Nobility may give the other party written notice of any Dispute not resolved in the normal course of business. If the Dispute has not been resolved by these parties within thirty (30) business days of the Notice of Dispute, or if the parties fail to meet within such thirty (30) business days, any party may initiate arbitration as provided in <u>Section 12.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 ***<u>Arbitration</u>***. The Dispute will be settled by arbitration and be governed by the Commercial Rules of the American Arbitration Association ("Rules") in effect on the date of the Notice of Dispute, except that the terms of <u>Section 12.6</u> will control in the event of any difference or conflict between such Rules and the terms of <u>Section 12.6.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 ***<u>Selection of Arbitrator</u>***. There will be one arbitrator except as provided below. The arbitrator selected, in order to be eligible to serve, will be an arbitrator registered with the American Arbitration Association with at least fifteen (15) years' experience in general corporate, mergers and acquisition and commercial matters. If the parties cannot agree on a mutually acceptable single arbitrator within ten (10) business days of the initiation of arbitration, each party will select one arbitrator, and such arbitrators will select a third arbitrator within ten (10) business days. At the time of appointment and as a condition of the appointment, the arbitrator(s) will be apprised of the time limitations and other provisions of <u>Section 12.6</u> and will agree to comply with such provisions and time limitations. The arbitrator(s) will reach a decision on the merits on the basis of applicable legal principles as embodied in the law of the State of Arizona. The arbitration hearing will take place in Phoenix, Arizona.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 ***<u>Arbitration Procedures and Timing</u>***. During the thirty (30) day period following appointment of the arbitrator(s), any party may serve on the other a request for no more than ten (10) categories of documents directly related to the dispute. Such documents will be produced within seven (7) days of the request. After the thirty (30) day period of document production, there will be a ten (10) day period during which limited depositions will be permissible. No party will take more than three (3) depositions, and no deposition will exceed three (3) hours of direct testimony. Disputes as to discovery or prehearing matters of a procedural nature will be promptly submitted to the arbitrator(s) pursuant to telephone conference call or otherwise. The arbitrator(s) will make every effort to render a ruling on such interim matters at the time of the hearing (or conference call) or within five (5) business days thereafter. Following the period of depositions, the arbitration hearing will promptly commence. The arbitrator(s) will make every effort to commence the hearing within thirty (30) days of the conclusion of the deposition period and, in addition, will make every effort to conduct the hearing on consecutive business days to conclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 ***<u>Decision of Arbitrator</u>***. The arbitrator(s) will render a decision, at the latest, within fifteen business days (15) after the close of the arbitration hearing. The award will set forth the grounds for the decision (findings of fact and conclusions of law) in reasonably specific detail. The award will be final and non-appealable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8 ***<u>Provisional Remedies</u>*.** At any time during the procedures specified in this <u>Section 12</u>, a party may seek a preliminary injunction or other provisional judicial relief if in its judgment such action is necessary to avoid irreparable damage or to preserve the status quo. Despite such action, the parties will continue to participate in good faith in the procedures specified in this <u>Section 12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9 ***<u>Tolling Statutes of Limitations</u>*.** All applicable statutes of limitation and defenses based upon the passage of time will be tolled with respect to matters that are the subject of the procedures specified in this <u>Section 12</u> while such procedures are pending. The parties will take such action, if any, as is required to effectuate such tolling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10 ***<u>Performance to Continue</u>*.** Each party is required to continue to perform its obligations under this Agreement pending final resolution of any Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11 ***<u>Extension of Deadlines</u>*.** All deadlines specified in this <u>Section 12</u> may be extended by agreement between the applicable parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12 ***<u>Enforcement</u>*.** The parties regard the obligations in this <u>Section 12</u> to constitute an essential provision of this Agreement and one that is legally binding on them. In case of a violation of the obligations in this <u>Section 12</u> by any party, each other party may bring an action to seek enforcement of such obligations in any court of law having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13 ***<u>Costs</u>*.** The non-prevailing party or parties shall pay the fees and expenses of the arbitrator in connection with the application of the provisions of this <u>Section 12</u>.

13. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 ***Entire Agreement***. This Agreement supersedes all prior and contemporaneous negotiations, understandings, and agreements, written or oral, between the parties hereto with respect to the subject matter hereof and may not be amended or modified except by a writing executed by all the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 ***Fees and Expenses***. Except as set forth herein or unless otherwise agreed in writing, Nobility and the Seller shall pay their own expenses in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 ***Binding Effect***. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective heirs, successors, executors, administrators and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 ***Waiver***. No waiver of any provision hereof shall be effective unless set forth by a written instrument signed by each party affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 ***Execution of Agreement***. This Agreement may be signed in counterparts, each of which shall be considered an original and together they shall constitute one agreement. Further, this Agreement may be executed and delivered by delivery of a facsimile or portable document format ("PDF") copy bearing the facsimile or PDF signature of any party hereto and each such copy bearing the facsimile or PDF signature of any party hereto shall constitute a valid and binding execution and delivery of this Agreement by such party. Such facsimile and PDF copies shall constitute enforceable original documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 ***Assignment***. Nobility may, without the consent of the Seller, assign all of Nobility's rights, title and interest in and to this Agreement to any partnership, limited liability company or corporation which is a subsidiary of Nobility. No other assignment by either party shall be permitted without each other party's prior written consent. No such assignment shall relieve Nobility of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 ***Section Headings***. Section headings contained in this Agreement are for convenience of reference only and shall not be deemed a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 ***Governing Law***. This Agreement shall be governed in all respects, including validity, interpretation, and effect, by the laws of the State of Arizona, as applicable to residents of Arizona, without regard to conflicts of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 ***Notices***. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered, when delivered by recognized national overnight delivery service, such as Federal Express, or when received after mailing by registered or certified mail (return receipt requested) to the parties at the following addresses (or such other address as hereafter notified by such party):

If to Nobility:

Nobility, LLC

[\*\*\*]

Attn: Christian J. Hoffmann, III

With a copy by email to: [\*\*\*]

If to the Seller subsequent to the Closing Date:

Kustom Entertainment, Inc.

[\*\*\*]

Attn: Stanton E. Ross

With a copy by email to: [\*\*\*]

With a copy to:

Sullivan & Worcester LLP

[\*\*\*]

Attn: Joseph E. Segilia, Esq.

With a copy by email to: [\*\*\*]

The parties also agree to provide a courtesy copy to the email addresses listed above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 <u>Post-Closing Financial Statements, Tax Returns and Audits.</u> Nobility and the Company will promptly cooperate with Seller and take all steps necessary after the Closing Date to assist Seller (i) in providing the information required for filing the federal and state income and other taxes for the fiscal year ended December 31, 2025 relating to its ownership of the Units in 2025; and (ii) in complying with the requests of its auditors to complete an audit of the financial statements of the Company as required. The Company will timely file all federal and state income taxes for the fiscal year ended December 31, 2025 and pay all taxes due for such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 <u>Non-Disparagement.</u> The parties agree that they shall not make any oral or written disparaging statements about the other party.

<u>[signature page follows]</u>

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement by their duly authorized officers the day and year first above written.

---

| | |
|:---|:---|
| **The "Seller"** | **Digital Ally Healthcare, Inc.** |
|  | **a Nevada corporation** |
|  | **By:** |
|  | **Its:** |

---

---

| | | |
|:---|:---|:---|
| **"Company"** | **NOBILITY HEALTHCARE, LLC,** | **NOBILITY HEALTHCARE, LLC,** |
|  | **a Kansas limited liability company** | **a Kansas limited liability company** |
|  | **By:** | **Nobility, LLC,** |
|  | **an Arizona limited liability company** | **an Arizona limited liability company** |
|  | **Its:** | **Manager** |

---

---

| | |
|:---|:---|
| **By:** | */s/ Christian J. Hoffmann, III* |
|  | **Christian J. Hoffmann, III** |
| **Its:** | **Manager** |

---

---

| | | |
|:---|:---|:---|
| **"Nobility"** | **NOBILITY, LLC,** | **NOBILITY, LLC,** |
|  | **an Arizona limited liability company** | **an Arizona limited liability company** |
|  | **By:** | */s/ Christian J. Hoffmann, III* |
|  |  | **Christian J. Hoffmann, III** |
|  | **Its:** | **Manager** |

---

## Exhibit 1.2

**Exhibit 1.2**

**NOBILITY, LLC**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| **Issue Date: January 8, 2026** | **$1140499** |

---

**FOR VALUE RECEIVED, Nobility, LLC,** an Arizona limited liability company (the "Company"), promises to pay to **Digital Ally Healthcare, Inc.**, a Nevada corporation (individually and its assigns, the "Holder"), the sum of **One Million One Hundred Thousand Four Hundred and Ninety Nine Dollars ($1,140,499)** in lawful money of the United States of America, together with Interest (as defined below) on the unpaid principal balance from **January 1, 2026** until paid in full at the rate specified in Paragraph 1, "Interest and Fees." The principal amount of this Promissory Note (the "Note") will be subject to adjustment as set forth in Paragraphs 2, "Payments," and 3, "Earn-Out Adjustment." This Note is executed in connection with the Unit Purchase Agreement ("UPA") among the Company, Holder and Nobility Healthcare, LLC, a Kansas limited liability company ("NHC").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest and Fees.** This Note shall bear interest ("Interest") at the rate of six percent (6%) per annum. Interest will be calculated on a three hundred sixty-five (365) day year. The Company shall pay accrued but unpaid Interest on each installment payment date, as provided below. In no event shall the rate of Interest payable on this Note exceed the maximum rate of interest permitted to be charged under Arizona law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 This Note is payable in six (6) quarterly installments of principal and interest, commencing on the twentieth (20<sup>th</sup>) Business Day (as defined below) of July and October of 2026; and January, April, July and October of 2027. These installments of principal and Interest will be subject to the Earn-Out Adjustment set forth in Paragraph 3 (the "Earn-Out Adjustment"). The principal and Interest payments shall be paid in installments from time to time based on the Earn-Out Adjustment and the foregoing payment schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 All payments under this Note shall be made by the Company, whether because of principal or Interest, without set-off or counterclaim and shall first be credited against costs and expenses provided for in this Note, second to the payment of any penalties, third to the payment of accrued and unpaid Interest, if any, and the remainder shall be credited against principal. All payments due hereunder shall be payable in legal tender of the United States of America, and in same day funds delivered to Holder by bank wire transfer pursuant to wire transfer instructions provided by Holder in writing for such purpose from time to time. If a payment under this Note otherwise would become due and payable on a Saturday, Sunday or legal holiday (any other day being a "Business Day"), the due date of the payment shall be extended to the next succeeding Business Day, and Interest shall be paid thereon through such extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Earn-Out and True-Up Adjustments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Earn-Out Adjustment to the principal amount of this Note shall be the difference between the actual revenue for the twelve-month period from January 1, 2025 through December 31, 2025 of $5,421,383 (the "2025 Revenue") and the cash basis revenue (the "Measurement Period Revenue") collected by the Company in its normal course of business during the twelve (12) months following the Issue Date of this Note (the "Measurement Period"). The cash basis revenue will be measured on a quarterly basis and annualized as of the relevant period during the Measurement Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Earn-out Adjustment applicable to the deferred balance of the purchase price under the UPA represented by the Note will be calculated on the cash basis revenue generated by the Company during the term of the Note ("Actual Revenue") compared to the 2025 Revenue as follows: (i) if the Actual Revenue is greater than the 2025 Revenue, fifty percent (50%) of the excess over the Actual Revenue will be added to the principal balance of the Note or (ii) if the Actual Revenue is less than the 2025 Revenue, fifty percent (50%) of the difference from the 2025 Revenue will be deducted from the principal balance of the Note. This formula means that the total purchase price under the UPA can be higher or lower, depending upon the revenue generated. In no event will the principal balance of this Note become a negative number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The maximum downward Earn-Out Adjustment to the principal balance will be to zero. There are no limits to the increases to the principal balance of the Note as a result of the Earn-Out Adjustments. The adjustments to the principal balance of the Note and its installment payments will be made within twenty (20) Business Days of the end of each calendar quarter and will increase or reduce the principal payment then due, as the case may be. See <u>Exhibit A</u> for an illustration of the Earn-Out calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The Company will provide Holder with a statement of any Earn-Out Adjustments for Holder's review at least ten (10) Business Days prior to effecting the Earn-Out Adjustment. If Holder has any objections or questions, such objections or questions must be raised during the ten (10) Business Day review period, during which Holder shall be entitled to review the Company records and cause an adjustment to the Company's calculation in the event of an error in the determination of the Earn-Out Adjustment. If there are no objections or questions from Holder prior to the expiration of the ten (10) Business Day review period, the Earn-out Adjustment for that quarter will be deemed final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 **True-Up Adjustments to Principal Balance.** After the closing contemplated in the UPA, the principal balance of this Note will be adjusted for fifty-one percent (51%) of the amount of the payments NHC makes or owes to the U.S. Treasury or the various states, pertaining to income taxes, after the Closing relating to the period beginning with formation of the NHC through December 31, 2025. The Company will provide the Holder with a statement of any True-Up Adjustments for the Holder's review at least ten (10) Business Days prior to effecting the True-Up Adjustment. If the Holder has any objections or questions, such objections or questions must be raised during the ten (10) Business Day review period, during which Holder shall be entitled to review the Company records and cause an adjustment to the Company's calculation in the event of an error in the determination of the True-Up Adjustment. If there are no objections or questions from Holder prior to the expiration of the ten (10) Business Day review period, the True-Up Adjustment in question will be deemed final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Maturity Date.** This Note shall be due and payable in full, including all accrued Interest thereon, on **October 28, 2027** (the "Maturity Date"), if not sooner paid, subject to Paragraph 6, "Pre-Payments."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Pre-Payments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 At any time after the determination of the Earn-Out Adjustment, the Company shall have the right to prepay this Note, in whole or in part without penalty, on ten (10) days' notice to Holder. On such prepayment date, the Company will pay in respect of this Note cash equal to the then principal amount plus accrued Interest on this Note (or portion thereof) being prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 If the Company sells or otherwise transfers (i) the Units that it purchased under the UPA or (ii) all or substantially all of the assets of NHC to a third party prior to the payment in full of this Note, then concurrent with such sale or transfer, the Company shall by wire transfer to the Holder make a lump sum cash payment to the Holder in an amount equal to the then outstanding principal amount of the Note, together with accrued interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Default.** The Company shall perform its obligations and covenants hereunder and in each other agreement between the Company and Holder pertaining to the indebtedness evidenced hereby. The following provisions shall apply upon failure of the Company to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 *Event of Default.* Any of the following events shall constitute an "Event of Default" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 Failure by the Company to pay any installment of principal and Interest when due and payable, which failure continues for a period of fifteen (15) days after the due date of such installment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 In addition to the Events of Default set forth in Paragraph 6.1.1, the failure of the Company to perform any of the other covenants, conditions, provisions or agreements contained herein or in the UPA, which failure continues for a period of fifteen (15) days after notice of default has been given to the Company by Holder; provided, however, that if the nature of the Company's obligation is such that more than fifteen (15) days are required for performance, then an Event of Default shall not occur if the Company commences performance within such fifteen (15) day period and completes the same within ninety (90) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 The entry of an order for relief under United States Bankruptcy Code (the "Bankruptcy Code") as to the Company or entry of any order appointing a receiver or trustee for the Company or approving a petition in reorganization or other similar relief under bankruptcy or similar laws in the United States of America or any other competent jurisdiction, and if such order, if involuntary, is not satisfied or withdrawn within sixty (60) days after entry thereof; or the filing of a petition by the Company seeking any of the foregoing, or consenting thereto; or the filing of a petition to take advantage of any debtor's act; or making a general assignment for the benefit of creditors; or admitting in writing inability to pay debts as they mature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 *Acceleration.* Upon any Event of Default (in addition to any other rights or remedies provided for under this Note), at the option of Holder, all sums evidenced hereby, including all principal, Interest, fees and all other amounts due hereunder, shall become immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 *Notice by Company.* Upon the happening of any Event of Default specified in this paragraph that is not cured within the respective periods prescribed above, the Company will give prompt written notice thereof to Holder of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 *No Waiver.* Failure of Holder to exercise any right hereunder shall not constitute a waiver of the right to exercise such right, nor of any other right as the result of any subsequent Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 *Default Interest and Fees.* Upon the occurrence of an Event of Default, additional Interest will accrue on the unpaid principal balance ("Default Interest") at the rate of ten percent (10%) per annum from the occurrence of the Event of Default until the Event of Default is cured. Default Interest shall be payable concurrently with the payment of principal and Interest then due pursuant to this Note. Default Interest will be computed on a three hundred sixty-five (365) day year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Notices.** All notices provided for in this Note shall be given in accordance with the Section 13.9, "Notices," of the UPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Usury.** All Interest, Default Interest, fees, charges, goods, things in action or any other sums or things of value, or other contractual obligations (collectively, the "Additional Sums") paid by the Company hereunder, whether pursuant to this Note or otherwise, with respect to the indebtedness evidenced hereby, or any other document or instrument in any way pertaining to the indebtedness, which, under the laws of the State of Arizona may be deemed to be Interest with respect to such loan or indebtedness, shall, for the purpose of any laws of the State of Arizona, which may limit the maximum amount of Interest to be charged with respect to such loan or indebtedness, be payable by the Company as, and shall be deemed to be, Interest and for such purposes only, the agreed upon and contracted rate of Interest shall be deemed to be increased by the Additional Sums. Notwithstanding any provision of this Note to the contrary, the total liability for payments in the nature of Interest under this Note shall not exceed the maximum contract rate of interest permitted under applicable Arizona law. To the extent permitted by applicable Arizona law, the Company waives and shall not assert a claim, and shall actively resist any attempts to compel it to assert a claim, respecting a benefit under any present or future usury laws against any Holder of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Binding Effect.** This Note shall be binding upon the parties hereto and their respective heirs, executors, administrators, representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Collection Fees.** The Company shall pay all costs of collection, including reasonable attorneys' fees and all costs of suit and preparation for such action, if the unpaid principal amount of this Note, or any payment of Interest is not paid when due, or if Holder is made party to any litigation because of the existence of the indebtedness evidenced by this Note, or if at any time Holder should incur any attorneys' fees in any proceeding under the Bankruptcy Code (or other similar laws for the protection of debtors generally) in order to collect any indebtedness hereunder or to preserve, protect or realize upon any security for, or guarantee or surety of, such indebtedness whether suit be brought or not, and whether through courts of original jurisdiction, arbitration proceedings, as well as in courts of appellate jurisdiction, or through a bankruptcy court or other legal proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Construction.** All obligations of the Company under this Note are performable in the State of Arizona and payments shall be made electronically or to Holder at the mailing address set forth below. Accordingly, this Note shall be governed as to its validity, interpretation, construction, effect and in all other respects by and in accordance with the laws and interpretations thereof of the State of Arizona. Unless the context otherwise requires, the use of terms in singular and masculine form shall include in all instances singular and plural number and masculine, feminine and neuter gender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Severability.** If any one or more of the provisions contained in this Note or any future amendment hereto shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Note or such other agreement, and in lieu of each such invalid, illegal or unenforceable provision there shall be added automatically as a part of this Note a provision as similar in terms to such invalid, illegal or unenforceable provision as may be possible and be valid, legal and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Entire Agreement.** This Note represents the entire agreement and understanding between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, representations and warranties with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Governing Law; Jurisdiction; Dispute Resolution.** All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by the internal laws of the State of Arizona, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Arizona or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Arizona. Each Party agrees to resolve any Dispute related to this Note according to the Dispute Resolution procedures set forth in Section 12, "Dispute Resolution," of the UPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Miscellaneous.** Except as otherwise provided herein, the Company waives demand, diligence, presentment for payment and protest, notice of extension, dishonor, maturity and protest. Time is of the essence with respect to the performance of each covenant, condition, term and provision hereof. The headings used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note. Capitalized terms not defined in this Note will have the same meaning as set forth in the UPA. The execution and delivery of this Note by delivery of a facsimile or portable document format ("PDF") copy bearing the facsimile or PDF signature of any party hereto shall constitute a valid and binding execution and delivery of this Note by such party. Such facsimile and PDF copies shall constitute enforceable original documents.

**IN WITNESS WHEREOF,** this Note has been issued as of the 8<sup>th</sup> day of January 2026.

---

| | |
|:---|:---|
| **NOBILITY, LLC** | **NOBILITY, LLC** |
| **By:** | */s/ Christian J. Hoffmann, III* |
|  | **Christian J. Hoffmann, III** |
| **Its:** | **Manager** |

---

**<u>Mailing Address of Holde</u>r:**

Kustom Entertainment, Inc.

[\*\*\*]

Attn: Stanton E. Ross

Email: [\*\*\*]

**<u>Mailing Address of Company</u>**:

Nobility, LLC

[\*\*\*]

Attn: Christian J. Hoffmann, III

Email: [\*\*\*]

## Exhibit 99.1

**Exhibit 99.1**

**FOR IMMEDIATE RELEASE**

**KUSTOM ENTERTAINMENT, INC. COMPLETES THE DIVESTITURE OF ITS NOBILITY HEALTHCARE SUBSIDIARY; SHARPENS ITS FOCUS ON $100 BILLION LIVE ENTERTAINMENT AND ONLINE TICKETING MARKETS**

**OVERLAND PARK, KS – January 12, 2026 – Kustom Entertainment, Inc. (Nasdaq: KUST) (the "Company"),** today announced that it has closed the sale of its 51% ownership interest in Nobility Healthcare, LLC, its healthcare billing and revenue cycle management subsidiary. This step is in conjunction with its previously announced major corporate rebranding, by changing its name to **Kustom Entertainment, Inc.** and its Nasdaq ticker symbol to "**KUST**". The divestiture of the Company's healthcare billing and revenue-cycle management business and previous name and ticker symbol change reflect the Company's strategic shift in focus toward its rapidly growing live event production business and its proprietary on-line ticketing platform.

**Transaction Details -** The Company sold its majority stake to the current 49% minority owner for total estimated proceeds of **$1.45 million**. The transaction closed on January 8, 2026, and was structured as follows:

● **Immediate Liquidity:** $100,000 in cash paid at closing.

● **Debt & Working Capital Credits:** $209,501 in credits related to previous advances and net working capital.

● **Long-term Value:** A promissory note in the principal amount of **$1,140,499** bearing 6% interest, with quarterly payments commencing on the 20<sup>th</sup> business day of July 2026, subject to certain earn-out provisions.

**Strategic Pivot to High Growth Live Entertainment and Online Ticketing Markets -** The divestiture represents a significant step in the Company's strategic shift to streamline its operations and focus exclusively on live entertainment and online ticketing markets business segment. The Company's live entertainment and online ticketing markets business segment manages live events and online ticketing services, which is positioned to become the Company's primary growth engine. The Company's ticketing platform is designed to provide a vertically integrated solution for its own events and third-party events and venues. This shift allows the Company to control the entire fan experience—from the moment a ticket is purchased to the final encore of a live performance. By offloading its healthcare assets, the Company intends to aggressively expand its footprint in the live event management and online ticketing platform business — a sector with an estimated $100 billion global addressable market.

**Expanding the Legacy of Country Stampede Music Festival -** Central to this new strategy is the expansion of its primary live-event, the Country Stampede Music Festival. With a 30-year legacy as a premier Midwest event, the Company plans to use the festival's proven model as a launchpad to scale its event production and ticketing services nationwide. Past headliners have included **Taylor Swift, Alan Jackson, Morgan Wallen and Eric Church**, establishing the festival as a consistent draw for top-tier talent and multi-day audiences.

**2026 Country Stampede Delivers a Rare Headliner Combination** - The **2026 Country Stampede**, set for **June 25–27, 2026**, features a headlining lineup that brings together legacy success, breakout momentum, and red-hot independent appeal:

● **Rascal Flatts** – One of the most successful groups in modern country music, with **17 No. 1 singles**, more than **23 million albums sold**, and multiple ACM, CMA, and Grammy awards. Their return to the stage brings arena-level production and a catalog that spans two decades of radio hits.

● **Zach Top** – One of the fastest-rising artists in country music, known for reviving a traditional 1990s sound with modern relevance. His rapid ticket sellouts, strong streaming growth, and critical praise position him as one of the genre's most in-demand new acts.

● **Treaty Oak Revival** – A breakout force in the Texas and Red Dirt scene, blending country, rock, and Southern grit. With independent chart success and a dedicated national fan base, the band represents the growing influence of non-radio-driven country acts on major festival stages.

The combination of these three acts on one bill reflects a deliberate booking strategy that spans generations, sub-genres, and fan bases—creating a lineup rarely found at a single country festival.

**Future Outlook -** The Company is shedding non-core assets that do not fit its current emphasis on live music events and online ticketing. Moving forward, the Company is actively seeking to add **new accretive businesses and services** that correlate with this new focus, ensuring a lean and specialized corporate structure.

**Management Comments -** "This divestiture of Nobility Healthcare allows us to sharpen our focus and allocate our resources toward the massive opportunity we see in the entertainment sector," said Stanton E. Ross, CEO of Kustom Entertainment, Inc. "We are moving from a regional focus with the Country Stampede Music Festival to a nationwide strategy. By leveraging our Kustom Entertainment and TicketSmarter platforms, we are ready to pursue a dominant share of the $100 billion live event market worldwide", concluded Ross.

**About Kustom Entertainment, Inc. -** Kustom Entertainment, Inc. is a leader in live event production and ticketing technology, specializing in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually at the Azura Amphitheater in Bonner Springs, Kansas.

The Company also maintains a legacy segment engaged in video solution technology (in-car and body-worn cameras) for law enforcement and security, currently integrating artificial intelligence to enhance its specialized product lines.

For additional information, please visit <u>www.kustom440.com</u> and <u>www.digitalally.com</u>.

**Forward-Looking Statements**

*Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today's date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company's periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, its expectations regarding the success of the Company's new strategy's growth and profitability; the Company's ability to find new accretive businesses and services; and the risks described in the Company's 2024 Annual Report on Form 10-K under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.*

For Additional Information, Please Contact:

Stanton E. Ross, CEO at (913) 456-5878

## Exhibit 99.2

**Exhibit 99.2**

**Unaudited Pro Forma Condensed Consolidated Financial Statements**

On January 8, 2026, Kustom Entertainment, Inc. (the "Company", formerly Digital Ally, Inc.) through its wholly owned subsidiary Digital Ally Healthcare, Inc., a Kansas corporation (the "Seller"); entered into an Unit Purchase Agreement (the "Agreement") whereby the Seller agrees to sell and convey its 51% ownership interest in Nobility Healthcare, LLC, a Kansas limited liability company ("NHC") to Nobility LLC, an Arizona limited liability company ("Nobility"). NHC has historically issued a total of one hundred thousand (100,000) units of ownership interest with Seller owning fifty-one thousand (51,000) of such units, equal to fifty-one percent (51%) of the total number of units issued by NHC. An affiliate of Nobility owns the remaining 49% of NHC.

Under the Agreement the Seller agrees to sell and Nobility agrees to purchase (the "Purchase") all of Seller's Units (51% of the total units issued) for the consideration and on the terms and conditions provided for in the Agreement. The Agreement provides for the following consideration and principal terms:

● One Hundred Thousand Dollars ($100,000) will be paid in immediately available funds to be paid to the Seller at Closing. In addition, at closing certain credits will be recognized totaling two hundred and nine thousand five hundred and one Dollars ($209,501) (the "Closing Credits"), which Closing Credits consist of $200,000 total amount of two advances (the "Advances") made by Nobility to the Seller on December 18, 2024 and January 15, 2025 plus $9,501 due to Nobility from NHC for net working capital advances Nobility made to NHC as of December 31, 2025.

● A promissory note issued by Nobility in the principal amount of One Million One Hundred Forty Thousand Four Hundred Ninety-Nine Dollars ($1,140,499) (the Earn-Out Note) to the Seller. The Earn-Out Note bears 6% interest and is payable in six (6) quarterly installments commencing on the 20<sup>th</sup> business day of July 2026, subject to an Earn-Out-Adjustment and final True Up Adjustment as defined below.

● The Earn-Out Adjustment to the principal amount of this Earn-Out Note is measured by the difference between the actual revenue for the twelve-month period from January 1, 2025 through December 31, 2025 of $5,400,000 (the "Projected Revenue") and the cash basis revenue (the "Measurement Period Revenue") collected by NHC in its normal course of business during the twelve months following the Issue Date of this Note (the "Measurement Period"). The revenue will be measured on a quarterly basis and annualized as of the relevant period during the Measurement Period. The Earn Out Adjustment will be equivalent to 50% of the difference between the Projected Revenue and the actual Measurement Period revenue and can increase or decrease the Earn-Out Note balance however the Earn-Out Note balance cannot be reduced below zero.

● The principal balance of the Earn-Out Note will be adjusted for 51% of the amount of payments NHC makes or owes to the U.S. Treasury or the various states, pertaining to income taxes, after the Closing relating to the period beginning with formation of NHC through December 31, 2025. Nobility will provide the Seller with a statement of any True-Up Adjustments for the Seller's review at least ten (10) Business Days prior to effecting the True-Up Adjustment. If the Seller has any objections or questions, such objections or questions must be raised during the ten (10) Business Day review period, during which Seller shall be entitled to review Nobility's records and cause an adjustment to Nobility's calculation in the event of an error in the determination of the True-Up Adjustment. If there are no objections or questions from the Seller prior to the expiration of the ten (10) Business Day review period, the True-Up Adjustment in question will be deemed final.

The following unaudited pro forma condensed consolidated financial statements ("Unaudited Pro Forma Statements") and explanatory notes are based on the Company's historical condensed consolidated financial statements adjusted to give effect to the sale of the Revenue Cycle Management Business. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2025, and for the year ended December 31, 2024, have been prepared with the assumption that the sale of the Revenue Cycle Management Business occurred as of January 1, 2024. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025, has been prepared with the assumption that the sale of the Revenue Cycle Management Business was completed as of the balance sheet date. The unaudited pro forma statements have been prepared by the Company based on assumptions deemed appropriate by the Company's management. An explanation of pro forma adjustments is set forth under the notes hereto.

The Unaudited Pro Forma Statements are presented for illustrative purposes only and do not necessarily reflect what the Company's financial condition or results of operations would have been had the sale of the Revenue Cycle Management Business occurred on the date indicated. Additionally, the Unaudited Pro Forma Statements do not purport to project the future financial condition or results of operations of the Company.

The Unaudited Pro Forma Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as the Company's unaudited condensed consolidated financial statements and notes thereto included in Digital's Quarterly report on Form 10-Q for the period ended September 30, 2025.

**KUSTOM ENTERTAINMENT, INC.**

**(formerly Digital Ally, Inc.)**

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET**

**SEPTEMBER 30, 2025**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br> Kustom<br> Entertainment,<br> Inc.** | **Disposition of<br> Revenue Cycle<br> Business<br> (a)** | **Other<br> Adjustments<br> (b)** | **Pro Forma<br> Kustom<br> Entertainment,<br> Inc.** |
| **ASSETS** |  |  |  |  |
| Current Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $793360 | $(191386) | $300000 | $901974 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 1253990 | (566895) |  | 687095 |
| &nbsp;&nbsp;&nbsp;Subscriptions receivable | 3540881 |  |  | 3540881 |
| &nbsp;&nbsp;&nbsp;Other receivables | 1576 |  | 1140499 | 1142075 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 2622542 |  |  | 2622542 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 1470267 | (75096) | 9501 | 1404672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 9682616 | (833377) | 1450000 | 10299239 |
| &nbsp;&nbsp;&nbsp;Property plant and equipment, net | 477645 | (35026) |  | 442619 |
| &nbsp;&nbsp;&nbsp;Goodwill and other intangible assets, net | 9615396 | (1756401) |  | 7858995 |
| &nbsp;&nbsp;&nbsp;Operating lease right of use assets, net | 1635261 | (391561) |  | 1243700 |
| &nbsp;&nbsp;&nbsp;Other assets | 3665123 |  |  | 3665123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $25076041 | $(3016365) | $1450000 | $23509676 |
| **LIABILITIES & STOCKHOLDERS' EQUITY** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $4023270 | $(77891) | $— | $3945379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 436682 | (14975) |  | 421707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease <br>Obligations | 248012 | (74128) |  | 173884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities – current portion | 3722873 |  |  | 3722873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note payable – related party | 374400 |  |  | 374400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt obligations – current portion | 865292 |  |  | 865292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant derivative liabilities | 1116 |  |  | 1116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 115923 |  |  | 115923 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 10441 |  |  | 10441 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 9798009 | (166994) |  | 9631015 |
| &nbsp;&nbsp;&nbsp;Long-term liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt obligations – long-term | 138439 |  |  | 138439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease obligation – long-term | 1248406 | (317434) |  | 930972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue – long term | 5207189 |  |  | 5207189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable – related party – long-term portion | 1167333 |  |  | 1167333 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 17559376 | (48428) |  | 17074948 |
| &nbsp;&nbsp;&nbsp;Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value | 576 |  |  | 576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in-capital | 147412767 |  |  | 147412767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest in consolidated <br>Subsidiary | (1080153) | 1080153 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (138816525) | (3612090) | 1450000 | (140978615) |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | 7516665 | (2531937) | 1450000 | 6434728 |
| Total liabilities and stockholders' equity | $25076041 | $(3016365) | $1450000 | $23509676 |

---

See Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.

**KUSTOM ENTERTAINMENT, INC.**

**(formerly Digital Ally, Inc.)**

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br> Kustom<br> Entertainment,<br> Inc,** | **Disposition of**<br> **Revenue Cycle**<br> **Business**<br> **(a)** | **Other**<br> **Adjustments**<br> **(b)** | **Pro Forma<br> Kustom<br> Entertainment,<br> Inc,** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product | $3602202 | $— | $— | $3602202 |
| &nbsp;&nbsp;&nbsp;Service and other | 11042258 | (4144008) |  | 6898250 |
| &nbsp;&nbsp;&nbsp;Total revenue | 14644460 | (4144008) |  | 10500452 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product | 5482693 |  |  | 5482693 |
| &nbsp;&nbsp;&nbsp;Service and other | 6821318 | (2616329) |  | 4204989 |
| &nbsp;&nbsp;&nbsp;Total cost of revenue | 12304011 | (2616329) |  | 9687682 |
| &nbsp;&nbsp;&nbsp;Gross profit | 2340449 | (1527678) |  | 812771 |
| Selling, general and administrative expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development expense | 405983 |  |  | 405983 |
| &nbsp;&nbsp;&nbsp;Selling, advertising and promotional expense | 501184 | (18532) |  | 482652 |
| &nbsp;&nbsp;&nbsp;General and administrative expense | 7624817 | (1268059) |  | 6356758 |
| Total selling, general and administrative expenses | 8531984 | (1286591) |  | 7245393 |
| &nbsp;&nbsp;&nbsp;Operating loss | (6191535) | (241087) |  | (6432622) |
| Other income (expense): |  |  |  |  |
| Interest income | 95808 |  |  | 95808 |
| Interest expense | (960250) |  |  | (960250) |
| Other income (loss) | 252603 |  |  | 252603 |
| Change in fair value of warrant derivative liabilities | 3373919 |  |  | 3373919 |
| Gain on extinguishment of liabilities | 2243991 |  |  | 2243991 |
| Total other income (expense) | 5006071 |  |  | 5006071 |
| Income (loss) before income tax benefit | (1185464) | (241087) |  | (1426551) |
| Income tax benefit |  |  |  |  |
| Net loss | (1185464) | (241087) |  | (1426551) |
| Net (income) attributable to noncontrolling interests of consolidated subsidiary | (118133) | 118133 |  |  |
| Net loss attributable to common stockholders | $(1303597) | $(122954) | $— | $(1426551) |
| Net loss per share information: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(4.20) |  |  | $(4.60) |
| &nbsp;&nbsp;&nbsp;Diluted | $(4.20) |  |  | $(4.60) |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 310129 |  |  | 310129 |
| &nbsp;&nbsp;&nbsp;Diluted | 310129 |  |  | 310129 |

---

See Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.

**KUSTOM ENTERTAINMENT, INC.**

**(formerly Digital Ally, Inc.)** 

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br> Kustom<br> Entertainment,<br> Inc,** | **Disposition of<br> Revenue Cycle<br> Business** | **Other<br> Adjustments** | **Pro Forma<br> Kustom<br> Entertainment,<br> Inc,** |
| Revenue: |  | (a) | (b) |  |
| &nbsp;&nbsp;&nbsp;Product | $5404317 | $— | $— | $5404317 |
| &nbsp;&nbsp;&nbsp;Service and other | 14246485 | (6131650) |  | 8114835 |
| &nbsp;&nbsp;&nbsp;Total revenue | 19650802 | (6131650) |  | 13519152 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product | 5899130 |  |  | 5899130 |
| &nbsp;&nbsp;&nbsp;Service and other | 8262340 | (3766336) |  | 4496004 |
| &nbsp;&nbsp;&nbsp;Total cost of revenue | 14161470 | (3766336) |  | 10395134 |
| &nbsp;&nbsp;&nbsp;Gross profit | 5489332 | (2365314) |  | 3124018 |
| Selling, general and administrative expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development expense | 1339673 |  |  | 1339673 |
| &nbsp;&nbsp;&nbsp;Selling, advertising and promotional expense | 2144494 | (23529) |  | 2120965 |
| &nbsp;&nbsp;&nbsp;General and administrative expense | 12376705 | (1838399) |  | 10538306 |
| &nbsp;&nbsp;&nbsp;Goodwill and intangible asset impairment charge | 4830000 | (4322000) |  | 508000 |
| Total selling, general and administrative expenses | 20690872 | (6183928) |  | 14506944 |
| &nbsp;&nbsp;&nbsp;Operating loss | (15201540) | 3818614 |  | (11382926) |
| Other income (expense): |  |  |  |  |
| Interest income | 69509 |  |  | 69509 |
| Interest expense | (3815323) |  |  | (3815323) |
| Other income | 26733 |  |  | 26733 |
| Loss on litigation | (1959396) |  |  | (1959396) |
| Loss on extinguishment of debt | (753339) |  |  | (753339) |
| Loss on disposal of intangibles | (119979) |  |  | (119979) |
| Change in fair value of warrant derivative liabilities | (1240407) |  |  | (1240407) |
| Gain on sale of property, plant and equipment | 360082 |  |  | 360082 |
| Gain on extinguishment of liabilities | 917935 |  |  | 917935 |
| Total other income (expense) | (6514185) |  |  | (6514185) |
| Income (loss) before income tax benefit | (21715725) | 3818614 |  | (17897111) |
| Income tax benefit |  |  |  |  |
| Net loss | (21715725) | 3818614 |  | (17897111) |
| Net (income) attributable to noncontrolling interests of consolidated subsidiary | 1871578 | (1871578) |  |  |
| Net loss attributable to common stockholders | $(19844147) | $1947036 | $— | $(17897111) |
| Net loss per share information: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(33463.00) |  |  | $(30180.63) |
| &nbsp;&nbsp;&nbsp;Diluted | $(33463.00) |  |  | $(30180.63) |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 593 |  |  | 593 |
| &nbsp;&nbsp;&nbsp;Diluted | 593 |  |  | 593 |

---

See Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.

**KUSTOM ENTERTAINMENT, INC.**

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

Note 1 Description of the Transaction and Basis of Presentation

On January 8, 2026, Kustom Entertainment, Inc. (the "Company", formerly Digital Ally, Inc.) through its wholly owned subsidiary Digital Ally Healthcare, Inc., a Kansas corporation (the "Seller"); entered into an Unit Purchase Agreement (the "Agreement") whereby the Seller agrees to sell and convey its 51% ownership interest in Nobility Healthcare, LLC, a Kansas limited liability company ("NHC") to Nobility LLC, an Arizona limited liability company ("Nobility"). NHC has historically issued a total of one hundred thousand (100,000) units of ownership interest with Seller owning fifty-one thousand (51,000) of such units, equal to fifty-one percent (51%) of the total number of units issued by NHC. An affiliate of Nobility owns the remaining 49% of NHC.

Under the Agreement the Seller agrees to sell and Nobility agrees to purchase (the "Purchase") all of Seller's Units (51% of the total units issued) for the consideration and on the terms and conditions provided for in the Agreement. The Agreement provides for the following consideration and principal terms:

● One Hundred Thousand Dollars ($100,000) will be paid in immediately available funds to be paid to the Seller at Closing. In addition, at closing certain credits will be recognized totaling two hundred and nine thousand five hundred and one dollars ($209,501) (the "Closing Credits"), which Closing Credits consist of $200,000 total amount of two advances (the "Advances") made by Nobility to the Seller on December 18, 2024 and January 15, 2025 plus $9,501 due to Nobility from the Company for net working capital advances it made to the Company as of December 31, 2025.

● A promissory note issued by Nobility in the principal amount of One Million One Hundred Forty Thousand Four Hundred Ninety-Nine Dollars ($1,140,499) (the Earn-Out Note) to the Seller. The Earn-Out Note bears 6% interest and is payable in six (6) quarterly installments commencing on the 20<sup>th</sup> business day of July 2026 subject to an Earn-Out-Adjustment and final True Up Adjustment as defined below.

● The Earn-Out Adjustment to the principal amount of this Earn-Out Note is measured by the difference between the actual revenue for the twelve-month period from January 1, 2025 through December 31, 2025 of $5,400,000 (the "Projected Revenue") and the cash basis revenue (the "Measurement Period Revenue") collected by the Company in its normal course of business during the twelve months following the Issue Date of this Note (the "Measurement Period"). The revenue will be measured on a quarterly basis and annualized as of the relevant period during the Measurement Period. The Earn Out Adjustment will be equivalent to 50% of the difference between the Projected Revenue and the actual Measurement Period revenue and can increase or decrease the Earn-Out Note balance however the Earn-Out Note balance cannot be reduced below zero.

● The principal balance of the Earn-Out Note will be adjusted for 51% of the amount of the payments NHC makes or owes to the U.S. Treasury or the various states, pertaining to income taxes, after the Closing relating to the period beginning with formation of NHC through December 31, 2025. Nobility will provide the Seller with a statement of any True-Up Adjustments for the Seller's review at least ten (10) Business Days prior to effecting the True-Up Adjustment. If the Seller has any objections or questions, such objections or questions must be raised during the ten (10) Business Day review period, during which Seller shall be entitled to review Nobility's records and cause an adjustment to Nobility's calculation in the event of an error in the determination of the True-Up Adjustment. If there are no objections or questions from the Seller prior to the expiration of the ten (10) Business Day review period, the True-Up Adjustment in question will be deemed final.

Note 2 Pro Forma Adjustments

The pro forma adjustments included in the Unaudited Pro Forma Condensed Combined Statements of Operations, including certain adjustments that were made to the historical presentation of Digital as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Adjustments
 to reflect the disposition of Kustom's 51% ownership interest in the Revenue Cycle Business. pursuant to the terms of the Agreement.
 Such adjustments include the sale of all operating assets comprising the Revenue Cycle Management Business subject to the assumption
 of certain Revenue Cycle Management Business operating liabilities as defined in the Agreement.

(b) Represents
 the consideration paid to Kustom pursuant to the Agreement including i) $100,000 cash at closing and ii) a
 promissory note issued by Nobility in the principal amount of $1,140,499 to the Seller. The promissory note bears 6%interest and is
 payable in six (6) quarterly installments commencing on the 20<sup>th</sup> business day of July 2026, subject to an earn-out-adjustment
 and final True-Up Adjustment, as defined in the Agreement.