Kustom Entertainment, Inc. Common Stock LD Micro 20th Annual Main Event Conference

Thanks, everybody, for sticking around. I know the weather's changing on us a little bit, but we'll work through this presentation real quick. We'll try to make sure it's very informative. As it says, Kustom Entertainment, we'll try to make it a little entertaining as well. I do want you to know that I have cards that have been made that actually have the QR code. If we go through this rather quickly, know that this card will sit there and download the presentation for you. Just grab one from me.

A little background on Kustom. My father was an absolute pioneer in the guitar amplifier business. As a matter of fact, that one picture that just scrolled up there, that is the equip my dad actually gave Johnny Cash to help him out when he was down on his luck. I did not grow up in a music store to say. My father really was the one that sat there and had probably, at one time, over probably 25% of the nation's business playing his Kustom amps. Everyone from, here is Kid Rock, there is Diana Ross, there are the Blues Brothers, ZZ Top, John Fogerty, of course. I had a real nice blessed upbringing. The reason I point a lot of this out is because the last 40 years, I have been in different industries, people would think. The truth of the matter is, I grew up side by side with my father.

I made my first amp when I was 10. I had my first amplifier company when I was 12. Folks got divorced, then I moved out with my father to Colorado, where we started Ross Musical Products when I was 15. We built that up, he sold it. My passion for music kept me involved, so I did stuff with the Academy of Country Music Awards. I had my own record label. The guy that owns the Buffalo Bills, his brother bought me out of that. I put on concerts. I have helped people get concerts started. I went ahead and actually created and bought a country music festival. This is sort of what we look like right now today, being a pure play entertainment company.

We have five different music festivals that we own, and we also have two ticketing platforms, both TicketSmarter and Kustom Tickets, that is under the umbrella. We recently have been quite busy. We cut a deal with Gilley's. Gilley's has a gaming facility in Park City, which is just north of Wichita. It is a real nice facility that allows me to more than double the capacity of what I had the capability of doing in the previous entity, where I had bought Country Stampede, and they had already entered into a three-year contract. We did have our event in June and set records there. We finalized the selling of the video division, the video that was known for the in-car video and body cameras for law enforcement. What I call the game changer is around the corner with the pending acquisition that we are working on with Tickets For Less.

Real quick by the numbers, TicketSmarter is one of those platforms that over 48 million tickets may be available any given day. They have relationships with numerous colleges and universities, whether it be partnerships on selling their tickets or sponsorship that include tickets. As I mentioned, we hit a new record at Country Stampede, eclipsing over 42,000 in attendance. The Gilley's, which we have a video that I will show you here in a little bit, is sort of a blend of Country Stampede and what Gilley's will look like for us moving forward. The $6.1 million sale of the video division. Here is the game changer. Tickets For Less, I will get into quite a bit of detail on them because they truly are a piece that Kustom is missing. Kustom is very active in the music side of things. That is what we know. That is what we do.

We put on productions. We put on big productions in arenas. We go stadiums, and we could do them on just give us a parking lot. We could build it out. Tickets For Less is very strong in the sports side of things. They have relationships with the Chiefs, the Titans, Ohio State, Indiana, many others. What's really important with them, they also have an amazing procurement and distribution channel. So whether it's the stuff that we're creating, they can help us with the distribution side of it, or if we need some help, like with TicketSmarter, they also have an amazing back office. They're more of a ticketing platform versus something that you'd be familiar with, maybe a StubHub or SeatGeek or Vivid that's just flipping tickets. Here's TFL by the numbers.

The only reason I only go back to 2024 on the profitability is because of the fact that's all the further we needed to go back for the audits for this acquisition. But they've actually been around since 2004. They've been profitable through all that time, including they were profitable during the pandemic, where not very many companies were. They did see a 57% drop in revenue, but still, I think they made north of $4.5 million in 2020. They currently are on pace to hit their EBITDA numbers that we have on the chart. They also, as I mentioned, they're more of a ticketing platform. They have 25 different entities that use their software and to help them sell tickets and also take in the ticket inventory that they have, that they disperse.

Again, they're one of a few that are involved in both Major League Baseball and the NFL with some of their contracts they have in place. So for me, it's very exciting because while they're very connected on the sports side of things and we have the music side of things, venue's always a little bit of a problem. Finding a venue that you can go in, finding a venue that you can have some input on the food and beverage, the merch, the parking, all those other elements that sit there and really help you create that bottom line number that you're going to be looking for. This is going to be a great win-win. The relationships that I've been blessed to have in the music side of things will be able to open up a lot of doors.

The relationships I've had in the video side, where we've done work for people from NASCAR to Indy to law enforcement, Royal Caribbean cruise lines. We do MetLife Stadium, we do Arrowhead Stadium. So it's just going to be a great relationship that I think we're all going to enjoy very well. I mentioned Country Stampede. It has been around for 30 years. I bought it in March of 2024. I inherited it at the three years that it was at Azura Amphitheater. The first year, I didn't have much input on it. It was in March, and the show's in June. They did 18,000. Then the next year, I had a lot more input. We were able to get over 26,000. Then, as I mentioned, the third year where we really started to hit our stride, we did over 42,000 attended.

Again, almost 1,000 artists over the 30 years between Country Roots and the other in Country Stampede that we've created have been through our doors or we've had some involvement with. This is the mix that I'm going to tell you about. This is a little bit of Country Stampede, so you can see the party that's going on. This is a 3-day event. But you're going to see the magnitude of a Gilley's, because while I can only really do about 16,000 where I was at, this allows me, depending on seating and what I want to do, 25,000 to 35,000 per day. I was limited to 16,000 on the other. Hi, we're Treaty Oak Revival. This is Zach Top. Tracy Lawrence here.