Kustom Entertainment, Inc. (NASDAQ: KUST) issued 2,625,000 shares of common stock on August 7, 2026, to a group of consultants, advisors, service providers, financing sources, and strategic partners, according to a press release statement.

The shares, with a par value of $0.001 per share, were issued in exchange for services rendered and to be rendered, accrued obligations, asset acquisitions, and incurred debt.

The share issuances were conducted as private transactions exempt from registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D. Each recipient represented that the securities were acquired for investment purposes and not for distribution. The shares were issued as restricted securities and cannot be offered or sold without registration or an applicable exemption.