PUBLIC NOTICE OF UCC ARTICLE 9 SALE: Digital Ally and Kustom Entertainment

NOTICE OF UCC ARTICLE 9 PUBLIC SALE (Digital Ally and Kustom Entertainment)

SoftForge Innovation LLC as Administrative Agent (“Administrative Agent”) for Mosh Man LLC, a New Jersey limited liability company (“Secured Party”), will conduct, as Agent for the Secured Party, on November 7, 2024, at 11:00 a.m. ET or such later date and time as provided below (the “Auction Date”), a disposition of the below-described collateral by public sale (the “Auction”). To participate in the Auction, you must comply with the Participation Requirements set forth below by 4:00 p.m. ET on November 6, 2024 (the “Qualification Deadline”). The collateral being sold includes the assets of each of Digital Ally, Inc., (“Digital Ally”) and its wholly owned subsidiary Kustom Entertainment, Inc. (“Kustom Entertainment”). Digital Ally provides law enforcement agencies, commercial fleet companies, and event security teams with body cameras, video surveillance systems, storage solutions, and other products and services. Kustom Entertainment owns certain subsidiaries which include a production company, a primary and secondary ticketing platform, and other related assets. The sale of assets of Digital Ally and Kustom Entertainment shall include all of Secured Party’s rights, title and interests in the assets, including intellectual property, inventory, equipment, contracts, receivables as well as other assets.

The Auction will be conducted on the Auction Date at 11:00 a.m. ET virtually by online video conference using Zoom or similar platform (with a telephonic option for those who wish to dial in by phone only) (the “Video Platform”). The Property will be sold to the highest qualified bidder for cash, or the credit against the outstanding indebtedness of the Debtor held by the Secured Party. Please be advised that the Secured Party, reserves the right to credit bid, and may credit bid, at the public sale of the Property.

The Secured Party has a first-priority security interest in the Property. The total amount due to the Secured Party under the Loan Documents, is not less than $1,868,419.99. The Property will be sold free and clear of the liens of the Secured Party and any subordinate security interests in the Property.

A complete description of the Property and related documents can be obtained by contacting the Agent as indicated herein.

To participate in the Auction and obtain admittance to the Video Platform, before the Qualification Deadline, each prospective bidder must contact the Administrative Agent by contacting Sol Rotor, 416-230-7665, [email protected] and provide (i) current contact information, including a mailing address, telephone number, and email address; (ii) such adequate assurances of the bidder’s ability to perform as the Administrative Agent may reasonably request; (iii) an agreement by the bidder, for itself and its representatives, that the Auction may be recorded; and (iv) a sale deposit of $1,000,000 (the “Sale Deposit”) by bank wire transfer, certified or cashier’s check, or other form of payment that the Administrative Agent may agree to in writing. The Administrative Agent will require prospective bidders to execute a confidentiality agreement, and upon execution of the confidentiality agreement will provide prospective bidders with such information about the Collateral as is in the possession of the Secured Party (but Agent will not be able to provide physical access to). The Sale Deposit will be held in escrow and will be credited against the purchase price of the Property on a dollar-for-dollar basis if the bidder is the successful purchaser of the Property at the Auction. If the successful bidder fails to close, the Sale Deposit will be retained and applied against the Secured Party’s damages, with the Secured Party reserving the right to seek additional damages. All Sale Deposits (except that of highest bidder) shall be returned within three (3) business days of the conclusion of the bidding.