Kustom Entertainment Inc's Comment on Supply Chain
The Company sources raw materials from multiple suppliers, maintaining at least two suppliers for most materials. The largest supplier accounted for less than 5% of total purchases in fiscal years 2025 and 2024. The Company has experienced higher costs of goods sold due to limited sources for certain components and packaging materials, as well as rising prices for semiconductors and other key components. Tariffs on imported goods, including components and raw materials from foreign suppliers, have contributed to pricing uncertainty and may increase costs further. The Company is monitoring trade policy developments and is exploring supplier diversification, alternative sourcing, and cost management strategies to mitigate tariff impacts, although these measures may not fully offset cost increases.
Kustom Entertainment Inc's Comment on Supply Chain
The Company sources raw materials from multiple suppliers, maintaining at least two suppliers for most materials. The largest supplier accounted for less than 5% of total purchases in fiscal years 2025 and 2024. The Company has experienced higher costs of goods sold due to limited sources for certain components and packaging materials, as well as rising prices for semiconductors and other key components. Tariffs on imported goods, including components and raw materials from foreign suppliers, have contributed to pricing uncertainty and may increase costs further. The Company is monitoring trade policy developments and is exploring supplier diversification, alternative sourcing, and cost management strategies to mitigate tariff impacts, although these measures may not fully offset cost increases.
Sources:
Kustom Entertainment Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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