Note 21. DEFERRED REVENUE

The Company recognizes deferred revenue when consideration is received in advance of the satisfaction of the related performance obligations. Deferred revenue of the Company’s continuing operations consists of advance ticket, camping, and related sales for the annual Country Stampede music festival, which are deferred until the performance obligation is satisfied upon the festival’s completion. Accordingly, the deferred revenue balance as of June 30, 2026 of $540,780 relates to the 2027 Country Stampede festival and is expected to be recognized during the three months ending June 30, 2027; the balance is classified entirely as current. The balance as of December 31, 2025 of $539,627 related to the 2026 festival, which was held in June 2026.

Deferred revenue activity for the six months ended June 30, 2026 was as follows:

SCHEDULE OF DEFERRED REVENUE 

During the six months ended June 30, 2026, the Company recognized $1,844,798 of revenue upon completion of the 2026 Country Stampede festival, of which $539,627 was included in the deferred revenue balance as of December 31, 2025. Revenue recognized during the year ended December 31, 2025 consisted of $1,380,616 recognized upon completion of the 2025 Country Stampede festival and $350,000 recognized under a TicketSmarter revenue-sharing arrangement.

Deferred revenue of the Video Solutions business, consisting principally of multi-year extended warranty contracts and prepaid cloud subscriptions, is included within liabilities of the Video Solutions business held for sale in the condensed consolidated balance sheets. See Note 22, Discontinued Operations.