Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 78

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 uses operating income, including comparison of actual results to budget and forecast, in assessing the
performance of each segment and in evaluating product pricing, distribution strategies and marketing investments. Our CODM reviews balance
sheet information at a consolidated level. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A,
asset impairment charges and restructuring charges. The SG&A used to compute each segment’s operating income is directly associated
with the segment. We do not allocate non-operating income and expense, including interest or income taxes, to operating segments.

We
operate in three strategic business segments. The Video Solutions Segment encompasses our law, commercial, and shield divisions. This
segment includes both service and product revenues through our subscription models offering cloud and warranty solutions, and hardware
sales for video and health safety solutions. The Revenue Cycle Management Segment provides working capital and back-office services to
a variety of healthcare organizations throughout the country, as a monthly service fee. The Entertainment Segment acts as an intermediary
between ticket buyers and sellers within our secondary ticketing platform, ticketsmarter.com, and we also acquire tickets from primary
sellers to then sell through various platforms.

The
Company’s corporate administration activities are reported in the corporate line item. These activities primarily include expense
related to certain corporate officers and support staff, certain accounting staff, expense related to the Company’s Board of Directors,
stock option expense for options granted to corporate administration employees, certain consulting expenses, investor relations activities,
and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of
cash, invested cash (if any), refundable income taxes (if any), and deferred income taxes.

Summarized
financial information for the Company’s reportable business segments is provided for the three months ended September 30, 2025,
and 2024:

 SCHEDULE OF SEGMENT REPORTING

    Video Solutions  
    Entertainment  
    Revenue cycle Management  
    Corporate and other  
    Total 
  
    Three months ended September 30, 2025

    Video Solutions  
    Entertainment  
    Revenue cycle Management  
    Corporate and other  
    Total 
  
    Net revenues: 

    Product 
    $229,629  
    $434,793  
    $—  
    $—  
    $664,422 
  
    Service 
     1,216,592  
     1,294,980