Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 255

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 255
---
 DVM-250, and DVM-250 Plus, which are our commercial line of digital video products
that serve as “event recorders” for the commercial fleet and mass transit markets; and FleetVu and VuLink, which are our cloud-based
evidence management systems. We further diversified and broadened our product offerings in 2020, by introducing two new lines of branded
products: (1) the ThermoVu™ which is a line of self-contained temperature monitoring stations that provides alerts and controls
facility access when an individual’s temperature exceeds a pre-set threshold and (2) our Shield™ disinfectants and cleansers
which are for use against viruses and bacteria.

Our video solutions segment
revenue encompasses video recording products and services for our law enforcement and commercial customers and the sale of Shield disinfectant
and personal protective products. This segment generates revenue through our subscription models offering cloud and warranty solutions,
and hardware sales for video and personal protective safety products and solutions. Revenues for product sales are recognized upon delivery
of the product, and revenues from our cloud and warranty subscription plans are deferred over the term of the subscription, typically
3 or 5 years.

Revenue Cycle Management
Operating Segment – We entered the revenue cycle management business late in the second quarter of 2021 with the formation of
our wholly owned subsidiary, Digital Ally Healthcare, Inc., and its majority-owned subsidiary Nobility Healthcare. Nobility Healthcare
completed its first acquisition in June 2021, when it acquired a private medical billing company, and has since completed three additional
acquisitions of private medical billing companies, in which we will assist in providing working capital and back-office services to healthcare
organizations throughout the country. Our assistance consists of insurance and benefit verification, medical treatment documentation and
coding, and collections. Through our expertise and experience in this field, we maximize our customers’ service revenues collected,
leading to substantial improvements in their operating margins and cash flows.

Our revenue cycle management
segment consists of our medical billing subsidiaries. Revenues of this segment are recognized after we fulfil the obligations of our
revenue cycle management services. Our revenue cycle management services are services, performed and charged monthly, generally based
on a contractual percentage of total customer collections, for which we recognize our net service fees.

44

Entertainment
Operating Segment - We also entered the live entertainment and events ticketing services through the formation of our wholly
owned subsidiary, TicketSmarter and its completed acquisitions of Goody Tickets, LLC and TicketSmarter,