Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 289

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 289
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 and services to customers in the following manner:

    ●
    Our
    entertainment operating segment generates product revenues from the sale of tickets directly to consumers for a particular event
    that the entertainment operating segment has previously purchased and held in inventory for ultimate resale to the end consumer.
    Our entertainment segment also generates product revenues from the sale of tickets, merchandise, parking and concessions at live
    events that it sponsors such as the annual Country Stampede music festival. Service sales through TicketSmarter are driven largely
    in part to the usage of the TicketSmarter.com marketplace by buyers and sellers, in which the Company collects service fees for each
    transaction completed through this platform 

We
may discount our prices on specific orders based upon the size of the order, the specific customer and the competitive landscape.

46

Product
revenues by operating segment are as follows:

    Nine months Ended September 30, 

    2025  
    2024 
  
    Product Revenues: 

    Video Solutions 
    $721,992  
    $1,648,373 
  
    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     2,880,210  
     2,929,019 
  
    Total Product Revenues 
    $3,602,202  
    $4,577,392 

Product
revenues for the nine months ended September 30, 2025 and 2024 were $3,602,202 and $4,577,392, respectively, a decrease of $975,190 (21.3%),
due to the following factors:

    ●
    Revenues
    generated by the entertainment operating segment began with the Company’s September 2021 acquisition of TicketSmarter and the
    2024 acquisition of the Country Stampede Music Festival. The entertainment operating segment generated $2,880,210 in product revenues
    for the nine months ended September 30, 2025, compared to $2,929,019 for the nine months ended September 30, 2024. This product revenue
    relates to the 2025 Country Stampede music festival held by Kustom during 2025, as well as the resale of tickets purchased for live
    events, sporting events, concerts, and theatre, then sold through various platforms to customers. The decrease in revenues is attributable
    to a reduction in scope of primary ticket sales by Ticketsmarter as