Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 288

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 288
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(1.7)%
  
    Total product revenues 
     3,602,202  
     4,577,392  
     (21.3)%
  
    Service and other revenues: 

    Video solutions 
     2,987,182  
     2,851,952  
     4.7%
  
    Entertainment 
     3,911,068  
     3,167,208  
     23.5%
  
    Revenue cycle management 
     4,144,008  
     4,600,745  
     (9.9)%
  
    Total service and other revenues 
     11,042,258  
     10,619,905  
     4.0%
  
    Total revenues 
    $14,644,460  
    $15,197,297  
     (3.6)%

Our
video solutions operating segment sells our products and services to customers in the following manner:

    ●
    Sales
    to domestic customers are made directly to the end customer (typically a law enforcement agency or a commercial customer)
    through our sales force, comprised of our employees. Revenue is recorded when the product is shipped to the end customer.

    ●
    Sales
    to international customers are made through independent distributors who purchase products from us at a wholesale price and sell
    to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin
    as compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and
    all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the
    terms of the distribution agreement.

    ●
    Repair
    parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue
    is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.

Our
revenue cycle management operating segment sells its services to customers in the following manner:

    ●
    Our
    revenue cycle management operating segment generates service revenues through relationships with medium to large healthcare organizations,
    in which the underlying service revenue is recognized upon execution of services. Service revenues are generally determined as a
    percentage of the dollar amount of medical billings collected by the customer. 

Our
entertainment operating segment sells our products