Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 236

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 236
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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 it focuses on higher margin events to improve its gross margins.

    ●
    The
    Company’s video segment operating segment generated revenues totaling $721,992 during the nine months ended September 30, 2025
    compared to $1,648,373 for the nine months ended September 30, 2024. In general, our video solutions operating segment has experienced
    pressure on its product revenues as our in-car and body-worn systems are facing increased competition because our competitors have
    released new products with advanced features. Additionally, our law enforcement revenues declined compared to the same period in
    2024 due to the Company not having inventory in–stock to fulfill existing backlog orders, price-cutting and competitive actions
    by our competitors and adverse marketplace effects related to our recent financial condition. During the first three quarters of
    2025, we restarted our product supply chain using proceeds from the February 2025 public equity