Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 222

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 222
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    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     2,445,416  
     2,431,320 
  
    Total Product Revenues 
    $2,937,780  
    $3,773,447 

Product revenues for the six months ended June
30, 2025 and 2024 were $2,937,780 and $3,773,447, respectively, a decrease of $835,667 (22.1%), 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 $2,445,416 in product revenues for the six months ended June 30, 2025, compared to $2,431,320 for the six months ended June 30, 2024. Product revenue includes revenues generated by the Country Stampede music festival held annually during the last weekend of June, as well as the resale of tickets purchased for live events, sporting events, concerts, and theatre, then sold through various platforms to customers. The 2025 Country Stampede Music Festival generated $1,380,616 in total revenue compared to $787,208 in 2024. The slight increase in revenues is attributable to increased revenues from the 2025 Country Stampede Music festival offset by a reduction in scope of primary ticket sales by Ticketsmarter as it focuses on higher margin events to improve its gross margins. In addition, the wildfires in California caused many event cancellations and postponements during the six months ended June 30, 2025, that also depressed product sales.

    ●
    The Company’s video segment operating segment generated revenues totaling $492,364 during the six months ended June 30, 2025 compared to $1,342,127 for the six months ended June 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. We have been able to start the product