Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 223

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 223
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    Product Revenues: 

    Video Solutions 
    $229,629  
    $306,245 
  
    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     434,793  
     497,700 
  
    Total Product Revenues 
    $664,422  
    $803,945 

Product
revenues for the three months ended September 30, 2025 and 2024 were $664,422 and $803,945, respectively, a decrease of $139,523 (17.4%),
due to the following factors:

    ●
    Entertainment
    segment revenue was $434,793 for the three months ended September 30, 2025, compared to $497,700 for the three months ended September
    30, 2024, a decrease of $62,907 (12.6%). Segment revenue includes amounts related to the 2026 Country Stampede music festival (held
    annually in late June) and the resale of tickets purchased for live events, sporting events, concerts, and theatre, which are sold
    through various platforms to customers. The decrease primarily reflects a lower volume of primary ticket sales as TicketSmarter focused
    on higher-margin events to improve gross margins.

    ●
    Video
    solutions segment revenue was $229,629 for the three months ended September 30, 2025, compared to $306,245 for the three months ended
    September 30, 2024, a decrease of $76,616 (25.0%). The year-over-year decline reflects continued pressure on product revenue as our
    in-car and body-worn systems face increased competition from newer products with advanced features. In addition, law-enforcement
    revenue decreased due to limited on-hand inventory to fulfill backlog orders, price competition and other competitive actions, and
    adverse marketplace effects related to our recent financial condition. During the first and second quarters of 2025, we restarted
    our product supply chain using proceeds from the February 2025 public equity offering, which we expect will support improved product
    availability and sales during the remainder of 2025.

    ●
    Our
    video solutions operating segment management continues to migrate commercial customers from upfront hardware sales to a recurring
    service-fee model. Accordingly, we expect lower commercial hardware unit sales (principally DVM-250, FLT-250, and portions of