Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 47

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 47
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 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.         
 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.

Product revenues by operating segment is as follows:

| Product Revenues:        |     | For                    
 the three months ended 
 September 30,          
 2024                   |         |     | 2023 |           |
|:-------------------------|:----|:-----------------------|--------:|:----|:-----|----------:|
| Video Solutions          |     | $                      | 306,245 |     | $    |   977,193 |
| Revenue Cycle Management |     |                        |       - |     |      |         - |
| Entertainment            |     |                        | 497,700 |     |      | 1,118,044 |
| Total Product Revenues   |     | $                      | 803,945 |     | $    | 2,095,237 |

Product revenues for the three months ended September 30, 2024 and 2023 were $803,945 and $2,095,237 respectively, a decrease of $1,291,292 (62%), due to the following factors:

| ● | Revenues                                                                                                                                  
 generated by the entertainment operating segment began with the Company’s September 2021 acquisition of TicketSmarter. The                
 entertainment operating segment generated $497,700 in product revenues for the three months ended September 30, 2024, compared to         
 $1,118,044 for the three months ended September 30, 2023, a decrease of $620,344 (55%). Product revenue relates to the timing of          
 the first Kustom 440 music festival in 2023 that did not recur in 2024, the initial Country Stampede music festival in 2024, as well      
 as the resale of tickets purchased for live events, including 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.                                                                          |

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