Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 76

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 76
---
    Revenue Cycle Management 
     4,863,764  
     1,989,068 
  
    Entertainment 
     4,898,381  
     6,482,510 
  
    Corporate 
     7,707,828  
     12,520,139 
  
    Total Identifiable Assets 
    $30,256,336  
    $45,164,195 

The segment net revenues reported
above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income,
which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating
expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property,
plant and equipment, accounts receivable, inventories, and other assets.

44

Results of Operations

Revenues

Revenues by Type and by Operating Segment

Our operating segments generate
two types of revenues:

Product revenues primarily includes
video solutions operating segment hardware sales of in-car and body-worn cameras, along with sales of our ThermoVuTM units,
disinfectants, and personal protective equipment. Additionally, product revenues also include the sale of tickets by our entertainment
operating segment that have been purchased or received through our sponsorships and partnerships and held in inventory by our entertainment
segment until their sale.

Service and other revenues consist
of cloud and warranty services revenues from our subscription plan and storage offerings of our video solutions segment. Our entertainment
operating segment’s secondary ticketing marketplace revenues are included in service revenue. We recognize service revenue from
sales generated through its secondary ticketing marketplace as we collect net services fees on secondary ticketing marketplace transactions.
Lastly, our revenue cycle management segment revenues are included in the service revenues for services provided to medical providers
throughout the country.

The following table presents revenues by
type and segment:

    Three Months Ended March 31, 

    2025 
     
    2024
     
    % Change 

    Product revenues: 

    Video solutions 
    $54,231 
     
    $
    721,188
     
     (92.5)%

    Entertainment 
     667,119 

    844,658
     
     (21.0)%

    Total product revenues 
     721,350 

    1,565,846