Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 97

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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. The distributor generally maintains product inventory, customer receivables and
    all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the
    terms of the distribution agreement.

    ●
    Repair
    parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue
    is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.

Our
revenue cycle management operating segment sells its services to customers in the following manner:

    ●
    Our
    revenue cycle management operating segment generates service revenues through relationships with medium to large healthcare organizations,
    in which the underlying service revenue is recognized upon execution of services. Service revenues are generally determined as a
    percentage of the dollar amount of medical billings collected by the customer. 

Our
entertainment operating segment sells our products and services to customers in the following manner:

    ●
    Our
    entertainment operating segment generates product revenues from the sale of tickets 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.
    Our entertainment segment also generates product revenues from the sale of tickets, merchandise, parking and concessions at live
    events that it sponsors such as the annual Country Stampede music festival. 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.

40

Product
revenues by operating segment are as follows:

    Three Months Ended September 30, 

    2025  
    2024 
  
    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:

    ●