Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 45
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 $710,580 and $526,401 for the three months ended September 30, 2024     
 and 2023, respectively, an increase of $184,179 (35%). We have experienced increased interest in our cloud solutions for law enforcement 
 primarily due to the deployment of our cloud-based EVO-HD in-car system and our next generation body-worn camera products, which         
 contributed to our slight increase in cloud revenues in the three months ended September 30, 2024. We expect this trend to continue      
 throughout 2024 as the migration from local storage to cloud storage continues in our customer base.                                     |
| ● | Video                                                                                                                                    
 solutions operating segment revenues from extended warranty services were $141,716 and $226,056 for the three months ended September     
 30, 2024 and 2023, respectively, a decrease of $84,340 (37%).                                                                            |
| ● | Our                                                                                                                                      
 entertainment operating segment generated service revenues totalling $755,857 and $1,785,764 for the three months ended September        
 30, 2024 and 2023, respectively, a decrease of $1,029,907 (58%). TicketSmarter collects fees on transactions administered through        
 the TicketSmarter.com platform for the buying and selling of tickets for live events throughout the country. We expect our entertainment 
 operating segment to continue to fluctuate as we look to right-size this segment and work towards profitability.                         |
| ● | Our                                                                                                                                      
 revenue cycle management operating segment generated service revenues totalling $1,601,792 and $1,636,543 for the three months ended     
 September 30, 2024 and 2023, respectively, a decrease of $34,751 (2%). Our revenue cycle management operating segment provides revenue   
 cycle management solutions and back-office services to healthcare organizations throughout the country. We expect our revenue cycle      
 management segment to continue to present a strong revenue outlook moving forward.                                                       |

Total revenues for the three months ended September 30, 2024 and 2023 were $4,051,711 and $6,337,699, respectively, a decrease of $2,285,988 (36%), due to the reasons noted above.

| 29 |

Cost of Product Revenue

Overall cost of product revenue sold for the three months ended September 30, 2024, and 2023 was $547,562 and $2,587,750, respectively, a decrease of $2,040,188