Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 50

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 50
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 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.         
 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