Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 89

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 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.

Product revenues by operating
segment are as follows:

    Three Months Ended June 30, 

    2025  
    2024 
  
    Product Revenues: 

    Video Solutions 
    $438,132  
    $620,939 
  
    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     1,740,828  
     1,586,662 
  
    Total Product Revenues 
    $2,178,960  
    $2,207,601 

46

Product revenues for the three months ended June
30, 2025 and 2024 were $2,178,960 and $2,207,601, respectively, a decrease of $28,641 (1.3%), due to the following factors:

    ●
    Revenues generated by the entertainment operating segment began with the Company’s September 2021 acquisition of TicketSmarter and the 2024 acquisition of the Country Stampede Music Festival. The entertainment operating segment generated $1,740,828 in product revenues for the three months ended June 30, 2025, compared to $1,586,662 for the three months ended June 30, 2024. Product revenue includes revenues generated by the Country Stampede music festival held annually during the last weekend of June, as well as the resale of tickets purchased for live events, sporting events, concerts, and theatre, then sold through various platforms to customers. The 2025 Country Stampede Music Festival generated $1,380,616 in total revenue compared to $787,208 in 2024. The slight decrease in revenues is attributable to a reduction in the scope of primary ticket sales by Ticketsmarter as it focuses on higher margin events to improve its gross margins. In addition, the wildfires in California caused many event cancellations and postponements during the three months ended June 30, 2025