Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 73

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 73
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 years ended December 31, 2023 and 2022, respectively, a decrease of        
 $1,172,429 (15%). We expect to continue to experience improved results from our two new operating segments and their recent acquisitions, 
 along with improved results from the video solutions segment as the recurring revenue model expands.                                      |

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| ● | Our                                                                                                                                      
 objective is to expand our video solutions segment’s recurring service revenue to help stabilize our revenues on a quarterly             
 basis. Revenues from cloud storages have been increasing in recent quarters and reached approximately $572,892 in the fourth quarter     
 of 2023, an increase of $141,725 (33%) over the fourth quarter of 2022. Overall, cloud revenues increased to approximately $1,994,066    
 for the year ended December 31, 2023 compared to approximately $1,471,860 for the year ended December 31, 2022, an increase of $522,206, 
 or 35%. We are pursuing several new market channels outside of our traditional law enforcement and private security customers, similar   
 to our NASCAR and event security customers, which we believe will help expand the appeal of our products and service capabilities        
 to new commercial markets. If successful, we believe that these new market channels could yield recurring service revenues for us        
 in the future.                                                                                                                           |

Off-Balance Sheet Arrangements

We do not have any off-balance sheet debt, nor did we have any transactions, arrangements, obligations (including contingent obligations) or other relationships with any unconsolidated entities or other persons that may have a material current or future effect on financial conditions, changes in the financial conditions, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenue or expenses.

We are a party to operating leases and license agreements that represent commitments for future payments (described in Note 15, “Commitments and Contingencies,” to our consolidated financial statements) and we have issued purchase orders in the ordinary course of business that represent commitments to future payments for goods and services.

For the Years Ended December 31, 2023 and 2022

Results of Operations

Summarized immediately below and discussed in more detail in the subsequent sub-sections is an analysis of our operating results for the years ended December 31, 2023 and 2022, represented as a percentage of total revenues for each respective year:

|                                                                                           |     | Years Ended December 31, |