Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 272

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 272
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 country. Our assistance consists of insurance and benefit verification, medical treatment
documentation and coding, and collections. Through our expertise and experience in this field, we maximize our customers’ service
revenues collected, leading to substantial improvements in their operating margins and cash flows.

38

Our
revenue cycle management segment consists of our medical billing subsidiaries. Revenues of this segment are recognized after we fulfil
the obligations of our revenue cycle management services. Our revenue cycle management services are services, performed and charged monthly,
generally based on a contractual percentage of total customer collections, for which we recognize our net service fees.

Entertainment
Operating Segment - We also entered the live entertainment and events ticketing services through the formation of our wholly owned
subsidiary, TicketSmarter and its completed acquisitions of Goody Tickets, LLC and TicketSmarter, LLC, on September 1, 2021. TicketSmarter
provides ticket sales, partnerships, and mainly, ticket resale services through its online ticketing marketplace for live events, TicketSmarter.com.
TicketSmarter offers tickets for over 125,000 live events throughout the country through its platform, including concerts, sporting events,
theatres, and performing arts. We also began offering production and promotion services in relation to live music events in third-party
venues throughout the country through our Kustom Entertainment, Inc. subsidiary. These services begin with the logistical matters of
an event, including artist booking and research, ticketing, staging, on-site operations, vendor sourcing, and day of production.

Our
entertainment operating segment consists of entertainment services provided through TicketSmarter and its online platform, TicketSmarter.com.
Revenues of this segment include ticketing service charges generally determined as a percentage of the face value of the underlying ticket
and ticket sales from our ticket inventory which are recognized when the underlying tickets are sold. Entertainment direct expenses include
the cost of tickets purchased for resale by the Company and held as inventory, credit card fees, ticketing platform expenses, website
maintenance fees, as well as other administrative costs.

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 other than