Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 72

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 72
---
   |         (71.2 | )% |     |   |          (66.1 | )% |
| Net income/(loss)                                  |     | $                   |        (7,484,778 | )  |     | $ |         (3,679,043 | )  |     | $ |    (8,320,549 | )  |     | $ |     (5,979,579 | )  |     | $ |        (9,574,258 | )  |     | $ |         (1,919,071 | )  |     | $ |      (682,187 | )  |     | $ |     (6,698,242 | )  |

Our business is subject to substantial fluctuations on a quarterly basis as reflected in the significant variations in revenues and operating results in the above table. These variations result from various factors, including but not limited to: (1) the timing of large individual orders; (2) the traction gained by products, such as the recently released FirstVu Pro, FirstVu II, FLT-250, EVO HD, the ThermoVu™ and the Shield™ lines; (3) production, quality and other supply chain issues affecting our cost of goods sold; (4) unusual increases in operating expenses, such as the timing of trade shows and stock-based and bonus compensation; (5) the timing of patent infringement litigation settlements (6) ongoing patent and other litigation and related expenses respecting outstanding lawsuits; and (7) the completion of corporate acquisitions including the recent purchases in the revenue cycle management and entertainment operating segments. We reported net loss of $7,484,778 on revenues of $6,228,351 for the fourth quarter of 2023.

The factors and trends affecting our recent performance include:

| ● | The                                                                                                                                       
 Company formed two new operating segments in 2021 and continued to make acquisitions within these segments in 2021 and 2022 resulting     
 in increased revenues and costs. The Company has since focused on the profitability of these segments and resulting in fluctuating        
 revenues and costs on a quarterly basis. The entertainment operating segment generated $14,063,381 and $20,871,500 in revenue during      
 the years ended December 31, 2023 and 2022, respectively, a decrease of $6,808,119 (33%). The revenue cycle management operating          
 segment generated $6,713,678 and $7,886,107 in revenue for the