Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 76

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 76
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 to customers in the following manner:

| ● | Sales                                                                                                                               
 to domestic customers are made directly to the end customer (typically a law enforcement agency or a commercial customer) through   
 our sales force, comprised of our employees. Revenue is recorded when the product is shipped to the end customer.                   |
| ● | Sales                                                                                                                               
 to international customers are made through independent distributors who purchase products from us at a wholesale price and sell    
 to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin 
 as compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and    
 all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the  
 terms of the distribution agreement.                                                                                                |
| ● | Repair                                                                                                                              
 parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue 
 is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.                     |

Our revenue 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:        |     | Years ended December 31, 
 2023                     |           |     | 2022 |            |
|:-------------------------|:----|:-------------------------|----------:|:----|:-----|-----------:|
| Video Solutions          |     | $                        | 4,303,369 |     | $    |  5