Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 224

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 224
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-worn camera products, which contributed to our cloud revenues in the six months ended June 30, 2024. We expect this trend to continue for 2025 as the migration from local storage to cloud storage continues in our customer base.

    ●
    Video solutions operating segment revenues from extended warranty services were $468,417 and $433,592 for the six months ended June 30, 2025 and 2024, respectively, a slight increase of $34,825 (8.0%). 

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    Our entertainment operating segment generated service revenues totaling $2,616,088 and $2,411,351 for the six months ended June 30, 2025 and 2024, respectively, an increase of $204,737 (8.5%). TicketSmarter collects fees on transactions administered through the TicketSmarter.com platform for the buying and selling of tickets for live events throughout the country. We expect our entertainment operating segment to continue to fluctuate as we look to right-size this segment and work towards profitability. Our entertainment segment has focused on cost cutting and overall improvements in gross margin rather than top line revenues, which has resulted in a reduction in revenues for ticketing events that did not meet its gross margin goals. The entertainment operating segment has increased its use of Facebook and other social media to generate increased ticketing revenues in the second quarter of 2025 compared to 2024.

    ●
    Our revenue cycle management operating segment generated service revenues totaling $2,782,845 and $2,998,952 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $216,107 (7.2%). Our revenue cycle management operating segment provides revenue cycle management solutions and back-office services to healthcare organizations throughout the country. The decrease in revenue is due to refinement within one of the recent acquisitions, as they strive to maximize profitability rather than focus on top-line revenue.

Total revenues for the six
months ended June 30, 2025, and 2024 were $10,107,303 and $11,145,586, respectively, a slight decrease of $1,038,283 (9.3%), due to the
reasons noted above.

55

Cost of Product Revenue

Overall cost of product revenue
sold for the six months ended June 30, 2025, and 2024 was $4,577,503 and $4,986,647, respectively, a decrease of $409