Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 102

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 Assets 
    $25,963,663  
    $43,327,215 

The segment net revenues reported
above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income,
which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating
expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property,
plant and equipment, accounts receivable, inventories, and other assets.

52

Results of Operations

Revenues

Revenues by Type and by Operating Segment

Our operating segments generate
two types of revenue:

Product revenues primarily include
video solutions operating segment hardware sales of in-car and body-worn cameras. Additionally, product revenues also include the sale
of tickets by our entertainment operating segment that have been purchased or received through our sponsorships and partnerships and held
in inventory by our entertainment segment until their sale. Our entertainment sector also generates product revenue through our production
of live events and concerts including our annual Country Stampede music festival.

Service and other revenues consist
of cloud and warranty services revenues from our subscription plan and storage offerings of our video solutions segment. Our entertainment
operating segment’s secondary ticketing marketplace revenues are included in service revenue. We recognize service revenue from
sales generated through its secondary ticketing marketplace as we collect net services fees on secondary ticketing marketplace transactions.
Lastly, our revenue cycle management segment revenues are included in the service revenues for services provided to medical providers
throughout the country.

The following table presents revenues
by type and segment:

    Six Months Ended June 30, 

    2025  
    2024  
    % Change 
  
    Product revenues: 

    Video solutions 
    $492,364  
    $1,342,127  
     (63.3)%
  
    Entertainment 
     2,445,416  
     2,431,320  
     0.6%
  
    Total product revenues 
     2,937,780  
     3,773,447  
     (22.1)%
  
    Service and other revenues: 

    Video solutions 
     1,770,590  
     1,961,836  
     (9.8)%
  
    Entertainment 
     2,616,088  
     2,411,