Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 278

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 278
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 the three months ended September 30, 2025, compared to $710,580 for the
    three months ended September 30, 2024, a decrease of $41,581 (5.9%). Despite this slight decline, we continue to see increased adoption
    of our cloud solutions by law enforcement customers, driven by deployments of our cloud-based EVO-HD in-car system and next-generation
    body-worn camera products. We expect this adoption to continue through 2025 as customers migrate from local to cloud storage.

    ●
    Extended
    warranty services revenue was $491,297 for the three months ended September 30, 2025, compared to $141,716 for the three months ended
    September 30, 2024, an increase of $349,581 (246.7%). The increase was primarily driven by a non-recurring catch-up from a single
    customer that settled past-due extended warranty fees related to services provided in fourth quarter of 2024, resulting in higher
    revenue recognized in the current period.

    ●
    Our
    entertainment operating segment generated service revenues totaling $1,294,980 and $755,857 for the three months ended September
    30, 2025 and 2024, respectively, an increase of $539,123 (71.3%). TicketSmarter earns fees on transactions processed through the
    TicketSmarter.com platform for the purchase and resale of tickets to live events nationwide. Period results may vary as we continue
    to right-size the segment and prioritize profitability. In the quarter, we reduced ticketing volume for events that did not meet
    gross-margin thresholds while increasing emphasis on higher-margin events and expanding digital marketing activities, which together
    drove higher service revenue year over year.

    ●
    Our
    revenue cycle management operating segment generated service revenues totaling $1,361,163 and $1,601,792 for the three months ended
    September 30, 2025 and 2024, respectively, a decrease of $240,630 (15.0%). 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.

41

Total
revenues for the three months ended September 30, 2025, and