Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 207

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 207
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 We further diversified and broadened our product offerings in 2020, by introducing two new lines of branded
products: (1) the ThermoVu™ which is a line of self-contained temperature monitoring stations that provides alerts and controls
facility access when an individual’s temperature exceeds a pre-set threshold and (2) our Shield™ disinfectants and cleansers
which are for use against viruses and bacteria.

Our video solutions segment revenue
encompasses video recording products and services for our law enforcement and commercial customers and the sale of Shield disinfectant
and personal protective products. This segment generates revenues through our subscription models offering cloud and warranty solutions,
and hardware sales for video and personal protective safety products and solutions. Revenues for product sales are recognized upon delivery
of the product, and revenues from our cloud and warranty subscription plans are deferred over the term of the subscription, typically
3 or 5 years.

Revenue Cycle Management Operating
Segment – We entered the revenue cycle management business late in the second quarter of 2021 with the formation of our wholly
owned subsidiary, Digital Ally Healthcare, Inc., and its majority-owned subsidiary Nobility Healthcare. Nobility Healthcare completed
its first acquisition in June 2021, when it acquired a private medical billing company, and has since completed three additional acquisitions
of private medical billing companies, in which we will assist in providing working capital and back-office services to healthcare organizations
throughout the country. Our assistance consists of insurance and benefit verification, medical treatment documentation and coding, and
collections. Through our expertise and experience in this field, we maximize our customers’ service revenues collected, leading
to substantial improvements in their operating margins and cash flows.

Our revenue cycle management segment
consists of our medical billing subsidiaries. Revenues of this segment are recognized after we perform the obligations of our revenue
cycle management services. Our revenue cycle management services are services, performed and charged monthly, generally based on a contractual
percentage of total customer collections, for which we recognize our net service fees.

Entertainment Operating Segment
- We also entered into live entertainment and events ticketing services through the formation of our wholly owned subsidiary, TicketSmarter
and its completed acquisitions of Goody Tickets, LLC and TicketSmarter, LLC, on September 1, 2021. TicketSmarter provides ticket sales,
partnerships, and mainly, ticket resale services through its online ticketing marketplace for live events, TicketSmarter.com. TicketSmarter
offers tickets for over 125,000 live events throughout