Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 170

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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 arts. We also offer production and promotion of live music events in third-party venues throughout the country. These services
begin with the logistical matters of an event, including artist booking and research, ticketing, staging, on-site operations, vendor sourcing,
and day of production.

Our entertainment operating segment
consists of entertainment services provided through TicketSmarter and its online platform, TicketSmarter.com. Revenues of this segment
include ticketing service charges generally determined as a percentage of the face value of the underlying ticket and ticket sales from
our ticket inventory which are recognized when the underlying tickets are sold. Entertainment direct expenses include the cost of tickets
purchased for resale by the Company and held as inventory, credit card fees, ticketing platform expenses, website maintenance fees, as
well as other administrative costs.

43

Off-Balance Sheet Arrangements

We do not have any off-balance
sheet debt, nor did we have any transactions, arrangements, obligations (including contingent obligations) or other relationships with
any unconsolidated entities or other persons that may have a material current or future effect on financial conditions, changes in the
financial conditions, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenue
or expenses other than the following:

We are a party to operating leases
and license agreements that represent commitments for future payments and we have issued purchase orders in the ordinary course of business
that represent commitments to future payments for goods and services.

Comparison of the Three Months Ended March 31,
2025 and 2024

Summary Financial Data

Summarized financial information
for the Company’s reportable business segments is provided for the three months ended March 31, 2025, and 2024:

    Three Months Ended March 31, 

    2025  
    2024 
  
    Net Revenues: 

    Video Solutions 
    $922,281  
    $1,718,293 
  
    Revenue Cycle Management 
     1,350,551  
     1,434,598 
  
    Entertainment 
     2,202,432  
     2,376,460 
  
    Total Net Revenues 
    $4,475,264  
    $5,529,351 

    Gross Profit (loss): 

    Video Solutions 
    $555,761  
    $565,694 
  
    Revenue Cycle Management 
     467,663