Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 49

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 49
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 the entertainment segment was 78% for the three months ended September 30, 2024 as compared to 146% for the three months ended September 30, 2023.

Cost of Service Revenue

Overall cost of service revenue sold for the three months ended September 30, 2024, and 2023 was $1,764,175 and $2,523,800, respectively, a decrease of $759,625 (30%). Overall cost of goods sold for services as a percentage of service revenues for the three months ended September 30, 2024, and 2023 were 54% and 59%, respectively. Cost of service revenues by operating shipment is as follows:

| Cost of Service Revenues: |     | For                    
 the three months ended 
 September 30,          
 2024                   |           |     | 2023 |           |
|:--------------------------|:----|:-----------------------|----------:|:----|:-----|----------:|
| Video Solutions           |     | $                      |   269,962 |     | $    |   382,430 |
| Revenue Cycle Management  |     |                        |   935,070 |     |      | 1,011,429 |
| Entertainment             |     |                        |   559,143 |     |      | 1,129,941 |
| Total Cost of Service     
 Revenues                  |     | $                      | 1,764,175 |     | $    | 2,523,800 |

| 30 |

The decrease in cost of service revenues for our video solutions segment reflects our staffing reductions implemented during 2024 in order to right-size our operations commensurate with our service revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Cost of service revenues as a percentage of service revenues for the video solutions segment decreased to 30% for the three months ended September 30, 2024 as compared to 47% for the three months ended September 30, 2023.

Cost of service revenues as a percentage of service revenues for the revenue cycle management operating segment remained consistent at 58% for the three months ended September 30, 2024 as compared to 62% for the three months ended September 30, 2023.

The decrease in entertainment operating segment cost of service revenues is commensurate with the decrease in service revenues in the three months