Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 276

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 276
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 to customers in the following manner:

    ●
    Our
    entertainment operating segment generates product revenues from the sale of tickets directly to consumers for a particular event
    that the entertainment operating segment has previously purchased and held in inventory for ultimate resale to the end consumer.
    Our entertainment segment also generates product revenues from the sale of tickets, merchandise, parking and concessions at live
    events that it sponsors such as the annual Country Stampede music festival. Service sales through TicketSmarter are driven largely
    in part to the usage of the TicketSmarter.com marketplace by buyers and sellers, in which the Company collects service fees for each
    transaction completed through this platform 

We
may discount our prices on specific orders based upon the size of the order, the specific customer and the competitive landscape.

40

Product
revenues by operating segment are as follows:

    Three Months Ended September 30, 

    2025  
    2024 
  
    Product Revenues: 

    Video Solutions 
    $229,629  
    $306,245 
  
    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     434,793  
     497,700 
  
    Total Product Revenues 
    $664,422  
    $803,945 

Product
revenues for the three months ended September 30, 2025 and 2024 were $664,422 and $803,945, respectively, a decrease of $139,523 (17.4%),
due to the following factors:

    ●
    Entertainment
    segment revenue was $434,793 for the three months ended September 30, 2025, compared to $497,700 for the three months ended September
    30, 2024, a decrease of $62,907 (12.6%). Segment revenue includes amounts related to the 2026 Country Stampede music festival (held
    annually in late June) and the resale of tickets purchased for live events, sporting events, concerts, and theatre, which are sold
    through various platforms to customers. The decrease primarily reflects a lower volume of primary ticket sales as TicketSmarter focused
    on higher-margin events to improve gross margins.

    ●
    Video
    solutions segment revenue was $229,629 for the three months ended September 30, 2025, compared to $306,245 for the three months ended
    September 30, 202