Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 175

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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 has gained some traction, resulting in decreased product revenues and increasing our service revenues. We expect this program to continue to hold traction, resulting in recurring revenues over a span of three to five years.

46

Service and other revenues by
operating segment is as follows:

    Three months ended March 31, 

    2025  
    2024 
  
    Service and Other Revenues: 

    Video Solutions 
    $868,050  
    $997,105 
  
    Revenue Cycle Management 
     1,350,551  
     1,434,599 
  
    Entertainment 
     1,535,313  
     1,531,801 
  
    Total Service and Other Revenues 
    $3,753,914  
    $3,963,505 

Service and other revenues for the three months ended
March 31, 2025 and 2024 were $3,753,914 and $3,963,505, respectively, a decrease of $209,591 (5%), due to the following factors:

    ●
    Cloud revenues generated by the video solutions operating segment were $594,742 and $616,488 for the three months ended March 31, 2025 and 2024, respectively, a slight decrease of $21,746 (4%). We continue to experience increased interest in our cloud solutions for law enforcement primarily due to the deployment of our cloud-based EVO-HD in-car system and our next generation body-worn camera products, which contributed to our cloud revenues in the three months ended March 31, 2024. We expect this trend to continue for 2025 as the migration from local storage to cloud storage continues in our customer base.

    ●
    Video solutions operating segment revenues from extended warranty services were $228,430 and $380,618 for the three months ended March 31, 2025 and 2024, respectively, a decrease of $152,188 (40%). This correlates with the decrease in sales of hardware during the three months ended March 31, 2025.

    ●
    Our entertainment operating segment generated service revenues totaling $1,535,313 and $1,531,801 for the three months ended March 31, 2025 and 2024, respectively, a slight increase of $3,512 (0.2%). TicketSmarter collects fees on transactions administered through the TicketSmarter.com platform for the buying