Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 220

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 220
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plant and equipment, accounts receivable, inventories, and other assets.

52

Results of Operations

Revenues

Revenues by Type and by Operating Segment

Our operating segments generate
two types of revenue:

Product revenues primarily include
video solutions operating segment hardware sales of in-car and body-worn cameras. Additionally, product revenues also include the sale
of tickets by our entertainment operating segment that have been purchased or received through our sponsorships and partnerships and held
in inventory by our entertainment segment until their sale. Our entertainment sector also generates product revenue through our production
of live events and concerts including our annual Country Stampede music festival.

Service and other revenues consist
of cloud and warranty services revenues from our subscription plan and storage offerings of our video solutions segment. Our entertainment
operating segment’s secondary ticketing marketplace revenues are included in service revenue. We recognize service revenue from
sales generated through its secondary ticketing marketplace as we collect net services fees on secondary ticketing marketplace transactions.
Lastly, our revenue cycle management segment revenues are included in the service revenues for services provided to medical providers
throughout the country.

The following table presents revenues
by type and segment:

    Six Months Ended June 30, 

    2025  
    2024  
    % Change 
  
    Product revenues: 

    Video solutions 
    $492,364  
    $1,342,127  
     (63.3)%
  
    Entertainment 
     2,445,416  
     2,431,320  
     0.6%
  
    Total product revenues 
     2,937,780  
     3,773,447  
     (22.1)%
  
    Service and other revenues: 

    Video solutions 
     1,770,590  
     1,961,836  
     (9.8)%
  
    Entertainment 
     2,616,088  
     2,411,351  
     9.0%
  
    Revenue cycle management 
     2,782,845  
     2,998,952  
     (7.42)%
  
    Total service and other revenues 
     7,169,523  
     7,372,139  
     (2.8)%
  
    Total revenues 
    $10,107,303  
    $11,145,586