Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 77

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 77
---
     (53.9)%

    Service and other revenues: 

    Video solutions 
     868,050 

    997,105
     
     (12.9)%

    Entertainment 
     1,535,313 

    1,531,801
     
     0.2%

    Revenue cycle management 
     1,350,551 

    1,434,599
     
     (5.9)%

    Total service and other revenues 
     3,753,914 

    3,963,505
     
     (5.3)%

    Total revenues 
    $4,475,264 
     
    $
    5,529,351
     
     (19.1)%

Our video solutions operating segment sells our products
and services to customers in the following manner:

    ●
    Sales to domestic customers are made directly to the end customer (typically a law enforcement agency or a commercial customer) through our sales force, comprised of our employees. Revenue is recorded when the product is shipped to the end customer.

    ●
    Sales to international customers are made through independent distributors who purchase products from us at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement.

    ●
    Repair parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.

45

Our revenue cycle management operating segment sells
its services to customers in the following manner:

    ●
    Our revenue cycle management operating segment generates service revenues through relationships with medium to large healthcare organizations, in which the underlying service revenue is recognized upon execution of services. Service revenues are generally determined as a percentage of the dollar amount of medical billings collected by the customer. 

Our entertainment operating segment sells our products
and services 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