Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 109

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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 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:

    Nine months Ended September 30, 

    2025  
    2024  
    % Change 
  
    Product revenues: 

    Video solutions 
    $721,992  
    $1,648,373  
     (56.2)%
  
    Entertainment 
     2,880,210  
     2,929,019  
     (1.7)%
  
    Total product revenues 
     3,602,202  
     4,577,392  
     (21.3)%
  
    Service and other revenues: 

    Video solutions 
     2,987,182  
     2,851,952  
     4.7%
  
    Entertainment 
     3,911,068  
     3,167,208  
     23.5%
  
    Revenue cycle management 
     4,144,008  
     4,600,745  
     (9.9)%
  
    Total service and other revenues 
     11,042,258  
     10,619,905  
     4.0%
  
    Total revenues 
    $14,644,460  
    $15,197,297  
     (3.6)%

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